Automobile Industry
"the foreign market has surpassed quality over the U.S. Automobile Industry"
The automobile industry is one of the biggest manufacturing industries of the 20th century and puts a severe impact on the economy of the nation. In Japan, a largest auto manufacturer of the world, the expression 10% industry is frequently used which indicates that the auto industry is involved in 10% of the total employment. As automobiles comprises of a broad range of materials and components, the automobile manufacturer is not capable of managing every manufacturing processes on its own. As it is seen that the impact of this industry is far reaching, and due to its extensive effect, the industry has been positioned as a strategic industry in a lot of nations. (Characteristics of the Auto Industry at the end of 21st century)
The scope of the motor industry is global which saw the dominance of America lasting from the year 1910 till 1965. During this period U.S. continued to manufacture 50% of the world's vehicles. Even though this dominance of the United States is absent now, it leads the world production. In the automobile arena, the dominant companies are Ford and General Motors, and next in line come the two Japanese companies Toyota and Nissan. The manufacturers operating in Europe have been concentrating within their area, even though Volkswagen of Germany and Fiat of Italy continue to have facilities in South America. The bulk of the multinational European companies are manufactures of component and trucks like Volvo of Sweden. During the later part of 1990s, the companies endeavored to become a global structure combining the global functioning so as to create a more integrated entity compared to earlier period. The majority of the companies who are carrying out their operations outside America are subsidiaries of the major American, Japanese and European manufacturers. During the middle of 1990s, the Korean companies like Hundai, Daewoo appeared as though they have the capability of financing, designing, manufacturing and then marketing their own cars. (Motor Industry: Encyclopedia article from Encarta)
Apart from the external factors, internal developments in the automobile industry have heightened the pressure on individual companies. During the 1980s, the foreign market especially by the Japanese car manufacturers attained unprecedented levels of excellence of product quality and competence in manufacturing and has surpassed quality over the U.S. industry. While the U.S. companies produced a car in 35-worker hours, the Japanese were able to do it in 15 hours. A judicious blend of major capital investment in excellent machinery, adequate control and production systems and design of vehicles for ease of manufacture helped the Japanese a substantial cost and quality edge compared to their rivals. This marked in the massive and speedier growth in Japanese production and exports. The cost advantage amounting to U.S.$3,000 that the Japanese enjoyed over the U.S. In the year 1990 was because of the basic design and manufacturing advantages. Besides, computer aided design and manufacturing - CAD/CAM methods like simultaneous engineering, detailed improvement, and Just-in-Time delivery aided in reducing costs, improve quality and lessen product gestation periods from five to below three years. (Motor Industry: Product Quality)
The twin oil crises of 1973 and 1978 and the consequent hike in the price of oil, gave a major spur to develop energy-efficient vehicles and techniques of production. The successive development of more efficient engines, lighter vehicles, and more aerodynamic cars had the objective of lowering consumption of fuel. In majority of nations, the ruling governments enhanced the taxes on petrol and diesel, thus changing the consumer preference in favor of fuel efficiency and extending a secure background of vehicle firms who have been spending resources on achieving this. Subsequent to the oil crisis, encumbered with large and poorly manufactured cars witnessed U.S. customers turning their attention to Japanese cars in hordes due to which the Japanese companies cornered 30% of the car market. During the 1980s, in order to permit the U.S. industry a respite to improve itself, the U.S. Government persuaded the Japanese car companies to enforce voluntary restraints on their selling endeavors and even to substitute imports by manufacturing cars in America. (Motor Industry: Operating Environment) The number of automobiles manufactured in Japan is nearly 20% which is roughly 10 million cars. From the year 1981, Japan surpassed the United States and came to be acknowledged as the world number one auto producer. 20% of the total number of automobiles manufactured in the U.S. is by manufacturers of Japan.
The Japanese Production Development and Supplier System: The Lean Production System: - The production, development...
These force American car manufacturers to improve the quality of their products, to focus on developing more fuel-efficiency vehicles and to regain the population's loyalty to the national cars. Bibliography Jones, R., quoting Lindland, R., American auto industry seen at a crossroads, MSNBC, May 9, 2006, http://www.msnbc.msn.com/id/10642724/,last accessed on October 31, 2007 Environmental Implications of the Automobile, State of the Environment, Fact Sheet No. 93-1, published under the Authority of the Canadian
Car Industry To cope with the economic downturn, both businesses and the government in the United States implemented various relief programs. One of these was the Consumer Assistance to Recycle and Save (CARS) program, also known as the "Cash for Clunkers" program. This program was implemented during July and August in 2009, and offered consumers $3,500 or $4,500 in return for older vehicles that were traded in for newer, more fuel-efficient
Automobile industry and IT Automobile Industry & Information Technology The objective of this work is to discuss how three to five firms in the automobile industry and discuss how these firms utilize information technology for competitive advantage including the use of specific issues such as hardware, networks, software, CRM, ERP, and supply chains. Finally, this work will comment on the relative success or failure of the selected companies. The work of W.C. Benton
automobile industry is highly competitive. BMW had temporary set-backs caused by competition from Lexus, Acura and Infiniti in the late 1980s, but rebounded to claim a significant position in the luxury/performance segment. BMW expects its new Z3 Roadster to engage in competition with other luxury car import manufacturers such as Porsche and Mercedes. The automotive industry is mature and market share is critical to survival. Consumers are less brand-loyal
Market Segmentation Analysis The automobile industry is the fastest growing sector in India. Growth in consumption patterns has encouraged tremendous improvement in manufacturing sector and the auto industry has been growing at a rapid pace recording "over 2.06 million four-wheelers (passenger cars, light, medium and heavy commercial vehicles, multi-utility vehicles such as jeeps), and over 9 million two-and-three wheelers (scooters, motorcycles, mopeds, and three wheelers) - in 2006-07." (SBH India, 2008) But
Just-in-Time in an Automobile Industry What significant challenges barriers face automobile industry company implements Just-in-Time Implementing Just-in-time in an automobile industry Just-in-time is a collection of organization practices that aim to meet the customer quality satisfaction by innovatively reducing waste, continuously improve products and reduce cost of inventory. The result of Just-in-time production is to achieve excellence in manufacturing (Jack E.M. And Jessica O.M., 2007). Just-in-time (JIT) is a system of management originating
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