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transplants. The 2005 Harbour Report estimated that Toyota's lead in benefits cost advantage amounted to $350 US to $500 US per vehicle over North American manufacturers. The UAW agreed to a two-tier wage in recent 2007 negotiations, something which the CAW has so far refused. Jared Bernstein, the chief economist of Vice President Joe Biden, noted in an interview with WWJAM in Detroit that most of the 2007 contract concessions apply only to new hires, while older workers "still benefit from contracts that were signed a long time ago." However, only 30% of parts used by the Big Three employ union labor, with 70% sourced from non-union labor.

Delphi, which was spun off from GM in 1999, filed for Chapter 11 bankruptcy after the UAW refused to cut their wages and GM is expected to be liable for a $7 billion shortfall. In order to improve profits, the Detroit automakers made agreements with unions to reduce wages while making pension and health care commitments. GM, for instance, at one time picked up the entire cost of funding health insurance premiums of its employees, their survivors and GM retirees, as the US did not have a universal health care system. With most of these plans chronically underfunded in the late 1990s, the companies have tried to provide retirement packages to older workers, and made agreements with the UAW to transfer pension obligations to an independent trust. Nonetheless, non-unionized Japanese automakers, with their younger American workforces (and far fewer American retirees) will continue to enjoy a cost advantage.

Despite the history of their marques, many long running cars have been discontinued or relegated to fleet sales, as GM, Ford and DaimlerChrysler shifted away resources from midsize and compact cars to lead the "SUV Craze". Since the late 1990s, over half of their profits have come from light trucks and SUVs, while they often could not break even on compact cars unless the buyer chose options.[96] Ron Harbour, in releasing the Oliver Wyman’s 2008 Harbour Report, stated that many small “econoboxes” of the past acted as loss leaders, but were designed to bring customers to the brand in the hopes they would stay loyal and move up to more profitable models. The report estimated that an automaker needed to sell ten small cars to make the same profit as one big vehicle, and that they had to produce small and mid-size cars profitably to succeed, something that the Detroit three have not yet done. SUV sales peaked in 1999 but have not returned to that level ever since, due to higher gas prices.

In the case of Chrysler Corporation, compact and midsized vehicles such as the Dodge Neon, Dodge Stratus and Chrysler Cirrus were produced profitably during the 1990s concurrently with more profitable larger vehicles. However, following the DaimlerChrysler merger in 1998, there was a major cost-cutting operation at the company. The result was the lowering of benchmarked standards for Chrysler to aim at. This directly led to the following in Chrysler's

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case. There was realignment of the Chrysler Group model range with those of GM and Ford (ie. a skew towards larger vehicles).

The Detroit Big Three had been slower to bring new vehicles to the market compared with foreign competitors. The Big Three have battled initial quality perceptions in spite of reports showing improvements.

Falling sales and market share have resulted in the Big Three's plants operating below capacity (GM's plants were at 85% in November 2005, well below the plants of its Asian competitors), leading to production cuts, plant idlings and layoffs. They have been relying heavily on considerable incentives and subsidized leases to sell vehicles. which was crucial to keeping the plants running, which in turn drove a significant portion of the Michigan economy. These promotional strategies, including rebates, employee pricing and 0% financing, have boosted sales but have also cut into profits. Promotions may drain the automaker's cash reserves in the near term while in the long run the company. Automakers have since been trying to scale back on incentives, while cutting production. The subprime mortgage crisis and high oil prices in 2008 resulting in the plummeting popularity of best-selling trucks and SUVs, perhaps forcing automakers to continue offering heavy incentives to help clear excess inventory.

In 2008, with high oil prices and a declining US economy due to the subprime mortgage crisis, the Big Three are rethinking their strategy, idling or converting light truck plants to make small cars. Due to the declining residual value of their vehicles, Chrysler and GM have stopped offering leases on the majority of their vehicles.

On September 30, 2008, the first automaker loan package, for $25 billion, was signed into law. The bill sets aside $7.5 billion in taxpayer funds needed to guarantee $25 billion in low-interest loans to help US automakers produce more fuel-efficient cars and trucks. The crisis has led to forecasts of massive unemployment and economic recession if not contained, and Democrats in Congress, supported by President Barack Obama have called for a "bridge loan" to assist the Big Three. On October 13, 2008, Obama said that he wanted Congress to double its guaranteed loans to the U.S. automobile industry from $25 billion to $50 billion.

