Case Study : Global Automobile Manufacturing Industry

The purpose of this report is to become familiar with research tools, to introduce a framework for secondary industry research and gain to practical experience in creating an executive summary. This research paper looks at a broad set of indicators on the Canadian new vehicle industries. The Canadian automotive industry produces light duty vehicles — cars, vans, pickup trucks; heavy duty vehicles—trucks, transit buses, school buses, military vehicles; and a wide range of parts, components, and systems used in vehicles of this nature. To complement its manufacturing activities, the industry boasts a well-developed vehicle dealer network, plus an aftermarket organization which has grown into a world-class distribution system and service provider (Canadian automotive industry, 2014). Canada accounts for a small amount of 4.6% of the Americas new cars market value (New Cars in Canada, 2016). Throughout the project I became more aware of how much the industry is worth. The worlds automotive industry accounts for around $1 trillion in annual sales. (Canada’s Auto and Auto Parts Industry Industrial Outlook, 2006). However, in 2015 the Canadian new cars market had total revenues of $15.0 billion. The market is expected to grow substantially by 18% in 2020 (New Cars in Canada, 2016).

The global automobile industry structure are generally influenced by supplier and customer. Most of Toyota and Ford vehicle’s parts are made by the supplier. Relationship and control upon supplier is an essential part of value creation in the auto industry. Customer in the industry diverse from wholesaler, dealer, government, rental companies, taxi companies, other user companies to retail customer. Each type of customer requires a different type of approach in delivering the value from the company. The structure of global automotive industry will affect the value creation strategy of car manufacturers.

These barriers include, but are not limited to, the following: large established competitors, high capital requirements, limited initial access to distribution networks, and environmental regulations. Due to the existence of massive brand name manufacturers like General Motors and Ford, any new entrants in the automobile industry will be competing with companies benefiting from strong customer loyalty, economies of scale, and impressive marketing budgets. Therefore, new entrants must be able to achieve the difficult task of entering automotive manufacturing at high capacity while simultaneously building a solid consumer base. Such an entry would be quite expensive, especially in conjunction with the billions of dollars needed to construct high-volume manufacturing facilities and develop effective distribution networks to deliver new automobiles. Finally, new entrants must be able to design and manufacture their automobiles according to contemporary environmental regulations. Abiding by such regulations would further drain new entrants’ funds. Overall, entering the automotive industry competitively requires an exorbitant amount of money, so the threat of new entrants is low.

Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. As an oligopoly market, the auto industry is highly dependent on strategic decision-making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition, possibilities of turning substitutes into compliments, and shifts toward higher demand in services are seemingly leading factors that face the current automotive industry in the immediate future. But first, we should not ignore the political forces at play within the market.

Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.

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

Like every other industry, the automobile industry in the United States is susceptible to competition. The biggest global contender to the US Automobile Industry is the Japanese Automobile Industry. Trade agreements have been in place since 1995, that make replacement parts for Japanese

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.

The last several years were also tumultuous for the U.S. auto industry. After dominating the market for decades, American automakers had grown complacent about product development. At the same time, rising gas prices and uncertainty about the economy caused consumer preferences to shift from SUVs to more fuel efficient vehicles. Foreign competitors entered the U.S. market offering more reliable, higher quality and more fuel efficient vehicles at a lower price and began to steal market share away from American automakers. In order to remain competitive, U.S. automakers need to focus on increasing production efficiencies and developing innovative product offerings. Firm Analysis

General Motors is one of the most highly decorated American car manufacturers in the world. Winning top honors from the Global Supply industry (Awards). General Motors earns countless awards throughout the brands of the company year after year. Founded in 1897 by William Durant, General Motors is one of the world’s largest car manufacturers. With Mary Barra’s leadership, General Motors produce cars, trucks, and hybrids. GM owns 18 brands, but their most famous makes are Cadillac, Chevrolet, Buick, and GMC (GM Profile). The purpose of this paper is to pinpoint General Motor’s strengths, weaknesses, opportunities, and threats.

Ever since the 2008 recession US automobile companies have been on a steady downhill slide, but actually you can trace this downward trend even further back than 2008. US car companies have been feeling the heat since as early as the late 1980s when Japanese car companies laid claim to American manufacturing plants . Despite a shot in the arm in sales over the past five years, American firms are still on the decline. This case analysis aims to diagnosis the problem, provide analysis of the problem, and propose a viable solution to the problem from the perspective of the US automobile market share leader, General Motors.

The focus of this paper to describe how the automotive industry has evolved throughout these past years, and its impact on the U.S. economy. The domestic market has gone from being dominated by the “Big Three” which are General Motors, Chrysler, and Ford to now including other major manufacturers from foreign countries. The industry has become an important economic indicator used to predict fluctuations in the U.S. economy. It currently makes up approximately 3.5 percent of the U.S. GDP. The Foreign manufacturers however are slowly increasing market shares now that the Big Three aren’t so big

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

The United States Automotive industry has been dominated by five major auto manufacturers: GM, Toyota, Ford, Chrysler, and Honda. As globalization increases the domestic automotive market (GM, Ford, Chrysler) suffers from foreign competitors. Although with high entrance barriers the market suffers little to none from new entries. There are several reasons for this the largest being capital. It takes a lot of capital to obtain manufacturing plants, raw materials, as well as to hire and train employees. PASTEL Analysis

The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging