Auto Logistics Faces Explosive Opportunities but Meagre Profits, Says New Report by Transport Intelligence

Logistics is finally being recognised as a decisive competitive
tool by the automotive industry, but this is unlikely to help the
logistics service providers present in the market. This is one of the
main conclusions of Transport Intelligence's new "Global Automotive
Logistics" report published today.

The report describes how all vehicle manufacturers are getting a
tighter grip on the logistics across their supply chain. They are
responding to increasingly savage competition with emphasis not only
costs but also with exacting standards of customer service. The
vehicle manufacturers are also faced with developing systems capable
of supporting assembly operations across the globe in regions new to
car production.

This might sound like a big opportunity for logistics service
providers. However in the traditional areas of production - North
America, Europe and Japan - growth will be meagre at between 2-3%. The
pressure to cut costs will not relent.

In contrast the new production locations such as China or Russia
offer huge opportunities with growth rates so high they are difficult
to measure, but operations here are difficult to establish.

The report describes a huge, sophisticated and complex segment of
the logistics business, in part characterised by slow growth and
meagre profits, in others by explosive opportunities and uncertain
realities.

Senior Analyst Thomas Cullen commented: 'Vehicle manufacturers are
still sceptical about outsourcing all but the simplest of management
tasks, yet remain just as enthusiastic about cost cutting. For
logistics service providers dealing with the big car makers the market
will remain exceptionally difficult despite the opportunities that
exist in the developing markets.'

About Global Automotive Logistics 2007

Global Automotive Logistics 2007 is packed full of qualitative
analysis and quantitative data which will give you an all-round
understanding of the market. It examines the significant trends which
are affecting the demand-side of the industry and how these impact the
key logistics sectors. It includes market sizing for all major
segments and regions as well indicative growth forecasts. In addition
it has detailed profiles of the main Vehicle Manufacturers and
Logistics Service Providers containing analysis of their strategies
and operations. For more information go to
www.transportintelligence.com