Entries Tagged 'Automotive Articles' ↓

A Career in Automotive Design

Probably every neighborhood from New York to California and Maine to Florida has a kid who likes to draw cars. And maybe those kids will proudly announce that when they grow up they are going to be car designers. For many, that dream will fall by the wayside but for a select few it will become reality. In the early mid-forties, Giorgietto Giugiaro and Marcello Gandini were a couple of Italian kids who like to draw cars. Today, they are Italy’s top designers.

The vehicle designer is responsible for creating the exterior and interior appearance of over the road vehicles. Generally, these are automobiles but trucks, vans, coaches, and motorcycles are also included.

The designers usually work in teams. One person does the exterior, another the interior and a third works with colors, materials and trim. The working environment and working conditions are pleasant. It is a risk-free career that does not usually require overtime or weekend work.

A design begins with a set of digital or manual sketches. Once these are approved by management, more detailed drawings follow. Then clay models or digital models are developed. The same procedure is followed for exterior, interior, and color and trim design.



However the road from car sketches to the design studio is paved with hard work beginning in high school. Auto design is one of the most competitive careers in the design industry. Consequently the competition to gain admission to the colleges that offer transportation design classes is fierce.

Prospective designers need to begin in high school with all the two-dimensional drawing classes they can fit into their schedule. But it isn’t enough to just be able to draw a car. They also need to understand aerodynamics, engineering concepts and ergonomics. They will be working with figures so knowledge of math and physics is required.

And throughout high school they need to work on building a drawing portfolio. All colleges require a portfolio. And it goes without saying that the better the portfolio, the better the graduate’s chances of being accepted by a prestigious institution.

While many schools offer majors in industrial design only a few specialize in transportation design, which is the recommended career path for future vehicle designers.

It is important to make a wise choice of colleges. One needs to examine the credentials of the faculty and the reputation of the courses. Most important, the institution should have a strong industry connection. Part-time faculty members who work in the industry are of immeasurable help, in guiding students’ work to meet industry’s demands and assisting them in finding employment upon graduation.

Once in college, the students will pursue a four-year design major. During the first years they will study drawing and design theory. In later years they will concentrate on computing and model making. Some schools provide an internship in a design studio during the third or fourth year. These are valuable since internships are often a direct path to an entry-level job upon graduation.

However, the job market is much better for engineers than designers. For every vacant design position, there are twenty engineering jobs. In spite of this, the student with outstanding talent and creativity will always be recognized and find a niche in the industry.

By: Brenda Williams
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Bal Crank Oil Pumps Only For Cars

If you have been looking for automotive equipment sales, service and installation then this is the right place. You can find the best quality of services and unmatched support. Whether it is Balcrank oil pumps or car parts, you can find everything online under one roof. In fact, this company is an authorized distributor for most of the major brands like Rotary, Graco, Champion, Lincoln, John Bean, Coats, Ammco, and RTI and so on. You can also expect servicing and repair for vehicles and parts of various industrial items. For instance, they specialize in installation of Surface Mount lifts, Lubrication, Compressed air and exhaust systems and the likes. Not just automotive equipment you can find products under different categories like lifts, exhaust hose, air compressors, lubrication equipment, reels, electric/light reels, jacks and accessories, shop furniture, vehicle service equipment, fluid storage tanks, sorbents, transair pipping and miscellaneous equipments.

There are promotional offers too and they can offer some great savings on a wide range of products. You can find the best manufacturers online. Here is a list of manufacturers that sell their original and genuine products through this portal.

List Of Manufactures

* Alemite
* Allpart Supply, Inc.
* Associated Equipment Corp
* Auto meter
* Bal crank products, Inc
* BendPak
* BJ enterprises
* Champion compressors
* Coxreels
* Crushproof Tubing Co.
* DSP Monoxivent
* General manufacturing
* Goodall manufacturing
* Hein-Werner automotive
* Hose tract industries
* Lincoln Industrial Corp.
* Liquid Dynamics, Inc.
* Lubeq Corp.
* Lyon Workspace Products
* Meltblown Technologies
* Milton Industries, Inc.
* Norco Industries, Inc.
* Omega Lift Equipment
* Plews
* Reelcraft Industries, Inc.
* Reelcraft Parts
* Rhino Tuff Tanks
* Rotary Lift
* Rotary Lift Parts
* RTI Technologies, Inc.
* Sequoia
* Shure Manufacturing Corp.
* Steelman – JS Products
* Transair
* Trinco Tool Company

There is a wide range of automotive equipment, cars, automobiles and a host of other product on sale. The services offered by this company keeps your business running in good condition. Moreover, you can find all types of services and repairs under different categories at this place. It is a one-stop shop for all your needs. You can shop for these items online. However, the minimum order should be of $ 25.00. You can also place international orders from outside USA. It will attract additional custom charges.

