Automotive Industry Essay

Topics: Automotive industry, Volkswagen Group, Renault Pages: 6 (1953 words) Published: October 8, 2012
The Automotive industry is one of the biggest and most important industries in our today’s world. For many people today it is inconceivably to not own a car, since they are depending on it to get to work or several other places like holidays or relatives or even to just make the local shopping trip easier. Within the Automotive industry there are several interesting things to look at. Starting with the history of the industry all the way to looking at modern industries’ leading manufacturers changing the world we live in significantly.. Furthermore there are several interesting aspects regarding the actual product that is provided and how the industry is able to survive and grow effectively. Moreover the Automotive industry despite their enormous growth also had to take a few severe setbacks, which will all be covered in the following essay. These setbacks cause special problems to the industry, which will be carefully investigated. Additionally the paper will cover the size of the five biggest companies within the industry. The sales turnover, number of people employed as well as the capital invested will be demonstrated in this part of the essay. In the last sector the future of the automotive industry will be covered.

The original inventor of the automobile industry can be found in France in the 1860’s who produced the first engines that were capable of producing a “automobile-like” construction. The first people to discover a tremendously cheaper method of creating a car engine were Gottlieb Daimler as well as Karl Benz in the later stages of the 1860’s. The first to mass-produce cars efficiently was Henry Ford in 1914 through using assembly lines. He also made it affordable for people to buy his product through giving them the opportunity to loan money from him in order for the masses to finance his cars. This led to massive increases in auto sales within the United States and built the foundation for a highly successful industry.

The main product that is offered by the Automotive industry of course are cars, which than are partitioned into different categories. One of the categories covers the normal standard sized cars, while there also are Light Commercial Vehicles including all vans that weigh over 3.5 tons and furthermore the even heavier vehicles including buses and trucks. Through providing the car as the product the industry requires the consumer to invest in numerous complementary products. The price of these complementary products has an impact on the product that is being sold by the industry, which leads to the manufacturers to creating different types of cars. A good example is the difference in car models that are able to burn less fuel than others. Furthermore the service of faster and easier transportation by the car manufacturers is available in different price classes, as there are cars, which are more expensive to buy and drive than others. Many different companies that are joined together under one Mother Company build up the car industry. As shown in Graph 1 the leader of turnover sales in manufacturing cars in 2010 was Toyota followed by General Motors and Volkswagen, while Hyundai and Ford take 4th and 5th place.


All five of the industries mentioned above are one of the world leaders in car manufacturing but have stronger sales in different parts of the world. If we look at the sales turnover of General Motors within the US Market we can see that they have the highest sales revenue within it. The results in other markets differ as the turnover of sales will be much greater for Volkswagen in the European market, since people there are more brand loyal to Volkswagen while in the USA firms like Ford and GM are the most dominant since people are more loyal to the American manufacturer.

Graph 2:

If we take a look at the yearly Sales of Volkswagen and Toyota as shown in Graph 3 below we can see the size these companies have with revenues of millions of...
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