Automotive industry

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The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles were produced worldwide.[1]

In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.[2] The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and India.[3] In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments.[citation needed] Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars.[4][5][6] The sustainable transport movement focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage.[7] Roughly half of the US's fifty one light vehicle plants are projected to permanently close in the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade.[8]

Contents

[edit] History

[edit] Brazil

The Brazilian automotive industry produced almost 3 million vehicles in 2007. Most of large global companies are present in Brazil, such as Fiat, Volkswagen, Ford, GM, Nissan, Toyota, Mitsubishi, Mercedes-Benz, Renault etc, and also the emerging national companies such as Troller, Marcopolo S.A., Agrale, Randon among others. The Brazilian industry in regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), created in 1956, which includes Auto makers (automobiles, light vehicles, trucks and buses)and Agriculture machines with factories in Brazil. Anfavea is part of the Organisation Internationale des Constructeurs d'Automobiles (OICA), based in Paris.

[edit] Britain

The British motor industry has always been export oriented[citation needed]. Today it employs about 850,000 people and produces about 1.5 million cars and 216,000 commercial vehicles per year, 75% of which are exported.[9] The top five UK car producers are Nissan, Toyota, Honda, MINI and Land Rover.[10] However, international competitiveness of UK cars have declined consistently since the 1990s and the country became unable to sustain production on par with Germany or France. Since 2000, motor vehicle production fell from 1,813,894 to 1,750,253.[11] The country was overtaken by fast industrializing economies such as Brazil, India and Mexico.[11] The UK is the 12th largest automobile producer in the world but Russia is poised to overtake it in 2008.[11]

[edit] Canada

Canada is currently the 9th largest auto producer in the world, down from 7th a few years ago. Brazil and Spain recently surpassed Canadian production for the first time ever. Canada's highest ranking ever was 2nd largest producer in the world between 1918 and 1923. The Canadian auto industry traces its roots to the very beginning of the automobile. The first large-scale production of automobiles in Canada took place in Walkerville, near Windsor, Ontario in 1904. In the first year of operations, Gordon McGregor and Wallace Campbell, along with a handful of workmen produced 117 Model "C" Ford vehicles at the Walkerville Wagon Works factory. Through marquees such as Brooks Steam, Redpath, Tudhope, McKay, Galt Gas-Electric, Gray-Dort, Brockville Atlas, C.C.M., and McLaughlin, Canada had many domestic auto brands. In 1918 McLaughlin was bought by an American firm, General Motors, and was re-branded as General Motors of Canada. Driven by the demands of World War I, Canada's automotive industry had grown, by 1923, into the second-largest in the world, although it was still comprised of relatively inefficient plants producing many models behind a high tariff wall. High consumer prices and production inefficiencies characterized the Canadian auto industry prior to the signing of the 1965 Automotive Products Trade Agreement with the United States. The 1964 Automotive Products Trade Agreement or “Auto Pact” represents the single most important factor in making the Canadian automotive industry what it is today: a strong, successful industry that has a significant positive impact on the Canadian economy. Key features of the Auto Pact were the 1:1 production to sales ratio and Canadian Value Added requirements. Magna International is Canada's biggest domestic firm in the sector, and is the world's third-largest auto parts firm, producing entire vehicles at its Magna Steyr plant in Austria.

[edit] China

China's automobile industry is in rapid development since the year 2000. In 2008, 9.345 million motor vehicles were manufactured in China, surpassing United States as the second largest automobile maker, after Japan. Moreover, due to the current financial crisis, China was the largest automobile market in the world for the first half of year 2009, with total sale of 6.1 million vehicles. China may surpass United States and become the largest car market for the whole year of 2009. The top 5 car sellers are Volkswagen, GM, Toyota, Nissan and Chery.