Not only does this company sell products, they also do installation of the same. They can also recommend manufacturer certified installers. They will also assist you with the warranty of products purchased through this site. Moreover, your purchase order will be processed online through a secured server. At no time will your data be shared with any other entity.

When buying automotive equipment online, it is essential to check factors like warranty, guarantee, and limitation of liability, confidentiality, security, installation services, returns policy, prices and taxes. Check these aspects before you purchase any products. This company has been in business since 1927 and they are the best in this industry. If you have been looking for any automobiles equipment, then this is the right place.

By: Walker Wild
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Remote Keyless Entry – An Advanced Automotive Feature

Remote Keyless Entry is popular feature in modern cars, that provides the rider with operational convenience as well as a code-based security to the vehicle. It operates on a wave-based communication between an RF transmitter (key side) and a receiver unit (vehicle side). Scroll down the page to know more about this technology.

Technology has shown tremendous growth in all sectors, with automobile being no exception. Vehicles today are increasingly becoming automated and high-tech. A number of digital features are being added to provide the rider with a safe and comfortable driving experience. Counting these features, keyless remote device is perhaps the first name that comes to our mind. This small apparatus can remotely control over the car, hence facilitates great convenience to the rider. Furthermore, it can protect the vehicle from several theft attacks. If you’re new to this technology, and unfamiliar with its working and benefits, read the remaining part of this article.

Remote keyless device is designed to remotely permit or deny the access to a vehicle. It offers a safe mechanism to control several vehicle functions such as locking/unlocking the car doors, turn on/off the interiors, open the car latch and start the ignition. All these tasks can be done without manual insertion of the key. In addition to this operational convenience, remote keyless device boasts of an ultimate security to the vehicle as well as the rider. It provides a code-based security to the vehicle, and makes it almost impossible to break in the car. If someone manages to do so, he will not be able to drive the car off as the car remains immobilized without the use of original key/remote.

The functioning of keyless remote is very easy to understand. It consists of an RF transmitter (key-side), and a receiver unit (vehicle side), which communicate through radio waves on a fixed frequency. The frequencies used by remote devices range from 315 MHz (In the United States and Japan) to 434/868 MHz (in Europe). When the user presses a remote button, the RF transmitter sends signal through radio waves. Then, the receiver unit catches the signal and identifies the code. If the code is valid and accepted, the receiver unit transforms the transmitted input into the requested output. The core benefit of keyless remote is the security that is robust enough to prevent the vehicle from scanning and grabbing attacks. The latest devices come with encrypted coding system that makes it virtually impossible to scan the code through code-grabbing devices.

With so many beneficial features, keyless remotes are gaining a huge popularity. They are very stylish and easy to carry on, hence have become a trademark of fashion. Almost all branded cars come equipped with this feature. However, the remotes can be further purchased if someone losses his existing one, or want this system to be installed in his old purchased car. There are many locksmiths who provide keyless remotes for all models of cars (specific remote comes for all makes and models). For instance, you have a car manufactured by Nissan keyless entry remote will be specific to that model. You just need to specify your requirements, and they will provide the exact solution. However, you need to confirm if the locksmith you’re dealing with offers the remotes for your model of car.

By: Stacey Kumar
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Types Of Automotive Lifts

Car lifts can be found in most urban cities. You see them being used by mechanics to raise vehicles access from underneath. In the past, most lifts were of the in-ground type. These days, the majority of garages have surface-mounted lifts, which are bolted to the ground and utilize a hydraulic pump or a screw-type drive powered by an electric motor.

Here are the different types, available from garage equipment supply dealers:

In-Ground Car Lifts

This type of auto lift is assembled below the floor of the garage. It consists of one or more pistons, depending on its maximum weight capacity. Lifts with one or two pistons are used to raise compact, mid-sized and full-sized cars. Lifts with three or more pistons are used for larger vehicles, such as buses and RV’s.

Two-Post Surface Mounted

The most common vehicle lift utilized today is called the “Two Post Surface-Mounted Lift.” On each column, there are lift arms. These are controlled mechanically, electronically or hydraulically.

Multi-Post Runway

The most common type of Multi-Post Runway lift is the four-post mounted lift, which is extensively used by transmission, oil change, and muffler service shops. You’ll find this type of vehicle lift in wheel alignment service stations as well. The car is driven onto the two runways and raised, exposing its underside.

Low/Mid Rise Frame Engaging

This type of car lift engages the vehicle’s frame while lifting. There are two ways this type may operate. One way is scissor-style, moving straight up. Another is parallelogram-style, moving forward or backward, while raising or lowering. This type is commonly used for wheel, brake, and tire services, as well as auto body repair.

