& NEWS UPDATES Accelerating the Growth of the U.S.

Center for Automotive Research | October 2014
NEWS&UPDATES
Accelerating the Growth of the U.S.
Automotive Manufacturing Industry
SARA Supporting
States
Assembly Plant
Supplier Plant
A New CAR Study for the Six-State Southern Automotive Research Alliance (SARA)
As the North American automotive industry has
continued its steady evolution over the last three
decades, its manufacturing footprint has been transformed. Key drivers of this dynamic have included
the expansion of international automakers, and the
growth of the industry in the U.S. South, as well
as the ongoing rise of Mexico as an automotive
powerhouse.
Automakers and suppliers have made a powerful
recovery from the effects of the most recent recession
(December 2009–August 2012). The industry is once
again profitable and growing, leading to new opportunities for states seeking auto-related investment.
Auto assembly plants are among the crown jewels of
economic development. A typical auto plant employs
up to 5,000 people, with above average wages and
benefits, and will generate thousands of spinoff jobs.
According to CAR Research, every assembly plant
job creates a total of 10 jobs in the supplier and support industries.
The last announcement by an automaker of a new
assembly plant in the United States or Canada took
place five years ago. In contrast, over the last two
years alone, Mexico has seen seven new assembly
plants announced. In addition to manufacturing,
both automakers and suppliers report increasing reliance on Mexico for engineering. Mexico is therefore
emerging as a key competitor not just for manufacturing jobs but also for the high-paying white collar
continued on next page
zz CAR Transportation
Experts Speak at 2014
ITS World Congress
zz Fostering a Future
in Automotive—
[email protected]
Program
zz CALM Co-Development
Lightweighting
Demonstration Project
zz People Driving CAR:
New Hire
zz Knowledge Transfer
Symposium
Alcoa Foundation Awards $175,000 Grant in Support of
Lightweighting Research Efforts and Student Education
In early August, CAR received
a $175,000 grant from the
Alcoa Foundation to support CAR’s research efforts in
vehicle lightweighting technologies. The grant has been
directed towards the development of case studies to advance CAR’s research
in evaluating the costs and benefits of introducing
I NS I D E
lightweighting technologies into the manufacturing
process as well as gaining a better understanding of
the barriers to implementation.
As part of the Alcoa Foundation grant, two student
interns, Alaa Noah from Oakland University and
Luke Deptula from Macomb Community College,
began working with CAR this summer to collect
continued on page 4
zz New CAR Affiliates
Accelerating Industry Growth Southeast Region Study continued from page 1
jobs provided by R&D operations. The competitive threat posed
by Mexico provides a key motivator for U.S. states and regions to
embark on new initiatives including collaboration for regional
automotive attraction.
In a new study prepared for the Southern Automotive Research
Alliance (SARA), CAR examines the critical success factors
necessary for continued global automotive investment growth
within the southern U.S. automotive manufacturing region.
CAR conducted more than 40 interviews with key industry
stakeholders, including representatives at 10 automaker facilities,
as well as dozens of automotive suppliers, educational institutions, and other regional influencers. The primary objective
of this initiative was to gather and identify an unbiased “voice
of the industry” from auto manufacturers and suppliers to
ascertain efforts that may further improve the southeast region’s
competitiveness in attracting additional foreign investment and
For more information, contact Kim Hill, Director,
Sustainability and Economic Development Strategies, at
[email protected] or 734-929-0488 or Bernard Swiecki,
Senior Project Manager, Sustainability and Economic
Development Strategies, at [email protected] or
734-929-0484.
Automotive Employment and Production Forecast—SARA Region
Employment
Plateau (blue): Because
of the success of Mexico in
attracting new automotive
assembly plant investment,
CAR forecasts the SARA
region to begin to plateau in
terms of both production
and employment.
CAR’s findings will be previewed at the Southern Automotive
Conference in Birmingham, Alabama on October 10. CAR
President & CEO, Dr. Jay Baron, will present recommendations
aimed at helping improve the region’s competitiveness to support, retain, and attract automotive investment and to grow U.S.
employment through the implementation of collaborative efforts
with regional scope. The full study is expected to be released
later this year.
250,000
5,000,000
200,000
4,000,000
150,000
3,000,000
100,000
2,000,000
50,000
1,000,000
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
OE Employment
Supplier Employment
Vehicle Production
Recovery (green): Despite
openings of several new
assembly plants and other
investments, production and
employment are only now
just returning to their prerecession peak.
encouraging U.S. companies to invest more at home rather than
abroad.
