REPOST: The Automobile Industry Offers Growth Opportunity For Corning

The re-emergence of the automotive industry since the last economic recession could also mean a resurgence in the growth of related businesses. Corning, a manufacturer of ceramic substrates for gasoline and diesel engines in light and heavy-duty vehicles, is one of those companies that largely benefited from the recovery of the industry. Read the article below for more details.

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The automobile industry has been growing at a strong pace since its revival post the financial meltdown in 2008. Sales of light and heavy-duty vehicles have been up driven by renewed consumer confidence in the economy and higher spending. We believe that the growing automobile industry presents significant growth opportunity for Corning. Corning manufactures substrates and filters for catalytic converters that help in controlling emissions from light and heavy-duty vehicles. An increase in production of automobiles will drive sales of Corning’s substrates and filters, and help boost its revenues.

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Additionally, Corning stands to benefit from the use of Gorilla Glass in automobiles. Gorilla Glass is a protective cover glass generally used in consumer electronics such as smartphones, tablets and notebooks to protect the display. However, it has recently started to gain some popularity in the automotive industry as well. The use of Gorilla Glass in automobiles will open up an entirely new revenue stream for Corning.

Corning’s Substrates and Filters Market


In 2013, Corning’s Environmental Technologies business generated $919 million, 12% of Corning’s overall revenues. The segment deals with manufacturing substrates and filters for light and heavy duty vehicles. These substrates and filters help curb harmful emissions. Corning sells its substrates and filters, Celcor and Duratrap respectively, to automotive exhaust systems manufacturers, who then sell to automobile manufacturers. We believe that stringent emission standards and growing vehicle production will continue to drive Corning’s Environmental Technologies’ sales.

Vehicles will soon have to be upgraded to maintain compliance with new emission standards

Government authorities issue emission standards in order to curb harmful emissions from vehicles, power plants and refineries. The automobile industry is one such industry that is obligated to adhere to these emission standards. To ensure that their vehicles are compliant with emission standards, they resort to the use of emission control systems. With newer and stricter emission standards, automobile manufacturers have to keep upgrading their emission control systems in order to remain compliant.

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This has a positive impact on the automotive exhaust systems market, which includes manufacturers of automotive substrates and filters.

• The U.S. will be implementing its Tier 3 emission standards for light-weight vehicles starting 2017, which requires a 75% reduction in emissions. For heavy-duty vehicles such as trucks and buses, it presently follows the 2007 Heavy Duty Highway Rule
• For light-duty vehicles, China implemented its China IV emission standards in July 2013 and is working towards implementing China 5 standards nationwide by January 2018. For heavy-duty vehicles, China is currently following the China IV emission standards and plans to roll out the China 5 standards soon.
• India currently follows Bharat Stage III standard, which is in line with Euro III standard, for both light and heavy-duty vehicles. The Bharat IV standard, which is in line with Euro IV standard, is currently being followed in select cities, but will be implemented across the country by 2015.

As vehicles and businesses adapt to these new standards, sales for automotive exhaust systems and its components will increase, driving 4% growth in the market in 2014, from around $32 billion in 2013. This presents a global growth opportunity for Corning’s Environmental Technologies, which primarily generates its revenues from automotive and diesel filters.

Corning recently announced that it has developed a product to deal with cold start emissions, i.e. vehicular emissions that occur during the first few minutes after starting the engine. Traditional ceramic or metal substrates take time to heat up to their optimal operating temperatures, and are thus ineffective in cleaning emission during the first few minutes. Within these few minutes, gasoline vehicles generate around 70% of their total emissions. Corning’s new substrate, developed from floral material, allows the system to heat up faster leading to more efficient cleaning of emissions in the first few minutes after an engine is started. Considering that the new U.S. emission standards require a reduction in emissions by 75%, cleansing of cold start emissions will be key. Corning’s new substrate, FLORA, will likely see a high demand due to its effectiveness against cold start emissions and should help increase its market share in the automotive exhaust systems market. At present, Corning occupies close to 3% of the automotive exhaust systems market.

Growing automotive production shall drive sales of substrates and filters

Economic recovery and growing consumer confidence and spending has stimulated the demand for automobiles, the global production of which grew by around 25 million units from 2009 to 2013. Automobile production is expected to grow by 21 million units by 2021 driven by demand from developing markets such as China and the reviving European automobile industry.

• Recovery of domestic demand in Europe and their exports to U.S. and China will help stimulate the European automotive industry, which has been suffering due to weak economic conditions. The European automobile output is expected to increase by 4% per year between 2015 and 2017, compared to 1% in 2014.
• The North American automobile production will remain strong driven by continued investments in the automobile industry by major automobile manufacturers. Additionally, the availability of cheap labor and land in Mexico is attracting attention of automotive Original Equipment Manufacturers (OEMs) across the globe.