Drive-On Parallelogram Vehicle Lift

The Drive-On Parallelogram Lift is a surface-mounted auto lift. It has two runways where the wheels of the car should be placed. It has a lifting mechanism that moves the vehicle a short distance forward or backward while raising or lowering. The direction depends upon the way the lift is mounted.

Scissor Lifts

The Scissors Vehicle Lift can either be of a fixed-pad type or a roll-on frame/underbody engaging type. It has a lifting mechanism that’s similar to the parallelogram lift. The main difference is that the scissor lift goes up and down, on a straight vertical path.

Movable-Type Wheel Engaging Automotive Lift

This type of auto lift is used for vehicles that are longer than conventional cars, such as buses and trucks. It consists of several lifting columns in sets of two, four, six, or more. Columns can be moved can can be connected with other columns so that their movements are synchronized.

By: Anna Barlow
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China automotive electronics markets continue to heat up

Automotive has been born centuries. Americans, Europeans, Japanese, Korean, Brazilian and citizens of one after another countries have begun to enjoy the car  civilization.The car expanded the people’s travel radius hundredfold. On May 2001, the first Buick car was on the market in China.Since then, the cars strated going into Chinese families. As more and more regular chinese people are access to cars easily, today China has become the world’s largest auto market.

Since then, a huge automotive market began to appear in China. Now the car consumption market has become unlimited prosperity: car accessories market continues to heat up; many articles of consumption appear one by one,such as car GPS navigation, car audio, xenon lights, car perfume, car MP3,Explosion-proof membrane, car DVD, car decoration;car insurance products also emerge frequently.

The development of China’s auto products industry has great potential. It is predicted that in 2011, only the automotive electronics market will reach nearly 240 billion yuan with an average of 26% annual growth rate. Automotive safety systems markets will also have greater development.Certainly not only in China, the automotive electronics products are also popular in worldwide areas.

EpathChina Limited is a China based electronics wholesaler and drop ship supplier, where you can purchase 8 thousands high quality electronics at incredible wholesale prices,such as Mobile Phones, MP4 & Media Players, Surveillance & Security Equipments, Home Electronics, Car(Auto) Electronics, Computers, Gadgets, Accessories And Consumer Electronics!

These days, ePathChina enriched its products categories. It offers a rich supply of different Special Auto GPS DVD players for you with most competitive wholesale / drop ship prices Compared with other China electronics supliers,our price is always more reasonable and our products is always quality.

These GPS DVD players may cover all the ordinary branded cars and their main models on the market,for instance, the Audi A4/TT,BMW M3/X5,Toyoda Carolla and so on.

All these product are multi-function products with a combination of HD video recording, photograph, sound recording, online chat, outlay T-flash card and AV out. It is mainly used for on-vehicle GPS navigation and audio and vidio entertainment.It is surely wonderful and fantasic.If you want to watch HD video you can connect it with a matched screen, then you enjoy the happy moment at that time.

By: kevinchou
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Why Is Locksmith Del Mar, Ca The Perfect Option?

It goes without saying that as far as the matter of safety and security are concerned, it is Locksmith Del Mar, CA, who helps people have a sigh of restful relief. It is true that it is only the locks which take care or guard your house, office or any asset after you leave your house or office. Therefore, for better and tight security and safety, people always prefer to use such locks as can give you the perfect security to your property.
When it comes to the quality locks and keys services, one had better to leave everything up to Locksmith Del Mar, CA, as they offer comprehensive security services for residential, commercial, automotive and many more like them.
Locksmith Del Mar, CA Services and Prices:
As far as the service offered by the Locksmith Del Mar, CA is concerned; they offer the best and secure services to their customers. They are experienced in making and repairing door locks, installations of locks and keys, replacements, upgrading & re-keying of any type kind of lock and many more services related to keys and locks. Following are some more services provided by the Locksmiths Del Mar, CA for commercial, residential, emergency and automotive requirements.


Commercial Services at Locksmiths Del Mar, CA
• High Security Locks
• Office & Business Lockout
• File Cabinet Re-key
• Alarm Systems
• Desk Lock Re-key
• Upgrading of all kinds of locks
• Emergency Exit Devices
• Master Key Installation
• Keyless Locks
Residential Services at Locksmiths Del Mar, CA
• Desk Key and Lock Replacement
• Master Re-key
• All kinds of Lock Installation
• Door & Lock Repair
• Lock Change
• Key Duplication
• Mail-box Key Duplicates
• Replacement of Lost Keys
• Lock Picking
• House Lockout
Emergency Services at Locksmiths Del Mar, CA
• Emergency House Lock Out
• Break-in / Lockout on location locks replaced
• All day, all night emergency lockout service
• Emergency locks Re-key, Master Re-keys
• Repair / change / install door security accessories and hardware
Automotive Services at Locksmiths Del Mar, CA
• Lost Transponder Keys
• Replacement of Car Keys
• Garage Lock Installation
• Car lockout service
• Emergency Car Lock opening
• Unlock Vehicles
• Replace Ignition Keys
To put it briefly, Locksmith Del Mar, CA offers the best customer service for 24 hours and 7 days a week at reasonable and affordable price. They will not charge you anymore, if you need them at the odd hours or on holidays and weekends. Really the quality and variety of services makes Locksmith Del Mar, CA so popular among a number of people.

