cens logo

Inevitable Rise of EV Spurs Fuel Tank Maker into Classic Car Industries LC Fuel Tank Targets EU's Classic Car Market

Mar 20, 2019 | By CENS | LC FUEL TANK MANUFACTURE CO.

By Chao Ting-yu

As a top professional fuel systems manufacturer in Taiwan, and a global player in the automotive aftermarket industry, the fact that car makers are investing more resources into the electric vehicle (EV) than conventional vehicles powered by engine around the world is a challenging situation that LC Fuel Tank Manufacture Co needs to deal with. There's no fuel tank in EV, only batteries.

Each year, the manufacture rolls out new products of dozens to meet its varied clients based in the traditional automotive industry. Like other Taiwanese companies, flexibility and anticipating industry trend is one of their characteristics which makes them stand out. LC Fuel Tank has been in the game since 1977 rolling out AM parts for conventional vehicles from vintage cars to modern cars for daily commute.

Now they are strategically moving back to their root, classic cars industry, General Manager Chan Yu-Peng says.

Most of their fuel tank selections are made out of metal, Chan said. Yet, starting 2000
they noticed that the mainstream car makers tended to choose plastic fuel tank over metal. “The undeniable the ideas that EVs will take over the car Industry in the future eventually, but nonetheless we consider plastic tanks as our main contender at current stage “he explained.

Although LC Fuel Tank has been on the fence about stepping into plastic fuel tank since the beginning of trend brought up by car makers, under the concern that traditional steel fuel tank would vanish in the future. However, they eventually aborted the idea of investing in products with a short product life, plastic fuel tanks.

In his opinion, eventually EV, which don't need fuel tank neither plastic nor steel to store fuel, will be popular and wildly spread. So there's no need to invest in plastic tank. However, vintage car is a different case. Chan stressed that he saw the potential of classic car industry. The old cars won't die. Classic cars thrive on the passion, nostalgia and enthusiasm among people. People who resonate with vintage cars won't replace them with new cars. Very possible that they have one modern vehicle serve for daily commuting, and still own vintage cars for collection.

LC Fuel Tank Manufacture Co. offers North American vehicle fuel solutions. (Photo Courtesy of LC Fuel)LC Fuel Tank Manufacture Co. offers North American vehicle fuel solutions. (Photo Courtesy of LC Fuel)
Tapping into Europe's Classic Car Market
The popularity of classic cars can be easily seen in Western countries, specifically the U.S. and Europe, but less so in Asian countries, for instance, Taiwan. Factories in Taiwan catering for the classic car markets is still flourishes, and have been widely recognized for their excellent auto parts. However, due to lack of marketing, the local society doesn't know Taiwanese factories play big roles in the global classic car spare parts industry.

One of the reasons behind LC Fuel Tank's
The stable demands from United States, where accounts for more than 50% of turnover, makes LC able to look at the other continental, Europe. “Our clients (in the U.S.) have faith in our products,” Chan says, “ I look forward to getting more market share in Europe.

The European market is a challenging one, however. The classic car industry in the region is a closed market. Chan said. “Brands there believe in their own craftsmanship, local work shop, parts produced locally by their own. They don't find spare parts that made in Taiwan trustworthy, and we want to change that impression.

Aside from offering trustworthy products, LC has advantages over local craftsmanship, which usually produce spare parts manually with little of machinery involved, predicable delivery date, quality consistency and good order fulfillment.

The problem of local work shop is that they heavily rely on technician to perform operation that can be done better and more efficient by machine. For instance, the welding process will be much more efficient if use welding machine to do the work.
This drags them down, making them unable to fulfill order with efficiency, and the quality of operation won't be consistent since it's performed manually. Quality of work varies with technicians. LC Fuel Tank is able to offer faster delivery time thanks to automation and machinery.

Chan said the quantity can be an issue. The European companies are willing to purchase less quantity at higher price. That's very different from USA customers, who are willing to order more quantity in order to negotiate a better price. As manufacture, the economies of scale arise from greater the quantity of output produced. ‘'Lower quantity and variety of products offering'' is key for them to secure more business in Europe.

Attending more European classic car shows is currently LC Fuel Tank's main strategy to expand their market share in the region. Having done their research and attending two prestigious shows last year, they will be returning to Essen this April.

The Challenges This Year
When mentioning the presumably positive effects brought on by the China-U.S. trade tensions, Chan remains pessimistic. Even though it is a definite fact that a number of American clients have shifted some of its imports from China to Taiwan, Chan believes that it was only a short-term effect, and it may be not the positive correlation between orders and profit. Clients forced to switch to import from Taiwan very possibly with that intention in mind that buying at the cost level of China, yet getting the Made in Taiwan quality. Over In the long term, customer will turn to who can provide the lowest prices.

