The Automotive Industry and Its Mitigation Strategies

1985 Words8 Pages
For the last two years, the car industry has experienced constant changes in the world political conditions, economic climate, socio-cultural transformation and technological advancement. Today’s carmakers have been astonished by the increasingly growing demand in the developing world, and also struggled to meet all the demanding environmental regulations in most countries in the world. In addition, the new development of mega cities, and the emergence of new technologies have urged automakers to continuously innovate their products to better cater to the diversity of consumers’ tastes. Moreover, the recent awakening of a new urban middle class in emerging economies represents the largest single defining factor in shaping the future of the automobile industry thanks to its demand for convenient and modern means of transport. Therefore, in order to sustain profits and grow in this global economy, car manufacturers need to adopt mitigation strategies, seek avenues from different approaches, and form a partnership or alliance with other stakeholders in the economy. The automotive industry refers to companies that are specialized in designing, manufacturing, marketing, selling and offering services for motor vehicles. They are then categorized into three types comprising of light duty, medium duty, and heavy duty. Since the light vehicles, including cars, SUVs, vans, and light trucks under six tons gross vehicle weight, contribute the most to the whole industry, this report focuses on the manufacturing sector of this vehicle segment. The industry, without doubts, is highly dependent on the economic conditions, government regulations, social factors and technological advance. All of these macro-environments have substantial influence ... ... middle of paper ... ...4/243272/ Rebuzzi, C 2012, ‘Top Five Self Parking Cars’, Motor Burn, Viewed May 22, 2014, from http://motorburn.com/2012/06/top-five-self-parking-cars/ Standard & Poor's 2013, The Global Auto Industry Shifts Its Focus To Overseas And Emerging Markets. Standard & Poor's Rating Services, McGraw Hill Financial. ‘Panasonic and Tesla reach Agreement To Expand Supply Of Automotive-Grade Battery Cells’ 2013, Tesla Motors, Viewed May 22, 2014, from Press Release: http://www.teslamotors.com/about/press/releases/panasonic-and-tesla-reach-agreement-expand-supply-automotivegrade-battery-cells Timothy J. Dunne, J 2013, The Global Auto Industry Shifts Its Focus To Overseas And Emerging Markets, Standard & Poor's Rating Services, McGraw Hill Financial. ‘State of World Population 2007, Unleashing the Potential of Human Growth’ 2007, United Nations Population Fund (UNFPA)

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