The Production Of Automobile Production

1275 Words Aug 6th, 2014 6 Pages
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 favored the production activities in different countries. The quick growth of developing economic systems such as China, and some European economies as parts suppliers led to structural modifications in the global framework and coordination of automobile production, as discovered by Amighini and Gorgoni (2014).
De (2011) found that the minimization in expenditures of technologies in transportation and communication have stimulated an international movement towards distribution of production processes across different international borders, which creates opportunities for countries to compete in the global market. Research by De (2011) shows that the structure of the automobile industry is now majorly determined by competition and consumer…
Open Document