Reinvention of Auto Industry Continues

Zacks Equity Research issues a report today shows the reinvention of the auto industry continues

“The auto industry is highly concentrated. The top-10 global automakers account for roughly 80% of the worldwide production and nearly 90% of total vehicles sold in the U.S.

In January-May 2012, General Motors Company (NYSE: GM) led with a 17.8% market share in the U.S., followed by Ford Motor Co. (NYSE: F) with a 15.6% market share, Toyota Motor Corp. (NYSE: TM) with a 14.5% market share, Chrysler-Fiat with a 11.5% market share, and Honda Motor Co. (NYSE: HMC) and Nissan Motor Co. (OTC: NSANY) at the last spots with 9.6% and 8.1% market shares, respectively.

Due to a massive structural change after the global economic meltdown in 2008, the global auto industry is expected to be ruled by automakers and suppliers based in the six major auto markets: China, India, Japan, Korea, Western Europe and the U.S.

Green Cars

Rising fuel prices and global warming have turned attention to the auto industry that either rely less on traditional fossil fuels or use cheaper renewable sources of energy. Thus, "green" alternatives such as fuel-efficient electric vehicles (EVs) and hybrid vehicles will attract consumers in affluent countries while flex-fuels such as ethanol and natural gas will be highly demanded in the emerging auto markets due to their suitability with the local climate and resource base.

Consequently, there will be a variety of powertrain technologies in the auto industry in this decade and "green" cars are likely to represent about 30% of total global sales in developed auto markets.

Globally, the hybrid market is ruled by Toyota (which includes the popular Prius) and Honda (includes Civic and Insight hybrids). Meanwhile, other automakers such as Ford, General Motors and Nissan are also aggressively pursuing a plan to push hybrid sales. Some of their "green" cars have already generated huge responses in the auto industry, including the Ford Focus, GM Volt, Nissan Leaf, among others.

In late 2011, Ford and Toyota have signed a memorandum of understanding on the equal product development collaboration in order to develop a gas-electric hybrid engine for pickup trucks and sports utility vehicles (SUVs). The automakers have decided to sign a definitive agreement that would lay out timelines to develop the technology. They expect to market the product by the end of this decade. The development of electric hybrid engines would help both the companies meet stringent fuel economy and pollution standards in the U.S. and elsewhere in the near future.

GM also plans to manufacture a luxury electric car dubbed ELR based on the technology used in its Volt plug-in hybrid for its Cadillac brand as a part of its long-term goal to become a leader in the fuel-efficient vehicles market.

U.S. is the largest hybrid car market in the world, with sales accounting for 60%-70% of global hybrid sales. According to J.D. Power and Associates, hybrid-electric vehicle sales volumes in the country are expected to grow by 268% between 2005 and 2012.

Presently, there are only 12 hybrid models available in the U.S., which would increase to 52 by 2012. Didier Leroy, head of Toyota's European operations, has revealed that the percentage of consumers in Europe interested in hybrid cars for their next car purchase has increased to 16% in 2011 from 8%-9% in 2009.”

The full article can be read at 

http://www.zacks.com/stock/news/77729/auto-industry-stock-outlook-june-2012

Last Chance Mile: The Reinvention of Manufacturing by Rod Kackley is scheduled for release in early July.

June Car Sales: Detroit Ready To Score on Rebound

 Two auto industry sales forecasts disagree on the numbers, but TrueCar.com and J.D. Power and Associates agree that June should turn out to be a dynamic month for the automotive industry, domestic (Detroit) and foreign.

That is great news not just for the car companies but for all of the businesses in that supply chain. After all, if 12 million to 13 million cars are sold, somebody has to make 12 to 13 million steering wheels, gear shift levers, 48 to 52 million tires, 48 to 52 million hub caps…and on and on. And someone has to feed, clothe, and shelter the people who are making those hub caps, tires, gear shift levers, steering wheels, cars and trucks. And don’t even get me started on people making toys for them and their kids.

Manufacturing is back.  Manufacturing is being reinvented.  This is one more chapter for Last Chance Mile: The Reinvention of Manufacturing, due out this summer.

June's new-vehicle retail sales rate is approaching a 12 million-unit pace, the strongest level since February, according to a monthly sales forecast developed by J.D. Power and Associates' Power Information Network® (PIN) and LMC Automotive.

Retail Light-Vehicle Sales

June new-vehicle retail sales are projected to come in at 994,800 units, which represent a seasonally adjusted annualized rate (SAAR) of 11.9 million units. Volume is expected to increase 15 percent, compared with June 2011, after adjusting for one additional selling day this month. Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles.

"We're seeing healthy retail sales growth as we head into the summer selling season and as automakers change over to the 2013 model-year vehicles," said John Humphrey, senior vice president of global automotive operations at J.D. Power and Associates. "Many major manufacturers are posting year-over-year retail sales gains this month, while maintaining strong new-vehicle prices. Average incentive levels, while up 9 percent versus a year ago, are down 5 percent from May. All indicators point toward an industry that continues to get healthy."

Total Light-Vehicle Sales

Total light-vehicle sales in June are expected to come in at 1,265,900 units, which is a 16 percent increase from June 2011. Fleet volume as a percentage of total light-vehicle volume is expected to reach 21 percent in June, after falling below 20 percent in May.

