DC GD69# 6I H:6# - Wallenius Wilhelmsen Logistics

Ford honoured WWL
with three logistics awards (see box). Its
commitment to quality keeps WWL a
trusted vendor.
“Ninety-three percent of Ford vehicles
are recommended by Consumer Reports,”
says Ford International BU Vehicle Logistics
Department Manager Denny Carpenter.
“That level of quality must carry
over to our exported vehicles. That is the
bottom line.”
Working with Ford is Corporate Account
Manager Kim Davis. She has wowed Ford
with her ability to create efficient and seamless
solutions to complex challenges.
“The American manufacturers face
many challenges,” says Davis, who also
manages the General Motors account.
“The question for us is, ‘How do we help
them, with those challenges, to be successful?’
The only way to do that is to
understand your customer.”
Winning the logistics awards is great
for employee morale and strengthens the
relationship between the two companies.
But it does more than that.
“It also shows the industry that we can
live up to the high standards that Ford
Motor Company has for us,” says WWL
Executive Vice President John Felitto.
“And that means that we can live up to
demands of a world-class manufacturer.”
Tata Motors has
hit the headlines with the unveiling
of Nano, a low-cost car that is set to
bring private motoring to the masses
in south Asia. When it goes on sale
later this year, Nano will cost 100,000
rupees or one lakh (that’s about
€1,700 or $2,500).
Okay, the Nano only has one windscreen
wiper, no power steering, no radio
and certainly no air conditioning.
But it seats five people, meets current
European emission standards and has
a top speed of 105 km/hour. Nobody
could dispute it offers value for money.
A clear definition of what is a lowcost
car is hard to find and largely
depends on the local market.
“The true definition of a low-cost
car is elusive,” says industry analyst,
Glenn Mercer. “The consensus seems
to be €5,000 ($7,300) in the showroom,”
he adds.
“The automakers recognise they
need low-cost cars to service emerging
markets where customers simply
cannot afford a typical €20,000
($29,000) purchase price. Plus they
help counter the threat of low-cost
exports back into the established markets
of Europe and North America.”
Kearney forecast that
global demand for cars priced below
€3,500 ($5,000) will grow to 17 million
units a year from 2020 with most of
the sales coming from the Indian and
south-east Asia sub-continent.
Not surprisingly, most of the
world’s major automakers are
exploring the low-cost concept; the
challenge is how to make a profit.
Costs can be reduced by reusing old
designs, sharing components or simplifying
manufacturing.
In Asia, Tata is likely to face competition
from rival Indian manufacturer
Maruti; Renault in partnership
with scooter manufacturer Bajaj and
GM-Daewoo, whose Matiz model already
sells in some markets for under
€3,000 ($4,400).
Meanwhile more traditional carmakers,
such as Toyota, Volkswagen
and Renault (already selling the Dacia
Logan at €6,000) see a global market
in the €5,000 to €8,000 range, especially
in central Europe.
The carmakers will have to move
fast. In China, where a fashion-conscious,
urban middle-class is developing,
customers are already moving
upmarket and sales of more basic cars
have started to fall.
That leaves the interesting question:
how long will the market for
low-cost cars last??