On June 2, GM Motors announced the sale of the Hummer brand of offroad vehicles to Sichuan Tengzhong Heavy Industrial Machinery Company Ltd., a machinery company in western China, in which the transaction is expected to close in the third quarter of 2009.

4.Discuss the situation at Russian automobile market in 2008-2009 years.

5.Which country (company) kept the most purchasing ability?

Language practice

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1.Examine the phrases and try to translate it.

A) Put the heat / screws on someone B) Put the moves on someone

C) Take advantage of

2.Match these phrases with the definitions given below

1)try to seduce someone

2)pressure someone to do something

3)use abilities

3.Fill in the gaps in the sentences

Hey! Are you trying to …the moves … me?!

Janet's really ………the …… on her husband to get a new car. He's ……..the heat … me to finish the report.

He has ….. ………. of being a head of this department.

4.Match the words in two columns

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Writing

1. According to the text “Automotive industry crisis of 2008–2009” fill in

the structure and discuss who has suffered the most.

2.Using phrases and word structures from section “Language practice” write your own report “Automobile production in Russia”.

Unit 4.

Section A. Analyze and weight the supporting information

Theory

The purpose of the analysis is to make reasoned sense of the information that has been gathered. The findings of the analysis need to be balanced, justifiable and where possible quantifiable. The process of business planning and market analysis usually starts with the entrepreneur determining what questions need to be answered in order to make better decisions. From these questions, broad research criteria are established, which in turn lead into specific research questions. The research is then designed to provide the data to answer the research questions which then support the business decisions. The research questions take into consideration target market and the type of information required. A research plan is developed which incorporates perceived target markets, methodologies, cost and research schedule.

Findings are often compared and contrasted in effort to present the Business Concept or new business ideas in a background that enhances their alignment to the target audience. Detailed facts and figures need to be interpreted by explaining what they mean, what significance they have to the purpose of the report and how significant they are to the audience decision

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making process. It is an accepted practice that the main content section of a business report presents this information in a summarized format, then referring the reader to attachments to the report for the detailed data and analysis. The continuity of relationship between the data collected, their credibility and the resulting analysis will directly relate to the weight of evidence that can be determined by the target audience in their commercial decision making process.

Questions:

1.What is the aim of the analysis of supporting information in business report?

2.What qualities should have the data and findings of the report?

3.What should be taken into consideration in the research questions?

4.What does the research plan incorporate?

5.What is the main aim of comparison and contrast of report findings?

6.What is the need to explain the report’s facts and figures?

7.What are the acceptable ways of explaining for business report?

Section B. Automobile engineers

Reading

1.Automobile engineers. What do they do?

2.Describe their duties and responsibilities.

3.What qualities should they have?

4.Is this profession in a great demand today or not? Why?

5.Read the text to learn more about automobile engineers.

AUTOMOBILE ENGINEERS

Engineers having expertise in vehicle technology are called automotive engineers. Automotive engineering deals with the different elements of mechanical, electrical, electronic, software, and safety engineering, all concerned with automobiles. The technology which goes into designing, manufacturing, and operation of a vehicle is termed as automobile engineering.

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The various sections of automobile engineering may be briefly classified as below:

-Service engineering

-Product engineering

-Design engineering

-Development engineering

-Manufacturing engineering

-Safety engineering.

Practically every part of vehicle design falls under automotive engineering, including its design, right from its initial concepts to its manufacturing phases.

There are three broad sections in automobile engineering, and these are, product engineering, development engineering, and manufacturing engineering. As far as product engineering is concerned, the design engineering part is also included in that section. Product engineers deal with the design of the automobile right from its conceptual stages, taking it through the design phase on to the manufacturing activity. Product engineers are also responsible for testing the sub-assemblies of the vehicle before it is approved to be a qualified part that can be fitted during manufacturing of the vehicle.

Various parts that go into a vehicle have a specification, and this specification is decided by the development engineer in automobile engineering. For example, the development engineer will provide the production engineer with the spring rate that he would want to utilise in the vehicle, so as to achieve the right ride characteristics of the automobile.

A Development Engineer is a job function within Automotive Engineering, in which the development engineer has the responsibility for coordinating delivery of the engineering attributes of a complete automobile (bus, car, truck, van, SUV, etc.) as dictated by the automobile manufacturer, governmental regulations, and the customer who buys the product.

