Word: low-cost
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...names?GM, Ford, Honda, Volkswagen?have joint ventures that assemble vehicles for the local market, with sales booming at a 22% average annual clip. Strong sales in China have cooled the impetus to export. So has the majors' ample capacity at plants overseas. And low wages don't make China a low-cost producer. The country has an inefficient supply chain, high component costs (many parts are slapped with import tariffs) and nonwage expenses like housing for factory workers. CSM's Zhang estimates that materials account for 80% to 85% of a vehicle's cost (vs. 65% in Detroit), eroding...
...years Piaggio had sold more than 1 million. The sexy little scooter was immortalized in the 1953 movie Roman Holiday as the vehicle of choice of the dolce vita set. And two decades later, it became the symbol of disenfranchised youth in Quadrophenia. Today it's still the low-cost, high-status alternative to cars in big cities and on college campuses. ?By James Scully
...first nationwide antimalaria initiative, with a three-year plan to get bed nets, medicines and indoor insecticides to 80% of the population. The goal is to reduce deaths from malaria 75% and to show the rest of the world--including donor countries-- that malaria can be contained using low-cost tools that are readily available...
...come from, things are less hierarchical." Nygaard comes from Spanair's parent, the Scandinavian carrier SAS, where he got his start. With his open-plan management and quick response to new ideas, he says, Spanair can thrive in a tough market: "We have a cost structure comparable to [low-cost pioneer] EasyJet," steady profits and room to grow. Passenger numbers have jumped almost 20% this year. Spanair plans to expand to Algeria, Morocco and Switzerland in 2006. And it's aiming to be No. 1 in the Spain-Scandinavia market within a year. "We're the underdog," but that...
...biggest concern is that a failure to make progress in trade liberalization could mean a lurch toward protectionism. The mood in many parts of the world is turning hostile to free trade in the face of low-cost competition from China in manufactured goods and India in IT services. As evidence, consider how the recent accords that Washington and Brussels struck with Beijing imposed new limits on the growth of textile imports from China?trade barriers that had been eliminated earlier in the year. That sort of backsliding, coupled with efforts by many countries to negotiate bilateral or regional trade...