The Invention Of The Automobile Industry

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Before we begin, let us first look at the history of the automobile to better understand the industry’s roots and its growth. Technological innovations have driven the automobile industry since the very first car was ever created. Utilizing the steam engine, Nicolas Joseph Cugnot was able to create the first vehicle capable of human transportation. Only 40 years later, Francois Isaac de Rivaz engineered an automobile that was powered by an internal combustion engine, using hydrogen as its fuel source. 80 years after Rivaz, Karl Benz invented the first gasoline powered car. Henry Ford may not have been the inventor of the automobile, nor was he the mastermind behind the assembly line. Instead, Henry Ford had the genius to…show more content…
As more and more consumers use digital channels to buy cars, such as Carfax to check on the history of the car before buying or Craigslist to buy directly from the owner, manufacturers must prepare to sell online as well. While initial sales may see a significant increase, competition from online retailers may increase as well and the entire dealership model may cease to exist. In fact, Tesla is already selling their used cars on their website, allowing for a wholly online purchase of their vehicles. Manufacturers and dealers must be aware of their online presence and make sure to follow digital trends in order to stay ahead of their competition. Technology doesn’t only apply to online sales; it also includes the technological demand from consumers who want their car to help increase the overall mobility of their lives. The graph below shows the comparison of projected manufacturing numbers for cars with and without internet connectivity: Consumers are not the only ones shaping the automotive industry, by 2020 global sales in emerging markets are expected to increase from 50% to 60%. While increased sales are a good thing, the current supply and production locations may not be able to meet these sales projections. Another threat to manufacturers is the unfortunate fact that certain styles of cars tend to sell more than others in emerging markets, potentially creating an unbalanced and unstable manufacturing line for them in the future should they pursue that
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