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The effects of globalization in the automotive industry
Case for automobile industry in india
The effects of globalization in the automotive industry
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Projected to be the world's most populous country by 2025, India is a fast growing country that potentially could become the leading economic system in the world. Chevrolet, a part of General Motors a United States company, is one of the top brands of vehicle sales in the United States, in which most are manufactured in India. Chevrolet is currently selling models specifically made for the India market in India, but most of Chevrolets involvement in India is through manufacturing. India’s topography, demographics, economy, government, business customs make India a poplar destination for business to manufacture, and import and export goods.
Over a hundred year company, Chevrolet was founded in 1911 by a Swiss immigrant Louis Chevrolet and U.S. entrepreneur Billy Durant and called it Chevrolet Motor Car Company. Seven years later in 1918, Chevrolet Motor Car Company completed a reverse merge and combined with General Motors. General Motors was the first automobile company to open an assembly plant in India. It wasn’t until 2003 that Chevrolet officially began business in India, and as shown in the table below, India is ranked ninth in total sales in 2013. In 2012 Chevrolet created an equal joint venture company called Commonwealth to manage Chevrolet's ads and marketing in China and India. Manufacturing plants in India include Halol, Gujarat and Talegaon Dabhade, Maharastra; which can manufacture 385,000 vehicles annually. Chevrolet’s main headquarters are in Halol , Gurgaon, and Bangalore.
Top Ten Chevrolet sales 2013[19]
Rank in GM Location Vehicle sales Market share (%)
1 United States
1,175,812 36.9%
2 Brazil
632,201 13.3%
3 China
595,068 12.5%
4 Russia
173,485 3.6%
5 Mexico
162,461 3.4%
6 Canada
150,540 3.2%
7...
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...olet has been doing official business within India for 11 years, India ranks 9th in worldwide sales. My suggestions could posibily make them even higher on that list. The best things in my option for Chevrolet to do in India to improve their business is to eliminate the independent contractors, target the growing markets, localize manufacturing, and focus on it being a westernized brand.
India is predicted to be the most populous country by 2025, being involved in a county of that size with any product or service is crucial. Although there government is strong, and high trade rates made business deals difficult, it is all about relationships and building creditably. Chevrolet, already being there can take there already established connections and creditably and expand. As stated by Ernst & Young, India is the “most attractive investment destination in the world.”
Any time the company is looking into software project, there are areas associated with risk such as cost, time and relationship with suppliers. However, for Harley-Davidson, “collocation of suppliers with production facilities and their integration into company’s development process was the essential part of long-term relationship development”. Through a continued focus on collaboration and strong supplier relationships, the company could position itself to achieve strategic objectives and deliver cost and quality improvement over the long-term. Since, at that time company had no centralized system in place to handle relationship with suppliers and consequently, most of company’s time was spent on supplier management activities. For example, reviewing inventory, expediting and data entry. Furthermore, each supplier had different information systems for “Maintenance, Repair, and Operations (MRO), Original Equipment (OE), Parts and Accessories (P&A), and General Merchandising (GM) purchasing activities”. The systems, already provided by supplier, had to be further modified to meet individual need at each location, such as “the OE system at Harley-Davidson’s York, Pennsylvania site was different from the OE system in Kansas City”. However, due to long-standing tradition of gradual change implementation and focus on quality, quick transitions were unwelcome and did not come easy for the company. The size of the project determined how much risk was involved in terms of cost, time, and supplier relationships. The idea of switching to global purchasing system was seen as a threat not only in supplies and production flow interruption, but also in damaged dealer/customer relationships and lost sales. Furthermore, failure of the sy...
To continue, Louis, a person who accomplished a lot of important things. One of them was that he was named to the ‘International Motorsports Hall of Fame in 1992. Besides in 1905, Chevrolet became a motor racing legend. Furthermore the president of GM, hired Chevrolet away from Fiat in March 1907 for his Buick racing team between many more events. Chevrolet’s mother, Marie Anne Angeline and his father named Joseph Felician Chevrolet. He married Angelina Marie Chevrolet. They had two boys, Charles Louis Chevrolet and Alfred Joseph Chevrolet. An event that change Louis life was that he crashed, this might make him feel worried for not knowing if he was going to be alright. Some obstacles that he overcomes was that he was hurt because of the accident and his mechanic was killed. The influence that made Chevrolet to create a six cylinder automobile were that he was fascinated with car racing that he wanted to create a car with greater force so that way they could have a higher speed. In the other hand is William C. Durant who in the year of 1886, he founded the Flint Road Cart Company and helped Albert Champion’s Champion Ignition Company during its
The automaker Chevrolet has experienced much technological change in the past 104 years. Although it, Chevrolet, is a French name, it is an American car company. It was primarily founded by William C, Durant, along with Louis Chevrolet, on November 3, 1911. It wasn’t until six years of existence that it became part of the Automotive Division at General Motors, otherwise known as GM. Durant had previously tried to buy out Ford and failed. This caused him to resort to co-founding Chevrolet. The first car sold by the company commonly called Chevy was the Classic Six, at the price of 2,500 dollars. Chevy started producing these vehicles in 1912-1913. The car’s value may seem like pocket change but that is the common day equivalent of roughly 57,000
As the automobile industry made its first appearance in the early 1900s, General Motors had already slowly begun its formation. GM was founded in 1908 by William C. Durant, a carriage manufacturer of Flint, Michigan, and today operates manufacturing and assembly plants and distribution centers in many countries, including Canada . Its major products include automobiles and trucks, a wide range of automotive components, engines, and defense and aerospace materiel. General Motors has a long history of business and technological innovation designed to deliver ever-increasing value to their customers and society. GM today has manufacturing operations in more than 30 countries and its vehicles are sold in about 200 countries.
