Jaguar and Land Rover could strike a deal with Daimler originally appeared on Autoblog on Mon, 05 May 2008 13:32:00 EST. Please see our terms for use of feeds.

Although simple in concept, the complexity of the internal combustion engine is mind-boggling. Most of the time we take it for granted when we turn the ignition key, shift into gear and step on the gas, but a marvel of mechanics, managing thousands of little explosions each minute, keeps us traveling smoothly down the highways and byways and streets where we live.

This video gives us an animated look at a virtual engine, from bare block to ignition. The inline-four engine is made by Deutz, an independent German machine manufacturer. See every component: casted this, braided that, spinning this, machined that. The animated video shows the engine assembling itself, then gives you an inside look at the combustion compartment, injecting fuel, igniting it and expelling the exhaust fumes.

As you marvel at the complexity of it all, remember that this is a relatively simple four-cylinder engine. Imagine throwing in a few more cylinders, a turbocharger or two, variable valve timing... you get the idea.

[Source: Deutz AG]

VIDEO: the internal combustion engine, in all its 3D glory originally appeared on Autoblog on Mon, 23 Oct 2006 14:31:00 EST. Please see our terms for use of feeds.

The Level Field Institute - a group consisting of Big 3 retirees - has released a report detailing the impact of domestic and transplant automotive OEMs on the American auto parts industry, and it contains some interesting nuggets of information.

Of the $225B in auto parts purchased from the US last year, approximately 77% was bought by the Big 3. GM led the spending with $85B in purchases, compared to $20B by Toyota. Overall, the domestic content of vehicles from the Big 3 averaged 71%, while Japanese automakers came in at 48% (note that both figures include vehicles that were manufactured elsewhere and imported into the US). Honda has the highest domestic content of any company outside of the Big 3, with 59% of its parts sourced in North America.

As the Level Field Institute points out, if the Big 3 were to drop their domestic parts buying down to the level of import manufacturers, the net loss to the US auto parts industry would be about $83B and 232,000 jobs. On the other hand, if the import manufacturers bring their domestic component buying up to the same level as the Big 3, the gain would be about $47B and 131,000 jobs. In all likelihood, what we'll actually see in the coming years is a convergence of these trends, with domestic manufacturers buying fewer components state-side, and foreign manufacturers increasing their domestic content.

[Source: Level Field Institute]

Warning - the Read link below points to a PDF.

Level Field Institute releases report on domestic content originally appeared on Autoblog on Fri, 01 Sep 2006 15:26:00 EST. Please see our terms for use of feeds.

Al Koch helped see over the revival of Kmart, so he knows a thing or two about financial difficulty - and that's exactly what he sees in the auto-part industry. Koch specially mentions decreasing production from domestic automakers as potentially causing severe trouble. While a move away from incentives has increased the profitability of the Big Three, it puts the squeeze on suppliers by decreasing production (you can bet that none of that profit makes its way down the supply chain). The loss of cash flow is particularly hazardous to those who have made substantial capital and R&D investments - not the sort of businesses that the industry wants to see struggling.

One potentially good shred of news is that capital is still easy to obtain, so that those suppliers who wish to borrow money can still do so. Conditions could also improve if gas prices fall or if the domestic automakers manage to stabilize their market share. A relatively painless resolution of the Delphi situation would also be viewed as a positive sign for the segment.

[Source: Houston Chronicle] 

Turnaround expert: Auto parts sector is a "very, very troubled industry" originally appeared on Autoblog on Fri, 23 Jun 2006 16:59:00 EST. Please see our terms for use of feeds.