With growing automobile sales, requirement for filters and substrates to curb vehicular emissions will increase. This will likely have a positive impact on Corning’s Environmental Technologies business.

Gorilla Glass has Significant Growth Opportunity in the Automobile Industry

Gorilla Glass is one of Corning’s best selling products, contributing 11% towards overall company revenues in 2013. Gorilla Glass is primarily sold to consumer electronics manufacturers such as Apple, Samsung, Dell and HP. But due to its scratch resistance and high durability, it is gaining popularity within the automotive industry.

Presently, the consumer electronics industry consumes around 0.9 billion square feet of Gorilla Glass, up from around 0.5 billion square feet in 2011. The use of Gorilla Glass in the automotive industry opens up an opportunity to tap into the 5.5 billion square feet demand for automotive glass. If Corning manages to capture 5% of this market, it could see its revenue from Gorilla Glass grow by around 30%.

Corning has been actively pursuing applications of Gorilla Glass in the automobiles as interior windows, windshields and sunroofs. Due to its light weight and strength, BMW has chosen Gorilla Glass for the interior windows of their i8 sports car. The glass will act as an acoustic barrier against unwanted noise. Corning has collaborated with Pittsburgh Glass Works, a manufacturer of automotive glass, which will help in expanding Gorilla Glass’ reach to more mainstream vehicles and in higher numbers.

Corning believes that it might take another three to four years before it can truly realize any significant revenue from the use of Gorilla Glass in automobiles. This is because the technology involved behind Gorilla Glass automotive application is still at a very nascent stage and would require a considerable time to be perfected to be produced at a larger scale. Additionally, the immense competition in the automotive glass market may deter its growth in the segment.


Follow Arnaud Massartic on Twitter for interesting news about automobiles.

REPOST: Wretched excess? L.A.'s first members-only race car club

Members-only clubs are not uncommon in Los Angeles. However, this race car club founded by a French entrepreneur is a dream come true for the city’s car enthusiasts; however, it comes with a hefty membership fee. Learn more about the Fast Toys Club on this LA Times article.

French entrepreneur Chris Carel has founded Fast Toys Club, an exclusive
members-only organization for car enthusiasts willing to pay a minimum
$30,000 a year for access to exotic cars and race cars.
Image Source: latimes.com

Sociologists looking for new evidence of conspicuous consumption — look no further.
A French entrepreneur who made his money in the telecom business has founded a pricey members-only club in Los Angeles for hot car enthusiasts. 

Called Fast Toys Club, the Brentwood outfit gives its members access to a fleet of almost a dozen very high-end cars, including an Aston Martin DBS Volante, a Porsche 911 Turbo, an Audi R8, a Mercedes G63 AMG and Rolls Royce Phantom. (To add supercar firepower to the club, a Ferrari California T has been ordered.) 

For the race track, the club also offers a Pescarolo Le Mans prototype, a Ferrari 360 Challenge and a Mustang Boss 302S. 

Membership comes at a price. A basic package, at $30,000 a year, gets you the keys to any car in the garage worth less than $150,000 — for up to 100 days a year. The $50,000 deluxe package gets you 100 days a year in anything the club owns. A corporate package for $70,000 buys time for five drivers. 

And the Rolls comes with its own driver. 

Founder Chris Carel modeled the club on similar businesses in England and his native France, and said he conceived the company after his own race car habit (all three track cars in the collection are his) started eating up too much of his money. 

“I started to own one exotic car, and then another, then a third one,” said Carel, who lives in Pacific Palisades and bases his company in Brentwood. “Then I tried the race track, and I loved it, and so I wanted to buy a race car. Then it started to become expensive.” 

Assuming other car enthusiasts must have the same problem, Carel spent $2.7 million of his own money building the fleet and starting the club, which he said now has 10 members.
Members who make their own cars available to the club receive discounts, and earn credits as their cars are used by others in the club. 

For those of us too poor to actually purchase high-end rides, and perhaps even too poor to join the Fast Toys Club, other Southern California businesses cater to the same tastes.
At Vanity Exotics, for example, you can get that same Mercedes GL63 AMG for as little as $249 a day, an Aston Martin Vantage starting at $399, or a Ferrari 458 Italia for $1,499. A Lamborghini Aventador runs as much as $9,000 a day. 

The Manhattan Beach company said the Lamborghini Gallardo — at $499 to $799, depending on mileage — is its top-renting car.

Arnaud Massartic hopes to have a wide collection of vintage and exotic cars that he can someday share with his fellow car enthusiasts. Follow him on Tumblr for more related stories.

