China Automobile Industry : Interconnected Supply Chain

The Ford Motor Company’s Supply Chain Management ABSTRACT The influx of foreign automobiles that flood the United States market is higher than ever before and American companies are struggling to adapt to this decrease in market share. Ford is one of the organizations that has restructured its supply chain strategy to better integrate suppliers into their system reducing cost and

From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In

In this world of technology and innovation even Ford Motor Company is investing in new technologies in order to improvised their supply chain management, build an environment with interaction between each department as well as suppliers in order to reduce the bridging gap between them. As it is a leader in auto market segment, needs to update and coop with time and technology periodically but due to huge competition from the Japanese auto makers like Toyota, Honda, and Nissan, Suzuki etc., who are strong and powerful with references to the supply chain process management due to which Ford market share dip compared to others as well as the sales also declined. During this time, Ford analysed the situation and thought positively and started improvement in the supply chain management.

The United States is no longer a leader for manufacturing and China is currently in their ‘Industrial Revolution’ economy. Manufacturing jobs have been exported overseas, that has decline in the leverage to unionize labor (Uchitelle, 2018). The auto industry alone has been drastically hit, with the 2009’s “too big to fail” stimulus package to save the industry.

In the contemporary China’s economy, it is no doubt that Auto parts Industry has become one of the fastest growing industries which plays a major role in the development of the domestic manufacture as well as the GDP Growth.

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

The makers of auto component are facing the problem of slowdown. Due to the less growth in passenger car segments and commercial vehicle, the supplies of the makers of the components fell as well. The fall is a combination of low local demand and the declining exports. Operational excellence, management of risk and planning of scenario are assured to become the key range for success. The components of auto industry, world-wide has faced economic restructuring. The deceleration of sales in many markets in the industry of auto component s was not a long-term challenge, but a considerable market share loss in increasing competition in the local

The international automakers invested more than $72 billion to capitalize 425 facilities and offices. This created jobs for 123 thousand Americans with $9.3 billion and products purchased from US suppliers for $104 billion to produce 5.3 million vehicles in which 46% of all US vehicle production. There are nearly 10 thousand dealership franchises sold that employ more than 500 thousand American gaining $29 billion. Further, nearly 900 thousand US-built vehicles were exported. These figures clearly shows that there has been a domino effect of success in the US auto industry and it means that it is a great contributor to the US economy.

The automobile industry is one of the largest industries in the U.S. and faces major global competition with The European, Russian and Easter Asian Markets. The industry is also facing continuous organization and technological change but has taken action to increase its global presence. For example, by making alliances with other global leaders.

After a one-year long and difficult negotiation, on March28 2010, the China Geely Group went where no Chinese auto firm has gone before, buying a luxury car brand, Volvo, for $1.8billion from Ford, including the 100% shareholder and the relevant assets. It was China's largest overseas automotive industry acquisition, which was also the first wholly-owned merger. Besides, it was the first time for a Chinese own brand to merge a luxury brand. This deal proved to be a most ambitious action for the Chinese automaker’s desire to transform itself into an international auto player and wrote a new chapter for the Chinese automotive industry.

At the beginning of twenty centuries until now the American auto industry has been growing and in demand. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerges as the “Big Three” auto companies by the 1920s. Manufacturers funneled their resources to the military during World War II, and afterward automobile production in Europe and Japan soared to meet demand. Once vital to the expansion of American urban centers, the industry had become a shared global enterprise with the rise of Japan as the leading automaker by 1980. And Americans dominated the industry in the first half of the twentieth century. Hence, from the

Ford Motor Company has one of the most complex supply chain in the industry. Ford has achieved several of their goals by fostering long-term relationships with their suppliers through active

Increasing globalization in the automotive industry is changing the way of traditional partnerships. Ten years ago, it was questionable to pursue business in markets such as India and China because political and business conditions were not conducive to direct foreign investment (Emerging Markets, Emerging Opportunities, 2012).As a result, many automotive

An automotive business is quite specialized and involves significant upfront capital required for purchase factory facilities and machine equipment, materials for building the engines, vehicle parts, as well as costs for hiring and marketing. Because of these high exit barriers, car manufacturer can’t just close down their business as it will not be easy to sell off an automobile facility and equipment to buyers in a different industry.

The automotive industry is one of the most profitable business sectors on international level. The most important producers can be found in Germany and the U.S., which have the highest number of automakers with tradition on the market. However, Asian automakers have gained some solid market segments in the past decades.