...industry constitutes more than 40% of North American trade, NAFTA saves the automotive industry immense amounts of money. The North America Free Trade Agreement is a trilateral agreement that encourages free trade between Mexico, Canada, and United States. The NAFTA agreement has affected the automotive industry by increasing the amount of U.S. automotive imports. It has also increased the amount of U.S. automotive exports to NAFTA partners and it has caused outsourcing in the automotive industry. The North American Free Trade Agreement came into effect on January 1, 1994. The president of Mexico, Carlos Salinas de Gortari, the prime minister of Canada, Brian Mulroney, and the president of the U.S., George H. W. Bush, signed NAFTA in 1992, which then required the legislatures of the three countries to approve it before it went into effect. After the legislatures passed the NAFTA agreement, it became in effect on January 1, 1994. Under NAFTA, the partnering countries agreed to eliminate and reduce most barriers to trade freely between the countries. Most of the United States automotive trade is done with Mexico. This is because the United States and Canada were already highly integrated following the U.S.-Canada Free Trade Agreement and a U.S.-Canada Auto Pact in 1965. Before the NAFTA agreement, Mexico had strict automotive decrees on foreign automotive production in Mexico. After NAFTA was signed, those strict rules went away. Mexican tariffs on all types of motor vehicles...
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...Passage Auto Parts Ltd Leah Swaine Busi 2255- 01 0535895 Randall Fisher Due: November 22, 2011 Table of Contents Introduction 3 The industry 3 The Organization 4 The Software package 6 The Inventory Order Module 10 Conclusion 12 Works Cited 13 Introduction I currently work for Passage Auto Parts Ltd, a family owned aftermarket parts distribution business. The company is owned by my father John Swaine, operated my sister Johnna Swaine and myself, Leah Swaine. Throughout this research paper I will be discussing the automotive aftermarket industry in Canada, the specific details of Passage Auto Parts Ltd, and the Jobber Management System (JMS) that the organization currently uses to capture information and conduct daily business activities. I will be touching on the main functions of this software including: strengths, weaknesses, and overall effectiveness in terms of cost and information provided to the organization. I will be elaborating on the inventory order module of JMS, and how the order process is completed within the organization. Many of the areas discussed in the paper will come from my experience within the business, having worked there since it’s beginning, in November of 2005. The Industry Passage Auto Parts Ltd is a member of the automotive aftermarket industry in Canada. The industry...
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...crisis of 2008–2010 was a part of a global financial downturn. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel stations. The Automotive industry has had a large outcome in production over the past 20 years. The downturn also affected Canada by virtue of the Automotive Products Trade Agreement The Canada—United States Automotive Products Agreement, commonly known as the Auto Pact or APTA, was an important trade agreement between Canada and the United States. It was signed by Prime Minister Lester B. Pearson and President Lyndon B. Johnson in January 1965.[1] It removed tariffs on cars, trucks, buses, tires, and automotive parts between the two countries, greatly benefiting the large American car makers. In exchange the big three car makers (General Motors, Ford, and Chrysler) and later Volvo agreed that...
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...George Brown College School of Business Bailout or Bust? Case Study Noelle Nurse Tran Monica Molina BUS 1038 Professor Joyce Manu April 5, 2013 A perfect combination of unfavourable factors contributed to a major automobile manufacturing industry crisis in North America in 2009. The auto manufacturing industry had taken such a dramatic turn from being large and successful to becoming an industry full of debt and bad reputation; especially for three big and important companies: General Motors, Ford Motor and Chrysler. The “big three”, as they call it, had faced a major turndown leaving thousands and thousands of employees without jobs as a result of a series of bad long term “strategic “decisions. To aid these large industries, the government offered to help, by bailing them out with billions of dollars. This was a very risky decision from the government because of the size of the bailout; hence they needed to keep an open eye on these companies to make sure that this large amount of money was being used wisely. One of the ways the government was taking cautions was by examining the actions being taken by Japanese companies (Toyota Motor, Honda Motor and Nissan Motor) facing the same situation without requiring any government bailout. Their response had been the implementation of a more intelligent strategy, for example, Honda Motor reacted by closing down its plants for 13 days to reduce the production of even more cars they were aware they could not sell....
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...is going to outline several things about General Motors (GM) as one of unionized companies in the United States (US) and United Auto Workers (UAW) as the labor union that represents workers for GM Corporation. This paper will also discuss the effects of the union on the GM Motors such as organization’s benefit by joining a union, the unionization process, the process of Union bargain and the effects the union bargaining have in the organization. General Motors Company, commonly known as GM was founded in September of 1908. It’s an American multinational automotive corporation with global headquarter in Detroit, Michigan (General Motors, 2011). General Motors produces cars and trucks in 31 countries, sells and services these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Isuzu, Jiefang, Opel, Vauxhall and Wuling and is nominated as the world’s second largest automaker, after Toyota (World Ranking of Manufacturers, 2010). This company’s largest national market is in China, followed by US, Brazil, United Kingdom, Germany, Canada and Russia. GM employs 209,000 people in every major region of the world and does business in more than 120 countries (General Motors, 2011). History of United Auto Workers (UAW) in relation to General Motors UAW is a labor union which represents workers in US, Puerto Rico and Canada that ranges from multinational corporations, small manufacturers, state and local governments to college and local universities...
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...Vertical Specialization and the Changing Nature of World Trade David Hummels, Dana Rapoport, and Kei-Mu Yi T he world’s economies have become increasingly integrated and increasingly global. Among the most important and often cited features of the rise in globalization is the enormous growth in the export and import shares of GDP since World War II. In the United States, international trade— that is, exports plus imports—accounted for 23.9 percent of GDP in 1996, up from 9.2 percent in 1962.1 Worldwide, the merchandise export share of production has more than doubled over the last forty-five years, while the manufactured export share of production has almost quadrupled (Chart 1). Most countries—emerging nations as well as highly developed economies—have experienced increases in their export share of GDP (Chart 2). Clearly, a greater number of countries are trading more today than in the past. David Hummels is an assistant professor of economics at the University of Chicago’s Graduate School of Business; Dana Rapoport is an assistant economist and Kei-Mu Yi an economist at the Federal Reserve Bank of New York. Another significant feature of increased globalization is the internationalization of production. Rather than concentrate production in a single country, the modern multinational firm uses production plants—operated either as subsidiaries or through arm’s-length relationships—in several countries. By doing so, firms can exploit powerful locational advantages...
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...Question B It has been argued by some authors that there are principle economic weaknesses that prevent Canada from responding to a rapidly changing economic environment. Discuss what the weaknesses are and how they have hampered Canadian competitiveness. Finally, offer your own assessment, drawing on course materials, of this argument. There are numerous economic weaknesses that the author has argued. This essay mainly focuses on these flaws and how they are hampering Canadian competitiveness. Firstly majority of the companies in Canada are foreign owned or foreign controlled. From manufacturing sector including auto, chemical, and electronics to giant retail stores such as Wal-mart, Costco, Sears, Hudson Bay, etc are all foreign owned. In automobile sector GM, Ford, Chrysler, Toyota, Honda, etc dominates the auto industry in Canada. The automotive industry employs 158,302 people in automotive assembly and component manufacturing, and another 336,212 in distribution and aftermarket sales and service[1]. These foreign operated companies are extremely aggressive in nature, tough for domestic companies to compete and have monopoly over Canadian market. In addition they are usually productive than domestically controlled companies. Equally important it seems that foreign industry has assisted Canadian economy to become stronger and employ Canadian, however Government studies revealed that foreign enterprises had generally employed Canadian capital to expand...
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...“The Labour Market” Canadian automotive industry has taking a huge leap forward since its past years, considering the fact that population is growing each and every day. In Canada, transportation has become a very significant part of life and hence people travel through different modes of transportation each and every day. This substantial growth has also proven to maximize the profit ratio which is hence helping to keep the economy stable. This advancement in transportation is proving as an advantage especially to many car companies which reside in Canada. At certain times transportation becomes a major problem in certain places where the frequency of vehicles is low and this becomes a major problem for the working class individuals. The busy hours or the peak hours as they say is the time when maximum population use these transportation systems to reach their destination; hence this is where the problem arises. Certain types of transportation system are only able to accommodate certain percentage of people at a time and hence the latter would have to wait for the next transportation arrival. Moreover, at times certain mode of transportation does not even serve the purpose of travelling great distances and other times it is the expense of such transportation systems that leaves the person overwhelmed and results in him buying his own vehicle. Hence the Canadian automotive industry serves the purpose of providing these modes of transportation (cars, trucks, vans, etc.) to its...