The automobile industry began with Henry Ford’s production of the Model T in the early 1900’s. With the creation of the assembly line, cars became cheaper and quicker to produce, thus making them affordable for many people. There were originally 500 auto manufacturers. By 1908, there were only 200; and in 1917 only 23 remained. This vast reduction was due to large amounts of consolidation within the industry.
(Potential $loss if reduce price = 94962.yr but losing market would be a bigger problem.)
Uber should improve its services as compared to its competitors. It should target customers by providing them low-cost ride and convenience. India is the unstable political market. One of benefit with the Uber is that it is targeting the middle class. The middle-class population is high in India. Uber can resolve a problem of regulations by acquiring Indian company. Knowing your market is very important in this regard. These expansion strategies would improve its operations and profitability in Asian countries. It should try to recover from its mistakes. Acquisition of other U.S companies in the United States would help it to increase its market share in China.
Hence production units for example the exports that take place in Europe and its Ukraine therefore they have competitive advantage with value into the technology. It gone through the acquisition by natural resource seeking for example Tata Company has invested in coal mines in different country and ownership advantage the company that enables them to successfully acquire established goal companies (KUMAR, 2008).Location advantage of Tata motors has the nature of the product and the services which the company requires to invest In plant or an office (Neelankavil and Rai,2009).In addition the Tata Company has a manufacturing with joint venture and Thornburg automotive gives which them a location advantage again in the south East Asia region. Internationalization advantage of Tata motors will help them in having better control over the manufacturing units as licensing option which are issues related to transfer of technology or technology theft. The advantages of own production for Tata company which they have done is introducing a new car called Nano an ultra low cost car
The Chevrolet brand is an enduring success in the American automobile industry. Founded by Louis Chevrolet and Wiliam Durant in 1911, Chevrolet continues to roll out vehicles known for their aggressive styling, power and reliability - all sporting Chevrolet's worlds famous 'bow-tie' logo. Chevrolet is General Motor's most popular and top-selling marque, currently offering 19 vehicles in its line including the Corvette, Impala, and the Silverado. Chevrolet has invented many features that are now standards in car manufacturing such as articulated brakes and independent front suspension.
In the early 1900’s, the first companies that would form the company as we know it today began to emerge. The first of these was the Olds Motor Vehicle Company (later Olds Motor Works, makers of the Oldsmobile) in 1897, followed by Cadillac Automobile Company in 1902 and Buick Motor Company in 1903.
...ations in host countries. Some problems that BMW face is going global into the Asian market for example china does not permit BMW to sell its products directly to its public it must go through government organisation for distribution. It also wants BMW to manufacture at least 80% of its parts in China, which is not possible as they don’t have a plant in China. And in India the tariff is too high, which makes it hard for BMW to import painted body into the country. According to India’s regulation BMW is not allowed to import more value than they are exporting.
After General Motors (GM), Toyota Motor Corporation is the second largest automotive maker around the globe; although, Toyota ranks in first place in profit, revenue and net worth. Toyota was established by Kiichiro Toyoda in 1937, as a by-product of Sakichi Toyoda's Toyota Industries Company, to produce Toyota automobiles. Headquartered in Bunkyo Tokyo, Japan (as well as Toyota, Aichi); Toyota offers pecuniary services with their Toyota Financial Services division. Toyota Industries, along with Toyota Motor Corporation, make up the Toyota Group. The Toyota Group consists of Daihatsu Motors, Scion, Lexus, Fuji Industries, Yamaha Motors, Isuzu Motors and of course, Toyota Motors. Toyota Motor Corporation operates globally with the automobile industry, which includes 522 worldwide subsidiaries (Toyota, 2010) (Sagepub, n.d.).
2. What is the difference between a.. We noted that SSM Health Care learned from manufacturing companies in their quality journey. What can nonmanufacturing companies learn and apply from Toyota’s philosophy and practices? Suggest specific things that education and government might learn.
Maruti Suzuki India Limited, which was earlier known as Maruti Udyog Limited is the largest car manufacturer of India. It is a subsidiary of Suzuki, a Japanese automobile and two wheeler manufacturer. The company initially had an 18.28% ownership of Government of India and 54.2% of Suzuki. But, in 2003, the Indian government diluted its entire stake in Maruti and sold it to Indian financial institutions. The company headquartered in New Delhi, sold its 10 millionth vehicle in February 2012.
...idering India as one of the options for investing/expanding. Government of India are also taking steps to ease the business in India. For instance deregulating some government owned enterprises, more liberal trade policies, easy and less steps for establishing business in India etcetera.