Ontario is crowd sourcing thoughts and ideas in order to develop modern, outcome-focused, evidence based regulation. https://www.ontario.ca/page/red-tape-challenge
I decided to tackle one six categories identified – Automotive Parts Manufacturing.
Red tape Challenge:
- Goal: Modern, outcome-focused and evidence based regulation
- Question: How can we improve regulations to better support business?
- Why: Reduce burden to busines while protecting customers, workers and the environment. This helps create jobs and grow the economy.
Where to start?
I decided to start from the Macroview(MAC) then to the Microview(MIC)
(1)Identify top 10 companies that manufacture auto parts for the world and focus on their main manufacturing base (country)
(2)List products manufactured, list the markets where their products are sold
(3)What are the upstream factors in automotive manufacturing that have a
significant impact to employment?
(4)How does an improvement in regulation help create jobs, grow the economy while
reducing burden to business, protecting customers, workers and the environment?
(5)Determine policies at Federal/Local levels that meet the following goals:
(a)Reduce Burden on Business
(d)Protect the Environment
(e)Promotes job growth which inherently grows the economy
(6)Who needs automotive parts?
(7)Why don’t Automotive Manufacturers produce their own parts?
(8)Why do Automotive Manufacturers setup in emerging markets?
(9)Why has the automotive industry remained regionalized?
(10)Why have Auto Supplier contributions increased from 56% to 82%?
(11)For automakers to produce more cars – What are the downstream impacts to industry,
(1)For each country identified as a top parts producer, look to upstream manufacturing and regulation.
(2)Correlate regulations – major auto parts manufacturing countries vs Canadian regulations
(3)What should the Canadian government focus on in order to boost Auto Parts Manufacturing?
(4)What are the top 3 regulation changes upstream that would have the largest impact
downstream to Canadian Auto Parts Manufacturers?
Top 10 companies in the world that manufacture auto parts:
- Germany = 3, Japan = 3 , Canada = 1, USA = 1, France = 1, Korea = 1
Robert Bosch GmbH - Stuttgart, Germany Gasoline systems, diesel systems, chasis system controls, electrical drives, starter motors & generators, car multimedia, electronics, steering systems, battery technology, exhaust gas turbochargers and treatment systems 36.787B North American Percentage - 17 Europe Percentage - 52 Asia Percentage - 27 Rest of the world - 4 Top 3 locations Germany - 112300 employees India - 26000 employees North America - 24750 employees Denso Corp, Kariya, Japan Thermal, Powertrain control, electronics & electrical systems,small motors, telecommunications 34.200B North American Percentage - 16 Europe Percentage - 11 Asia Percentage - 71 Rest of the world - 2 Japan - 132276 employees North America - 17000 employees Continental AG, Hanover, Germany Electronic & Foundation brakes, stability management systems, tires,chasis systems, safety system electronics, telematics, powertrain electronics,interior modules, instrumentation, technical elastomers 32.8B North American Percentage - 21 Europe Percentage - 50 Asia Percentage - 25 Rest of the world - 4 Germany - ? employees Argentina - ? employees Costa Rica - ? employees North America - 1600 employees Magna International, Aurora, Ontario Bodies, chasis, interiors, exteriors, seating, powertrain, electronics,mirrors, closures & roof systems & modules North American Percentage - 53 Europe Percentage - 40 Asia Percentage - 0 Rest of the world - 7 Canada, Mexico, USA - 65000 employees Europe - 55000 employees Brazil, Argentina - 3500 employees Asia - 17700 employees Aisin Seiki Co, Kariya, Japan Body, brakes & chasis systems, electronics, drivetrain & engine components 30.08B North American Percentage - 14 Europe Percentage - 10 Asia Percentage - 76 Rest of the world - 0 Japan - 78000 employees North America - 8000 employees Johnson Controls, Milwaukee, USA Seating, overhead systems, door & instrument panels, center & overhead consoles & interior electronics, lead acid & hybrid vehicle batteries 22.515B North American Percentage - 41 Europe Percentage - 47 Asia Percentage - 12 Rest of the world - 0 Faurecia, Nanterre, France Seating, emissions control technologies, interior systems, exteriors 22.500B North American Percentage - 27 Europe Percentage - 56 Asia Percentage - 10 Rest of the world - 7 Hyundai Mobis, Gangnam-Gu Seoul, Korea Chasis, cockpit & front-end modules, ABS, ESC, MDPS, airbags, LED lamps, ASV parts, sensors, electronic control systems, hybrid car powertrains, parts & power control units 21.351B North American Percentage - 22 Europe Percentage - 11 Asia Percentage - 67 Rest of the world - 0 ZF Friedrichshafen AG, Friedrichshafen, Germany Transmissions, chasis components & systems, steering systems, clutches dampers 18.614B North American Percentage - 19 Europe Percentage - 58 Asia Percentage - 18 Rest of the world - 5 Yazaki Corp, Susono City, Japan Wiring harnesses, connectors, junction boxes, power distribution boxes,instrumentation, high voltage systems 15.801B North American Percentage - 22 No other information available
(3) What are the upstream factors in Automotive Manufacturing that have a
significant impact on employment? Consider top 10 companies for auto parts manufacturing and their country of operation: Germany, Japan, Canada,USA, France, Korea. Allocate a score for how countries rank against raw materials production)
Materials: Steel, Aluminum, Glass, Fossil Fuel, Software, Rubber, Plastic
- Steel – Top 5 Steel Production countries: 1 to 5
- China, Japan,USA, India, South Korea. Canada 17th
- China, Russia, Canada, UAE, India, USA
- Germany, USA, Japan
- Fossil Fuel
- Saudi Arabia, Russia, USA, China, Canada, Iran
- USA, Finland, Singapore, Sweden, UK, Denmark, Canada
- Thailand, Indonesia, Malaysia, India, Vietnam, China
- Germany, Japan, China, Italy, USA
Mean score out of 7 categories. Default rank is 10 if no rank or greater than 10. Lower scores are better.
- USA Mean Score: (3+6+2+3+1+10+5 / 7) = 4.29
- Japan Mean Score:(2+10+3+10+10+10+2)/7=6.71
- Germany Mean Score:(10+10+1+10+10+10+1)/7=7.43
- Canada Mean Score:(3+4+10+7+10+10+10)/7= 7.71
- Korea Mean Score:(4+10+10+10+10+10+10)/7=9.14
- France Mean Score:(10+10+10+10+10+10+10)/7=10
- Canada ranks 3 in Aluminum and 4 Fossil Fuel.
- Canada ranks 17th in global Steel production
- Canada ranks 7th in the IT sustainable index (Software)
- Canada does not rank top 10 globally in either Rubber, Plastics, Glass production
What’s I find interesting – 3 of the top 10 companies who manufacture Auto Parts are based in Germany however Germany ranks 3rd in the overall mean score for materials required to produce Auto Parts.
Despite having a clear advantage in raw materials for Auto Parts, the USA only has 1 company that ranks top 10, tied with Canada.
Japan ranks high on the Mean scale however has 3 companies in the top 10 for Auto Parts manufacturing.
Note: The data indicates that raw materials are not the most important factor for a successful top 10 Auto Manufacturing businesses.
France and Korea are good models to study as they are not in the top 10 for raw material production however have the #7 and #8 Auto Manufacturing companies in the world.
I will focus on France and Korea in order to determine the top three factors that allow for a top 10 showing in world Auto Parts Manufacturing.
More to come in blog #2