By: Richard Powell
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Overview of the Latest Automotive Warning Devices

One day, we might enjoy the luxury of sitting back in our cars and letting them take care of every single task. Until then, we’ll have to make due with the latest in automotive warning technology. Automakers have been working relentlessly to provide drivers with a growing array of tools that help them drive more safely.

Below, we’ll explore a few of the latest behind-the-wheel warning technologies, such as blind spot cameras, collision avoidance devices, and lane departure systems. Most of these options are currently limited to pricier makes and models. But, they’re bound to spread throughout carmakers’ inventories as drivers clamor for the latest in safe driving.

Blind Spot Cameras

Blind spots are one of the most common obstacles to driver safety. And the larger the vehicle, the broader the blind spot. To compensate, more carmakers are installing cameras on the outside of their vehicles that can identify objects normally hidden from view. These cameras will not only help prevent backover accidents, but will also help drivers avoid colliding with other motorists or structures.



Collision Avoidance Devices

A few luxury models (notably from Mercedes Benz) are coming equipped with anti-collision devices. Sensors are built into the car which can detect whether a collision with another vehicle is imminent. The system’s first reaction is to alert the driver audibly. Then, it prepares for impact by increasing the tension in the seat belts, priming the airbags, and applying braking power in order to reduce the severity of the collision. Once the motorist applies the brakes, the system transfers over all power to him or her.

Lane Departure Systems

Lane departure systems are now coming in two different flavors. An early version warns motorists if they begin to drift into another lane without activating their turn signals. In some models, the warning is delivered through an audible beep. Other models are designed to cause the steering wheel to shake.

The most recent version takes the concept one step further. Rather than merely warning the motorist, the system lightly triggers the brakes on one side of the car in order to bring it back into the lane.

Balancing Automotive Technology With The Driver’s Brain

The ongoing challenge for carmakers is to determine the level of control to give these new safety devices. It is not a simple task. While making these systems as powerful as possible may initially seem intuitive, many motorists are unwilling to relinquish such control. It is a balancing act.

For example, a new feature from BMW is designed to work in heavy “stop and go” traffic. The feature stops the vehicle when it senses the car ahead of it has stopped. Then, it moves the vehicle forward again when the car in front moves forward. No intervention from the person behind the wheel is necessary. But, are BMW owners willing to surrender this level of control? It is too early to tell.

One thing is predictable. Over the next several years, automotive warning systems will likely become more robust and better capable of protecting motorists and their passengers.

By: Eric Driver
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Translation services for the automotive industry in Austria

Austria has emerged as a driving force behind Europe’s automotive industry.  

Numerous global automotive manufacturers and component suppliers are continually setting up new and substantial investment and development projects in Austria.

Automobiles and automotive components made in Austria are particularly in demand around the world: the export ratio is about 90%.

The prime export destinations are the European Union and the United States.

Austria is also home to about 80 international automotive suppliers.

The business and research communities are closely linked in Austria. Component suppliers, motor vehicle manufacturers, service providers and research institutions work together in clusters and competence centers and exploit innovations.

The three most important automotive clusters located in Upper Austria, Styria and the Vienna Region promote strategic partnerships and support the automotive industry’s developments and effective competitiveness.

Professional automotive translation services could become a competitive advantage as well because will help the industry to expand further.

And in reality, to compete effectively on the global market, Austrian-based automotive OEMs and automotive suppliers invest huge sums of money to make sure that their materials are all translated accurately and in a process-optimised manner.

 

Translation services requirements for the automotive sector

For one of the biggest industries in Austria professional translation services is not an option, but a necessity.

The Austrian automotive industry must make technically complex products easy to be produced, sold, serviced and operated for millions of professionals, agents, service centers and customers around the globe by:

  • Providing training and user materials in different languages to its international workforce
  • Providing all production and maintenance documents into the languages of the professionals who will produce, maintain and service the automotive industry products
  • Providing customer-facing documents into in the respective languages of the markets in which its products are sold
  • Meeting the legal, language and cultural preferences and local customer preferences on different markets.

 

Automotive translation expertise and terminology

All the key areas of the Austrian automotive industry – design, engineering, manufacturing, production, sales and marketing require professional multilingual translation and localisation services.

