The Automotive Industry

4655 WordsNov 20, 201519 Pages
The automotive industry is one of the most complex global systems. Many manufacturers work together to put together one automobile. Cars have become a necessity in most of the developed world as well as the developing world. Many parts come together to form the final product, and these parts may come from opposite sides or the world. Costs drive these relationships among suppliers, manufacturers, and car brands. Many industries are included in to auto industry because of the many upstream and downstream processes involved in the manufacture of automotive vehicles. Such upstream industries are mining, metals, plastics, rubber, and glass. Downstream industries include component manufacturing, aftermarket parts, financing, insurance, fuel supply, transportation, advertising, and warehousing. The automotive industry produces 3% of worldwide GDP, and is even higher for emerging markets. A correlation between Foreign Direct Investment (FDI) and output of automotives can be observed. (Kearney, 2013). With the many car brands out there, consumers must differentiate between what they value, or what they perceive as added value. Ownership of an automobile has improved quality of life for many individuals and families as they allow mobility and provide comfort and safety. The industry has led to job creation and development of skills for many workers. Many fields are involved in the automotive manufacturing industry including research and development, design, manufacturing, sourcing,
Open Document