0
Vehicle Production
CAR Transportation Experts Speak at 2014 ITS World Congress Detroit
The ITS World Congress, in Detroit for
the first time, attracted nearly 10,000
attendees and highlighted the global
transportation industry’s future of connectivity, safety and automation. The
annual conference, now in its 21st year,
alternates location each year and is the
largest gathering of intelligent transportation systems (ITS) professionals in the
world. Executives from the automotive
industry led more than 250 sessions,
panels, and speeches and among them
were four industry experts from the
Transportation Systems Analysis Group:
Richard Wallace, Director, presented to
the French ITS Delegation on the future
of connected and automated vehicle
technology. Notably, the next ITS World
Congress will be held in Bordeaux,
France.
Dr. Qiang Hong, Senior Research
Scientist, presented at the Big Data
Management
Analysis session
regarding the
benefits of being
proactive in ITS
adoption and how
it can facilitate a
safe and efficient transportation system,
improve public safety, assist with various
research programs, stimulate economic
growth, and improve the environment.
Joshua Cregger, Project Manager, presented at the Cooperative Systems session
where his research highlighted several
recent connected and automated vehicle
deployment efforts throughout the world.
Eric Paul Dennis, Transportation Systems
Analyst, presented three research papers
in the Policy Changes to Connected
and Automated Vehicles session and
one in the Implication and Assessment
of Automated Driving session. Eric’s
research discussed U.S. state policies,
NHTSA’s advisory document concerning
automated vehicle regulations, NHTSA’s
efforts to propose a connected vehicle
rulemaking, and the results of a survey
that CAR and MDOT administered to
automated vehicle industry stakeholders.
One of CAR’s student interns, Katelyn
Drake, Research Assistant, Sustainability
and Economic Development Strategies
Group, presented at the Youth
Connections Showcase: Education
and Training Needs for Emerging ITS
Technologies session on why she chose
the automotive industry for her career
path.
For more information contact Richard
Wallace, Director, Transportation
Systems Analysis, at [email protected]
org or 734-929-0475.
[email protected] Program: Fostering a Future in Automotive
Over the past four years, CAR has provided undergraduate
students interested in pursuing a career within the automotive industry, with the opportunity to participate in one of the
industry’s leading conferences, the CAR Management Briefing
Seminars. The [email protected] Program has continued to grow
each year as well as the number of events on-site organized to
engage these students with automotive leaders and executives.
These events, such as Inforum’s Executive Roundtable, encourage conversations that allow students to learn about the industry
in a personal way while beginning to build a professional network before they graduate.
pursue a career in this industry. Every person I sat next to was
encouraging of students in higher education and very helpful.” Sarah Fortunato, Michigan State University, Supply Chain
Management and International Business
With the assistance of 12 sponsors, 41 students from 13 schools
attended the 2014 CAR MBS. Over the course of the four days
these students, majoring in subjects such as engineering, finance,
economics, accounting, design, law, logistics, and information
technology, were introduced to the automotive industry and
were given the opportunity to understand the potential of an
automotive career. Here’s what one student had to say:
CAR is honored to host these students who are the future of the
industry and are appreciative of all sponsors who continue to
make this program possible.
“Every minute was a new learning experience for me. The speakers were all so inspiring and passionate about the automotive
industry that they excited me and many other students to
For more information regarding the [email protected]
program contact Denise Semon, Program Coordinator, at
[email protected] or 734-929-0461.
CALM Co-Development Lightweighting Demonstration Project
The Coalition for Automotive
Lightweighting Materials (CALM) has
undertaken a co-development demonstration project focused on mixedmaterial solutions for high volume vehicle
doors. The project is being implemented
in collaboration with an automaker and is
designed to accelerate the introduction of
new and novel lightweighting innovation.
By fostering communication and collaboration between auto manufacturers and
suppliers, the project will help to demonstrate and accelerate the introduction of
lightweighting technologies. CALM goals
for this development and demonstration
project include:
zz
Provide an integrated co-development
demonstration platform
zz
Introduce and showcase state-of-theart technologies to reduce weight
zz
Facilitate mixed-material concepts and
solutions
zz
Demonstrate direct interaction
between suppliers and vehicle
manufacturers
zz
Develop a business case for mixed
material solutions, considering mass
reduction, cost, volumes and more.