J.D. Power and LMC Automotive U.S. Sales and SAAR Comparisons

	June 2012(1)	May 2012	June 2011
New-Vehicle Retail Sales	994,800 units (15% higher than June 2011)(2)	1,070,816 units	834,556 units
Total Vehicle Sales	1,265,900 units (16% higher than June 2011)	1,332,054 units	1,050,831 units
Retail SAAR	11.9 million units	11.4 million units	9.5 million units
Total SAAR	13.9 million units	13.7 million units	11.5 million units

(1) Figures cited for June 2012 are forecasted based on the first 17 selling days of the month.

(2) The percentage change is adjusted based on the number of selling days in the month (27 days in June 2012 vs. 26 days in June 2011).

Gas prices in the United States have fallen steadily since April, which has changed demand for hybrid and electric vehicles. As gas prices increased from $3.33 per gallon in November 2011 to $3.84 per gallon in April 2012, the combined share of retail sales of hybrid and electric vehicle sales increased from 1.7 percent to 4.6 percent during the same period. However, as gas prices have dropped since April, so has the market share for hybrid and electric vehicles, which has been trending downward during the past two months and is now at 3.4 percent.

"The hybrid and electric vehicle market closely follows gas prices, which demonstrates that while there is consumer interest in hybrid and electric vehicles, demand is heavily influenced by the economic environment, rather than pure interest in the technology," said Humphrey. "Until we see alternative powertrain growth without rising gas prices, we won't see the market share growth that many automakers are hoping for."

LMC Automotive expects a hybrid and electric vehicle sales to account for 3.2 percent of total light-vehicle in 2012.

Sales Outlook

After two months of upward revisions to the 2012 forecast, LMC Automotive is maintaining its light-vehicle sales forecast for 2012. Total light-vehicle sales are forecasted at 14.5 million units with retail sales at 11.6 million units.

"Despite a rising level of uncertainty with the economic recovery, consumers remain resilient in their willingness to purchase new vehicles," said Jeff Schuster, senior vice president of forecasting at LMC Automotive. "Concerns regarding the macro-economic environment and another potential summer slowdown have increased, but we expect the sales pace to remain strong and stable throughout the second half of the year."

North American Production

Throughout May 2012, North American light-vehicle production is well ahead of the increase in U.S. sales, with volume up nearly 23 percent, compared with the same period in 2011. More than 1.2 million additional vehicles have been built in the first five months of 2012, compared with the same period in 2011, as inventory rebuilding has driven the volume increase. U.S. manufacturing growth continues to lead the overall North America region with a 26 percent year-to-date increase. Production in Mexico is up 14 percent, and Canadian manufacturing is 19 percent higher.

Vehicle inventory at the beginning of June declined slightly to a 52-days’ supply (compared with a 55-days’ supply in May). Car inventory remains at a below-normal level, with a 43-days’ supply in early June, down from 45 days in early May, as demand for cars has increased due to lower fuel prices. Truck inventory levels are at normal levels with a 61-days’ supply, down from 67-days’ supply in May.

LMC Automotive's production forecast for North American in 2012 stands at 14.9 million units and represents a 14 percent increase from the 13.1 million units built in 2011. LMC Automotive expects 2013 North American production to exceed the 15 million-unit threshold, to 15.3 million units.

"Despite the significant increase in production levels this year, vehicle inventory has remained at a level that is below the typical 60- to 65-day supply," said Schuster. "As we look to the future, volume remains robust, as increases in exports, as well as imported volume resourced to North America, drive higher levels of North American production."

TrueCar.com is forecasting for June 2012  new light vehicle sales in the U.S. (including fleet) is expected to be 1,242,301 units, up 18.1 percent from June 2011 and down 6.9 percent from May 2012 (on an unadjusted basis)

The June 2012 forecast translates into a Seasonally Adjusted Annualized Rate (SAAR) of 13.6 million new car sales, up from 11.5 million in June 2011 and down from 13.8 million in May 2012

Retail sales are up 15.7 percent compared to June 2011 and down 6.9 percent from May 2012

Fleet and rental sales are expected to make up 20.5 percent of total industry sales in June 2012

The industry average incentive spending per unit will be approximately $2,432 in June 2012, which represents an increase of 1.5 percent from June 2011 and decrease of 4.8 percent from May 2012

Used car sales* are estimated to be 4,774,707, up 6.3 percent from June 2011 and up 10.8 percent from May 2012.  The ratio of new to used is estimated to be 1:4 for June 2012

"The remarkable recovery of Toyota and Honda continued in June," said Jesse Toprak, Vice President of Market Intelligence for TrueCar.com. "Uncertainty in the financial markets brought selling rates below 14 million units for the second month in a row. Despite the relative slowdown in the last few weeks, the first half sales results this year indicate a relatively healthy car industry; perhaps the brightest spot in an otherwise struggling U.S. economy. We expect second half of 2012 to average around 14.5 million units, which will take us to over 15 million new cars sold in 2013.

"Average incentive spending for all automakers will hit its lowest levels this month since last year in the months following the natural disasters in Japan and prior to that since January 2007," said Kristen Andersson, Senior Analyst at TrueCar.com. "Toyota will post strong retail sales this month while decreasing incentive spending as consumers continue to snap up the popular Camry, Corolla, and Prius."

TrueCar.com also projects sales down to the brand level, which can be viewed in its entirety at the Truth Blog on TrueCar.com.  Brand level incentive spending forecasts are available upon request.

