On the Road: U.S. Automotive Parts Industry Annual Assessment Office of Transportation and Machinery U.S. Department of Commerce 2011 Table of Contents Tables and Charts Index Executive Summary Introduction Automotive Parts Sector Definitions Overview of Market Conditions Economic Indicators 2 3 4 4 5 8 9 9 11 13 15 17 17 18 18 19 22 26 28 29 30 32 33 35 Automotive Parts Markets Original Equipment Aftermarket Remanufacturing Employment Trends Leading Industry Stories Visteon Bankruptcy Comes to an End Other Industry Developments Counterfeiting Alternative Fuels Advanced Technologies In-Vehicle Electronics, Engineering, Safety, and New Technologies International Developments and Trade China Japan South Korea …show more content…
Still, automotive parts suppliers and automakers face another couple difficult years and most analysts don’t see the automotive market improving significantly until 2012. International U.S. automotive parts exports increased 36.2 percent to $58.1 billion in 2010 compared to $42.7 billion in 2009. Most of the exports (84 percent) went to Canada, Mexico, European Union 151 (EU-15), and Japan in 2010. Automotive parts imports were $90.9 billion in 2010, up 44.3 percent from $63 billion in 2009. Mexico, Canada, Japan, Germany, and China combined accounted for $71 billion, or 78 percent of total U.S. imports of automotive parts. Specifically, imports from China increased 35 percent from 2009 to $10 billion in 2010. The overall U.S. automotive parts trade deficit in 2010 was $32.8 billion, up 61.3 percent from 2009 levels. The European Union 15 countries are Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, the United Kingdom, Austria, Finland, and Sweden. 1 International Trade Administration/Manufacturing and Services/Office of Transportation and Machinery Introduction Automotive parts consumption is linked to the demand for new vehicles, since roughly 70 percent of U.S. automotive parts production is for Original Equipment (OE) products. The remaining
The European Union (EU) is a political economic union of 28 members. The founders are France, Belgium, Luxemburg, Italy, Netherlands, and Germany. The Maastricht treaty established the European Union in 1993. The EU aims to ensure the free movement of people, goods, services and capital and regional development. These 28 member states have successfully integrated because of their similar cultural lifestyles.
The EU was created after the Second World War to unite the neighboring countries of Europe. It was established by six European countries in 1951: France, Belgium, Luxembourg, Italy, Netherlands and West Germany (Briney, 2015). Today it consists of 28 countries united to create an economic and political community (Gov.uk, 2014).
The success of the automotive parts manufacturing industry is, at its core, is derived from the health of the automotive industry as a whole.
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The European Union (EU) is economic and political union which is located in Europe in Brussels. It consists of 785 members representing the 492 million citizens of the 27 Member States of The European Union. Countries which join EU are Austria, Bulgaria, Belgium, Czech Republic, Greece, Hungary, Portugal, Cyprus, Estonia, Luxembourg, Denmark, Finland, Slovakia, France, Italy, United Kingdom, Germany, Ireland, Lithuania, Latvia, Malta, Netherlands, Poland, Spain, Romania, Slovenia and Sweden. EU is elected every 5 years throughout all the Members States.
If you ever question whether American made matters, consider the way that the U.S. automotive industry has devolved. At one time, American auto makers led the world in their sector. Today, jobs that were formerly held by Americans have been outsourced to workers in other countries. In order to inject new life to the Middle Class and level the playing field once again, we must insist on the availability of American made products. Our buying decisions could make all the difference for Americans now and in the future.
The automotive component & Fabrication Plant, ACF, was the original plant site for Bridgeton Industries, a major supplier of components for the domestic automotive industry. All of the ACF’s production was sold to the Big-Three domestic automobile manufactures. Its main competitors were local suppliers and other Bridgeton plants. This company did very well but recently it became less effective when foreign competition and scarce, expensive gasoline caused domestic loss of market share. For boost its selling, it made four criteria, quality, customer service, technical capability, and competitive cost position to evaluate three classifications of products.
While car manufacturing is a global industry, automotive companies such as JLR operate in broader regions such as Europe and Asia. Three major trends were identified affecting car production in mature markets, the first was the fragmentation of mature markets, customers were demanding more choice, and this has made it difficult for manufacturers to obtain economies of scale, so cost had to be reduced and with the general
The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.
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Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This
Automotive Builders, Inc. (ABI) is a company that consistently changed its production lines and strategic goals relative to the needs of the times, starting out producing diesel engine parts for tractors in the 1940’s, switching over to the production of parts for military vehicles during World War II, and then, after the war, settling into its current placement in both the automobile and tractor industry. Due to the downturn in the economy and stiff and superior competition in both quality and price rising up from the Japanese who had recently entered into the industry, ABI is trying to find productive and innovative ways to improve sales and guarantee placement as the number one company in its
Furthermore the U.S. market is now the target for most of the globe’s auto makers since the economy is steadily improving and consumers are much more inclined to replace or buy a new vehicle with the latest estimates for auto sales in 2014 expected to reach the 16 million vehicle range. However, finished goods inventories management is still a big problem and many automotive OEM’s such as GM are now considering even more investments in added capacity.
The start of Europe going towards a union had begun after World War II. The French gave an invitation to European countries served as the basis of a European Union. 9 countries have accepted the invitation: Belgium, Germany, France, Italy, Luxembourg and The Netherlands. Then it expanded and increased by accepting European countries that want to join; Denmark, Ireland and the U.K. in 1973, Greece in 1981, Spain and Portugal in 1986, and Austria, Fenland and Sweden in 1995. Now it has 28 countries.
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