This website uses cookies to ensure you have the best experience. Learn more

The Automotive Industry Essay

2288 words - 9 pages

Economics Automobile Industry There is no industry more present in the world-wide community than the automobile industry. The automobile has changed the lives, culture, and economy of the people and nations that manufacture and demand them. Ever since the late 1800s when the first "modern" car was invented by Benz and Daimler in Germany, the industry has grown into a billion dollar industry affecting so many aspects of our lives. There are more than 400 million passenger cars alone on the roads today. During the early part of the twentieth century, the United States was home to more than 90 percent of the world's automotive industry, but has shrunk to about 20 percent in today's world. This drastic change has occurred by the booming economies in such nations as Japan, Germany, Canada, France, Italy, and other nations. The US auto industry "sales totaled $205 billion, or 3.3 percent of the total Gross Domestic Product." (Tardiff 394) By the end of 19th century, there were about 500 auto manufacturers, but that number dropped sharply to 23 by 1917, and today the Big Three dominate the market. Ford, General Motors, and Chrysler make up the Big Three which account for 23 percent of the world's motor vehicle production in 1997, with the Japanese industries coming in second, producing 21 percent. Germany produces 9 percent, Spain, France, South Korea, and Canada each produce 5 percent of the international market in 1997. In the US alone, the auto industry, which includes it's 500,000 car-related businesses, create 12 million jobs. The automobile is clearly an oligopoly, but each company's control of the market has gradually diminished because of rising foreign competition. The US has three main auto manufacturers, Japan has five major producers as does Germany. Each of these companies produce differentiated versions of the same product, have control over their products' prices, and rely heavily on non-price competition. Each company produces a new line of cars for each model annually. There are many different types of cars, like sedans, station wagons, Sport Utility Vehicles (SUV), two-doors, and four-doors, but by comparing models between two competing companies, you can see how great the similarities are. The auto industry can still thrive even though it's products are so similar because the demand for cars is immense and continuous. People rely on cars for so many things that life without one seems impossible, especially in the US which registered 141 million cars in 1988, whereas Japan, the second highest, only registered 30 million. The creation and production of a new car starts about three to four years before it is released to the public. The initial planning stage begins in the company's corporate headquarters with ideas for the car from product planners and company officials. Automotive designers draw prospective sketches of the new car, and once approved, model makers create small scale models of the car in fiberglass or clay, then forge...

Find Another Essay On The Automotive Industry

Advertising in the Automotive Industry Essay

1508 words - 6 pages , and to show mothers driving their kids in a minivan. There is one simple reason that the automotive media has remained unadulterated by political correctness—money. As a private industry, both car manufacturers and aftermarket companies have one goal, to sell cars and car related products, and to make money while doing so. As such, these companies use marketing techniques that will most effective reach their target market, which is the true

Economic Indicators in the Automotive Industry

1520 words - 6 pages primary goal. The automobile industry is one of the largest industries in the United States. It creates 6.6 million direct and spin-off jobs and produces $243 billion in payroll compensation, according to a 2001 report on the "Contribution of the Automotive Industry to the U.S. Economy" prepared by the University of Michigan and the Center for Automotive Research (CAR). No other single industry is more linked to U.S. manufacturing or generates more

Henry Ford: Mobilizing the American Automotive Industry

1934 words - 8 pages Henry Ford: Mobilizing the American Automotive Industry "Greatest thing we can produce is character. Everything else can be taken from us, but not our character." - Henry Ford, 1937 (Henry Ford Quotations). As America developed politically, socially, and economically in the late 1800s to the early 1900s, Henry Ford thrust himself into this changing environment and changed American history forever. Henry Ford changed the way Americans lived

The Impact Of Information Technology On The Automotive Industry

1209 words - 5 pages THE IMPACT OF INFORMATION TECHNOLOGY ON THE AUTOMOTIVE PARTS INDUSTRY Page 1 As human beings, we thrive on information and communication. We crave human contact in the form of visual and audio communication. Human beings love information and communication so much so, that with the invention of each new technology we not only grab for it, but we also hold on to the past. We wake up every morning, read our newspaper, listen to our car radios