[edit] Germany

The automobile was invented in Germany by Carl Benz. Furthermore, the four-stroke internal combustion engine used in most automobiles worldwide today was invented by Nikolaus Otto in Germany. In addition, the diesel engine was also invented by German Rudolf Diesel. Germany is famous for the high-performance and high-quality sports cars made by Porsche, and the cars of Mercedes-Benz are famous for their quality, safety and technological innovation. Daimler-Benz is the industry's oldest firm, building automobiles since the late 1880s;[citation needed] its current structure dates from 1926. In 1998 it bought the American automobile manufacturer Chrysler, then sold out in 2007 at a heavy loss as it never managed to bring the division to long term profitability. In the popular market, Opel and Volkswagen are most well known. Opel was a bicycle company that started making cars in 1898; General Motors bought it out in 1929, but the Nazi government took control and GM wrote off its entire investment. In 1948 GM returned and restored the Opel brand. Volkswagen is dominant in the popular market; it purchased Audi in 1964. VW's most famous car was the small, beetle-shaped economical "people's car" with a rear-mounted, air-cooled engine. It was designed in the 1930s by Ferdinand Porsche upon orders from Adolf Hitler, who was himself a car enthusiast. However production models appeared only after the war; until then only rich Germans had automobiles. By 1950 Volkswagen was the largest German automobile producer,[12] today, it is one of the three biggest automotive companies, but it is now part of the Porsche Automobil Holding SE. In the meantime, ten different car manufacturers belong to the multicorporate enterprise: Porsche, Volkswagen, Audi, Bugatti, Lamborghini, Bentley, Škoda Auto, MAN, SEAT and Scania AB. Germany is famous for its upscale sedans. They feature suspension systems that provide both a soft ride and good handling characteristics. Many manufacturers limit their automobiles electronically to driving speeds of 250 km/h (155 mph) for safety reasons.[citation needed]

[edit] India

An embryonic automotive industry started in India in the 1940s. However, for the next 50 years, the growth of the industry was hobbled by the Socialist policies and the bureaucratic hurdles of the license raj. Following, the economic liberalization in India from 1991, and the gradual easing of restrictions on industry, India has seen a dynamic 17% annual growth in automobile production and 30% annual growth in exports of automotive components and automobiles. India produces around 2 Million automobiles currently. Total turnover of the Indian automobile industry is expected to grow from USD 34 Billion in 2006 to USD 122 Billion in 2016.[13] Tata Motors has just launched Tata Nano, the cheapest car in the world at USD 2200.[14]

[edit] Japan

Japan, with its large population squeezed into very high density cities with good public transit, has limited roadways that carry very heavy traffic. Hence, most automobiles are small in terms of size and weight. From a humble beginning, Japan is now the biggest auto manufacturing country in the world. Nissan began making trucks in 1914, and sold cars under the Datsun brand until it switched to Nissan in the 1980s. It opened its first U.S. plant in Tennessee in the early 1980s and a U.K. plant in 1986. Its luxury models carry the brand Infiniti. Honda, which began with motorcycles, emerged after World War II. Its luxury vehicles are sold under the Acura brand. Toyota began making cars in the 1930s and is now the world's largest producer. The Toyota Corolla is the world's best selling nameplate. Its luxury models carry the Lexus brand. Toyota is famous for its innovative, quality-conscious management style, and its hybrid gas-electric vehicles, especially the Prius, which was launched in 1997. Other major companies include Subaru, Mitsubishi, Mazda, Daihatsu, Suzuki, and Isuzu. Japan's production of cars increased from 3.179 million to 7.038 million between 1970 and 1980, while demand for larger American cars was disastrously falling.[15] Japanese cars are often credited with superior dependability, efficiency and advanced technology.

[edit] South Korea

The South Korean automobile industry is today the fifth largest in the world in terms of production volume and the sixth largest in terms of export volume. 50 years ago, its initial operations were merely the assembling of parts imported from Japan and the United States. The Hyundai Kia Automotive Group is today the second largest automaker in Asia, after Toyota. Annual domestic output exceeded one million units in 1988. In the 1990s, the industry manufactured numerous in-house models, demonstrating not only its capabilities, and signalling its coming of age thanks to the heavy investment to infrastructure in the country over the decades. The quality of their automobiles have improved dramatically in recent years, gaining international recognition. Hyundai has been named the 2009 North American car of the year.

