Automotive Industries

News Release

Automotive Industries

(MMD Newswire) April 22, 2009 -- The Latest Issue of Automotive Industries is now available, In the Editor's Introduction of Volume 188 Issue 1, AI's Editor, Ed Richardson talks about the "Components maketh the car" and introduces "RESCUE DETROIT"

Automotive Industries Volume 188 Issue 1 "Editors Introduction" Your Challenge: A world leader in automobile production is in financial trouble, and is fast running out of cash. You have to take over, and try to save the company from bankruptcy, to re-think its business strategy and to rebuild its balance sheet. Thousands of employees, suppliers, communities and investors are relying on you to turn the situation around.

Sound familiar? Well, on "Rescue Detroit," a "real-time" business simulation game with instant feedback, you get to try it over and over until you get it right. We are promoting the simulation package because we know that saving the auto industry is not a game, and there is very little room for error. For the first time, decision-makers are able to test strategies and decisions before putting them into action. Go to the Automotive Industries site (www.ai-online.com) and click on "AI Rescue Detroit".

One of the first lessons is the importance of the supply chain. This is highlighted in a recently released study by the PWC Automotive Institute, which states that "the supply sector, having just emerged from a period of inflated commodity prices, is now being impacted most severely by declining volumes, difficulties in obtaining credit, the risk of business failure of their own suppliers and liquidity concerns at their largest customers.

"Between 2003 and 2007, the top-20 suppliers (by sales revenue) saw revenues rise 36%, yet witnessed a cost of revenue increase of 39%, meaning that margins have struggled to exceed 2%". This has left numerous suppliers exposed as "OEMs slash production". At the same time, the credit crunch is making it difficult for suppliers to raise finance for both short and longer-term investment. Even the reprieve in commodity prices over the last six months is providing little relief as most suppliers will not take advantage until hedging contracts end. "All told, the sector is possibly facing its worse crisis in living memory". According to the European suppliers organisation CLEPA, it is possible 500 European suppliers will go out of business in 2009 - ten times the average.

Even suppliers with stronger balance sheets, high value-add products, and concentrated market share or investment in growth technologies face an uncertain future. With cash management being the overriding survival tool, investment in R&D investment and new capacity will be cut, with long-term implications for competitiveness, predicts PWC.

OEMs have taken note, and some like BMW and Mercedes are working together to develop and source common parts in order to give their suppliers the advantages of economies of scale. Others are providing management support and even funding as a last resort. But, given the challenges now facing many of the OEMs themselves, they have limited resources themselves.

A radical rethink by component suppliers is needed, and Indian companies are among the leaders. Is it not time to redefine a business from, say, "making wiring harnesses for the auto industry" to a "specialist wiring harness solutions supplier" or some such wording. Immediately the market expands exponentially - washing machines, vacuum cleaners, robots, drills, MRI Scanners, etc all need wiring harnesses. Or an extruder of interior components - any reason why the skills and machines already in the company can't supply another sector?

More diversified extrusion, wiring, lighting, plastics or glass suppliers would be in a much stronger position to negotiation with the OEMs, and would also be spreading their risks. We see this in suppliers of communications and design technology, many of which are relative late-comers to the auto industry. So, we know it works.

Just a thought - to quote a Fiat ad in South Africa "use it, don't use it".

Previous releases

2007 "AUTOMOTIVE INDUSTRIES GROWTH CONTINUES"

Automotive Industries Ltd is pleased to announce that online coverage of their flagship print publication "Automotive Industries" is growing, and growing faster than originally expected.

John Larkin, Publisher stated "The team were aware when taking over the reins of AI in May 2005, that a substantial investment of time and expertise would be needed to provide a balance print and online offering to AI's established global automotive readership. In July 2005 we were seeing web traffic of around 3000 hits per day/90,000 per month, the fact that AI is now averaging over 50,000 hits a day/1.5 million in Feb 06, is outstanding. It's great news for our OEM/Tier one readership, who now have a single platform of communication, both in print and online."