TrueCar.com bases its forecast on actual transaction data.  The transaction data based forecast is refined by other current and historical factors that impact vehicle sales, including:  sales, inventory, incentives, fuel prices, and macro-economic data (major stock market indexes, consumer confidence, new home starts, and CPI).  TrueCar.com does not adjust for selling days in year-over-year percentage change calculations.

*Used car sales figures include sales from franchise dealerships, independent dealerships and private party sales

Let Me Introduce You To Medical Mile

I am in what is called the "galley modification" stage of the production of Last Chance Mile: The Reinvention of an American Community. The story of Grand Rapids' Medical Mile and the reinvention of this American community takes place on Michigan Street NE.

So, in this excerpt from Last Chance Mile, please allow me to take you to the home of Medical Mile:

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Grand Rapids’ Medical Mile is a cluster of prosperity. It stretches from the Grand Valley State University Cook-DeVos Center for Health Sciences that includes an entrepreneurial incubator on the east to Meijer Heart Center, Lemmen-Holton Cancer Pavilion, Spectrum-Butterworth Hospital, Van Andel Research Institute and Michigan State University College of Human Medicine on the west.

It is the epicenter of this 21st century revolution in the way this community is thought of, and more importantly in the way this community thinks of itself. Yet, it is only part of Grand Rapids’ story of transformation.

None of this existed 15 years ago. It all began with a $1 billion endowment from Jay Van Andel, a man who was destined to suffer from Parkinson’s, one of the diseases being investigated at the research institute that bears his name.

Michigan Street NE doesn’t sleep anymore. The people and the traffic of Medical Mile keep it awake from College to Division avenues. A full mile that slumbers but never snores.  It is the insomniac of Grand Rapids.

Ambulances scream up and down Michigan Street’s spine at all hours, while Aero Med helicopters fly over its head, bringing patients, doctors and organs for transplant to Spectrum-Butterworth Hospital.

The flow of people running across Michigan Street’s shoulders never stops. Doctors, nurses, technicians; white, black, brown, red and yellow people all in scrubs, some flowered, some plain, some blue, arriving for work, leaving for home every eight, ten or 12 hours. They never stop crossing from the new multi-story parking garages that were built on the northern shoulders of the Mile to the huge, blue Helen DeVos Children’s Hospital building that was added on to the colossus of Grand Rapids health care, Spectrum-Butterworth hospital.

Parents are inside DeVos Children’s and Spectrum-Butterworth hospitals at all hours of the day and night praying that their children’s hearts will continue beating just as this heart of the Medical Mile keeps ticking away, a silent metronome that keeps Michigan Street NE from closing its eyes.

Doctors and nurses race across the spine of the Mile before the lights change. Some of them run into Meijer Heart Center. This is where old hearts are exchanged for new, where lives begin again, where families grieve, where families celebrate. It is the building of second chances. It is yet another reason that Michigan Street NE can’t sleep anymore. The Mile won’t let it even doze.

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Last Chance Mile: The Reinvention of an American Community

Reinvention of River Rouge: Dearborn Reborn

Severstal North America Hosts Grand Opening of Newest Steelmaking Facilities

Welcomes Customers, Suppliers, Government Officials

An icon of both the 20th century power of Michigan’s heavy metal manufacturing wheelhouse and the 21st century disintegration of the industries associated with it, Ford Motor Co.’s River Rouge has been reinvented.

 Severstal North America, one of the largest U.S.-based steel producers specializing in the full range of the high quality, light, flat-rolled products, is hosting a Grand Opening celebration of the company’s new steelmaking facilities in Dearborn, Mich.

Alexey Mordashov, CEO of OAO Severstal, said, “From the day we first acquired the Rouge assets eight years ago, we had a long-term vision for this plant. We saw opportunities to succeed by creating strong industry and community ties and servicing our customers with high quality products and advanced technologies. Being located here in the heart of the automotive industry with strong heritage and spirit of innovation, we are proud to be able to continue on the traditions of the great past and on to the bright future.”

To date, Severstal North America has spent $1.4 billion modernizing the Dearborn plant, including constructing a pickle line tandem cold mill (PLTCM) complex and hot-dip Galvanizing line (HDGL). The $450 million new PLTCM has highly sophisticated control systems and cutting-edge operating practices and the $285 million HDGL with advanced technologies ensures consistent coating thickness and surface texture. The new facilities are capable of producing the newest generation of coated advanced high strength steels for the most demanding applications.

Distinguished presenters at the event included Michigan Gov. Rick Snyder, and Ambassador of the Russian Federation to the United States, Sergey Kislyak.

“Severstal’s investment in Michigan with its expanded, upgraded Dearborn plant and its commitment to supplying the automotive industry with a new generation of steel products is good news for the motor capital of the world,” Snyder said. “Michigan is a great place to do business, work and live."

The “Dearborn Reborn” theme chosen for the event focuses on leveraging the proud history of Severstal while emphasizing the future capabilities brought about by the modernization. The celebration signifies a resurgence of steel manufacturing in the legendary Rouge plant. The major modernization has transformed Severstal North America’s facilities into one of the most advanced steel mills in the world.

Reinvention of Ford: Growing in Lousville

LOUISVILLE, Ky., June 13, 2012 – Ford Motor Company, its employees, dealers and suppliers today are celebrating production of the all-new Ford Escape at the company’s transformed Louisville Assembly Plant, one of several U.S. manufacturing sites where Ford is adding jobs to meet strong customer demand for fuel-efficient vehicles.

Ford already has added 1,800 jobs at Louisville Assembly Plant and is adding 1,300 additional workers to a third shift this fall, bringing total hourly employment at the plant to 4,200.

Nationwide, Ford has added more than 5,200 hourly jobs already this year. With Louisville’s third-shift in place, by year end, Ford is set to deliver more than half of the 12,000 additional jobs it committed to add by 2015.

The company invested $600 million to convert Louisville Assembly from a plant producing body-on-frame SUVs into a facility that builds America’s most fuel-efficient small utility vehicles with automatic transmissions.

“Today marks a celebration of progress and transformation,” said Mark Fields, Ford’s president of The Americas. “Louisville Assembly Plant’s reinvention illustrates how Ford is going further, continuing to invest in American manufacturing and new jobs while delivering even more of the fuel-efficient vehicles that give customers true power of choice.”

The upgraded Louisville Assembly Plant is capable of producing up to six different vehicles at the same time, making it Ford’s most flexible U.S. plant.

As part of the upgrade, Ford installed new tooling and improved equipment in the plant’s final assembly area and body shop, including more than 1,000 robots and 20 miles of conveyors. Reprogrammable tooling in the body shop allows the plant to produce multiple vehicle models at the same time without requiring downtime for tooling changeover.

“Manufacturing flexibility is critical to staying competitive in today’s global automotive marketplace,” said Jim Tetreault, Ford vice president of North America Manufacturing. “Our ability to produce up to six vehicles from a single plant gives us a sizable advantage in quickly adjusting our products and volumes to match changes in customer preferences and market factors.”

Louisville Assembly is the third Ford plant in North America to retool from producing traditional body-on-frame trucks and SUVs to fuel-efficient vehicles from global platforms.

The company’s investment in Louisville is supported by strong partnerships at the state, county and local level, as well as by Ford’s green partnership with the U.S. Department of Energy. Louisville Assembly Plant is one of 11 Ford facilities in the U.S. participating in the Advanced Technology Vehicles Manufacturing Loan Program initiated by Congress and implemented by the Obama administration.

“This is a day of celebration for Ford and the Commonwealth of Kentucky,” said Gov. Steve Beshear. “Production of the new Escape not only means thousands of jobs for Kentuckians, it boosts our GDP, tax revenue, and raises the level of the Commonwealth’s robust automotive industry, which is already one of the top five in the nation.”

Louisville Mayor Greg Fischer added: “This is a great day for our city. Ford’s history and Louisville’s history are intertwined, and today we begin a new chapter in that heritage – a chapter of business expansion and job growth.”

The all-new Escape, which is on sale now, offers strong fuel economy and customers’ choice of two EcoBoost® engines – a 2.0-liter four-cylinder as well as a 1.6-liter four-cylinder that delivers 33 mpg highway, which is 2 mpg better than the Honda CR-V and 5 mpg better than Toyota RAV4. The Escape also features a 2.5-liter four-cylinder engine that delivers 31 mpg highway.

In addition, Escape delivers 11 features no other small SUV offers – including a hands-free liftgate with motion-sensing technology, SYNC® with MyFord Touch® and active park assist. The Escape also features a new Ford Intelligent 4WD system that provides even better traction off-road.

The Louisville-built Escape is the first of the new line of compact SUVs to be built off of Ford’s global C-car platform. The same vehicle will be built and sold in Europe and China, where it is called Kuga, although there will be unique powertrains and features for customers in those markets.

Ford’s global supply network is playing a key role in the launch of the Escape, as well as the economic development of the Louisville area. Several major suppliers have invested more than $56 million locally and are in the process of adding more than 900 jobs, many of which will support the Escape. Suppliers that expanded operations include:

Magna Seating of America Inc., which invested nearly $20 million to build a new 140,000-square-foot plant in Shepardsville, Ky., and will eventually employ 450 people. Magna supplies seat assemblies, fascias, the rear subframe, upper control arms, rear camera module, trailer tow module, fixed back glass and the rear bumper beam

Faurecia, which invested $19 million at its Faurecia Interior Systems plant in Louisville. The facility will have 260 employees at full production – 250 dedicated to producing the Escape instrument panel. Faurecia also supplies exhaust systems

 

Martinrea International expanded its Shelbyville, Ky., operations with a $12 million investment, adding 150 jobs. Martinrea makes body stamped subassemblies, the front subframe and fuel filler pipe

 

Piston Automotive invested $5.5 million and added 50 jobs, many of which are supporting the Escape launch. Piston makes cooling module assemblies for the Escape

In addition to its manufacturing presence, Ford continues to play a significant role in the Louisville community. Through its Operation Goodwill with area dealers, Ford and its manufacturing operations expect to donate more than $1.5 million in 2011 and 2012 combined, supporting local nonprofit agencies.

Total Ford donations to Louisville-area nonprofits made since 2000 top $8 million.

Reinvention: GM Goes Landfill Free

The Reinvention of Manufacturing is about changing the way we make things for the world. It is also about changing the way we treat the world and take care of the world, as shown by the latest announcement from General Motors.
Oh, how the manufacturing world, and what it takes pride in, has changed.

LANSING, Mich. – General Motors’ Lansing Customer Care and Aftersales parts distribution center reached landfill-free status and earned ENERGY STAR® certification for superior energy efficiency from the U.S. Environmental Protection Agency.

