the U.S. dollar (USD) to Euro exchange rate has had less than a
10% diferential, though in the midst of this period there have
been substantial swings—in one instance declining more than
20% in a two-year period. USD to Yen exchange rate shifts
have been more pronounced. In a hyper-competitive environment, changes in vehicle costs driven by currency are difcult
to absorb into sticky vehicle prices.
Other factors driving increased production co-location are
escalating logistics costs, reducing in-transit inventory, and
political leverage. Similar to the light vehicle market, emissions legislation is impacting deep sea shippers in a profound
manner. The need to burn cleaner fuels is raising fuel costs
substantially (reaching approximately 45% of total ship operating costs) through this decade. Lastly, as has been witnessed
in Western Europe, Canada and Australia of late, the elimination of production capacity is a matter of national economic
welfare as thousands of direct and indirect jobs are at stake.
Pneumatic Car Hinge Pin Tool
Looking forward, increasing competitiveness driven by uneven
market growth and the costs and exposure impacting importation will drive vehicle manufacturers to evaluate the risk
of maintaining the status quo. Reducing risk throughout the
vehicle sourcing value chain will continue to be a critical
industry focal point, and how each country grapples with the
economic fallout will be important to watch.
Used by many of the major automotive manufacturers for inserting
door hinge pins on the production line.
Simonds Inc., 248 Elm St., Southbridge, MA
Phone: 866-764-3235
Email: sales@simonds-inc.com
Web site: www.simonds-inc.com
HEXAGON METROLOGY
AUTOMATED SOLUTIONS
Inspecting powertrain components involves difficult to measure features and detailed geometries. Let our
experts develop a turn-key metrology solution to measure toothed gears, gear tools, blisks, engine blocks,
cam shafts, and more.
Visit us at www.HexMet.us/adp214 or call 800.274.9433 for more details.
We are Hexagon Metrology.
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