Taiwanese manufactures do great jobs on the spades, Chan says, but the increasing cost of labor drags them off, making them less competitive compared with countries with less stringent labor laws. This is the difficulty many developed countries are facing.

Also the increase labor cost is harmful to production volume. , Chan states. To address the issue, LC is building new facility. The new plant will equip its production lines with 6-Axisrobot arms and integrate with labor workforce, to not only eliminate possible human errors, but also double production capacity at least. He expects that the new building will be completed by the end this year.

Despite the unfavorable challenges, the general manager is optimistic and expect
this year to be fruitful. ‘'We look forward to increasing presence in European classic cars markets, and make a name for our company as the best fuel tank manufacture for classic cars.''
LC Fuel Tank Manufacture Co. aims for European classic car market with its quality auto parts. (Photo Courtesy of LC Fuel)LC Fuel Tank Manufacture Co. aims for European classic car market with its quality auto parts. (Photo Courtesy of LC Fuel)


Supplier News

China Steel Corporation Plans to Change Pricing Next Year to Give Taiwanese Firms Leg-Up</h2>

China Steel Corporation Plans to Change Pricing Next Year to Give Taiwanese Firms Leg-Up

May 28, 2019

China Steel Corporation (CSC) plans to significantly reform their pricing policy, according to CSC Chairman Wong Chao-tung on May 22. Wong said the new policy is a response to capricious global economic and political trends, saying that CSC prices should be timelier and allow enough flexibility to quickly meet market changes. Set to come into effect next year, CSC plans to announce steel p...

CHINA STEEL MACHINERY CORPORATION


Microsoft teams up with Taiwan compaines, bursting into IoT</h2>

Microsoft teams up with Taiwan compaines, bursting into IoT

May 27, 2019

Taiwan's Microsoft announced that it launched the latest Azure IoT PnP on May 21st. In the first wave of 17 cooperative business, Taiwan's companies comprised 7 seats. Microsoft is actively transforming, setting up Microsoft Azure, assisting Taiwanese companies transforming together, and seizing the business opportunity in the global lot. Microsoft held DevDays Asia 2019 on May 21st, announci...


Economics Ministry Teams up with China Steel Corporation to Bolster Fasteners Industry</h2>

Economics Ministry Teams up with China Steel Corporation to Bolster Fasteners Industry

May 23, 2019

In a bid to help buoy domestic firms in light of the trade tensions between China and the U.S., the government has state-owned firm China Steel Corporation (CSC) to pull more resources in helping Taiwan’s fasteners industry. CSC Chairman Wong Chao-tung said on May 7 that CSC’s third quarter prices will play a pivotal role in bolstering industry competitiveness. Ministry of Economic Affairs...

CHINA STEEL MACHINERY CORPORATION



Industry In-Focus

Medical Plastics Connect at CHINAPLAS 2019</h2>

Medical Plastics Connect at CHINAPLAS 2019

May 06, 2019

Benefiting from economic growth, population expansion and an intensifying aging phenomenon, coupled with everyone's increasing concern about health issues, the global demand for medical devices is increasing sharply. In North America, it is expected the spending on healthcare will register a growth of 5.9% from 2017 to 2025. In Europe, rising demand for both dental and physical body implants is e...


For the first time, Taiwan is ranked among the top 10 global aerospace industry players. (photo courtesy of UDN)

Taiwan Makes it into Top 10 of Global Aerospace Players

Apr 23, 2019

After Taiwan’s aerospace industry made it past the billon-New Taiwan dollar mark in 2016 at NTD$100.27 billion, the industry reached new heights the year after by hitting NTD$108.499 billion in 2017. The Ministry of Economic Affairs Industrial Development Bureau expects to see the aerospace industry perform exceptionally well in 2018, reporting production value past NTD$120 billion. Aerospace ...


TAITRA Promotes the Taipei AMPA 6-in-1 Show at the International Auto Aftermarket Expo in Tokyo</h2>

TAITRA Promotes the Taipei AMPA 6-in-1 Show at the International Auto Aftermarket Expo in Tokyo

Apr 11, 2019

The 17th International Auto Aftermarket Expo (IAAE) was held at Tokyo Big Sight from March 13th to 15th. A total of 296 exhibitors occupied 549 booths. According to the organizers, the number of exhibitors that attended this year grew by 7.2% compared with last year. The exhibition was more popular and attracted 34,129 visitors during the three-day exhibition. To promote Taipei International Auto...



