The global automotive industry is in the process of major transformation, partially driven by rapidly rising energy cost. The rescue of the US auto industry has ensured that the transformation is now focused on positive developments around technology enhancements and new market opportunities.
In developed markets, the emphasis is on product design, and innovation in fuel technology. More importantly cost remains a critical issue. First stage transformation in this area has been moving sub-assembly/assembly manufacturing from the OEM to component manufacturers, and leveraging as many of the platforms/components across models. The second phase has been focused toward developing a global international component/assembly sourcing network across Asia where labor cost and design capabilities can be leveraged globally.
Then there is the obvious opportunity to sell products across the developing markets where automotive growth rates are running double digits. These markets not only provide opportunity to sell automobiles as indicated above, but also to source components cost effectively.
Besides working with OEMs and automotive component manufacturers, Cedar has also worked with lubricant manufacturers and regional automotive distribution companies including firms distributing leading brands like Mercedes Benz and Nissan.