 The facility generates 35 percent fewer greenhouse gas emissions and 35 percent less energy than similar buildings nationwide. It also is GM’s 100th facility to recycle, reuse or convert to energy all waste from daily operations. These initiatives serve the company’s ongoing energy efficiency and waste-reduction efforts.

 “GM is committed to reducing its environmental footprint worldwide,” said Mike Robinson, GM vice president of sustainability and global regulatory policy. “This distribution center in Lansing is proof of our drive to be energy efficient and increase recycling throughout our operations.”

 To qualify for ENERGY STAR certification, the plant had to perform in the top 25 percent of similar facilities nationwide for energy efficiency and meet strict energy performance levels set by the EPA from 2010 to 2011.

 The distribution center performed various energy efficiency measures, including upgrading its lighting from metal halide fixtures to 5,200 fluorescent tube fixtures with motion sensors. The effort cut energy use and costs in half.  The facility also integrates energy management into monthly performance scorecards and monitors energy use.

 Achieving landfill-free status makes good business sense. For example, since 2011, the Lansing distribution center generated:

 •$42,358 in revenue from recycling 325 tons of cardboard and 1,054 tons of wood pallets.

 •$27,947 in revenue from recycling 59 tons of lead acid batteries.

 “Our employees are key to these landfill-free and Energy Star milestones,” said Bob Landis, Lansing CCA parts distribution center manager. “Their efforts help us save energy, reduce waste and improve our efficiency every day.”

 In 2010, the facility also underwent the largest vinyl roof recycling project in North America, diverting about 120 tons of waste from local landfills. The process enabled 475,000 square feet of roof membrane to be recycled. Some of the old membrane was reprocessed and used in the manufacture of the new roof material.

 GM’s Lansing Delta Township plant, which assembles the Buick Enclave, GMC Acadia and Chevrolet Traverse, received  ENERGY STAR certification in December.

 No other automaker has as many landfill-free facilities as GM. In 2011, it recycled or reused 2.6 million metric tons at its facilities worldwide, equivalent to more than 38 million trash bags. That year, EPA also presented it with its ENERGY STAR Partner of the Year award for energy efficiency and greenhouse gas emissions reductions.

 In its first sustainability report as a new company, GM committed to achieve 25 more landfill-free sites, reduce total waste by another 10 percent by 2020, and reduce energy intensity 20 percent from its facilities by 2020. For more information on GM’s environmental commitment, visit its sustainability report and environmental blog.

The ebook edition of The Reinvention of Manufacturing, is now due out in early July. 

Rod

Pain of Reinvention, Tough News For Alt. Energy

Tough news today for alternative energy manufacturing in Michigan, and especially bad news for Greenville, Michigan the community that lost its Electrolux campus during the last decade.

FARMINGTON HILLS, Mich., Jun 18, 2012 (BUSINESS WIRE) -- Energy Conversion Devices, Inc. ("ECD"), a leader in materials science and renewable energy technologies, and its wholly-owned subsidiary United Solar Ovonic LLC ("USO"), will sell by public auction, to be authorized by the United States Bankruptcy Court, substantially all of its assets relating to its solar business. The auction will commence on June 26, 2012. Assets for sale will include machinery, equipment, intellectual property, furniture, real estate and inventory.

The auction sale process has been designed to facilitate the sale of assets in various bulk and piecemeal configurations, and to maximize the opportunity to sell the integrated assets in bulk to permit future manufacturing of USO's proprietary Uni-Solar(C) brand thin-film solar laminates.

The live webcast auction sale will commence on Tuesday June 26, 2012 at 9:00 AM ET at USO's Greenville, Michigan facility, where 150 people lost their jobs, for the bulk lots. That will be followed by an online auction sale for the piecemeal lots. The thousands of individual lots to be sold online will have staggered closing times commencing on June 27th. Only qualified and registered bidders may participate in the bidding.
Heritage Global Partners, Hilco Industrial, Maynard's and Van Acker Associates will be conducting the sale. Sale details, lot configurations and terms and conditions of sale can be found on the following web sites: http://www.hgpauction.com/?auctionid=193  ,

 http://www.hilcoind.com/sales/index.asp and

 www.maynards.com

ECD and USO voluntarily filed a petition for relief under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan on February 14, 2012. Additional information regarding the bankruptcy proceedings is available at www.energyconversiondevices.com/restructuring.php.

Of course this does not mean the end of the reinvention of energy or the reinvention of manufacturing. Far from it. To paraphrase Henry Ford, when you fail you just get a chance to do it again, smarter.

Think about how many car companies failed before transportation was reinvented.

A123 Systems Reinvents Battery

A123 Systems has had some real problems with its batteries ranging from explosions to outright failures. However, the company is announcing today they have accomplished a real reinvention of the product, creating a battery that works.
This could push the reinvention of the way we travel. Let me know what you think.

WALTHAM, Mass., June 12, 2012 (GLOBE NEWSWIRE) -- A123 Systems (Nasdaq:AONE), a developer and manufacturer of advanced Nanophosphate® lithium iron phosphate batteries and systems, today introduced Nanophosphate EXT™, a new lithium ion battery technology capable of operating at extreme  temperatures without requiring thermal management. Nanophosphate EXT is designed to significantly reduce or eliminate the need for heating or cooling systems, which is expected to create sizeable new opportunities within the transportation and telecommunications markets, among others.

