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 ...
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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)
This paper will focus on the future of the U.S. Automobile industry as the United States recovers from the worst recession we have experienced in the past 75 years. I will provide information on the following topics pertaining to the U.S. automobile industry:
The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.
The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.
Kiley, David. Driven: Inside BMW, the Most Admired Car Company in the World. Hoboken, NJ: John Wiley, 2004. Print.
In the future the global car market is full of potential. There are currently 44 million vehicles and by the year 2002 experts estimate that number will grow to 64 million. That growth is not expected to be in the US, rather in countries such as: China, India, The Pacific Rim, South Africa, and South America. In America, a current trend is for the neighborhood car dealer to be purchased by a large manufacturer, such as GM, so cars can be sold through retail outlets. Other future endeavors include low emission cars, which are expected to provide expansions in sales. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into elec...
The automotive industry is one of the most important sectors of the economy for every country in the world. It involves a large number of corporations and institutions engaged in the manufacturing process of motor vehicles including designing, developing, manufacturing, marketing, and selling. It contributes to the global economic growth by generating a significant return and creating a ripple effect on supporting the supply chain as well as providing job opportunities for the skilled workers (ACEA, 2016).
Almost all car makers around the world are responding to this issue and have begin their research to reduce the risk of climate change. The steps that the car manufacturers have to take to deal with this situation are to reduce the amount of CO2 emissions and waste produced by both of their manufacturing factories and vehicle by implementing new measures in their factories and by looking at using renewable fuels that produce cleaner emission.
Another strategy used by BMW to differentiate itself from other automakers in the market is the proactive usage of technology and innovativeness in the development of products. From the early 1990’s, BMW has been on the forefront of incorporating technology in its designs in line with the technological advances of the modern world. This has led to the creation of inventive products. The uniqueness of these auto products put BMW in a position of advantage. The development of the hydrogen car as early as 2000 was an indicator of the company’s innovative strategy. In addition, the company also presents itself as environment friendly creating a whole range of vehicles in this category. This is a differentiation strategy meant to boost the company’s image and reputation amongst customers. In addition, this gives the environment conscious customers a variety of products to choose from giving BMW an upper hand in the industry.
The world is changing with an environmental crisis ahead changes must be made. As most Americans wish for a future generation our choice in vehicles will be reevaluated. With the growing air pollution throughout the United States, potential pollutant health risks have reached dangerous heights, especially for children’s health. With a study done by The American Academy of Pediatrics, revealed eleven million U.S. children live in areas that exceed one or more federal air quality standards, with that number still growing (The). Air pollution is a real thing; staying at this same pace the future effects air pollution will have on the world will be catastrophic. The change to electric cars will n...
Human population growth was relatively slow for most of human history. Within the past 500 years, however, the advances made in the industrial, transportation, economic, medical, and agricultural revolutions have helped foster an exponential, "J-shaped" rise in human population (Southwick, Figure 15.1, p. 160). The statistics associated with this type of growth are particularly striking: "Human beings took more than 3 million years to reach a population of 1 billion people...The second billion came in only 130 years, the third billion in 30 years, the fourth billion in 15 years, the fifth billion in 12 years..." (Southwick, p. 159). As human population has grown, there has been simultaneous growth within the industrial sector. Both of these increases have greatly contributed to environmental problems, such as natural resource depletion, ecosystem destruction, and global climate change. Also linked with the increasing human population are many social problems, such as poverty and disease. These issues need to be addressed by policy makers in the near future in order to ensure the survival and sustainability of human life.
Spatz, J., & Nennenkamp, P. (2002, January). Globalization of the automotive industry-traditional locations under pressure. Retrieved January 14, 2012, from http://www.uni-kiel.de/ifw/pub/kap/2002/kap1093.pdf
(4) Abel, Ivan, Maali Ashamalla, and Robert Camp. Competitiveness of the US Automotive Industry: Past, Present, and Future. Rep. 2nd ed. Vol. 10. Indiana: American Society for Competitiveness, 2010. Print.
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...
The fast population growth rate of humans means that the necessity for transportation vehicles is also enormously increasing. Studies have shown that in 1999 the worldwide number of vehicles registered was 700 million. From this huge number of vehicles, the US has a large share, which includes 200 million cars and light trucks. The number of cars worldwide also grew three times faster Competition for good things like public health, making the earth safe to live are positive aspects of competition, but global competition can also have a downside concerning the environment. This is true for the production of vehicles, as companies are coming with designs and new models with improved engines, but fuel consumption and the pollution of the air remains the same.
The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto