The Production Of Automobile Production

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According to Amighini and Gorgoni (2014), Automobile production is one of the operations in the manufacturing segment of production that is highly spatially disintegrated, characterized by production activities that are broken down into different units and take place in various countries in the world. The production processes are highly dispersed. Amighini and Gorgoni (2014) explain reasons for the dispersed nature of the production system. The automobile industry has been made to implement modern sourcing techniques stemming from the growth in leading-edge inputs in contemporary cars, such as computer and electronic facilities, according to Amighini and Gorgoni (2014). The varying level of technology advancements and innovation has…show more content…
The automobile industry has experienced different progressions. Marukawa (2013) makes reference to the World Motor Vehicle Statistics. According to the World Motor Vehicle Statistics, gathered by the Japan Automobile Manufacturers Association, some countries that had a vast collection of automobile corporations in 2010 were the United Kingdom, which had 21 automobile manufacturers, and Malaysia, which had 26 automobile manufacturers. However, China had to a greater extent the highest number of automobile manufacturers in the world, according to the World Motor Vehicle Statistics. According to Marukawa (2013), an important characteristic of the Chinese automobile industry is the magnitude of small-scale producers. Marukawa (2013) discovered that car and engine production are mostly vertically fragmented in China. Research by Marukawa (2013) showed that firms that want to enter the industry could outsource production inputs such as engines and design, which minimizes the entry restrictions for new firms in the industry. The minimization of entry restrictions, and the rising demand for automobiles in China favored entry into the automobile industry, according to Marukawa (2013). Research by Marukawa (2013) discovered that in the 1990s, corporations that belonged to the government had the ease of protecting domestic markets through governing the operations of the domestic producers. However, households have now become the primary consumers of cars, and as a result,
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