[edit] Thailand

The Thai-based automobile manufacturer is ThaiRung or well-known as TR, manufactured by Thai Rung Union Car Public Co. Ltd. (TRU). The company was established in 1967 in Bangkok, Thailand. Original name was Thai Rung Engineering Co. Ltd., and changed its name to Thai Rung Union Car Co. Ltd. in 1973. TRU was listed on the Stock Exchange of Thailand in 1994. TRU business is ranging from product design and development, automotive parts manufacturing, industrial equiptemnts manufacturing, car assembly lines and financial business. Some discontinued TR vans powered by Land Rover engine in combination with Thai-developed body design and platform. Modern TR cars are built on small or medium trucks base into SUV or seven-seat multi-purpose vehicles using TR-owned technology, design, development and assembly skills. The current models are 2009 TR Adventure and TR Allroader.

[edit] United States

[edit] Crisis in the auto industry

[edit] World motor vehicle production


[edit] Company relationships

It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies.

Notable current relationships include:

[edit] Top vehicle manufacturing groups (by volume)

The table below shows the world's largest motor vehicle manufacturing groups, along with the marques produced by each one. The table is ranked by the latest production figures from OICA 2008[20] for the parent group, and then alphabetically by marque.

Marque Country of origin Ownership Markets
1. Toyota Motor Corporation ( Japan)
Daihatsu Flag of Japan Subsidiary Global, except North America and Australia
Hino Flag of Japan Subsidiary Asia Pacific, Canada and South America
Lexus Flag of Japan Division Global
Scion Flag of the United States Division North America
Toyota Flag of Japan Division Global
2. General Motors Corporation* ( United States)
Buick Flag of the United States Division North America, China, Israel, Taiwan
Cadillac Flag of the United States Division Global
Chevrolet Flag of the United States Division Global
Daewoo Flag of South Korea Subsidiary Asia, Europe, South America, South Africa
GMC Flag of the United States Division North America, Middle East
Holden Flag of Australia Subsidiary Australia, New Zealand, Middle East
Hummer Flag of the United States Division Global
Opel Flag of Germany Division Europe (except UK), South Africa, China, Southeast Asia
Pontiac Flag of the United States Division North America
Saab Flag of Sweden Subsidiary Global
Saturn Flag of the United States Subsidiary North America, Taiwan, Japan
Vauxhall Flag of the United Kingdom Subsidiary United Kingdom
3. Porsche Automobil Holding SE** ( Germany)
Audi Flag of Germany Subsidiary Global
Bentley Flag of the United Kingdom Subsidiary Global
Bugatti Flag of France Subsidiary Global
Lamborghini Flag of Italy Subsidiary Global
Porsche Flag of Germany Subsidiary Global
Scania Flag of Sweden Subsidiary Global
SEAT Flag of Spain Subsidiary Europe, Latin America, South Africa
Škoda Flag of the Czech Republic Subsidiary Global, except North America
Volkswagen Flag of Germany Subsidiary Global
Volkswagen CV Flag of Germany Subsidiary Global
4. Ford Motor Company*** ( United States)
Ford Flag of the United States Division Global
Lincoln Flag of the United States Division North America, Middle East
Mercury Flag of the United States Division North America, Middle East
Troller Flag of Brazil Subsidiary South America and Africa
Volvo (cars) Flag of Sweden Subsidiary Global
5. Honda Motor Company ( Japan)
Acura Flag of Japan Division North America, China, Russia
Honda Flag of Japan Division Global
6. Nissan Motor Company ( Japan)
Infiniti Flag of Japan Division North America, Middle East, Taiwan, Korea, Russia, Europe
Nissan Flag of Japan Division Global
7. PSA Peugeot Citroën S.A. ( France)
