Automobile Industry

Topics: Automobile, Automotive industry, Japan Pages: 11 (3629 words) Published: December 15, 2013
EXECUTIVE SUMMARY

DRIVERS
Key drivers of the automobile sector are economic conditions, governments and regulations, consumer demands and interests, globalization and technological innovations •Generally, if the economic conditions are constant and good, people will seems willing to buy vehicles more than ever in all around world. In contrast, if economic conditions are bad, sales graphs will reverse and companies start to lose money. Firms should decide right production numbers in every condition and this capacity exactly depends on economic circumstances. •People are more conscious about what they except from a car and firms must satisfy these needs to survive in this sector. Even luxury automotive brands start to produce low fuel consumptions engines, otherwise they will collapse rapidly. •As usual, globalization is one of the crucial key drivers of automobile industry like every sector. After the globalization, brands start to do partnerships with each other to enter the different markets and they develop new technological innovations more cheap and useful all around the world. •In addition to these factors, governments’ regulations are one of the major determinants of global auto industry. The country’s’ legislation about emissions, environment and recycling are the key factors of brands investments. In European Union, the mutual regulations order that emission rate is lower than other regions and as a result of that firms should produce accordingly to these legislations.

The Automobile Market
The automobile industry has become important after the globalization because people want to travel with more comfortably, safely and rapidly with their cars. Concordantly, while automobile sector is developing in every part of it, the global transportation sector benefit from positively. For instance; Rolls-Royce is producing both plane and car motors and Volvo is producing car and sea boats engines too. So, firms help to enlarge and develop in every transportation tools, not only cars. •The automobile industry consists of fuel, tire, and insurance firms. Also, mostly the luxurious brands are working with ranking fashion companies such as; Gucci(Fiat) and Hermes(Bugatti) and sound system companies like as; Bang & Olufsen (Audi, Mercedes, BMW, Aston Martin) and Naim (Bentley). •On the other hand, after the globalization, automobile brands start to work together in some regions all around the world. They invest more money on R&D departments and sharing their knowledge to improve all transportation vehicles. •Germany, United States, Japan and Korean producers are the bestsellers all around the world. These countries mostly take control all over the world. Such as: Volkswagen is one of the biggest companies in automobile sector and it has got several brands such as; Audi, Lamborghini, Bentley, Bugatti and Seat. Company produces car for every segment. •In addition, especially for the last decade, market start to tend to produce more clean motors which do not harm to the environment. Also, they try to produce completely using electricity engines for all vehicles and using solar panels. As a result of that, the concept of climate change cause occurs a new market in automobile sector.

Key Country Markets
In this chapter of report, I will mention about Japan, United States, Germany and Korean automotive producers because Toyota and Honda from Japan are the best and most well-known brands, Volkswagen from Germany is the head of locomotive in this industry for all parts of it, GM and Ford are the biggest companies from United states and Hyundai, which is becoming more powerful in everyday from Korea. •Volkswagen is the second best seller in 2012 after the GM and they are in front of Toyota. Generally, German cars are best vehicles that showed by automobile specialists from all over the word in every segment. Volkswagen, (if we look at the Exhibit 1) has got several different brands like; Lamborghini, Bentley,...
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