Corporate Social Responsibility in Automotive 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.

The automotive industry has become one of the greatest industries today and is one of the world’s most crucial economic sectors by revenue. All the same, not only does automotive industry develops and manufacture but it also markets and sale motor vehicles globally.

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

With the recovery of economy, the world’s automobile industry has been growing steadily over the past few years. According to Bloomberg, the US automobile sales climbed from its depth 10.4 million in 2009 to over 15.6 million in 2013. Furthermore, industry analysts predict that the sales will

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.

Nowadays, many international companies take sustainable development seriously. They understand that sustainable development can enhance their quality of life and their reputation in public. Sustainable development is "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Brundtland, 1987) Sustainability requires monitoring and managing all the person to ensure that our economy and society can continue to exist without destroying the social and natural environment during development. The sustainability includes three pillars, which are economic, social and environment, forming a triple bottom line. The triple bottom line demands that a company 's responsibility lies

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 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.

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

Today, the modern global automotive industry encompasses the principal manufacturers, General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrylser, all of which operate in a global competitive marketplace. The Automotive Industry. Global competition resulted in less market share for U.S. car manufacturers and threatened company profits as more foreign brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. Ford fell from 24.1% to 14.7%. Chrysler now holds only 12.7% after having 15.7% of the market in 2000. High labor costs, product lines that emphasized large vehicles with significant gasoline use and a looming global recession caused a crash in U.S. automaker profitability in 2008. American car manufacturers were struggling to compete against better, more efficiently manufactured products from overseas companies. As of 2015, Toyota earns more than GM, Ford and Chevrolet combined.

I am proposing that the issues affecting Toyota’s ability to rebuild cannot alone be fixed by remedying the safety and manufacturing issues, but it must also work to rebuild the company’s reputation and rebuild stakeholder trust. As outlined by Stewart (2010), Toyota ended up with a full blown crisis on its hands largely because of the delay and mediocre response from Toyota. These management practices call in to question Toyota’s ethical practices and their commitment to corporate social responsibility (CSR) principles.

For the past years, corporate social responsibility also referred, as corporate conscience has been a respected subject for discussion. Corporate social responsibility, unquestionably, contains more viewpoint than simply worried about the ecological impacts of associations. It came in people groups mind at the later 1880, time of essential modern advancement that associations ought to think about the thought of social obligation. Associations that are near to social obligation issues got to be worry about the principled ground of attaining to social commitment. Latter 1880 manifestation of the accountability for society has got soundness however after that period the association started to include in humanitarian force strongly (Adamsson

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