Automotive translation can cover everything from technical service manuals and mechanical instructions translation, catalogues and warranty books translation, legislation and patents translation, to marketing materials and website translations.

Automotive technical documents translation

Technical translations for the automotive sector in particular must be translated by professional translation experts who have a technical understanding of the key automotive terminology, abbreviations and colloquialisms. It is also important to have an understanding of related engineering sectors such as industrial equipment, mechanical engineering, electronic engineering and telecommunication.

To ensure the consistency of automotive translation, automotive translators must have access to industry-specific translation memories and dictionaries and up-to-date knowledge of the latest developments in the automotive industry.

 

Automotive non-technical documents translation

Besides the need of technical documents translation, the automotive industry in Austria requires translation of many non-technical documents as well.

  • Legal translations: Translation of cooperation and maintenance contracts, translation of licenses, translation of legislation and implementing rules.
  • Advertising translations: Translation of websites, translations of brochures, advertising campaigns and other commercial materials.
  • Corporate translations: Translation of bid and tender documentation, translation of Expression of Interest and  Request for Proposals, translation of annual reports, translation of crew training and internal communication.

 

Industry-specific terminology is a given so it is essential to select professional translators who have suitable qualification and experience of translating in the relevant field (technical translation, legal translation, advertising translation and etc.) as well as extensive experience with OEMs.

It is imperative for Austrian-based automotive business to use language services provided by a translation company that is experienced and well-versed in automotive language translations.

For example, translation company EVS Translations: a full-service translation company with a global presence and over 20 years experience and processes in line with ISO 9001.   

Automotive translation is one of the key areas of expertise at EVS Translations which has master agreements with OEMs and Tier 1 suppliers.

EVS Translations has  the resources and experience to complete even the most challenging automotive translation projects (high volume, tight deadline, multilingual, IT resources). Visit evs-translations.com

 

By: des nik
Posted:

Reliable Yet Affordable Automotive Repair Services

Reliable Yet Affordable Automotive Repair Services Do you own a vehicle? Are you worried due to vehicle problems? Well, there is nothing more frustrating than auto problems. After all vehicle is an assembly of machines and may give problems now or then. When your car starts to give some problem, then your next step is to find a source for reliable automotive repair services.

Many car owners ignore minor car problems. It is essential to understand that automotive repair is not the task to be done at absolute worst time. Most of times, car owners only seek expert aid in case of major car problems. However, smart way is to know when it is the best time to find a great automotive repair shop. Yes, it is before your car starts to show up problems. When it comes to automotive repair, many people search all over town for a car service you can trust. At our automotive repair services store, you will get excellent automotive repair services at reasonable rates. We are proud to have an experienced team that specializes in comprehensive automotive repairs. No matter whether you want service for tire repair, transmission repair, engine repair or full brake system, our expert team will serve you the best. With our experienced team, we are right there to help you in your bad time. We can deal with any automotive repair from a simple oil change to a complete engine overhaul.

If you are frustrated due to irritating knock in the motor or oil spots on your driveway, then you can find the solution for all types of automotive repair services at our store. You will also find automotive repair manuals and free automotive repair tips to accomplish the task in easier, faster and effective way. This automotive service is particularly for people who intend to learn more about automotive repairs like oil change, radiator, etc.

It is essential for every car owner to know how to identify probable automotive problems before they occur. If you prevent auto problems before it starts, then this could be helpful to save your time and money as well. If you are interested in knowing how to troubleshoot and fix yourself a car problem, then you can refer automotive repair manual available online. If you are looking for a reliable automotive repair services, then we are one-stop resource for all your needs. Customer satisfaction is our forte and we believe in quality repairs, fair pricing and integrity. We strive hard to make lasting customer relations. Get ready to avail multiple benefits of using our reliable automotive repair services now.

It is essential to remember that auto repair is integral aspect for every owner. With regular servicing and repairing, you can keep your vehicle in good condition. With help of various free automotive repair manuals at our store, you can accomplish the repair task without making a big hole to your pocket. Get ready to keep your vehicle running on road for years to come.

By: automotix makes
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THE IMPACT OF BANK CONSOLIDATION ON AUTOMOTIVE INDUSTRY FINANCING IN NIGERIA

Abstract

The study examined the impact of bank consolidation on automotive industry financing.

61 respondents selected through strategic random sampling technique from GM Motors Nigeria Ltd formed the population for the study.

Data was collected using a survey instrument designed by the researcher. Chi-Square Statistical method was used to test the hypotheses and all findings held at 0.05 alpha significant level. The Analysis of the data revealed that the participants almost unanimously agreed that bank consolidation had impacted positively to the automobile sector in Nigerian economy.

Based on the findings, it was therefore recommended among others things that a regular review of automotive industry in Nigeria by the appropriate authorities while effort should be made to improve the power system (electricity situation) in Nigeria.