A Brief History of The Canadian Automotive Industry

2469 words - 10 pages In the early 1960’s the Canadian automotive industry faced a growing crisis of a seemingly uncontrollable decline in the production and sales of American brand vehicles, which was a major industry in Southern Ontario. Several domestic and international factors had contributed to this economic crisis and the task of stabilizing it fell upon the shoulders of the federal government. Official inquiries were established and several economic policies

Project Management in the Automotive Industry: A Critical Review

2053 words - 8 pages The chapter ‘Project Management in the Automotive Industry’ by Christophe Midler and Christian Navarre from The Wiley Guide to Managing Projects (September 2004) traces the inception and transformation of project management in the automotive industry from the post-war period to the early years of the new millennium. It is an interesting article which categorizes the period into four phases on the basis of organizational structure and strategy

Rogers’ Adoption Theory in Automotive Sales the Pharmaceutical Industry

604 words - 3 pages Introduction The Purpose of the study The purpose of this study is to determine whether the use of sales force automation technology in the pharmaceutical industry and the automotive sales industry is based on Rogers’ Adoption Theory. Also, the purpose of this study is to explore whether the use of this technology by innovators is due to perceived usefulness and ease of use, or whether something else is responsible for motivating

Christianity and the Economic Impact of the Automotive Industry on Canada

3387 words - 14 pages In many ways, the automotive industry has huge impacts on Canada. The impact it has creates jobs, and services. It also boosts economy and contributes to its success. Over the last two decades, the automotive industry has been a leading contributor to Canada’s economy and is a primary factor as to whether or not the economy will be successful. There are many contributing branches of the sector that allow it to be successful. This is shown

The global automotive industry, by Dr P Wells and Dr P Nieuwenhuis

2108 words - 8 pages The global automotive industry: a guide for the perplexed - (16/10/01)For those participating in or affected by the global automotive industry it is often difficult to distinguish the significant from the trivial, the incipient trend from the statistical blip, or the reality from the hype. Equally, in the day-to-day struggle for commercial survival it is a challenge to see the bigger picture, the inter-related parts that constitute the global

A comparison of the automotive industry in China and Japan and the impact on habitat and environment

2404 words - 10 pages A comparison of the automotive industry in China and Japan and the impact on habitat and environmentWord count: 2056Table of contentTable of contentIntroduction………………………………………………………………………….2Main bodyThe development history of Chinese automobile industry

Automotive Industry

3485 words - 14 pages factors can help to predict what will happen in the coming years. For the automotive industry, future forecasts are very important. Many different factors go into making a forecast. Looking at factors like real GDP, unemployment rate, and the inflation rate are very important when trying to establish a forecast for the future. For the automotive industry factors like the interest rate, auto sales, and oil and fuel prices are also very important. By

Similar Essays

The American Automotive Industry Essay

1745 words - 7 pages The American automotive industry has led the American economy for many years. This industry has shaped our development, and influenced American culture and social mores. Now, ensnared by globalization and other dominant factors, it faces a difficult reality. The American automotive industry significantly impacted the lives of Americans. Detroit’s “Big Three” had the most significant roles in this. Chrysler, Ford, and General Motors were American

The South African Automotive Industry Essay

1477 words - 6 pages Much emphasis has been placed on globalization in the automotive industry as a result of the rapid increase in automotive exports. The role of government somewhat distinguishes the automotive industry from other industrial sectors, by means of policy implementation steering its development(Lamprecht 2009:7).The assist of government through the motor industry development program(MIDP),first established in 1995,has acted as a driving force in the

Globalization Of The Automotive Industry Essay

2378 words - 10 pages capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This enables it to exert a lot of pressure and power on extremely small firms. Production in the automobile market is dominated from lead firms in Japan, USA

Outlook For The Automotive Industry Essay

1695 words - 7 pages manufacturers listed below for the majority of the industry outlook. [replace with company chosen] was chosen for an in depth review for this report. • Ford Motor Co. • General Motors • Honda Motor Co. • Toyota Motor Corp Ltd. • Nissan Motor Co. • Fiat Group • Volkswagen AG • Hyundai Motor Co. • Bayerische Motoren Werke AG (BMW) • Daimler AG (Mercedes-Benz) • Subaru   Industry/Market Analysis Outlook for the Automotive Industry In 2013, Frost