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Turbocharging Trumps Supercharging in the Battle for Engine Downsizing


Naturally aspirated engines have dominated the automotive landscape for decades. However, growing emphasis on the need to improve air quality in recent years has placed significant pressure on global vehicle manufacturers to improve fuel efficiency and ultimately reduce CO2 emissions. Not only have OEMs been subject to growing pressure from consumer groups and environmental activists, but there has also been a stronger push by…

The article was published as part of Automotive World’s Special report: Turbocharging and supercharging.

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Local Sourcing – It’s The New Global Sourcing

Not long ago, the buzz term for the automotive world was global sourcing. OEMs aimed to standardise product offerings and pricing by producing in select emerging countries that offered low production costs. This rendered the supply chain long and complex, but equally justified in the name of cost saving. Recently, however, global sourcing seems to be on the reverse gear, with local sourcing gaining momentum among OEMs globally.

Localisation brings cost-savings across the supply chain, especially in light of climbing costs in traditionally low-cost regions. According to a study by BCG, manufacturing costs in previously low cost sourcing locations like China, Latin America and Eastern Europe that for many years attracted global vehicle manufacturers, are reaching parity with manufacturing costs in developed countries, once productivity, energy prices and currency conversions are factored in.

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Fleet Management System Adoption Gathers Pace in Eastern Europe

European truckers, in general, have lagged in the adoption of fleet management technology, which has delivered significant cost benefits to their US counterparts. Within Europe, transport/logistics companies from the established economies have been quicker in realising the technology’s potential, evident from a greater adoption rate (up to 20% in case of Germany) as compared with those based in the developing/emerging economies of Eastern Europe.

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