Corporate Overview Of The Automotive Industry

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Corporate Overview
Automotive Industry
The automotive industry is widespread globally with a wide range of organizations involved in the following: development, marketing, manufacturing, designing, and sales. This analysis will take a further look at automakers in the industry, more specifically General Motors (GM), Volkswagen (VLKAY, Honda, Nissan, Toyota. Beginning around the 1890s, the automotive industry has evolved and undergone shift changes in consumer trends, product development, marketing, and industry competition shifts. Some of the major changes have been the result of: Regulatory, Safety, Economy, Reliability, and Environmental.
It is a global industry that impacts the lives of billions of individuals, who are either working in
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The business cycle for the Automotive Industry is filled with long product cycles and large sums of capital investments. The long cycles of products and the large capital requirements make planning in the automotive industry quite complex. Furthermore, the automotive industry outcomes are highly dependent on the global economic state. For example, as mentioned in a PWC article, “In 2015, [Automotive industry results] turned sour as global economic conditions worsened. This trend makes any new commitment to invest in a country or region a risky one that must be deliberately crafted using a clear-eyed assessment of market conditions. (Jullens, Singh, Hirsh, & Wilk, 2016)” Thus, from the business cycle, it can be presumed that the automotive industry is foremost a growth industry but at a secondary level it is a cyclical growth, making it a Cyclical Growth Industry.
Potentials for the automotive industry are more prominent in eco-friendly initiatives and technological improvements for vehicular automation. For example, Tesla has been a company that has really sought to revolutionize the automotive industry by introducing cars that are more environmentally friendly. Furthermore, as mentioned, in a PWC article, “the intelligent car is fast moving from the drawing boards to the streets (Jullens, Singh, Hirsh, & Wilk, 2016).” This intelligent car, while
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