CALM is pursuing a multiple phase
project. Phase 1 will be a non-proprietary
project, with anticipated results leading
to a whitepaper and determination of
next steps. CAR will facilitate the effort
by selecting the baseline architecture for
benchmarking and analysis of current
best-practice for the selection of materials and design for the door system. The
CALM group will develop a portfolio of
feasible, conceptual design alternatives to
be scrutinized for weight, implementation cost and potential impact on manufacturing and product requirements.
Participants will complete any required
computer-aided engineering (CAE)
analysis for performance validation and
optimization. CAR will conduct economic analyses to assess cost impacts and
manufacturing strategies for the automaker, and will summarize the findings
with a written report and dissemination
of the findings.
Phase 1 of this CALM project is expected
to be completed in early 2015. If results
warrant, a further engineering analysis
will be undertaken in a second phase.
Phase 2 would then concentrate on
extending the project beyond basic ordinate data, providing deeper analysis and
more specific results. More detailed selections of materials, with closer analysis
of the overall system performance will
be pursued in this second phase, with
attention spent on methods to improve
the performance of the door system while
significantly reducing weight.
For additional information visit
www.cargroup.org/CALM
People Driving CAR: New Hire
Aaron Champion joined the Industry & Labor
Group in September 2014 as a research project
manager. Aaron will support analysis of automotive
industry education, training, and occupations, and
government data, as well as developments in human
resource and education issues and policies. Prior
to joining CAR, Aaron worked at the Clean Energy
Coalition as project manager and coordinator for the
Detroit Area Clean Cities Coalition.
Knowledge Transfer Symposium
The nature of R&D is changing.
Companies have shifted from a traditional internally focused innovation
strategy to a more outward-looking innovation model. The Southeast Michigan
region, dominated by the domestic automobile industry, has at times struggled in
this transformation. Within the automotive industry, vehicle manufacturers are
increasingly focused on immediate needs
of product development, and looking to
suppliers, academics and others to
innovate.
To improve the innovation ecosystem
within the region, CAR organized the
Knowledge Transfer Symposium, which
took place September 15, at the General
Dynamics Land Systems Maneuver
Collaboration Center. CAR defines
knowledge transfer as an innovation,
idea or technology that must be further
developed before it is considered ready
for application. CAR presented research
results from an 18-month effort, funded
by the U.S. Economic Development
Administration. The day-long symposium
focused on how the automotive industry
can make needed connections with aca-
Symposium moderator Brett Smith (left) leads panelist discussion. Panel includes (left to
right) Dan Koester, JCI; Steve Wilson, University of Michigan; and Chuck Gulash, Toyota
demia, economic developers and other
entrepreneurial companies in order to
accelerate knowledge transfer.
This symposium identified knowledge
transfer models through interactive
discussions with invited guests. Based
on attendee feedback, the event was an
important next step in understanding
how organizations can apply the innovation frameworks in the real world, and
identify challenges and opportunities for
collaboration and improvements in innovation processes.
CAR continues to work with the region’s
stakeholders to address this opportunity.
For more information contact Brett
Smith, Program Director, Industry
Analysis and Community Activities at
[email protected] or 734-929-0491.
Alcoa Foundation Grant continued from page 1
manufacturing case study data. In addition, both students are
involved in interviewing industry experts to assimilate costbenefit analyses of lightweighting solutions involving new
designs with lightweight materials and advanced forming and
joining processes used by vehicle manufacturers and suppliers
in the automotive industry. Once compiled, the comprehensive research results will be disseminated at the 2015 CAR
Management Briefing Seminars and other engineering events,
and help to inform automotive technology curricula at academic
institutes.
Luke Deptula is now working toward his bachelor of science
degree in Electric Transportation Technology at Wayne State
University. Luke earned an associate degree in Automotive
Technology at Henry Ford Community College in 2012 and
a Certificate in Electric Vehicle Development at Macomb
Community College in 2014.
Alaa Noah is pursuing a bachelor of science degree in Electrical
Engineering at Oakland University with an expected graduation date of December 2016. Alaa also earned associate degrees
in pre-engineering and mathematics in 2014 from Macomb
Community College.