INTRODUCTION

Background of the Study

Mergers and acquisitions should be taken seriously as an instrument for enhancing banking efficiency, size, and developmental roles in every economy. Mergers and acquisitions especially in the banking industry is now a global phenomenon.

All over the world and given the role of finance, size has become an important ingredient for success in the globalizing world. The last few years have witnessed the creation of the world’s big banking groups through mergers and acquisitions. The trend has been influenced by factors such as prospects of cost-savings due to economies of scale as well as more efficient allocation of resources, enhanced efficiency in resource allocation, and risk reduction arising from improved management. However, the automotive industry is not left out in the process of alliances. Over the years the industry has witnessed different types of global alliances. For instances Renault- Nissan, VW-Skoda, GM-Daewoo to mention a few them

In the past, the small size of most Nigerian banks, each with expensive headquarters, heavy fixed costs and operating expenses and with bunching of branches in few commercial centers had lead to very high average cost for the industry. This in turn has implications for the cost of intermediation, the spread between deposit and lending rates, and puts undue pressures on banks to engage in sharp practices as means of survival. In an effort to survive the hurdle, the Central Bank of Nigeria introduced the 25 billion Naira minimum capital base for banks in an effort to make our banks much stronger and to able to compete favorably with other banks in the world in providing credit facilities to other sectors of Nigeria economy.

However, in 2004 as part of economic reform in some emerging economies, the Nigerian banking system underwent remarkable change, in terms of the number of institutions, ownership structure, as well as depth and breadth of operations. Banks begin to merge with other banks; while bigger banks begin to acquire smaller ones while automotive industry has become an increasingly pertinent contributor to country’s’ gross domestic product, mainly through strong growth in the motor industries in terms of increasing volume of local production and number of sales. And this is not peculiar to Nigeria alone.

This scenario raises the question “what impact of banks consolidation on automotive industry financing in Nigeria? It is important to envision this evolution from a life cycle of production assembly and sales that have impacted on the financial statements of GM Motors Nig LTD. In order to sustain this process, the automotive industry as a whole requires huge capital intensity from strong and reliable financial back- up to remain viable in the economy and optimize their environmental impact, communicate positive steps to non-governmental organization and other stakeholders to discharge their social corporate responsibilities while maintaining design of product, service system from a sustainability point of view. Hence this work is set to assess the impact of bank consolidation and capital provision for the automotive industry financing in Nigeria (A case study of GM Nigeria ltd)

COOPERATE PROFILE OF GM MOTORS LTD

GM Nigeria is a foremost player in the automotive industry and one of the leading motor vehicle assemblers and marketers in the country. GM Nigeria is a joint venture company between UAC of Nigeria Plc – one of the biggest conglomerates in Nigeria and General Motors Corporation of Detroit, the world’s largest automobile manufacturers. The relationship of these two companies gives them the best support and advantage in all facets of their operations, i.e. Sales, Parts, Services and Assembling.

About GM Global
General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM today employs about 321,000 people around the world. It has manufacturing operations in 32 countries and its vehicles are sold in 200 countries.  GM’s automotive brands are Buick, Cadillac, Chevrolet, GMC, Holden, HUMMER, Oldsmobile, Opel, Pontiac, Saab, Saturn and Vauxhall. In some countries, the GM distribution network also markets vehicles manufactured by GM Daewoo, Isuzu, Subaru and Suzuki

Brief History of GM Motors in Nigeria

1920 – Started as a Company called Miller Brothers Nigeria Limited which imported cars in to West Africa

1927 – Started importing completely assembled Bedford commercial vehicles into Nigeria.

1929 – Became the Motors Department of then UAC, now known as UACN Plc

1931 – Name changed to Niger Motors Limited. Continued importing built vehicles.

1949 – Commercial Vehicles were shipped in as double unit packs which contained partially assembled chassis for two vehicles in one pack and the wheels in the second pack to be assembled locally.

1959 – Established Nigeria’s First Vehicle Assembly Plant at Apapa. The Company assembled the popular Bedford Trucks of various models.

1965 – The Assembly Plant was renamed Federated Motors Industries, Then popularly known as “FMI” and the distribution arm remained “Niger Motors”.

1979 – FMI started the assembly of trucks from “completely knocked down” (CRD) components.

1980 – The Federal Government accorded FMI the “Progressive Vehicle Manufacturer” status, under the Approved User Scheme. This nomenclature was to attest to its high standard and quality products at that period. FMI and Niger Motors were converted into divisions of UACN Plc.

1991 – UACN Plc and General Motors Corporation of USA incorporated GM Nigeria Limited as a Joint Venture Company. The Assets of FMI and Niger Motors were then transferred to GM Nigeria Limited.

Vision

To be number one in the commercial segment of the automotive industry by providing exceptional value to our customers.