REPOST: If Cars Can Monitor Left-On Headlights and Rear Obstructions, They Should Be Able To Save Trapped Kids’ Lives

The article below reports on the latest car technologies used to prevent injuries and deaths of children in and around motor vehicles.

Today, technology saves your car battery—tomorrow, it could save your child 

Image Source: www.ems.gov 

Thursday is National Heatstroke Prevention Day, so here is a little fact for your awareness: In the past 20 years more than 670 U.S. children have died of heatstroke in hot cars. To date this yearKidsAndCars.org has recorded 18 such fatalities, including the death last week of a 10-month-old girl in Wichita, Kansas, who was unknowingly left in a vehicle on a 90-degree day. 

How can we prevent this failure of memory? The auto industry obviously recognizes that we’re human and our memories often fail us: our cars are able to warn us if we leave our headlights on, our keys are in the ignition, a door is open, we’re low on fuel, if our seatbelt isn’t buckled… If we can monitor our headlights or gas levels, we should be able to get a signal that a child has been forgotten.Our national advocacy nonprofit works year-round to educate parents and caregivers about these dangers, including a nationwide “Look before you lock” program. But education is not enough when all it takes is a simple change in a daily routine to cause a parent to drive past their childcare center and forget their child in the back seat. Current state laws require putting your baby in a rear-facing child safety seat, which has saved the lives of thousands of children in car crashes. An unintended consequence of this shift is that when out of sight, quiet little unobtrusive passengers can slip out of mind. 

Image Source: www.mssinglemama.com

Some of the technology options currently on the market include car seat monitors and alert systems, key fobs connected to car seats that sound a reminder and weight-sensitive mats. One system activates when the driver has opened the back door to strap in the car seat, and then sounds a reminder chime when the driver leaves the vehicle. Mobile apps have hit the market, such as Cars-n-Kids Carseat Monitor, which connects with the carseat via a sensor, or the Amber Alert GPS, which tracks your child in or out of the car.

These after-market systems may be useful reminders to some people, but they have not all been tested, and they are not the failsafe solution we need in every vehicle. Furthermore, a 2012 study on “Evaluation of Reminder Technology” sponsored by the National Highway Traffic Safety Administration and conducted by the Children’s Hospital of Philadelphia found that a few of these systems were not always reliable.

Safety is something every family deserves. It shouldn’t be optional, like 4WD or leather seats. And it shouldn’t be political. The federal government and automakers along with safety advocates have the ability to solve this problem.

Image Source: www.care2.com

KidsAndCars.org recently launched a petition to push the Obama Administration to authorize the U.S. Department of Transportation to provide funding for research and development of innovative technologies to detect a child left alone in the rear seat of a vehicle, such as infrared breathing sensors (a technology that already exists in certain baby monitors for the home). We also spearheaded an initiative to adopt federal safety standards that require all vehicles to be equipped with trunk release latches to prevent trunk entrapment, safer power window switches to prevent strangulation, and brake transmission shift interlock systems so children cannot inadvertently knock a vehicle into gear. In March, the DOT issued a rule requiring rear visibility systems, such as cameras, as standard equipment on all new passenger vehicles by May 2018.

Today, technology saves your car battery. Tomorrow, it could save your child.

Arnaud Massartic is an exotic car enthusiast with a natural talent for art and design. Follow him on Facebook to see his show-winning piece of art and auto works.

REPOST: GM recalls 7.6 million more cars, most for ignition switch issue

General Motors will recall an additional 7.6. million cars due to safety defects and ignition problems amid ongoing investigations by the National Highway Traffic Safety Administration. Read the full report below.

The all-new 2014 Cadillac CTS sedan is among 7.6 million vehicles GM recalled Monday. (Cadillac)
Image Source: latimes.com

General Motors said Monday that it will recall an additional 7.6 million vehicles in the U.S. for ignition problems and other safety defects.

This latest round of recalls includes 6.8 million older cars, because the ignition switch in these vehicles can turn unexpectedly, shutting off critical car functions.

The models include the 1997-2005 Chevrolet Malibu, 1998-2002 Oldsmobile Intrigue, 1999-2004 Oldsmobile Alero, 1999-2005 Pontiac Grand Am, 2000-05 Chevrolet Impala and Monte Carlo, and 2004-08 Pontiac Grand Prix.

These latest recalls also include 554,000 Cadillac CTS sedans from the 2003 through 2014 model years and the 2004-2006 Cadillac SRX. They have a similar problem.

GM launched a complete review of its recall process earlier this year after delaying for as long as a decade calling back 2.2 million small cars in the U.S. because of an ignition switch problem linked to at least 13 deaths and 50 crashes.

GM faces ongoing investigations by the National Highway Traffic Safety Administration, the Justice Department and Congress into why it delayed recalling the defective vehicles.