Industry Reports

Evolution of Self-Driving Cars Disrupts Industry Ecosystem</h2>

Evolution of Self-Driving Cars Disrupts Industry Ecosystem

May 30, 2019

With the advent of the fourth industrial revolution, many countries are actively investing in the smart production of self-driving vehicles, including Germany’s Audi efforts to convert car driving into a mobile, entertainment driving experience; Japan’s Toyota launching the e-Palette, an unmanned electric concept minibus and South Korea’s Hyundai Motor introducing the concept of autonomous drivin...


China Steel Corporation Plans to Change Pricing Next Year to Give Taiwanese Firms Leg-Up</h2>

China Steel Corporation Plans to Change Pricing Next Year to Give Taiwanese Firms Leg-Up

May 28, 2019

China Steel Corporation (CSC) plans to significantly reform their pricing policy, according to CSC Chairman Wong Chao-tung on May 22. Wong said the new policy is a response to capricious global economic and political trends, saying that CSC prices should be timelier and allow enough flexibility to quickly meet market changes. Set to come into effect next year, CSC plans to announce steel p...

CHINA STEEL MACHINERY CORPORATION


Microsoft teams up with Taiwan compaines, bursting into IoT</h2>

Microsoft teams up with Taiwan compaines, bursting into IoT

May 27, 2019

Taiwan's Microsoft announced that it launched the latest Azure IoT PnP on May 21st. In the first wave of 17 cooperative business, Taiwan's companies comprised 7 seats. Microsoft is actively transforming, setting up Microsoft Azure, assisting Taiwanese companies transforming together, and seizing the business opportunity in the global lot. Microsoft held DevDays Asia 2019 on May 21st, announci...



Insiders' Views

Hong Kong Lighting Fair(Spring Eidition) Exhibitor TUYA showcases the latest application of Bluetooth mesh.

Latest Bluetooth Tech Updates Geared for Smart Lighting, Cities and Wireless Devices

May 07, 2019

Founded in 1998, Bluetooth Special Interest Group (SIG) is a non-profit trade association that oversees Bluetooth® technology. As it supports more than 34,000 member companies, the Bluetooth SIG promotes collaboration among its members to create new and enhanced specifications, extend technology, drive global interoperability through world-class product certification programs, and develop brands ...


2019 Hong Kong Lighting Fair(Spring Eidition)smart lighting prospects look good IoT and artificial intelligence into focus,attracts approximately 21,000 buyers.

HK Int'l Spring Lighting Fair Takes Smart, Eco-Friendly Trends to New Heights

May 07, 2019

The 11th Hong Kong International Spring Lighting Fair, hosted by the Hong Kong Trade Development Council, was held at the Hong Kong Convention and Exhibition Centre from April 6 to 9. This year's Spring Light Show attracted more than 1,430 exhibitors from 9 countries and regions to provide a convenient procurement platform for exhibitors and buyers, attracting approximately 21,000 buyers from ...


Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY



Exhibition Highlights

Taipei AMPA showcases electric and smart-enabled electric buses. (Photo courtesy of TAITRA)

Taipei AMPA Post-Show Report

May 13, 2019

The 2019 Taipei AMPA 6-in-1 show congregated at Nangang Exhibition Center Hall 1 and 2. The shows wrapped up on April 28, having attracted roughly around 7,000 domestic and foreign buyers to the event to search and procure. This year’s show theme is an extension of the continual tech trends in the industry – “Motorization, Electrization and Intelligentization,” and the promotion of more matured n...


E-ONE MOLI ENERGY offers ultra-high power, high capacity, long lifecycle and low operating temp.. (photo provided by E-ONE MOLI ENERGY)

MOLICEL®, the renowned lithium-ion battery brand announced grand launch of new high power battery.

May 07, 2019

E-One Moli Energy Corp. is a global leading lithium-ion battery developer and manufacturer with recognized brand name “MOLICEL®”. MOLICEL® has been leading the battery market for more than 30 years, with R&D center in Canada and Taiwan and manufacturing plant in Taiwan. E-One Moli offers competitive advantages to customers in terms of design engineering, applications testing and turnkey battery s...

E-ONE MOLI ENERGY CORP.


Stextun's r&d Clean Tools (photo provided by Stextun)

R&D is always the core corporate function of Stextun and also the best edge to work with our customer.

May 07, 2019

At the beginning, Stextun Industrial Co., Ltd. produced telescopic shower curtain rod and exported to Japan mainly. Due to good quantity, punctual delivery and reasonable price, Stextun earned remarkable customer’s satisfaction. Such kind of order has been repeated until now. Considering the business growth, Stextun started to expand our product line to cleaning tools in 1995 since Stextun p...

STEXTUN INDUSTRIAL CO., LTD.