The auto sector is often credited as the engine room of Europe. The EU is home to all the competitive and innovative automotive industry that generates movements throughout the economy – from raw materials and parts supply, to R&D and manufacturing, to sales and after-sales services. Manufacturers have trained and developed a highly-skilled workforce, producing quality products for home as well as international markets. Automotive industry supports over 2 million European jobs and with an additional 10 million citizens employed with its associated industries. Exports are estimated at over €70 billion per annum. The automotive industry has also established itself as a partner in sustainability. Technological advances which have brought real time solutions, driving down harmful emissions from industry products and production sites. Manufacturers have spearheaded significant enhancements in vehicle safety and clinched social responsibility goals. The main purpose and some of key facts associated with European Automotive Industry are as follows: Manufacturing in Europe: Vehicle manufacturing is a strategic industry in the EU, where 18.4 million vehicles including cars, vans, trucks and buses are manufactured. All the OEM’s together operate 208 vehicle assembly and production plants in 22 countries across Europe. Creating skilled jobs: Around 13 million people work in this sector –which represents 5.3% of the total EU employed population. The 3 million high-skilled jobs in automotive manufacturing corresponds to 10% of the EU’s manufacturing employment. Powering economic growth: The €839 billion turnover generated by the automotive sector represents about 7% of EU GDP. The automobile industry has swelling effects throughout ... ... middle of paper ... ...addition, GM decided last month to withdraw its Chevrolet brand from Europe at the end of 2016, which means competitors will be able to try and win some of Chevrolet’s annual sales of about 175,000 units in the region. Europe, with nearly 300 factories in 2012 stretching from the tip of Spain to deepest Russia, only did half its homework. Its recovery has been hobbled by politicians who want to keep plants open to protect jobs. So its rebound is weaker, and will be less profitable. Losses will ease this year, but will not disappear completely. “We still believe there is too much capacity and the measures in place won’t be enough to bring the industry back to profitability unless we see a strong market rebound. And that’s not what we will see this year,” said Falk Frey, senior vice president at Moody’s, which forecasts a 3 % upturn for western Europe. (CLARK, 2014)
... If U.S. auto manufacturing takes a down-turn, the U.S. economy will be negatively impacted and the demand for automobiles in the U.S will suffer.
Increasing environmental awareness, coupled with a responsible American government and improved technology, have all contributed to the comeback of low-and zero-emissions vehicles in the US. It remains to be seen whether the automakers and oil companies will once again work to halt this progress, or embrace it as the technology of a more responsible future.
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.
Taylor, E. (2008, February 28). Auto Makers Shift to Offset Effects of Soaring Euro. Wall Street
The manufacturing of automobile parts is always dependent on the demand for new car sales which are dependent on interest rates, the health of the economy, and by the replacement parts market (Hoover's, 2014). The jobs status in America is still growing at a very small place causing would be buyers to stay in their older vehicles longer before making the plunge to purchase. So, buying activity is slower compare to years past making it even tougher for industry competers. In a competitve manufacturing market small companies can compete along with larger ones by focusing on less parts or more specialized parts. In this market manufacturing profits rely on the demand for new vehicle volume. In 2009 from the...
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.
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.
As the economic integration of Europe continues, it is likely that increasing international competition will affect firms in European industries. As other countries expand and have more trade worldwide, the more the European economy will be affected. The economy will tend to buy from outside of Europe due to taste and lower prices. There would be more firms to choose from decreasing Economies of scale are significant because motor vehicle manufacturing is an industry based on growth. Since the automotive industry being discussed is in Italy, it is based primarily around one company, Fiat. The majority of sales of automobiles in Italy are acquired by Fiat. The automotive industry constitutes a substantial part in the European economy because this industry makes up 10 percent of total manufacturing output.
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).
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)
Climate change in automotive industry represent both threat and opportunity in the business. It gives opportunity for the car makers to develop a new technology that is more environmental friendly, which can reduce the amount of green house gas emission. It also gives the carmakers to create a more energy efficient in their operations, which can cut the unnecessary production costs. Other opportunity is the fact that they will use this global concern to further research and investigate the use of creating a new energy source, and helping reducing the pollution caused by the use of fossil fuels.
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
...al combustion vehicle emissions. Sustainable practices, technology, collaborations are producing a new breed of vehicles aiming for a greener future for the world. These efficient vehicles seek to forge a green future.
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