Luke Deptula
Alaa Noah
Mark Stevens
Mark Stevens, an industry consultant and expert in manufacturing, tooling and part fabrication, will be managing this research
initiative for CAR, working with the students and Dr. Jay Baron,
CAR’s CEO, and Greg Schroeder, assistant director of the
Manufacturing, Engineering and Technology group. Mark has
more than 30 years experience in the automotive industry and
was previously Executive Director, Global Die & Press Center Manufacturing Engineering, at General Motors.
For more information regarding this lightweighting research,
contact Mark Stevens, at [email protected] or
734-929-0482.
Welcome New CAR Affiliates
With nearly 70 diverse organizations, the Affiliates Program provides CAR with a pulse of the automotive industry,
enabling CAR researchers to quickly respond to critical issues and trends. Affiliates may choose to engage in a variety
of ways including participation in working groups and thought leadership roundtable discussions focused on advanced
powertrain and alternative fuels, lightweighting and mass reduction strategies, or connected and autonomous vehicles.
Affiliates share in CAR’s mission for a strong and viable automotive industry and enjoy exclusive access to research,
networking events and opportunities to guide CAR’s future research, conference activities and more.
For more information on becoming an affiliate, contact Brian Esterberg, Director, Affiliates Program at 734-929-0466
or [email protected]
CAR Affiliates
3M
AAA
AISIN
Chrysler Group LLC
Alliance of Automobile
Manufacturers
Dassault Systèmes
Delphi
DENSO
Dow Automotive Systems
Dow Corning
DuPont Automotive
Eastman Chemical Company
Eaton Corporation
EISENMANN
EWI
EY
Faurecia
Ford Motor Company
Freudenberg-NOK
General Motors
Altair
Aluminum Association
American Automotive
Policy Council
American Axle &
Manufacturing
American Chemistry
Council
AP&T
BASF
Bayer MaterialScience
Böllhoff, Inc.
BorgWarner, Inc.
Braskem America
Chevron
Continental Automotive
Systems
GfK Custom Research
North America
HELLA
Henkel Corporation
Hewlett Packard
Honda
IPG Photonics
J.D. Power
Johnson Controls, Inc. (JCI)
KOSTAL of America
Macomb Community College
Magna International Inc.
The Magni Group, Inc.
McKinsey & Company, Inc.
Michelin
National Renewable
Energy Laboratory
Mitsubishi Electric
Automotive America
Steel Market Development
Institute
Mitsubishi Motors
Toyota
Trexel
United Tooling Coalition (UTC)
Volkswagen Group of America
ZF
Momentive Specialty
Chemicals, Inc.
National Automotive
Center, U.S. Army
Nissan North America, Inc.
PPG
PTC
Ricardo, Inc.
Rifast Systems
Rio Tinto Alcan
Robert Bosch LLC
SABIC
SAP
Schuler, Inc.
Shiloh Industries
Affiliate Exclusive: Summary of U.S. DOT Moves towards V2V Requirements
For several years, the U.S. Department of Transportation (U.S. DOT)
has supported the development of
technology, standards, and policies
regarding connected vehicles. In
February 2014, the National Highway
Traffic Safety Administration
(NHTSA) announced it would begin
working on a regulatory proposal
that would require vehicle-to-vehicle
(V2V) communication devices in all
new light vehicles. On August 20,
2014, NHTSA published an Advanced
Notice of Proposed Rulemaking
(ANPRM) in the Federal Register,
along with an accompanying report,
“Vehicle to Vehicle Communications:
Readiness of V2V Technology for
Application.” Public comments will be
accepted until October 20, 2014.
Both documents can be accessed at:
www.nhtsa.gov
3005 Boardwalk, Suite 200
Ann Arbor, MI 48108-5218
Tel: 734.662.1287
Fax: 734.662.5736
www.cargroup.org
In a report prepared and released
exclusively for Affiliates, CAR’s
Transportation Systems Analysis
group summarized the NHTSA documents which enabled Affiliate readers
to easily locate items of interest and
value to their company.
For more information on becoming
an Affiliate, contact Brian Esterberg
at [email protected] or
734-929-0466.
The nonprofit Center for Automotive Research is focused on a wide variety of
important trends and changes related to the automobile industry and society
at the international, federal, state and local levels. CAR conducts industry
research, develops new methodologies, forecasts industry trends, advises on
public policy, and sponsors multi-stakeholder communication forums.
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