An analysis of the automotive industry in the world

Statistics & Facts on the Global Automotive Industry

The auto industry is considered to be an oligopolywhich helps to minimize the effects of price-based competition. It had been assumed that automotive facilities could be readily converted for aircraft production, but this proved more difficult than anticipated.

It was not until that Morris Motors finally felt justified in installing a moving assembly line; the Hillman Company had preceded Morris in this by a year or two.

Extended warranties also factor into the bottom line. Watch out if sales inventory climbs significantly above 60 days worth. Although American production continued to grow, its share of world automotive production fell from about 80 percent of the total to 20 percent. Bureau of Economic Analysis.

Inthe U. Over and above the labor and material costs we mentioned above, there are other developments in the automobile industry that you must consider when analyzing an automobile company.

The pioneer automobile manufacturer not only had to solve the technical and financial problems of getting into production but also had to make a basic decision about what to produce.

Chryslerformerly of General Motors, was called in to reorganize it. The automotive industries of the other belligerents were smaller in scale, and their facilities for armaments manufacture were proportionately greater than in the United States or Great Britain. At the end of the 20th century, many Japanese automakers and several major component manufacturers were either controlled by or had joint operations with non-Japanese firms.

Ford and GM increased their financial stakes in Mazda and Isuzu, respectively, with Ford taking operative control of Mazda in Automatic transmissions became virtually standard equipment for passenger cars, and power brakes and power steering found widespread acceptance, as did luxury features such as air-conditioning.

When, for example, most car makers moved from using rolled steel to stainless steel, the change extended the life of parts by several years.

For all of the belligerents the conversion of automotive facilities was an afterthought, improvised after the beginning of hostilities, and the American industry, involved only for a short time, never fully utilized its capacity. There have been exceptions, but the trend has been consistent.

The Industry Handbook: Automobiles

Prompted by global initiatives, such as the Paris Agreementseveral countries around the globe are enacting stricter emissions controls on new vehicle models. Still, the same trend toward concentration was discernible.


British manufacturers had to face the problem of a tax on horsepower, calculated on a formula based on bore and the number of cylinders. Labor - While machines and robots are playing a greater role in manufacturing vehicles, there are still substantial labor costs in designing and engineering automobiles.

Automotive industry

Iacoccareturned to profitability and repaid its government loans inseven years early. There were other factors that created a somewhat different situation. Among other steps, he gave GM a staff-and-line organization with autonomous manufacturing divisions, which facilitated management of a large corporate structure and became the model for other major automotive combinations.

The European industry was moving in the same directions as the American industry, toward a mass market for motor vehicles, but it made slower progress for a variety of reasons: The parts market, however, is even more lucrative.

Italian automobile manufacturers gained a reputation for highly engineered sports cars and racing cars, but Italy had no mass market and therefore achieved only small-scale production at that time.The Industry Handbook: The Internet Industry Similar to the invention of the airplane, the emergence of automobiles has had a profound effect on our everyday lives.

The auto manufacturing industry is considered to be highly capital and labor intensive. The Car & Automobile Manufacturing industry market report contains strategic analysis of the key drivers influencing the industry.

Global Automotive Report

Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. To secure products across the supply chain, the automotive industry must develop new ways to collaborate, writes Wolf Richter, Partner at McKinsey & Company Read More» Articles.

This report analyzes the Automotive industry including global risks, market value, strengths and weaknesses, latest trends and recent evolutions. The latest news, analysis, research and events from Automotive World, the world's leading independent automotive publishing and events company.

Comprehensive comment and analysis on today's automotive industry written exclusively for just-auto home; in this fast changing world, it is a system that will date very quickly.

An analysis of the automotive industry in the world
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