China and the Automobile Industry

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

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

Economic factors: Automobile industry plays an important role in national economy. Over the past few years, automobile

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.

This shows that the employment situation of the economy is favorable and thus, there is no cause for worry with regard to economic performance and development. The economy was growing appropriately due to the growth in the automobile industry (Allcott, & Wozny, 2014). The growth in the automobile industry is critical towards revealing the strengthening of the economy appropriately.

I will be comparing both companies General Motors Company and Ford Motor Company for the past three years. We will be able to see all the trends these two automotive manufacturers have and which one may be better to invest in by looking at the last few year’s ratios and percentages. This will give us a better understanding and the knowledge of who maybe the industry leader and who is the follower. These are both major corporations that strive off customer loyalty and both competing on a global scale to make their mark in the one of the top automotive manufacturers in the world. This analysis will give us an understanding of what lies ahead in the future for these two manufacturers.

Auto parts industry depends on trends of the economy and buyers propensity to purchase new auto mobiles. Auto parts industry is exclusively reliant upon the disposable income of buyers or their ability to spend money on cars. Other key factors are availability of financing option and the replacement cycle for the cars.

The industry of Automotive is considered one of the industries that needs high Capital and needs a large workforce or a large amount of work in relation to output.

China is at present the biggest auto market on the planet. It is likewise one of the biggest car parts makers and exporters on the planet, with fares, essentially to the United States, constituting around 33% of its production. The Chinese government has given subsidies to automobile parts producing in China, and vital choices by Chinese policymakers and outside organizations have implications for the U.S. also, worldwide global economies. China has seen a general decrease in destitution and a drop in imbalance. China has been under the administration of the Communist Party of China (CPC) for over 60 years, and the initiative has possessed the capacity to force its choices on the nation without experiencing consultations and transactions (Valey, 2012) .

In recent years the car industry has declined globally due to inflation. It affects every part of the market, including manufacturing and production. For example, the increase in the price of fuel and steel caused a lower growth rate in developing countries and markets like India. This creates a chain reaction and ripple effect across supply chains, which slows growth as variable costs rise. Due to this, inflation many firms aren’t entering the market because they can’t offer discounts to customers due to the price challenges.

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

Today, the automotive industry is one the top profitable industries in U.S. and all around the world. More than 1.5 million people involved in different segments such as engineering, designing, ordering, sell, and marketing. As a result of this statement, automotive industry has huge effects on employees, customer support, jobs vacancies, revenue and finally GDP which is the most important part of the economy for any countries (Statista Portal, 2016).

A second point of consideration relating to the intensity of rivalry within the industry was the level of industry demand. “Demand declines when customers are leaving the marketplace or each customer is buying less” (Hill &Jones, 2012, p. 62). This was the case in 2009 in many developed nations due to the recession, which was marked by job loss, credit problems, and high gas prices that increased the demand for fuel-efficient vehicles or left consumers unable to purchase vehicles altogether. At the same time, growth was expanding in China and some other developing nations, which opened the doors for automobile companies in these countries to expand at home and

The Chinese automobile market has grown by 1/3. This means that there is a lot more room for automobile companies like Honda to expand and grow. Honda will be able to increase its production and sales as the market will be bigger.

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