The German Automotive Industry
Outline
1. Executive Summary
2. Purpose/Problem/Background
3. Facts Bearing on the Problem
4. Discussion
5. Conclusion
6. References
1. Executive Summary: The German automotive industry with about 720,000 jobs is one of the biggest industries and dominant employers in Germany and one of the biggest automotive industries in the world (Herbst, 2009). With brands like Mercedes Benz, Volkswagen, Opel, BMW, Audi and Porsche this industry is major in car manufacturing and technology. According to Taylor (2010) Volkswagen “is the No. 1 automaker in Europe, the No. 1 foreign automaker in China, and currently ranks second in Brazil”. In most cases German cars are more expensive than foreign, especially Asian, imports. Therefore the client base in that industry has an attractive, above average income. With the price advantage the Asian car industry is also a big competitor. Growth rates are continuing to rise after a massive decline during the worldwide financial crisis. Future development potentialities are renewable energies, electronic cars, and hybrid or hydrogen powered engines. Potential threats are government regulations on CO2 emissions and a possible general speed limit on the “Autobahn”, the German highway system which would decrease sales for the big German manufacturers and increase sales for cheaper imports. This industry has a lot of growth potential and a lot of development possibilities. Based on the facts the best decision would be to take a client from the German automotive industry.
2. Purpose: The purpose of this report is to analyze the German automotive industry and conclude whether or not it could be a profitable industry to take on a client in. This conclusion will be drawn up from key facts that will also be provided in the report in order to accurately ensure a quality recommendation.
3. Facts bearing on the Problem:
a) Aforementioned Trade Association Headquarters Berlin
Association of Automotive Industry
35
1. Executive Summary
2. Purpose/Problem/Background
3. Facts Bearing on the Problem
4. Discussion
5. Conclusion
6. References
1. Executive Summary: The German automotive industry with about 720,000 jobs is one of the biggest industries and dominant employers in Germany and one of the biggest automotive industries in the world (Herbst, 2009). With brands like Mercedes Benz, Volkswagen, Opel, BMW, Audi and Porsche this industry is major in car manufacturing and technology. According to Taylor (2010) Volkswagen “is the No. 1 automaker in Europe, the No. 1 foreign automaker in China, and currently ranks second in Brazil”. In most cases German cars are more expensive than foreign, especially Asian, imports. Therefore the client base in that industry has an attractive, above average income. With the price advantage the Asian car industry is also a big competitor. Growth rates are continuing to rise after a massive decline during the worldwide financial crisis. Future development potentialities are renewable energies, electronic cars, and hybrid or hydrogen powered engines. Potential threats are government regulations on CO2 emissions and a possible general speed limit on the “Autobahn”, the German highway system which would decrease sales for the big German manufacturers and increase sales for cheaper imports. This industry has a lot of growth potential and a lot of development possibilities. Based on the facts the best decision would be to take a client from the German automotive industry.
2. Purpose: The purpose of this report is to analyze the German automotive industry and conclude whether or not it could be a profitable industry to take on a client in. This conclusion will be drawn up from key facts that will also be provided in the report in order to accurately ensure a quality recommendation.
3. Facts bearing on the Problem:
a) Aforementioned Trade Association Headquarters Berlin
Association of Automotive Industry
35
References: BBC news online. (2007). Merkel resists speed limit push.