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 promoting of competitiveness and export expansion.The MIDP provided an effective platform for communication and co-operation for all of the relevant stakeholders to interact on automotive issues.The participants in the automotive industry include government,labour and business(Department of Trade and Industry(DTI) 2004).It should be noted that the automotive production development program(APDP) has replaced the MIDP. Since the inception (ADPD) in 01 January 2013,the South African automotive industry entered a period of volume-driven production support.Kehbila ,Ertel and Brent(2009:310) asserted that the industry is the prevalent manufacturing sector in South Africa. SUPPLY CHAIN CHALLENGES IN THE SOUTH AFRICAN AUTOMOTIVE INDUSTRY The automotive industry is critical to the South African economy and/or if figuratively put,the heartbeat of the South African economy. As the industry is big in its magnitude,the challenges faced are also great and vast even somewhat complex if critically analysed.In a global context, vast number of occurrences in the automotive industry encounters a large number of challenges and setbacks.Some predicaments are of OEM’s trying to diminish production and reduce manufacturing costs.They are required to enhance quality, improve styling, escalating organizational e... ... middle of paper ... ...dustry gains by the linkage of it and supply chain management(being supply chain led) as more collaborative approach is provided,knowing no boundaries across firms,including various parties in the supply chain that contribute significantly to improved product quality,shorter lead times,highly responsive supply chain,at lower cost and with increased customer satisfaction levels,and by so doing reveals the significance of the automotive industry.The importance of the automotive industry is largely due to the impact it has on the economy of a country.In terms of South Africa the automotive industry is one of the most influential in terms of its contribution towards of South Africa’s GDP, contributing 6%,accounting for approximately 12% of South Africa’s manufacturing exports, making it an all Important factor in the economy.In 2010,271 000 vehicles were exported.
It seems almost as if the cars themselves are not mere statistics on a paper but instead the workers take great pride in identifying themselves in each of them. This speaks volumes about the respect invested into their work, which makes them accept and own responsibility of a product from the many numbers that they produced. The motivation to continuously improve their surroundings as well as the process ensures that there is zero error in their products which also leads to a lot of care invested into their work. Also a result of this positive motivation was observed in the decrease of
1)The way of life of owning an auto in late time has changed a great deal in correlation to the twentieth century. The interest for auto in individual design is not restricted to the rich class just. The division has extend so as the situating by the car producers. The business sector of auto is separated into 3 class. So the automakers has changed themselves. The business of auto is not constrained to the U.S., Europe, Japan and South Korea. In late patterns it has been seen that the BRICS nation and North America have indicated potential development in buying auto. Organizations are making techniques by keeping the region and practices saw over the globe.
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 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.
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 through the production and manufacturing of vehicles, as well as the sale of the vehicles. The automotive industry has had a significant impact on Canada’s economy over the last 10 years. If the production and sale of domestic vehicles were to decline, Canada’s economy to be severely crippled and fall back into a recession.
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
The threat of new international entrants here in the United States for automotive manufacturing is extremely high, the rising global economy and the recent up comings of new foreign competitors with their capital, technology, management and marketing skills will soon be a threat for the U.S. automotive industries. You can see how this is noticeable if you look at the overall global market in terms of vehicle sales. But for right now the U.S. automotive industries are under no pressure from a threat of new international
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
The automotive sector is a key industry in the Malaysian economy. The economic contribution of this sector is immense, with significant linkages to the manufacturing and services sectors. The automotive sector began with importation of vehicles which then progressed to assembly operations and the establishment of a wide network of automotive components and parts manufacturers. (Malaysia Automotive Association, 2005)
Cars are one of mankind's greatest inventions. As a connector of the people the car shows social status and connects nations. The car is responsible for millions of jobs around the globe and not just automobile inspired jobs, in the present time motels have been specifically constructed for the automotive world over motoracing resorts and garages, Fast food drive through outlets make profit because of the car. In countries such as the United Kingdom, Japan, France, Italy, Sweden, Germany and America motor vehicle exports and imports are essential to maintaining the balance of international trade. The automotive industry has become a vital element in the economy of industrialized nations: motor vehicle production and sales
competitive automotive industry. It has allowed for cars to be “designed in one country and built
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
Automobile industry in Malaysia first started with implementation of the Import Industrialization Strategy in 1960 when the Malaysian Automotive Association (MAA) was established in November 1960 (Rosli, 1994). During the early stage, Malaysia only carried out assembling activities of passenger and commercial vehicles. The main aim is to reduce the import of completely built-up units (CBU) in order to stabilize the balance of payment. Not only this, it also creates more job opportunities to reduce the unemployment rate.
The American auto industry has driven the American economy for quite a while. This industry has shaped our progression, and affected American culture and social mores. In no time, caught by globalization and other overpowering variables, it stands up to a troublesome reality. The automotive industries basically influenced the lives of Americans. Chrysler, Ford, and General Motors were American establishments. They are credited for an essential rate of all American livelihoods; they put different hands on families into the professional class, and helped America form into the goliath of the twentieth century, in terms of quality they put all the efforts to reach customer satisfaction. Appallingly, the well-known auto firms are not what they once were and are going down a precarious way. The thickness of its condition has created to a vast issue. From a forceful remote work force, to a strange outside trade technique, issues have developed on a tremendous reach.
As a consequence of globalisation, there has been a lot of innovation facing the automotive industry. The most present development is the electrification of vehicles. As competition rises from Asia due to their comparative advantage in cheaper human labour and higher technological innovation, traditional OEMs in Europe such as Audi are facing an increased pressure as they lag behind future technologies and new concepts. The different economic realities in both areas facilitate Asian entrants and challenge European players.