Much like the Systems Engineer, the Development Engineer is concerned with the interactions of all systems in the complete automobile. While there are multiple components and systems in an automobile that have to function as designed, they must also work in harmony with the complete automobile. As an example, the brake system's main function is to provide braking functionality to the automobile. Along with this, it must also provide an acceptable level of: pedal feel (spongy, stiff), brake system “noise” (squeal, shudder, etc), and interaction with the ABS (anti-lock braking system).

Another aspect of the development engineer's job is a trade-off process required to deliver all the automobile attributes at a certain acceptable level. An example of this is the trade-off between engine performance and fuel economy.

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While some customers are looking for maximum power from their engine, the automobile is still required to deliver an acceptable level of fuel economy. From the engine's perspective, these are opposing requirements. Engine performance is looking for maximum displacement (bigger, more power), while fuel economy is looking for a smaller displacement engine (ex: 1.4 L vs. 5.4 L). The engine size, though is not the only contributing factor to fuel economy and automobile performance. Other attributes include: automobile weight, aerodynamic drag, transmission gearing, emission control devices, and tires.

The Development Engineer is also responsible for organizing automobile level testing, validation, and certification. Components and systems are designed and tested individually by the Product Engineer. The final evaluation though, has to be conducted at the automobile level to evaluate system to system interactions. As an example, the audio system (radio) needs to be evaluated at the automobile level. Interaction with other electronic components can cause interference. Heat dissipation of the system and ergonomic placement of the controls need to be evaluated. Sound quality in all seating positions needs to be provided at acceptable levels.

Manufacturing Engineers at automotive companies are involved in a wide array of manufacturing activities. They plan and engineer the assembly of whole vehicles as well as the individual parts that go into the vehicles. Design and layout of equipment and people, machine rates and line rates, specification of automation equipment, and manufacturing safety procedures are all some of the jobs that Manufacturing Engineers do.

Assembly plants build vehicles from parts they receive...they rarely build parts themselves. Manufacturing engineers at assembly plants plan out the body shop, engine and transmission placement, and the trim and chassis area of the final assembly. Seats, radios, interior trim panels, pick-up bedliners and wheels are examples of parts that need to be manufactured for a vehicle and whose creation would be overseen by an Automotive Manufacturing Engineer. While body panels, usually stamped sheet metal, have typically remained within the OEM, the general trend for all other parts is for them to be bought from outside suppliers. Most vehicles have greater than 60% supplier content (The Toyota Product Development System, Morgan and Liker)

The automotive industry has its own culture that Automotive Manufacturing Engineers need to know to effectively operate. The Automotive Industry Action Group (AIAG), a consortium composed of hundreds of participating companies, have established rules and procedures that ensure parts meet strict quality levels. An Automotive Manufacturing Engineer typically works with statistics and process controls, validating that the process that produces parts will always produce those parts with quality. They also search for ways to continuously improve the process between product upgrades.

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Much of research goes into the aspects of crash scenarios in vehicles. This is designed and implemented by the safety engineering people. The design is tested under stringent conditions laid down by the government and follows strict quality control. The regulations set by the government include, the functionalities of air-bag and seat belts in the vehicle, the safety related to front and side crash possibilities, the roll-over resistance, etc. These are tested and assessed by various methods and tools, and at times in real simulated crash scenarios.

The product engineer is also responsible to measure the fuel efficiency of the vehicle in terms of miles per gallon or kilometer per litre, and also tests the emission of the vehicle by measuring the hydrocarbons, nitrogen oxides (NOx), carbon monoxide (CO), carbon dioxide (CO2), and evaporative emissions.

The vehicle dynamics, which are essentially the noise, vibration, and harshness of the vehicle, are tested by the vehicle dynamics engineer, to ensure that the vehicle has been manufactured with the right dynamics specifications that have been set by the design engineers.

The performance of the vehicle is the impression of the driver as he drives the vehicle and tries to perceive the different aspects of the vehicle’s manner of performance. This would include its power and pick-up, the acceleration, sound of the engine, the feel of the acceleration pedal, and the shift quality. The performance of the vehicle is observed with different running conditions of the vehicle, such as, wide-open throttle acceleration, 0-60 mph (0-100 km/h), or highway passing over. The engine performance is tested by the perception of the driver on the shift quality of the vehicle. It is the test of the vehicle to an “automatic transmission banana event“. The engine, the transmission, driveline, the suspension, etc. are the ones which are included in testing automatic transmission banana event of the vehicle.