A123 Systems, Inc. (Nasdaq:AONE) is a leading developer and manufacturer of advanced lithium-ion batteries and energy storage systems for transportation, electric grid and commercial applications. The company's proprietary Nanophosphate® lithium iron phosphate technology is built on novel nanoscale materials initially developed at the Massachusetts Institute of Technology and is designed to deliver high power and energy density, increased safety and extended life. A123 leverages breakthrough technology, high-quality manufacturing and expert systems integration capabilities to deliver innovative solutions that enable customers to bring next-generation products to market.

A123 Systems is based in Waltham, Mass. However it also has facilities located in Ann Arbor, Romulus and Livonia, Mich.

 "We believe Nanophosphate EXT is a game-changing breakthrough that overcomes one of the key limitations of lead acid, standard lithium ion and other advanced batteries. By delivering high power, energy and cycle life capabilities over a wider temperature range, we believe Nanophosphate EXT can reduce or even eliminate the need for costly thermal management systems, which we expect will dramatically enhance the business case for deploying A123's lithium ion battery solutions for a significant number of applications," said David Vieau, CEO of A123 Systems. "We continue to emphasize innovation with a commercial purpose, and we expect Nanophosphate EXT to strengthen our competitive position in existing target markets as well as create new opportunities for applications that previously were not possible to cost-effectively serve with lithium ion batteries."

 Unlike lead acid or other advanced battery technologies, Nanophosphate EXT is designed to maintain long cycle life at extreme high temperatures and deliver high power at extreme low temperatures. According to the testing performed to date at the Ohio State University's Center for Automotive Research (CAR) and the very low observed rate of aging, cells built with A123's Nanophosphate EXT are expected to be capable of retaining more than 90 percent of initial capacity after 2,000 full charge-discharge cycles at 45 degrees Celsius. CAR has also starting testing the cold temperature performance of Nanophosphate EXT, which A123 expects will deliver a 20 percent increase in power at temperatures as low as minus 30 degrees Celsius.

 "Based on our analysis, the performance of A123's new Nanophosphate EXT at high temperatures is unlike anything we've ever seen from lead acid, lithium ion or any other battery technology," said Dr. Yann Guezennec, senior fellow at CAR and professor of mechanical engineering at the Ohio State University. "Nanophosphate EXT maintains impressive cycle life even at extreme high temperatures without sacrificing storage or energy capabilities, especially as compared with the competitive leading lithium ion technology that we used on our head-to-head testing. If our testing also validates the low-temperature power capabilities that A123's data is showing, we believe Nanophosphate EXT could be a game-changing battery breakthrough for the electrification of transportation, including the emerging micro hybrid vehicle segment."

 Nanophosphate EXT is based on A123's proprietary lithium iron phosphate battery technology, which offers high power, long cycle life, increased usable energy and excellent safety as compared to other available battery technologies. Nanophosphate EXT is designed to extend these capabilities over a wider temperature range, enabling customers to deploy more advanced solutions that increase performance in applications that frequently experience battery cycling at extreme temperatures. Because Nanophosphate EXT is designed to reduce or eliminate the need for costly thermal management, it is expected to deliver these performance advantages while also increasing reliability, minimizing complexity and reducing total cost of ownership (TCO) over the life of the battery system for a number of applications, including those within the transportation and telecommunications industries.

Transportation—Nanophosphate EXT is designed to augment the performance advantages of A123's solutions for electric and micro hybrid commercial and passenger vehicles. By enabling increased power at low temperatures, Nanophosphate EXT is expected to substantially improve the cold-cranking capabilities of A123's lithium ion 12V Engine Start battery. This would eliminate what has historically been the only performance advantage of lead acid in starter battery applications, and is expected to considerably increase the value proposition of A123's Engine Start battery as a lighter-weight, longer-lasting alternative to absorbent glass mat (AGM) and other lead acid batteries. This is expected to reduce TCO for micro hybrid applications, which represents a growing subset of the global electric vehicle market—According to Lux Research, the worldwide market for micro hybrids is projected to reach more than 39 million vehicles in 2017, creating a $6.9 billion market for energy storage devices.

 In addition, Nanophosphate EXT is expected to enable automakers to significantly reduce or completely eliminate active cooling systems in electric vehicle battery packs. A123 expects this to lower cost, reduce weight and improve reliability, providing automakers with a cost-effective solution that A123 believes will increases efficiency and minimize system complexity without sacrificing vehicle performance, battery life or driving range. Strategy consultancy Roland Berger forecasts that the global automotive lithium ion battery market will reach more than $9 billion by 2015.

Telecommunications—Nanophosphate EXT supplements the advantages of A123's lithium ion battery solutions for telecommunications backup, which are designed to replace the lead acid batteries deployed at new and existing global cell tower sites built off-grid or in regions with unstable power. These sites typically require diesel generators to support the batteries, and due to the lengthy charge time necessary for lead acid batteries, the generators are often forced to operate for extended periods. In contrast, A123's solutions charge about six times more quickly than lead acid, which significantly reduces generator run time and lowers fuel costs by 30 percent or more. At cell towers in extreme temperature environments, Nanophosphate EXT further reduces operating and maintenance costs by minimizing or eliminating the need for air conditioning or heating. In higher-temperature climates, for example, the cost of installing and running the air conditioning necessary to properly cool the lead acid batteries can represent up to 50 percent of the total power consumed at each cell tower site. A123 believes that Nanophosphate EXT has the potential to significantly expand the global addressable market for its telecommunications backup solutions to more than $1.2 billion by 2016.

 "From the introduction of our breakthrough Nanophosphate battery chemistry to our envelope-pushing work developing ultra high power batteries for Formula One racing to our introduction of megawatt-scale grid energy storage systems, A123 has been at the forefront of battery and energy storage innovation. Today we announce another milestone, and believe Nanophosphate EXT to be a significant breakthrough," said Dr. Yet-Ming Chiang, co-founder of A123 and professor of materials science and engineering at MIT. "Lithium ion has always had a number of significant advantages over lead acid and other advanced battery technology, but its performance limitations at extreme high and extreme low temperatures have prevented it from addressing a number of important applications. Nanophosphate EXT changes this dynamic, and highlights why we believe continued lithium ion battery R&D is critical for discovering next-generation breakthroughs that can fundamentally change how the world uses energy storage."

 A123's Nanophosphate EXT technology is scheduled to enter volume production in A123's 20Ah prismatic cells during the first half of 2013. A123 is also evaluating plans to potentially offer Nanophosphate EXT across its complete portfolio of cell products. For more information, please visit www.a123systems.com.

Steelcase: Reinventing the Way We Work at NeoCon-Chicago

Steelcase  Unveils Concept Spaces That Augment Technology and Dramatically Improve the Video Experience

CHICAGO, June 12, 2012 /PRNewswire/ -- Steelcase today unveils concept spaces and technology at NeoCon 2012 that will optimize video interactions at work, create an intuitive, dynamic and natural video experience, and will address key barriers, such as light and sound quality, and privacy. These new concepts are in response to an emerging behavior Steelcase research identified: people living on video.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/56717-steelcase-neocon-2012-concept-spaces-video-technology

"Workers today are at the epicenter of a major shift in work styles -- they are using video in their personal and business lives and are working virtually more than ever before," notes Allan Smith, Vice President, Marketing at Steelcase. Video traffic has increased significantly, with large companies experiencing an increase of 70 percent annually according to recent Cisco research. 62 percent of employees regularly collaborate with people in different time zones and geographies.

"Work is more global today and we need to interact with colleagues located all over the world. Meanwhile, video technology has grown rapidly and become more accessible -- it's portable, one-button simple and cheap. But we realized that the physical spaces for video conferencing haven't kept pace with the technology. People would use video even more if the experience was more comfortable."

Steelcase research found that people get distracted when they see themselves on video. 72 percent of workers who provided an applicable response agree that they notice their physical appearance on the screen when on a video conference with a colleague for business, according to a recent online study conducted by Harris Interactive for Steelcase in May/June 2012 among 2,209 U.S. adults. Another 58 percent who provided an applicable response agree that they are concerned about looking tired, or washed out due to the lighting conditions or camera quality on their computer when on a video conference.

"They notice how the lighting makes them look tired and exaggerates bags under their eyes, or the camera is pointing up their nose," observed Smith. "Sometimes you can't see all the people in the conference or you see people on large-scale screens that feel huge and overwhelming. So while people are thinking about all those negatives, they're not fully engaged -- they're less productive."

Steelcase's concept uses space to augment video technology to address these obstacles. The company is showcasing spaces that are optimized for one-on-one interaction, but can also accommodate two people for impromptu meetings or calls. These units, which are visually reminiscent of a photo booth, feature a "Core Unit" display screen that contain everything needed for a high-quality video call: the monitor, microphone, speakers, processor and a camera are all embedded in a display that can be height-adjusted so it feels like you're really making eye contact. The spaces offer controlled lighting, a flattering background and is acoustically enhanced -- the outside surface reflects sound and the inside surface absorbs it.

Additionally, Steelcase built on its successful media:scape product line, with its iconic "puck" that allows multiple users to switch between data and video. The company transformed the physical "puck" into a virtual app for iPod or iPhone which allows users to control the sound and lighting and also any additional content or media users want to display.

The company projects that video will become a dominant form of communication at work because of the growing importance of creative collaboration. "In the '80s and '90s work was about process," states Smith. "Today work is about creativity and innovation. People need to collaborate with content experts all over the world, and that work requires trust and a high degree of interaction. We can't always be face-to-face, so we need video interactions to feel natural and authentic."
Also on display are solutions for small, medium, and large multipurpose spaces that aim to amplify teams' performance by allowing videoconferencing to facilitate easier content sharing between local and globally distributed teams.

Some of the concepts incorporate Steelcase's existing product lines, including workstations, benches and private offices, while others are entirely new conceptual designs that can offer privacy, and sound and light optimization inside open, collaborative office environments that may lack these features.
After studying the trends and projections for video use, the Steelcase Design Studio and IDEO developed an array of concept prototypes. These concepts underwent further research and prototyping as they were used by employees at GE.

"I'm the only person on my team who lives in Europe. My colleagues are in North America and we rely on phone to communicate, where it's hard to hear and to engage. When we tested the prototypes, I could imagine sitting at the table, working with my team, but still be thousands of miles away," commented one study participant.

Steelcase Projection: Video Will Become A Dominant Form Of Workplace Communication

Stuck In A Rut: Bad News from NFIB



Back to square-one. Optimism low for small business owners

Lansing (June 12, 2012) –  The reinvention of the U.S. economy continues. Even though we have seen some good numbers in the past few weeks, a nationwide survey of small business owners conducted by the National Federation of Independent Business (NFIB) shows that the economy remains in a rut.

