EUROPEAN BUSINESS SECTOR: AUTOMOTIVE INDUSTRY
KARL ANDERSON
EUROPEAN BUSINESS ENVIRONMENT
DR. INMA RAMOS
WORD COUNT: 1500
01/04/2015
RICHMOND THE AMERICAN UNIVERSITY IN LONDON
Outline
I. Introduction
A. Members of the Automotive Industry
B. Goods and services that are offered
C. Rudimentary production statistics
D. Trading in and outside the EU
II. Internal Market
A. Achieving free movement of vehicles across the EU
B. Free movement of car sharing in the EU
C. Free movement of workers in the ACEA across the EU
D. Free movement of capital in the EU automotive industry
E. Public sector procurement of automotive vehicles and car sharing
F. The internal market being important for supply chain
G. The internal
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These members are large sized public limited companies. This led by president, Carlos Ghosn. The automotive sector works with various institutional partners and non-governmental partners with related interests. The ACEA has an enduring cooperation with the European Council for Automotive R&D (EUCAR) which is responsible for research and development of automobiles in the industry. The automotive industry has close relations with 29 national automobile manufacturers on an international scale. The members of the automotive industry are: BMW Group, Toyota, DAF, Daimler, FCA, Ford, Hyundai, Iveco, Jaguar, OPEL, PSA Peugeot Citroen, Renault, Volkswagen and Volvo Group and Volvo Corporation. The members mainly sell cars, van and buses and offer services such as car sharing (Car 2 Go and Quicar) and using telecommunication networks in the vehicles.
The automotive industry is mainly in the secondary sector of the EU economy as the automotive companies are mainly involved in the production or cars, vans and buses. There are statistics presented by (ACEA, 2015). The industry has a total production value of €681.50 billion in 2013 and this value comprises of total production of motor vehicles and total production of passenger cars. Producing motor vehicles and passenger cars in the EU accounts for 19% and 22% of worldwide production respectively. 13.6 million and 11.9 million units were registered as Producing motor vehicles and passenger cars in the EU respectively. There are 12.7
The automobile industry is a capital intensive industry, the players in the industry need high capital expenditure in order to maintain their market position, but the expected returns in the future is quite high. The industry analysis can be carried out under the following heads:
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 reviewing the case, I would define AutoZone’s industry as an industry that primarily focuses on selling replacement automotive parts as well as accessories for the consumers that are “do it yourself”, which would fall under the category of the automotive aftermarket industry. The aftermarket industry includes supplies accessories, spare parts, second-hand equipment, and other goods and services used in repair and maintenance (Business Dictionary, 2017). In some aftermarkets, such as those for automobile add-ons, parts, tires, wheels, are very large also called replacement market or secondary market. I believe AutoZone would be considered secondary to the automotive manufacturing industry, which currently AutoZone is considered to be the
The automotive industry is inherently interesting: it is massive, it is competitive, and it is expected to
Currently, the automotive industry within the United States is going through major changes and an in-depth overhaul. The demand for smaller more fuel efficient automobiles that has been brought on due to ever increasing fuel costs is the driving factor for these changes of dynamics in production. The continually rising fuel costs are not the only driving force in the changes of demand by the American people. People are also much more environmentally friendly which has recently been a steering force for American consumers away from the traditionally owned pick-up trucks and sport utility vehicles. American manufacturers have also been able to improve the market and its structure through technology such as electric cars and hybrid technology, which are proving to be factors in the changing and evolution of the automotive industry landscape (Wayland, 2013).
Expansion in global automotive production is about +4% per year in 2014 and 2015,with an mainly increase in production in China, India, and Mexico at the expense of Europe. Production is even expected to exceed 100 million vehicles by 2017. Cheap labour cost is a key factor not only for production but also for all of the functions for R&D and product development. Increasing production volume . Chinese manufacturers invest 2% of their sales in R&D.
General Motors is belongs to an automotive industry. This is the significant industry to the economy of the United States of America. Despite the fact that there are many firms in this industry, the main automakers in this sector are General Motors, Chrysler, and Ford. In the past few years, the automotive industry has faced some challenges pertaining demand
One of the defining features of globalization is the clear line of separation which this has drawn between preferable venues for production and sensible outlets for retailing. The automobile industry is one sector which has been especially impacted by this dichotomy, primarily because of the high cost of its primary retail output and the need to reduce the costs which are required to deliver it to market. It is thus that auto manufacturers have increasingly used a specific set of determinants for where to locate factories or, alternately for destination countries in which to commission existing factory facilities.
Enterprise & Industry magazine. (2012, July 13). Automotive Industry. Retrieved November 05, 2013, from European Commission's Directorate General for Enterprise and Industry: http://ec.europa.eu/enterprise/sectors/automotive/index_en.htm
The birth of the worldwide auto industry happened in the US. Cars in some form or another had already existed around the world but they were labor intensive to produce and without a supply the market considered them more of an interesting novelty than a must have product. Henry Ford revolutionized the nascent automobile industry with the development of the assembly line to mass produce the vehicles in the US to sell to the world. Since then the US has been one of the leading countries for the manufacture of automobiles until the 1970’s. Since then there has been a marked increase in global competition which has dropped the US to 3rd in annual production of vehicles for 2014 behind China and the European Union (EU).
Ford, Toyota, Honda, Volkswagen, and Daimler Chrylser, all of that work in a competitive global
BMW is a leader in the automotive industry when it comes to CSR management. BMW’s vision statement says “The BMW Group is the world’s most successful and sustainable premium provider of individual mobility” (Sustainable Value Report, 2015, p. 9). BMW has a long, established history of consistently improving their social responsibility policies and processes. In fact, BMW was the first automobile manufacturer to appoint and environmental officer (McElhaney, Toffel, and Hill, 2004, p. 104).
in the setting. Thus, by this article, I’m going to analyse the challenge in the auto industry in
This is an open-book examination, and you may consult any previously prepared written material or texts during the examination. Only answers that are written during the examination in the answer book supplied by the examination centre will be marked.
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