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European Car Industry

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European Car Industry
‘The European Car Market Environment’
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Written & researched:
Amy Walford
For: Stuart Challinor
1/05/05
Words: 4,740

CONTENTS PAGE.

Executive Summary
1. – Intentions of the report
2. – The European Car Market Environment
3. – The Micro-environment: 1. – Suppliers 2. - Distributors 3. – Customers 4. – Competitors
4. – Situation review of the European Car Manufacturing Industry 1. – Comparison to US and Japanese market
5.0 – Drivers of Change
6.0 - The Macro – Environment 6.1 – SWOT analysis 6.2 – Pestle analysis
7.0 – Conclusions and recommendations

BIBLIOGRAPHY
GLOSSARY
RESEARCH PORTFOLIO

EXECUTIVE SUMMARY. • The EU automotive industry is the single largest automotive production region in the world, accounting for around 34% of global sales, and which contributes 7.5% to the manufacturing section within the Union. The EU-15 industry makes an enormous difference to its economic prosperity. This is manifest in its scale of employment, output, investment, trade and technological change. • The Microenvironment surrounding the industry allows room for manoeuvre in terms of its capacity to make decisions about its suppliers, distributors, customers, and competitors.
-Suppliers – The supplier value chain has been drastically restructured and consolidated since the 1970s and 1980s, in an effort to improve quality and competitiveness, which has resulted in increased supplier responsibility, profitability, quality, integration with manufacturers and increased specialisation.
-Distributors – The distributor network has been liberalised also through the introduction of the new 2002 Competition Commission report, which emphasises competition, autonomy, increased bargaining power and independence from manufacturers.
-Customers – European customers enjoy differentiation, and have consumer preferences towards novelty cars that are ahead of the game in a technology sense, in fashionable,



Bibliography: Figure 1: shows that Europe accounted for around 32% of global vehicle production in 2003 (-4% in productivity since 1998). Figure 2: Ranking of top 20 Car manufacturers (2002). Table 1: Market Share of car and engine types (2002) | |Passenger trucks |Diesel-powered vehicles |Mini car (< 0.6 |

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