Citroën Flag of France Subsidiary Global, except North America
Peugeot Flag of France Subsidiary Global, except North America
8. Hyundai Motor Company**** ( South Korea)
Hyundai Flag of South Korea Division Global
9. Suzuki Motor Corporation ( Japan)
Maruti Suzuki Flag of India Subsidiary India, Middle East, South America
Suzuki Flag of Japan Division Global
10. Fiat S.p.A. ( Italy)
Abarth Flag of Italy Subsidiary Global, except North America
Alfa Romeo Flag of Italy Subsidiary Global
Ferrari Flag of Italy Subsidiary Global
Fiat Flag of Italy Subsidiary Global, except North America
Fiat Professional Flag of Italy Subsidiary Global, except North America
Irisbus Flag of France Subsidiary Global, except North America
Iveco Flag of Italy Subsidiary Global, except North America
Lancia Flag of Italy Subsidiary Global, except North America
Maserati Flag of Italy Subsidiary Global
11. Renault S.A. ( France)
Dacia Flag of Romania Subsidiary Europe, Latin America, Asia, Africa
Renault (cars) Flag of France Division Global, except North America
Renault Samsung Flag of South Korea Subsidiary Asia, South America
12. Daimler AG ( Germany)
Freightliner Flag of the United States Subsidiary North America, South Africa
Maybach Flag of Germany Division Global
Mercedes-AMG Flag of Germany Division Global
Mercedes-Benz Flag of Germany Division Global
Mitsubishi Fuso Flag of Japan Subsidiary Global
Orion Flag of Canada Subsidiary North America
Setra Flag of Germany Subsidiary Europe
Smart Flag of Germany Division North America, Western Europe, Southeast Asia, South Africa
Thomas Built Flag of the United States Subsidiary North America
Western Star Flag of the United States Subsidiary North America
13. Chrysler Group LLC ( United States)
Chrysler Flag of the United States Division Global
Dodge Flag of the United States Division Global
GEM Flag of the United States Division North America
Jeep Flag of the United States Division Global
14. BMW AG ( Germany)
BMW Flag of Germany Division Global
MINI Flag of the United Kingdom Division Global
Rolls-Royce Flag of the United Kingdom Subsidiary Global
15. Kia Motors Corporation**** ( South Korea)
Kia Flag of South Korea Division Global, except Middle East and Africa
16. Mazda Motor Corporation ( Japan)
Mazda Flag of Japan Division Global
17. Mitsubishi Motors Corporation ( Japan)
Mitsubishi Flag of Japan Division Global
18. OAO AvtoVAZ ( Russia)
Lada Flag of Russia Division Russia, Europe
VAZ Flag of Russia Division Russia, Eastern Europe
19. Tata Motors Ltd ( India)
Daimler Flag of the United Kingdom Subsidiary United Kingdom
Hispano Flag of Spain Subsidiary Europe
Jaguar Flag of the United Kingdom Subsidiary Global
Land Rover Flag of the United Kingdom Subsidiary Global
Tata Flag of India Division India, South Africa
Tata Daewoo Flag of South Korea Subsidiary South Korea
20. First Automotive Group Corporation ( People's Republic of China)
Besturn Flag of the People's Republic of China Division China
Freewind Flag of the People's Republic of China Subsidiary China
Haima Flag of the People's Republic of China Subsidiary China
Hongqi Flag of the People's Republic of China Division China
Jiaxing Flag of the People's Republic of China Subsidiary China
Vita Flag of the People's Republic of China Subsidiary China
Xiali Flag of the People's Republic of China Subsidiary China
21. Fuji Heavy Industries Ltd ( Japan)
Subaru Flag of Japan Division Global
22. Isuzu Motors Ltd ( Japan)
Isuzu Flag of Japan Division Global, except North America
23. Chana Automobile Company Ltd ( People's Republic of China)
Chana Flag of the People's Republic of China Division China, South Africa
24. Dongfeng Motor Corporation ( People's Republic of China)
Dongfeng Flag of the People's Republic of China Division China
25. Beijing Automotive Industry Holding Corporation, Ltd ( People's Republic of China)
