Japan’s Mazda Motor recalled nearly 90,000 passenger cars domestically and in China due to an oil hose defect. The automaker, which is part owned by US giant Ford, will recall 35,181 units in Japan and some 54,000 in China. The cars produced from January 2006 to March 2009, have been recalled.
The automotive industry designs, develops, manufactures, and markets motor vehicles. In 2010, a total of 53.35 million new automobiles were sold worldwide: 15.67 million in Europe, 19.54 million in Asia-Pacific, 13.88 million in USA and Canada, 4.26 million in Latin America. The markets in North America and Japan were stagnant, while those in South America and other parts of Asia grew strongly. Of the major markets, China, Russia, Brazil and India saw the most rapid growth.
Automobile Industry & Environment
About 250 million vehicles are in use in the United States. Around the world, there were about 850 million cars and light trucks on the road that burn over 300 billion gallons of fuel yearly. The numbers are increasing rapidly, especially in China. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments.
Pressure on the Industry
The industry is facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. Roughly half of the US’s fifty-one light vehicle plants are projected to permanently close in the coming years, with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade. China became both the largest automobile producer and market in the world after experiencing massive growth in 2009.
This increasing pressure of competition and faster delivery has led to inefficiency in manufacturing and call back seems to have become a trend in the industry.
Call Back Crisis
Japan’s Mazda Motor recalled nearly 90,000 passenger cars domestically and in China due to an oil hose defect. The automaker, which is part owned by US giant Ford, will recall 35,181 units in Japan and some 54,000 in China. The cars produced from January 2006 to March 2009, have been recalled.
On 2 March, 2010 GM reported to recall 1.3 million cars for power steering glitch. Leading American car maker GM Motors has announced a recall of 1.3 million Chevrolet and Pontiac cars in North America to resolve a reported problem with power steering. The move was taken in the wake of consumer complaints about power steering. Cars include in the recall list are the 2005-2010 Cobalt, 2007-2010 Pontiac G5, 2005-2006 Pontiac Pursuit sold in Canada, and the 2005-2006 Pontiac G4 sold in Mexico.
Toyota Motors, the world’s biggest automaker has recalled more than 8 million cars due to an unintended acceleration problem and brake defects since late 2009.
Nissan Motor Co, Japan’s third-biggest carmaker, informed to recall 76,415 cars across 10 models in Japan and 2,281 cars overseas due to a possible defect that may cause engine failure.
Porsche China to recall 640 vehicles of three models due to a potential safety belt defect. A design defect with the safety belt may prompt the failure of the fixation function in extreme cases, threatening the safety of the occupants. The recall involves vehicles which were produced before February 25, 2010.
Honda Motor recalled 437,763 vehicles globally over a problem with Honda’s driver seat’s airbag inflator. The Honda’s recall 2010 will affect countries like the US, Canada, Japan and Australia. The Honda Recall 2010 list of cars (expected) includes: 2001 and 2002 models of Honda Accord, Civic, TL, CR-V, Odyssey, Pilot and CL in North America and the Inspire, Saber and Lagreat models in Japan. Honda will replace the driver’s side airbags of all affected models.
Back home in India, Maruti Suzuki India Ltd, has recalled around 100,000 units of its hatchback A-Star following fuel tank problems. Approximately 40,000 units of the car in the domestic market and 60,000 units of exported cars are among the ones recalled. These vehicles belonged to a lot made till 22nd August 2009.
The Future is Small Car and Eco Car!
Tata Nano, the world’s cheapest passenger car has forced its competitors to come down to the small car segment. Japanese auto major Nissan Motor Co plans to launch a $3,000 car (about Rs 134,000) in 2012 in India. It has entered into a joint venture with Bajaj Auto and Renault to make small cars in India. Fiat India Automobiles Limited, plans to launch its small car by the end of 2011. German auto major Daimler and Franco-Japanese alliance Renault-Nissan forms alliance to manufacture the small car. Almost all the companies are planning to capture the small market segment also.
GM entering into a tie-up with Indian REVA for the electrical vehicle design and technology is a big boost to the green initiatives related to vehicles. The global rethinking of hydrogen as a fuel is also going the rounds with the expectation that crude will remain in the high US$70-80 (if not more) for a long term.
In automobile industry where on one side the companies are introducing new models almost every quarter companies are also facing the pressure and now the industry has become the survival of the fittest. Although following the TQM practices any company has to upgrade the perfection, quality and eco-friendliness in its products to maintain its position in the market.
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