International Research

Brazil BSS Perspectives for the Automobile Industry

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This report is a summary of a presentation delivered by executives of Booz Allen Hamilton and GM do Brazil in a Society of Mobility Engineers (SAE) event, held in September 2006. It should be of interest to U.S. automotive companies.

 

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Brazil Autoparts Manufacturer Expansion Vehicle Chassis and Suspension Systems Manufacturer Double Production

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ZF Lemförder, a division of Grupo ZF do Brasil which produces vehicle chassis and suspension systems, plans to duplicate production capacity of its factory at Sorocaba.

 

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Belgium Automotive Market Auto Accessories and Specialty Equipment

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The Belgian auto accessories market holds significant opportunities for American companies. While five million vehicles in Belgium represent a small market, relative to the US, it is open to American products. The most important consideration for American exporters to keep in mind in creating auto-related goods for the European market is that design must fit European specifications and style.

 

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Mexico Automotive Industry

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The automotive industry continued to be the largest and fastest growing manufacturing sector in Mexico during 2005 and 2006. In late 2005 and early 2006, Mexico emerged with positive and encouraging results in the North American automobile industry. Mexico is rapidly becoming a more important strategic partner for automakers who want a competitive edge to succeed in the North American auto industry. In 2001, Mexico was the ninth largest producer of automotive vehicles in the world, manufacturing 1.92 million units (including trucks and busses). In 2004, production decreased to 1.5 million vehicles due to an economic slowdown. However, it grew to 1.6 million in 2005 and is expected to grow to over 2.1 million in 2006.

 

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Austria Automotive Parts and Equipment Market Brief

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The following statistics are estimates by the author of this report, based on (incomplete) official figures, as well as information from trade organizations and local companies. All figures in US$ millions, Euro exchange rate used is 2005: $1 = EUR 0.804.

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Australia Motorcycle Dealing

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The data in this report encompass the wholesale and retail markets of new and used motorcycles, scooters, associated parts, accessories and service equipment. The motorcycle industry contributes around US$3.5 billion to Australia’s economy. Growth from 1999- 2003 in the motorcycle industry steadily declined, but, the past year has seen an increase in both industry revenue and gross product. In 2005, a total of 102,142 bikes were sold; the first time in thirty years that sales have exceeded 100,000. This is a 14.3% increase over 2004 when there were only 89,374 sales.

 

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Argentina Automotive Industry Growth

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After experiencing a record 54 percent growth during 2004, the Argentine automotive industry grew by an impressive 23 percent in 2005. The increased output was mainly for export markets other than MERCOSUR. Export sales grew by 24 percent during the period and continue to be the driving force of the recovery. Additionally, sales in the domestic market have begun to recover and according to the Automotive Manufacturers’ Association (ADEFA) are expected to grow by ten percent during 2006.

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United Kingdom Automotive Parts Aftermarket

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The automotive aftermarket spans the life of a vehicle between the end of the original manufacturers’ warranty and its end of life. In value terms, the aftermarket cost of maintaining Britain’s road vehicles is approximately $25 billion. This annual expenditure figure is not expected to change dramatically in the next few years, but how and where it is spent is of enormous importance to the local economy, because Britain is heavily dependent on road transport for economic and social reasons, and because the automotive industry and the garage trade are important employers of skilled labor throughout the country.

 

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Ukraine Automotive Market

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This report examines market trends in Ukraine for cars. Products described in this report are cars, SUVs, sports cars and mini-vans generally designed for individual motorists. With an annual sales volume of an estimated USD 2.0 billion, an estimated 80 percent import dependency, and growth demand of not less than 30 percent, the Ukrainian market for cars may present a good opportunity for American car dealerships or individuals who may possess excess or unsold inventory of subject products, as well as for American automotive aftermarket companies selling spare parts, accessories or garage service equipment.

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United Kingdom Automotive Body Repair Systems and Equipment

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UK automotive body repair shops buy tools, equipment, consumables and supplies worth approximately $160 million each year to support the 27 million passenger cars and 6 million trucks, vans and buses registered in Britain. Annual sales of capital equipment used for body repair rise in line with inflation, but show little evidence of real market growth. Electric and
pneumatic power tools and accessories show better prospects for increased sales, and both environmental and health and safety concerns are bringing changes in work practices that will require automotive paint shops to invest in new equipment and facilities. As in most industries that rely on craft skills, there is a constant need for materials and supplies, either as accessories to the power tools used, or as part of a manual finishing process.

 

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