Green shoots of automotive recovery
24th March 2011
If the past five years has taught the automotive industry anything it is to expect the unexpected. With top manufacturers’ struggling amid the financial crisis most have seen their figures decrease dramatically since 2005*.
Automotive companies to emerge strongest were those who were the quickest to adapt to the overnight change in demand.
Six years ago, the Toyota Motor group was tenth on the list, with profits totalling $11.13 billion. However, in 2010 it registered a massive slump, falling 350 places. It wasn't just the Japanese car giant who felt the automotive crunch; Germany's Daimler AG (formerly DamilerChrysler) fell from position 33 to 388, whilst Nissan dropped from 59 to 424.
During these challenging times, Rudolph and Hellmann Automotive worked tirelessly with clients to respond rapidly to the challenges faced. Sharply reducing costs in tune with production demand but the issues faced were diverse. At the same time as reducing headcount, 40,000 engines were being delivered for cars no longer scheduled to be built.
This doesn’t sound too big a challenge until you realise they were a mixture of diesel and petrol engines with a wide range of cc’s. Imagine having to find storage space, catalogue, and then sequence them, so they could be seamlessly integrated into the production line when orders increased.
With a 1.8 percent increase in UK car sales figures in 2010, it’s all too easy to forget the challenges faced and how quickly things changed. Manufacturers are now looking to the future and more dynamic partnerships with 3pls to boost revenue and profitability.
No other 3pl shares as much risk with the automotive manufacturer than Rudolph and Hellmann Automotive or are more responsive to your needs.
* According to Forbes Global 2000 list for the year 2010.
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