Safety Engineering: Safety Engineering is the assessment of various crash scenarios and their impact on the vehicle occupants. These are tested against very stringent governmental regulations. Some of these requirements include: Seat belt and air bag functionality. Front and side crash worthiness. Resistance to rollover. Assessments are done with various methods and tools: Computer crash simulation, crash test dummies, partial system sled and full vehicle crashes.

Fuel Economy/Emissions: Fuel economy is the measured fuel efficiency of the vehicle in miles per gallon or litres per 100 kilometres. Emissions testing the measurement of the vehicles emissions: hydrocarbons, nitrogen oxides (NOx), carbon monoxide (CO), carbon dioxide (CO2), and evaporative emissions.

Vehicle Dynamics: Vehicle dynamics is the vehicle's response of the following attributes: ride, handling, steering, braking, and traction. Design of the chassis systems of suspension, steering, braking, structure (frame), wheels and

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tires, and traction control are highly leveraged by the Vehicle Dynamics engineer to deliver the Vehicle Dynamics qualities desired.

NVH Engineering (Noise, Vibration, and Harshness): NVH is the customer's impression both tactile (feel) and audible (hear) feedback from the vehicle. While sound can be interpreted as a rattle, squeal, or hoot, a tactile response can be seat vibration, or a buzz in the steering wheel. This feedback is generated by components either rubbing, vibrating or rotating. NVH response can be classified in various ways: powertrain NVH, road noise, wind noise, component noise, and squeak and rattle. Note, there are both good and bad NVH qualities. The NVH engineer works to either eliminate bad NVH, or change the “bad NVH” to good (i.e., exhaust tones).

Performance: Performance is the driver’s perception of the vehicle's power and pickup. This is influenced by vehicle acceleration, sound of the engine, accelerator pedal feel, and shift quality. Performance is perceived in various ways: wide-open-throttle (WOT) acceleration, 0-62 mph (0-100 km/h) - launch performance, or highway passing power.

Shift Quality: Shift Quality is the driver’s perception of the vehicle to an automatic transmission banana event. This is influenced by the powertrain (engine, transmission), and the vehicle (driveline, suspension, etc). Shift feel is both a tactile (feel) and audible (hear) response of the vehicle. Shift Quality is experienced as various events: Transmission shifts are felt as an upshift at acceleration (1-2), or a downshift maneuver in passing (4-2). Shift engagements of the vehicle are also evaluated, as in Park to Reverse, etc.

Durability / Corrosion Engineering: Durability and Corrosion engineering is the evaluation testing of a vehicle for its useful life. This includes mileage accumulation, severe driving conditions, and corrosive salt baths.

Package / Ergonomics Engineering: Package Engineering is a discipline that designs/analyzes the occupant accommodations (seat roominess), ingress/egress to the vehicle, and the driver’s field of vision (gauges and windows). The Package Engineer is also responsible for other areas of the vehicle like the engine compartment, and the component to component placement. Ergonomics is the discipline that assesses the occupant's access to the steering wheel, pedals, and other driver/passenger controls.

Climate Control: Climate Control is the customer’s impression of the cabin environment and level of comfort related to the temperature and humidity. From the windshield defrosting, to the heating and cooling capacity, all vehicle seating positions are evaluated to a certain level of comfort.

Drivability: Drivability is the vehicle’s response to general driving conditions. Cold starts and stalls, rpm dips, idle response, launch hesitations and stumbles, and performance levels.

Cost: The cost of a vehicle program is typically split into the effect on the variable cost of the vehicle, and the up-front tooling and fixed costs associated

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with developing the vehicle. There are also costs associated with warranty reductions, and marketing.

Program timing: To some extent programs are timed with respect to the market, and also to the production schedules of the assembly plants. Any new part in the design must support the development and manufacturing schedule of the model.

Assembly Feasibility: It is easy to design a module that is hard to assemble, either resulting in damaged units, or poor tolerances. The skilled product development engineer works with the assembly/manufacturing engineers so that the resulting design is easy and cheap to make and assemble, as well as delivering appropriate functionality and appearance.

Speaking

The first paragraph. What is it about? Give a title to it.

What can be a justifiable source of information for it? What is the target audience of this text?

What questions does this text need to answer?

What type of information the author required answering these questions? What kind of methodology was used in this text (explanation, description,

proof, demonstration, comparison)? Create a possible attachment to this text.

Discussing

1.Fill in the structure (in accordance with the text) and compare the duties of automotive engineers. What is common and distinguishing between them?

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