Mission

To provide automotive products of such quality as to enable our customers enjoy superior value while delighting other stakeholders

Incorporation and Address

GM Nigeria Limited is incorporated in Nigeria under the Companies & Allied Matters Act 1990 as a private limited liability company, and domiciled in Nigeria. The address of its registered office is:
31, Mobolaji Johnson Street ,
Oregun Ikeja, Lagos .

Principal Activities

The principal activities of the company are: assembly of SKD (Semi Knocked Down) motor components to produce medium and heavy commercial trucks, importation of FBU (Fully Built Unit) pick-ups, marketing and distribution of vehicles through its network or branches and dealers nationwide. The company provides product support for parts and service at its Oregun plant, Port Harcourt branch, Abuja branch and through its numerous Parts and services dealers. The company is also involved in provision of technical training for employees, dealers and fleet customer’s personnel.

The company’s product range includes Isuzu Light, medium and heavy commercial vehicles (all with various body applications).

Shareholding Of Gm Nigeria Ltd

According to the register of members at 31st December, 2007, the following shareholders of the company held more than 10% of the capital issued shared capital of the company:

Shareholder

Number of Shares

Percentage Held (%)

UAC of Nigeria Plc

72,000,000

60

General Motors, USA

36,000,000

30

Staff of GM motors Nigeria       12,000,000                                 10

Source financial statement GM motors 2007

1.2       STATEMENT OF THE PROBLEM

Serious national efforts towards the development of the automotive industry in Nigeria took place in the early 1970s, with initial joint venture agreements between Peugeot and Volkswagen companies. By 2001, there were over 20 different enterprises manufacturing different types of vehicles, from boats to trucks, including motorcycles and bicycles automobiles in Nigeria. The capacity utilization of the majority of these companies is, however, very low, largely due to the high cost of importing the components needed to assemble vehicles, non government patronage and poor capital base of some of these organizations. By the introduction of the policy of bank consolidation a lot of Nigeria feels that the banking sector will see to the end of this problem. But on the contrary, Nigeria roads are littered with imported second hand vehicle, many of them as old as 10years, as the country is an attractive dumping ground for all kinds of toxic waste while a lot of automotive companies in Nigeria winding up. Hence this study is sets to examine the impact of bank consolidation on automotive financing in Nigeria.

THE OBJECTIVES OF THE STUDY

     This study sets out to:

  1. To establish the effects of bank consolidation on capital provision for the automobile sector in Nigeria.
  2. To provide a research oriented framework for the development of good understanding of the basic aspects and importance of bank consolidation as it affects automotive industry in any economy.
  3. To determine the inherent relationship between bank consolidation and capital provision for the automotive industry
  4. Determine the resent increase financial statement of GM motors and the working capital available for the industry

  RESEARCH QUESTIONS

       The following Research Questions will thus guild this study:

  1. In what way does the bank consolidation affect funding for the automotive industry in Nigeria?
  2. What are the benefits that the automotive sector has derive from bank consolidation exercise?
  3. To what extent does Banks consolidation provide a vehicle for automotive industry survival in a dynamic business environment?
  4. To what extent does bank consolidation enhance growth in the automotive industries?
  5. To what extent does the resultant effect of banks consolidation increase the market potential of the automotive industry

 STATEMENT OF HYPOTHESES

The following stated research hypotheses will guild this study:

 HYPOTHESIS 1

Ho: There is no significant impact of bank consolidation and capital provision for the automotive industry in Nigeria.

H1: There is a significant impact of bank consolidation and capital provision for the automotive industry in Nigeria.

HYPOTHESIS 2

Ho: Banks consolidation do not provides a vehicle for automotive industry survival and growth, in a dynamic business environment.

H1: Banks consolidation provides a vehicle for automotive industry survival in a dynamic business environment.

HYPOTHESIS 3

H0: The effect banks mergers does not increase the market potential of the automotive industry

H1: The effect of banks merger increases the market potential of the automotive industry

1.6       SIGNIFICANCE OF THE STUDY

The research is significant in the following ways: Firstly, it will help investors in the automobile industry to appropriate the opportunities provided by the consolidation exercise in that particular sector.

Secondly, it will further assist entrepreneurs to understand the relevance of consolidation of banks to capital provision and finally, it will serve as useful source of material for researchers and students.

1.7 THE SCOPE/DELIMITATION OF THE STUDY

This Study will be limited to Sixty one staffs of GM motor Nigeria Ltd. It will covers the funding of the automotive industry in Nigeria.

DELIMITATION OF THE STUDY

 The study only looked at the impact of bank consolidation on the automotive industry. The population of the study covers only the staff of GM motors Ltd Oregun, Lagos. Therefore, this study may not be generalized.