BAW Flag of the People's Republic of China Division China
Foton Flag of the People's Republic of China Subsidiary China
26. Chery Automobile Company Ltd ( People's Republic of China)
Chery Flag of the People's Republic of China Division China, South Africa, Southeast Asia, Russia
27. Shanghai Automotive Industry Corporation ( People's Republic of China)
MG Flag of the United Kingdom Subsidiary UK
Roewe Flag of the People's Republic of China Division China
Soyat Flag of the People's Republic of China Division China
SsangYong Flag of South Korea Subsidiary South Korea, South Africa, Europe, Australia
Yuejin Flag of the People's Republic of China Division China
28. AB Volvo ( Sweden)
Mack Flag of the United States Subsidiary Global
Nissan Diesel Flag of Japan Subsidiary Global
NovaBus Flag of Canada Subsidiary North America
Prevost Flag of Canada Subsidiary North America
Renault (trucks) Flag of France Subsidiary Global
Volvo (trucks) Flag of Sweden Division Global
29. Brilliance China Automotive Holding Ltd ( People's Republic of China)
Brilliance Flag of the People's Republic of China Division China
Jinbei Flag of the People's Republic of China Subsidiary China
30. Harbin Hafei Automobile Industry Group Ltd ( People's Republic of China)
Hafei Flag of the People's Republic of China Division China
31. Geely Automobile ( People's Republic of China)
Geely Flag of the People's Republic of China Division China, Russia
Maple Flag of the People's Republic of China Division China
32. Anhui Jianghuai Automobile Company Ltd ( People's Republic of China)
Anhui Jianghuai Flag of the People's Republic of China Division China
33. BYD Auto ( People's Republic of China)
BYD Flag of the People's Republic of China Division China, Russia
34. GAZ Group ( Russia)
GAZ Flag of Russia Division Russia
KAvZ Flag of Russia Subsidiary Russia
LDV Flag of the United Kingdom Subsidiary Europe
LiAZ Flag of Russia Subsidiary Russia
Ural Flag of Russia Subsidiary Russia
35. Mahindra & Mahindra Ltd ( India)
Mahindra Flag of India Division India, South East Asia, Eastern Europe
36. Proton Holdings Bhd ( Malaysia)
Proton Flag of Malaysia Division Asia, Australia, South Africa, UK
Lotus Flag of the United Kingdom Subsidiary Global
37. Great Wall Motor Company Ltd ( People's Republic of China)
Great Wall Flag of the People's Republic of China Division China, South Africa, Russia
38. Paccar Inc ( United States)
DAF Flag of the Netherlands Subsidiary Global, except North America
Kenworth Flag of the United States Division North America
Leyland Flag of the United Kingdom Subsidiary Europe
Peterbilt Flag of the United States Division North America
39. Chongqing Lifan Automobile Company Ltd ( People's Republic of China)
Lifan Flag of the People's Republic of China Division China
40. MAN SE ( Germany)
MAN Flag of Germany Division Europe
Neoplan Flag of Germany Division Europe and Middle East
VW Trucks Flag of Brazil Division South America
41. Jiangxi Changhe Automobile Ltd ( People's Republic of China)
Changhe Flag of the People's Republic of China Division China
42. China National Heavy Duty Truck Group Company Ltd ( People's Republic of China)
Sinotruk Flag of Hong Kong Division China
43. LuAZ ( Ukraine)
LuAZ Flag of Ukraine Subsidiary Ukraine
44. Navistar International Corporation ( United States)
IC Flag of the United States Subsidiary North America
International Flag of the United States Division North America
45. Shaanxi Automobile Group Company Ltd ( People's Republic of China)
Shannxi Flag of the People's Republic of China Division China
46. UAZ OJSC ( Russia)
UAZ Flag of Russia Subsidiary Russia
47. Ashok Leyland ( India)
Ashok Leyland Flag of India Division China
48. Kuozui Motors Ltd ( Taiwan)
Toyota***** Flag of the Republic of China Subsidiary Taiwan
Notes