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...Cause and Effect of Out Sourcing Auto Parts Jim Banta Strayer University English 115 Professor Daniel Burrello November 25, 2012 An increase in foreign auto parts supplier has cause grave concerns amongst some American suppliers the protectionists have set their sights on eliminating these new competitors: The foreign manufacturers, especially Japanese auto parts makers that have built plants and limited distribution in the United States and according to some are having an adverse effect on the U.S. economy. A small but politically vocal coalition of American auto parts manufacturers and their unions is complaining that the Japanese auto parts suppliers located in the United States do not supply the quality of parts for their cars. By purchasing auto parts from Japanese suppliers located in Japan and in the United States, automakers are accused of nothing less than a conspiracy to "colonize" American industry. The increased competition provided by Japanese auto parts manufacturers provides significant benefits to the auto industry and workers and to consumers. Consequently, any legislative action that restricted such competition would have harmful effects on the economy. As with all protectionist legislation, such actions would provide short-lived benefits to a small segment of the auto parts industry but would be harmful to the industry in the long run by reducing its incentives to produce better products. An estimated 15,000 parts and accessories...
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...Nasir, (CASE) in their report published in International Journal of Productivity and Performance Management, has Identified that automobile sector has huge economic potential and the Study identified the prevalent condition of productivity in automotive Manufacturing industry of Pakistan and indicated the possible areas for Enhancing productivity. The findings of this research have revealed that Effective utilization of role of technology can enhance the productivity of Pakistani manufacturing firms drastically. Pakistan Auto Industry Development Program (AIDP-2006), an study conducted by Ministry of Industries and Production, Government of Pakistan states that the Pakistan Auto Industry has become a leading industrial sector to steer the growth in large scale manufacturing sector. The high economic and job multiplier effect of this industry and its deep forward and backward linkages in allied industries, make the auto industry a key player in the national economy. the world which manufacture all kinds of vehicles i.e. 2/3 wheelers, motorcars, LCVs, tractors, prime-movers & trucks and buses. The total country requirements are generally met from the local production except the import of certain categories of trucks & prime-movers. Import of used cars is allowed to the bonafide ex- patriate Pakistani’s and travelers only under the baggage scheme. The presence of few of world acclaimed brands and multinationals in the manufacturing of vehicles...
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...notice or incurring obligation. © 2014 Subaru Canada, Inc. Outback (all models) • One-touch turn signal • Rear-view camera • Roof-mounted black low-profile antenna • 10-way power driver’s seat • Driver and passenger power window auto up/down • Automatic on/off headlights with welcome lighting • Electric parking brake with centre console mounted switch • One-touch folding rear seats • Roof rack cargo hooks • X-mode with Hill Descent Control • Heated front seats (three stage) • Active torque vectoring • Front seat cushion airbags • Integrated side-sill step pad • New colours: Crystal White Pearl, Lapis Blue Pearl, Tungsten Metallic, Wilderness Green Metallic • Discontinued colours: Cypress Green Pearl, Deep Indigo Pearl, Satin White Pearl, Venetian Red Pearl See specifications for complete list. 13 | 6 | 2014 1 NEW OR REVISED FEATURES 2015 OUTBACK Outback 2.5i • Active grill shutter • AM/FM/CD/MP3/WMA/AHA audio system with 6.2-inch touch-screen display, auxiliary audio input and steering wheel-integrated controls • Bluetooth® mobile phone connectivity with voice activation and Bluetooth® streaming audio • SiriusXM® Satellite Radio installed (free 3-month trial subscription included) • Optional PZEV Package Touring Package • Power rear liftgate with memory function • Subaru Rear/Side Vehicle Detection System (SRVD) • Side mirror integrated turn signals • Auto-dimming side-view mirrors with approach lighting • Auto-dimming rear-view mirror with compass • Optional...
