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Automotive industry

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The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles. In 2007, more than 73 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 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] 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. 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]

History

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.

Britain

Lotus Cars final assembly line

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]

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.

Today, the Canadian auto industry is closely linked to that of the U.S., due to the Automotive Products Trade Agreement and later the North American Free Trade Agreement (NAFTA). There are five firms manufacturing automobiles in Canada, all in the province of Ontario: General Motors of Canada, Honda Canada, Chrysler Canada, Toyota Canada, and Ford of Canada. True Canadian domestics have long since gone under or been absorbed into the US "Big 3". The auto industry is Canada's biggest sector, and the province of Ontario surpassed Michigan in 2006 to become the largest auto-producing jurisdiction on the American continent. In addition to production facilities, 3,500 car dealers employ 140,000 individuals.

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.

China

The Chinese Autmotive Industry Plan, announced on the main Web site of China's central government, said China aims to create capacity to produce 500,000 "new energy" vehicles, such as battery electric cars and plug-in hybrid vehicles. The plan aims to increase sales of such new-energy cars to account for about 5% of China's passenger vehicle sales. [12]

Germany

Volkswagen assembly line in 1973

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. On the one hand, Germany is famous for the high-performance and high-quality sports cars made by Porsche, on the other hand, the cars by Mercedes-Benz are famous for their quality, safety and innovativeness. Daimler-Benz is the industry's oldest firm, building automobiles since the late 1880s; 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 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 [13] , 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 well-designed 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]

Daimler AG produces the upscale Mercedes-Benz, long a famous name in racing, as well as the innovative city vehicle Smart. BMW (founded 1916), Audi and Porsche are major factors in the sportive luxury market worldwide.[14] Porsche formed his own company, which today produces expensive, high-quality sports cars.[15]. In 2008 the Porsche company sought control of the much larger Volkswagen company; Porsche cornered the market for Volkswagen stock and made profits of tens of billions of Euros, while apparently gaining control of the bigger company.

India

India is one of the fastest growing automobile industries in the world. After 1960, the automobile industry saw rapid growth and many automotive manufacturers started production. In 1920 one of the first companies was Hindustan Motors which produced the Ambassador; later, Fiat entered a collaboration with Premier. Chrysler entered India in the early 1960s. Hindustan Motors later tied up with Mitsubishi Motor Corporation in 1997 and brought the Lancer followed by Cedia, Pajero and recently the Outlander in 2008. The After 1990 Mercedes-Benz, Tata Motors, Ford, General Motors, Hyundai, Toyota through Toyota Kirloskar, and Maruti (owned jointly by the Government of India and Suzuki) grew to be major forces in the country's economy. Honda came up in 1996 with the Honda City, then the Civic, CR-V, and the Accord. Also BMW started production for the local market due to import duty. Also Volvo, Porsche along with Volkswagen, Skoda Auto and Audi entered the market. Tata purchased Jaguar and Land Rover from Ford Motor Company in 2008. Volkswagen is all set to introduce its small car Polo in 2010. The world's cheapest car - Tata Nano is expected to be a people's car and is expected to be a bestseller.

Other automotive manufacturers include Ashok Leyland, Bajaj Auto, Chinkara Motors, Eicher Motors, Force Motors, Kinetic, Mahindra, Rajah Motors, San Motors, Swaraj Mazda, TVS Motors, Tara and Tatra.

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. 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, Suzuki, and Isuzu. Japan became the world's leading auto maker in 1980,[citation needed] the first year since 1905 that the United States had been outproduced by any other nation.

South Korea

Assembly line at Hyundai Motor Company car factory in Ulsan, 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. South Korean car marques have grown to compete with top established European brands. 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.

United States

Crisis in the auto industry

World motor vehicle production

Template:World motor vehicle production by country Template:World motor vehicle production by manufacturer

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:

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 2007[18] for the parent group, and then alphabetically by marque.

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

* The OICA statistics rank the Toyota subsidiary companies Daihatsu and Hino separately, and Porsche separately from the Volkswagen Group and Hyundai separately from Kia; in this table they are included with Toyota [1] and Porsche [2] and Hyundai Kia [3] respectively.


** GM is in the process of selling Hummer, Opel, and Saab.

*** GM announced April 27, 2009 that production for Pontiac and Saturn would cease by the end of 2009, and GM would also retire the Pontiac brand, while still considering the sale of Saturn.[citation needed]

Minor automotive manufacturers

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

See also

References

  1. ^ "World Motor Vehicle Production by Country: 2005 - 2007". OICA.
  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. Retrieved 2008-07-22.
  5. ^ World Health Organisation, Europe. "Health effects of transport". Retrieved 2008-08-29.
  6. ^ Social Exclusion Unit, Office of the Prime Minister (UK). "Making the Connections - final report on transport and social exclusion" (PDF). Retrieved 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.
  9. ^ "Record breaking figures for 2007 UK vehicle production". SMMT. 2008-01-25. Retrieved 2008-11-19.
  10. ^ "Motor Industry Facts 2008" (PDF). SMMT.
  11. ^ a b c http://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_production
  12. ^ http://www.calcars.org/calcars-news/1052.html
  13. ^ Terry Shuler, Volkswagen: Then, Now and Forever(1997)
  14. ^ David Kiley, Driven: Inside BMW, the Most Admired Car Company in the World (2004); Ferry Porsche, We at Porsche: The Autobiography of Dr. Ing. h.c. Ferry Porsche (1977)
  15. ^ Giancarlo Reggiani, Porsche: The Legend: 1948 to Today (2007)
  16. ^ "Guide to global automaker partnerships" (PDF). msxi.nl. Retrieved 2009-04-06.
  17. ^ www.gm.com
  18. ^ "World Motor Vehicle Production: World Ranking of Manufacturers 2007" (PDF). OICA. Retrieved 2008-07-29.

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Ariel(small British car company)creator of the Ariel Atom, www.arielmotor.co.uk