* General Motors is in the process of selling Hummer to Sichuan Tengzhong; Opel and Vauxhall to Magna and Sberbank;Saturn to Penske Automotive Group; and Saab to Koenigsegg; and eliminating Pontiac.

** Porsche is listed as parent company of Volkswagen Group. This is only the case since January 2009, when Porsche acquired more than 50% of the shares of Volkswagen.

*** Ford is looking to sell Volvo.

**** Hyundai Kia Automotive Group owns only a minority stake in Kia Motors.

***** Kuozui Motors manufactures Toyota cars under licence.

[edit] Minor automotive manufacturers

There are many automobile manufacturers other than the major global companies. They are mostly regional or operating in niche markets.

[edit] See also

[edit] References

  1. ^ "World Motor Vehicle Production by Country: 2007-2008". OICA. http://oica.net/category/production-statistics/. 
  2. ^ "2008 Global Market Data Book", Automotive News, p.5
  3. ^ Plunkett Research, "Automobile Industry Introduction" (2008)
  4. ^ Kenworthy, J R (2004). "Transport Energy Use and Greenhouse Emissions in Urban Passenger Transport Systems" (PDF). Institute for Sustainability and Technology Policy. http://cst.uwinnipeg.ca/documents/Transport_Greenhouse.pdf. Retrieved on 2008-07-22. 
  5. ^ World Health Organisation, Europe. "Health effects of transport". http://www.euro.who.int/transport/hia/20021009_2. Retrieved on 2008-08-29. 
  6. ^ Social Exclusion Unit, Office of the Prime Minister (UK). "Making the Connections - final report on transport and social exclusion" (PDF). http://www.google.ca/url?sa=t&source=web&ct=res&cd=1&url=http%3A%2F%2Fwww.carplus.org.uk%2FResources%2Fpdf%2FMaking_the_Connections_Final_Report_on_Transport_and_Social_Exclusion.pdf&ei=SzLBSbDFKYHaMbvwgK0N&usg=AFQjCNFCbKeT7rQ0zt7aOL5K-1OTXBm9EA&sig2=o-ASe9xe84uOEJTQt-DxuQ. Retrieved on 2003-02-01. 
  7. ^ IBISWorld Newsletter, June 2008, GLOBAL TRENDS Oil – The Crude Reality of Current trends, IBISWorld
  8. ^ Jeff Rubin (2009-03-02). "Wrong Turn" (PDF). CIBC World Markets. http://research.cibcwm.com/economic_public/download/sfeb09.pdf. 
  9. ^ "Record breaking figures for 2007 UK vehicle production". SMMT. 2008-01-25. http://www.smmt.co.uk/articles/article.cfm?articleid=16852. Retrieved on 2008-11-19. 
  10. ^ "Motor Industry Facts 2008" (PDF). SMMT. http://www.smmt.co.uk/downloads/MotorIndustryFacts2008.pdf. 
  11. ^ a b c "List of countries by motor vehicle production - Wikipedia, the free encyclopedia". En.wikipedia.org. http://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_production. Retrieved on 2009-05-01. 
  12. ^ Terry Shuler, Volkswagen: Then, Now and Forever(1997)
  13. ^ http://www.dhi.nic.in/draft_automotive_mission_plan.pdf
  14. ^ http://www.nytimes.com/2009/06/28/automobiles/autoreviews/28NANO.html?scp=2&sq=tata%20nano&st=cse
  15. ^ Fuss M A and Waverman L Costs and productivity in automobile production: the challenge of Japanese efficiency Cambridge University Press, 1992. ISBN 0521341418, 780521341417. P.225
  16. ^ "Guide to global automaker partnerships" (PDF). msxi.nl. http://www.msxi.nl/quantum_cms/_media/c5ac9bd746b96200.2007_global_automaker_partnerships.pdf. Retrieved on 2009-04-06. 
  17. ^ [1] Agence France-Presse
  18. ^ [2] Kia Investor Relations
  19. ^ www.gm.com
  20. ^ "World Motor Vehicle Production: World Ranking of Manufacturers 2008" (PDF). OICA. http://oica.net/wp-content/uploads/world-ranking-2008.pdf. Retrieved on 2009-06-27. 

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