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...decrease, at the same time, the productivity will increase. External scale economic not only reduce the cost, but also force these companies to become more specialization under a competitive environment. Furthermore industry clustering also will attract numerous skilled and unskilled labours, and the transfer of labour in different firms also will promote the whole industry’s technology and knowledge. In addition, clustering helps to promote the development of peripheral industries. When 1898, the first U.S vehicle company Olds has been establish in Detroit. After that, with the development of modern automotive industry, amount of auto companies have been set up there. At the present time, Detroit gradually formed an external scale economic focus mainly on GM, Ford, Chrysler as center, supplemented with peripheral industries, such as auto accessory, auto Research and development. And because of the location of Detroit, which includes the Great Lakes, railways and three international airport terminals, efficient logistic system accelerates the development of external scale economic. In spite of the involve of 2008 economic crisis, the big three losed more than 10% of market, but with the recovery of economic and the strength of external economic, the operation rate of big three all reached 100% in 2012. Base on the external scale economic, it decrease of the cost also made customer could purchase vehicle more cheaper, means it created more demand and trade opportunity. Detroit...
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...of Toyota’s success has come from their ability to adapt to an ever changing market place, in both good times and in bad, while honoring its commitment to product safety and quality. This commitment has allowed them to consistently produce cars that meet or exceed that of their competition, while taking into consideration the impact on our environment. Through the years many types of cars can be associated with the Toyota brand, but it is the introduction of the Lexus line of cars in 1989 that has helped to keep Toyota at the forefront of innovation and design. Early in 2000 Toyota took on the daunting task of deciding where to manufacture the Lexus RX300. Through careful analysis it was decided that the Toyota Motor Manufacturing of Canada (TMMC) would get this task. How this decision was derived came from the efforts of an independent consulting firm called the Hawks. They utilized production analysis and concepts derived and refined out of Toyota’s Production System (TPS) from Andon to Yokoten, as well as, Grid Analysis and Decision tree to assess how best Toyota should expand its production capabilities. The decision on how and where to move the new production facility was made by the leaders of the Toyota Production System. Their goal was to understand and determine where best production could benefit Toyota strategically before making a decision of this magnitude. This thorough examination also helped to identify the many challenges the Toyota production team...
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...Huge wraparound taillamps went into another backside with standard reinforcement lights. Something else, obvious change was humble. "What you'll see inside," asserted the business leaflet for the 1967 Chevelle, "will presumably bring on an extreme impulse to go driving." Front circle brakes were accessible on all models, and another double ace barrel slowing mechanism fused a notice light. Chevrolet additionally included 14" haggles three rate programmed transmission to their line of transmissions.[9] A whole host of new wellbeing gear got to be standard, including a collapsible controlling column[10] making the 1967 models more secure autos. The SS396 proceeded as its own particular arrangement with both game roadster and convertible body styles. The 375-drive 396-cubic-inch V8 was dropped from the choices list until late in the model year and came back with little exhibit bringing about just 612 being sold. Purchasers chose from no under seven transmissions: two manual three-rates, two manual four-speeds, an overdrive three-velocity, and two automatics. The manual-movement highlight of the Turbo Hydra-Matic transmission was touted in publicizing. Alternatives included Superlift air safeguards, Strato-ease headrests, and extraordinary instrumentation. Despite the fact that Chevy's enormous news for 1967 was the presentation of the Camaro, Chevelle offered a more customary kind...
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...ASSESSING THE POWER OF PORTER'S DIAMOND MODEL IN THE AUTOMOBILE INDUSTRY IN MEXICO AFTER TEN YEARS OF NAFTA SALVADOR BARRAGAN Master in Business Administration, IPADE Business School, 1996 BSc in Industrial Engineering, Universidad Panamericana, 1994 A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfilment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Salvador Barragán, 2005 ii Abstract It has been ten years since the signature of the NAFTA agreement among Canada, U.S., and Mexico. For Mexico, this was a decisive step away from a protectionism model toward a free trade market. One of the main purposes for Mexico in joining NAFTA was to increase the competitiveness of its manufacturing sector, especially the automotive industry. In this paper, Porter’s Diamond Model of national competitiveness and some critiques that attempt to extend the usefulness of the model are analyzed. The Doubled Diamond and the role of MNEs in a host country are both examined through a case study research of the foreign-owned automobile industry in Mexico. The findings of this study show evidence of a broader role of MNEs than in the original framework, as well as the usefulness of the doubled diamond extension to explain alternative sources of competitiveness in early stages of development. iii Acknowledgments...
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