Among the vehicles recalled Monday, GM said it is aware of seven crashes, eight injuries and three fatalities. The fatal crashes occurred in older-model full-sized sedans being recalled for the inadvertent ignition key rotation. But the automaker said it did not have conclusive evidence that the defect condition caused those crashes.

"We undertook what I believe is the most comprehensive safety review in the history of our company because nothing is more important than the safety of our customers,” said Mary Barra, GM’s chief executive. “Our customers deserve more than we delivered in these vehicles. That has hardened my resolve to set a new industry standard for vehicle safety, quality and excellence.”

The company is also setting a new record for recalls.

It has recalled about 26 million vehicles in just the first half of this year. That is more than the entire industry has recalled annually in each of the last nine years. With the GM call-backs, the auto industry has recalled about 40 million vehicles so far this year, surpassing its record of 30.8 million set in 2004.

“We have worked aggressively to identify and address the major outstanding issues that could impact the safety of our customers,” Barra said. “If any other issues come to our attention, we will act appropriately and without hesitation.”

GM is telling owners of the vehicles to remove all items from their key ring and leave only the vehicle key to operate the cars.

So far the tidal wave of recalls hasn't hurt GM sales, said Karl Brauer, an analyst for auto information company Kelley Blue Book.

"But we’re hitting unprecedented numbers, and it’s reasonable for people to start asking, “When and where will it end?” he said.

The automaker also on Monday recalled 182,000 2005-07 Buick Rainiers, Chevrolet TrailBlazers, GMC Envoys, Isuzu Ascenders, Saab 9-7x models; 2006 Chevrolet TrailBlazer EXTs and GMC Envoy XLs because a possible electrical short in the driver’s door module could disable the power door lock and window switches and, in rare cases, overheat the module. That presents a fire risk.

Additionally, it announced a series of small recalls for certain Chevrolet Silverado and GMC Sierra trucks and Chevrolet and Buick passenger cars and crossovers for a variety of problems.

GM expects to take a charge of up to $1.2 billion in the second quarter for the cost of recall-related repairs announced in the quarter.

Arnaud Massartic loves bringing vintage cars back to life. See his latest ventures on this Facebook page.

For Brits, original Mini is best car ever

The Mini may not have the power of a McLaren or the stylishness of a Bentley, but it has enough charm and class to capture the hearts and minds of most Brits.

 

Image Source: autoweek.com

A poll from Autocar magazine has declared the original Mini as the best British car of all time, beating the likes of the McLaren F1, the Jaguar E-Type and the original Range Rover.

 

Image Source: wikipedia.org

“It comes as little surprise that the original Mini has topped the list of all-time British greats, it's such an iconic vehicle and represents so much more than the British car industry,” said Chas Hallett, Autocar’s brand editor. “The Mini is associated with Great Britain around the world and, in many ways, it was ahead of its time.”

Designed by Sir Alec Iddigonis and developed by the British Motor Corporation (BMC), the original Mini was launched in 1959, then known as the Austin Seven. In 1961, it was renamed the Austin Mini and, eight years later, became a marque of its own. Noted for its compact yet space-saving features, the design of the original Mini evolved to include convertibles, coupe, roadster, and pick-up types. 5.4 million Minis were sold in the span of 41 years, the best-selling car for BMC.

Arnaud Massartic is an avid car enthusiast specializing in exotic cars. Find out more about his ventures and interests here.

Money-saving tips for exotic car buyers

Image Source: www.naccarautoinsurance.com

A rare, exotic car can be a rewarding piece of investment, but like any large acquisition, it comes with its own share of risks and expenses. For exotic car enthusiasts like Arnaud Massartic, an impressive ride need not be too expensive. Here are a few tips to consider when shopping for an exotic car:

Do some internet shopping. The internet is a haven for car enthusiasts looking for that rare gem of a ride. Taking time to browse car selling sites and online classifieds can increase the chances of baiting a desired model within one’s price range.

Image Source: www.examiner.com

Check online pricing guides. One can get a car’s average pricing through online pricing guides, like Edmunds.com. The pricing data provided in these sites can play a big part in the decision-making process later on.

Consider pre-owned. The quality and performance of some pre-owned cars are almost indistinguishable from brand-new ones, at a fraction of the price.

Image Source: www.dailymail.co.uk

Consider online auctions. Online auctions can be excellent hotspots for pre-owned or brand-new exotic cars. In case one wins a bid and it meets the minimum bid requirements of the seller, the amount saved can reach thousands of dollars.

Dare to compare. Comparing prices of similar models can be quite helpful in the negotiating table, especially if one’s target vehicle is being priced too high by the seller.

Luxury and exotic rides are Arnaud Massartic’s great passion. Read more about Massartic and his love for cars by following this Facebook page.