The growth continues..."There are now considerably more marketing benefits available to our advertising clients, both in levels of industry exposure and advertising ROI, including (from April 06 edition) ai-online.com embedded video, enabling flash presentations as a "lean forward" interface, the main credit for this growth is due to AI's global team of editors, associate publishers and consultants whose hard work and commitment is fuelling AI's growth. AI is looking forward to meeting current and future clients of AI at the SAE World Congress in Detroit, in early April 2006." he added.

AI web traffic growth can be viewed here:

http://www.ai-online.com/usage-reports/

AUTOMOTIVE INDUSTRIES APPLIES FOR BPA WORLDWIDE BUSINESS PUBLICATION MEMBERSHIP

Shelton, CT November 18, 2005 - Automotive Industries has applied for business publication membership in BPA Worldwide. Automotive Industries is published by Automotive Industries Ltd (Versailles, KY).

BPA Worldwide will track circulation for Automotive Industries based on business/distribution, demographics and geographic coverage. The magazine will have 12 months to complete its initial circulation audit.

"The Automotive Industries publishing team is proud to be working on AI, the world's oldest continually published trade publication covering the automaking business," said John Larkin, publisher of AI. "AI's strong recent growth of has made it a perfect time to apply for membership with BPA Worldwide. Our firm commitment to AI's recipients and advertisers will be enhanced by our future membership in BPA."

"We are pleased that Automotive Industries has applied for membership in BPA Worldwide," said BPA president and CEO Glenn Hansen. "We applaud the publisher for providing advertisers and prospects with the solid assurance of an independent circulation audit conducted according to our world-respected, uncompromising standards. With a BPA audit, media buyers can be confident that circulation claims are accurate, and that they have the verified data that they need to assess a publication's effectiveness in serving its market."

Automotive Industries Ltd acquired the title Automotive Industries, the world's oldest trade magazine covering the global automotive industry on the 30th April 2005.

The following trademarks are included Automotive Industries, AI, AI Automotive Industries and Design, AI Insider, AI-Online, the internet domain name www.ai-online.com and the content located thereat, plus all back issues of 'Automotive Industries'.

John Larkin, Publisher of apn said "It is an honor to be part of AI's future, we would like to thank Rob Wilson for his publishing teams amazing dedication to AI....I have spoken with publishing experts today who describe AI as 'such a great brand'....'the premium brand in the industry'...'a magazine with great brand equity'...'AI has a strong share of mind and is well respected in the industry'...this is testimony to Rob Wilson and his team at Diesel Publications. ... Going forward, with auto publishers taking cost out of their operations and focusing their financial resources on content and quality...I think it's a great time for suppliers to buy low-cost, high-quality, brand building and enquiry generating advertising"

"We at Diesel & Gas Turbine Publications wish every success to Automotive Industries, John Larkin and the new team," said Rob Wilson, former publisher of AI and President of Diesel & Gas Turbine Publications. "We will work diligently to effect a smooth transition to the new owners. Automotive Industries is one of the most storied publications in existence and stands on the brink of many further accomplishments that should provide readers and advertisers crisp insight and in-depth feature material."

THE AUDIENCE: The who's who of $1 Trillion automotive decision-making, a global readership from purchasing & supply, manufacturing, engineering, quality, logistics & finance. Audience: Average Qualified Circulation 50,000.

The Automotive Industries controlled circulation list is made up of key decision-makers within the enormous multi-billion dollar international automotive manufacturing industry. These top executives, engineers and managers of plants are directly involved in the design and production of all types of motorized vehicles and their components.

Automotive Industries, has been the global industry publishing leader since 1917. Founded in 1895, AI today has a readership of about 200,000* people around the world (* 3-4 readers per copy). It has sales consultants in 6 countries and its magazines are distributed worldwide.

More information on AI can be found at www.ai-online.com

BPA www.bpaww.com