The NFIB Small Business Optimism Index, part of the monthly Small Business Economic Trends Report, dropped one tenth of a point in May. The Index produced a reading of 94.4, historically low and consistent with the sub-par performance of GDP and employment growth. The individual indicators were mixed, with expected sales in a three month decline. However, some employment components improved and profit trends remained relatively stable after its sharp gain in April.

“Michigan remains on the right course but the national economy is stuck in neutral,” said Charlie Owens, Michigan State Director for NFIB. “Small business owners concerned about the national debt, federal taxes, rising health insurance premiums and higher energy prices are not likely to make long-term commitments. All of that requires federal leadership and we’re just not seeing it.” 

NFIB Chief Economist William Dunkelberg explained the results of the survey.

“In the last year, small-business optimism has limped along, and today the sector is no better off than it was just over a year ago,” he said. “The lack of progress is discouraging, producing no signs that economic activity will pick up this year at all. The calculus of spending decisions requires an estimate of future sales, tax rates, interest rates and credit availability, labor costs, health-care costs, regulatory compliance costs, all of which are very uncertain. Most of this uncertainty is the result of what is happening—and not happening—in Washington. Investments in jobs or plant and equipment are not the priority while people are still bracing for the worst.”

Levels of hiring and spending remained depressed in May, as did plans to do more in the near future. Expectations for increasing future sales continued to be weak, far below readings recorded in any other recovery period since 1973. Sixty (60) percent of those surveyed said now is a bad time to expand their businesses; one in four of those owners cited political uncertainty as the main reason, second only to concerns about a weak economy.

However, prospective labor market indicators posted gains that built upon those reached in April. There was gradual improvement in reports of collecting and paying bills on time, and trade credit availability improved. Compensation continued to show some strength, and price hikes moderated.

Some other highlights of May’s Optimism Index include:

·         Business Conditions: The future remains uncertain for small-business owners; many tentative to expand their businesses or hire more workers in the coming months. Only seven percent (seasonally adjusted) characterized the current period as a good time to expand facilities—this reading is unchanged from the previous month. The net percent of owners expecting better business conditions in six months was a negative two percent (a 3 point improvement). However, more owners still expect the economy to deteriorate further than those who anticipate improvement. A net two percent of all owners expect improved real sales volumes, down 4 points, the third monthly decline in a row. Twenty (20) percent reported that “poor sales” are their top business problem, up 1 point from April. Overall, the outlook is not conducive for new spending or hiring.

·         Capital Expenditures: Based on data about capital expenditures, it appears that small-business spending is more for maintenance than for expansion. The frequency of reported capital outlays over the past six months rose 1 point to 55 percent, 11 points above the historic low last reached in August 2010, but still below readings from the first half of 2008. For historical context, an average of 60 percent of firm owners reported making capital outlays on 2007. Of those making expenditures in May, 37 percent reported spending on new equipment (down 2 points), 24 percent acquired vehicles (up 2 points), and 14 percent improved or expanded facilities (up 1 point). Seven percent acquired new buildings or land for expansion (up 1 point) and 13 percent spent money for new fixtures and furniture (unchanged). Overall, the sector exhibited small and incremental improvements in spending. The percent of owners planning capital outlays in the next three to six months dropped 1 point to 24 percent.

·         Job Creation: The change in employment per firm seasonally adjusted was a wash – coming in at a net “0”. Seasonally adjusted, 10 percent of the owners added an average of 2.6 workers per firm over the past few months, and 15 percent reduced employment an average of 2.1. The remaining 75 percent of owners made no net change in employment. Fifty-one (51) percent of the owners hired or tried to hire in the last three months and 37 percent (73 percent of those trying to hire or hiring) reported few or no qualified applicants for positions. The figures suggest that job creation was very weak, and finding workers for open positions is proving a challenge for some owners. The percent of owners reporting hard to fill job openings rose 3 points to 20 percent, the highest reading since June 2008, indicating that labor markets are tightening—either because labor demand is quietly rising or potential workers continue to leave the workforce. Seasonally adjusted, the net percent of owners planning to create new jobs rose 1 point to six percent, confirming the 5 point jump recorded in April. Overall, there was little improvement in the numbers to suggest that job creation will enjoy any precipitous increase in the near future.

·         Sales: It appears that sales are improving modestly in the small-business sector. The net percent of all owners (seasonally adjusted) reporting higher nominal sales over the past three months dropped 2 points, falling to two percent, the second highest reading in 60 months (the highest was April’s reading of 4 percent). The low for the cycle (July 2009) was a net negative 34 percent reporting quarter over quarter gains, making the last few monthly readings a reason to be encouraged. Seasonally unadjusted, 25 percent of all owners reported higher sales (last three months compared to prior three months, unchanged) while 27 percent reported lower sales (down 3 points). Spending on services has shown little life, it remains weak overall, handicapping a sector of the economy that is labor intensive and is the source of many potential new jobs. The net percent of owners expecting higher real sales in the coming months lost 4 points, falling to a net 2 percent of all owners (seasonally adjusted). Not seasonally adjusted, 36 percent expect improvement over the next three months (down 5 points) and 21 percent expect declines (up 2 points).

Today’s report is based on the responses of 681 randomly sampled small businesses in NFIB’s membership, surveyed throughout the month of May.