As the researcher was the sole interviewer and instrument of this study, researcher bias may be possible in any of the interpretations. Though the researcher worked hard to keep out any personal opinions, the possibility of subjectivity may still be present.

Also, it is possible that respondents didnt give accurate information about their operations in other to maintain some level of social dignity. Human Resources manager of the organization also had to answer interview questions from the researcher. This provided a certain level of uncomfortableness and uncertainty as he was worried that he may be judged by his responses. And finally the dearth of literature materials in the automobile sector also was a major challenge

 Summary of Findings

This work examined the impacts of banks consolidation on automotive industry financing, using G.M Motor Ltd as a case study. Sixty copies of questionnaires were distributed, fifty one were returned giving 85% response rate. The results of the findings show that:consolidation have provided a vehicle for automotive industry survival and growth in a dynamic business environment.

Again, automotive industry seems to grow due to banks consolidation that can provide huge capital requirement in case of expansion through new products development or acquisition of small automotive companies and this is usually a strategy to form global alliances designed to monopolize and expand the brand image when merger occur and achieve in some cases political power. Furthermore, banks consolidation provides a vehicle for automotive industry’s’ corporate survival and growth in a dynamic financial environment as it boosts the strength of automotive industry and thus it enhances automotive industry’s financial capacity. Also the results showed that banks merger provides economies of scale and achieve some form of synergy for the automotive industry and the resultant impact of banks consolidation increases the market potential of the automotive industry.

The research also revealed that banks consolidation result in a higher market price and higher earnings per share coupled with improvements in its stability though opinion is divided as to whether the dividend before and after automotive industry alliances cannot be maintained after the consolidation in order for the market price of the automotives stock to be established.

Banks consolidation seems to increase corporate power and improve market share in some cases, resulting in a higher price earning ratio. The work also showed that bank consolidation aids the automotive industry in financing that would not otherwise be possible to obtain, which helps to achieve some synergistic effect without strong bank’s financial capital base.

Also revealed by the study is the fact that banks Consolidation brings about adverse automotive industry financial sustainable effects because the anticipated benefits did not materialize for expected cost reductions were not forthcoming hence it should result in higher earnings or improve its stability. Furthermore, the findings showed that banks merger is vested in automotive industry ability to foster growth and the resultant profitability which will otherwise be difficult and nearly be impossible without banks strong capitalization

Conclusion

Nigerian’s automobile industry is one of the continent’s fastest growing sectors, but it lacks the necessary local technology and finance to fully harness its potential and contribute to national growth and development. This state of affairs has ensured that investing in the sector has become the preserve of just a few foreign companies in the automobile sector, largely based outside of the continent. Bank Consolidation introduced in Nigeria in 2005, is an expression of strong desire of Nigeria government to reinforce an instrument for enhancing banking efficiency, size, and developmental roles in her economy. It is pertinent to know that this exercise has assisted the automaker industry to raise capital that may be require in times of boom as well as depression and successful entry into products market as well as into new geographical markets in Nigeria. The primary purpose of corporate entities has been to increase the financial and operational strength. Banks, consolidation has helped in playing important roles of supporting the real sector like automotive industry in a global context hence banks have remained a new phenomenon in financing big projects in automotive industry in the corporate business world.

Outside the capital provision the automobile sector in Nigeria has also experienced a lot much neglect than other sectors ( Abiodun 2008). In seeking to achieve success in this sector vigorous efforts should be made to counter some of this factors which are known to have hindered achievement in this sector in the past like; power, local content policy and restriction on the importation of cars which can be locally assembled here. Effort should be made to sustain this little improvement that has been recorded in this sector as result of bank consolidation.

 RECOMMENDATION

Based on the findings from the study and the facts at the disposal of the researchers, the following recommendations are made

  • Regular and study review of the automotive parts/components development industry in Nigeria by the appropriate authorities
  • Government should provide incentive measures to encourage the local auto makers for  ensuring compliance with approved local programmes;
  • The right of inspection and other quality assurance activities in factories, ports and roads in pursuance of minimum standard of automobile on Nigeria Roads by the appropriate authorities
  • Regular evaluation of the pricing structure and quality of the products of the assembly plants to ensure international competitiveness;
  • Forecasting the demand and supply patterns for various types of automotive vehicles produced in Nigeria and the basic raw material requirements by the appropriate authorities
  • The automobile sector should liaise with relevant organisations charged with the production of raw materials (such as sheet metal alloy and special steel) and make sure is available when needed

Finally, The Nigerian government as a matter of urgency should articulate policies that can promote the development of local technology. Basic technical capacities which should include discouraging imports of completely built up units, providing incentives to local assemblers to increase local content in production (tax reduction and subsidies) and regulations to ensure local content in varying percentages.

By: Chukwukere Chidozie Godwin
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