The pace and complexity of change the automotive industry is facing is staggering.  If we look ahead 10 or 20 years, how many times will the product need to change?  Joe Barkai and I have taken a look at just a few of the high profile announcements we've seen over the last couple months - from recent auto shows, investments in new technologies, and even the relationship between the industry's products and regulations, voluntary or involuntary.   A common theme runs through many of these announcements - sustainability.

For the auto industry, sustainability isn't just about one issue or one product.  It's about addressing a combination of environmental, social, and economic issues, such as customer expectations, government regulations, and financial pressures, all at the same time;  knowing the risks and opportunities across every aspect of the business and across the lifecycle of every product is crucial.

The recall of 2.3 million Toyota vehicles last week to correct an unintended acceleration caused by a sticky accelerator pedal is another blow to the company's nearly unblemished reputation.  Only a few months ago, Toyota  recalled 4.3 million vehicles for similar concerns,  blaming floor mats lodged under the accelerator pedal as the root of the problem. 

In typical fashion of humility and responsibility, Toyota president Akio Toyoda apologized to customers and halted  the sales and production of eight Toyota models.  With annual production of roughly  6.3 million vehicles and sales of nearly 10 million units worldwide, Mr. Toyoda's action  is  significant.  Certainly, Toyota has deep pockets and can surely survive the loss of revenue.  Nevertheless, recovering from the damage to its legendary quality image will be difficult and prolonged.  Indeed, last week, Toyota's stock was down 16.7%  and Consumer Reports removed Toyota  from its recommended vehicle  list.

The impact is felt beyond the Toyota name plate.  Pontiac Vibe, which is built on the same platform as the Toyota Matrix, is also subject to the recall.

We just published our report on supply network optimization – "Best Practices: Supply Network Optimization in Asset-Oriented Value Chains (AOVC)" (MI220746).  Our research was geared toward asset-oriented manufacturers (those with significant asset investments, primarily chemicals, metals, and pulp and paper), because we believe complexity in this segment's greater supply chain, including production, can be well served by supply network optimization (SNO).  Optimization tools will play a significant role in 2010 as global economies slowly recover and companies look to survive and to position themselves for the inevitable recovery.  Most of the use cases for SNO tools among the AOVC also apply to many types of manufacturers.

I was recently interviewed on M2M Radio. This interview was conducted  by M2M Magazine editor Peggy Smedley. Peggy and I discussed factors  shaping the M2M market; topics covered ranged from the Manufacturing Insights M2M vendor selection framework to the manner by which the overall M2M ecosystem might benefit from the US Federal Government's American Recovery and Reinvestment Act.