auto industry environment

Topics: Automotive industry, Japan, Renault Pages: 3 (539 words) Published: November 3, 2013


The home country structure and environment of the automotive industry. Describe a few key issues and trends facing the selected industry in the U.S.

http://www.encyclopedia.com/topic/automobile_industry.as

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.26.546&rep=rep1&type=pdf

For the Automobile industry to succeed, auto manufacturers have to manage large and complicated supply

chains across many geographic regions, and track opportunities in different national markets. The cost

competition, local manufacturing procedures, and final products continue to drive the industry towards global

product offerings even though national policies impact them a huge deal. A demand in light utility vehicles has

driven change due to lifestyles that have evolved into a two wage family income home. Another serious

challenge the industry is facing are the prices of new vehicles continuing to increase higher than the average

household income.
The demand for vehicles and increasing environmental concerns will be factors that contribute to the automobile industry as well as the anticipation of geographical changes and major organizational variations in regards to auto-manufacturing procedures. In the worldwide automotive industry there is an overcapacity problem that puts automakers in jeopardy of experiencing financial losses since production has been increased to improve their profitability.

Therefore, overcapacity has prompted the industry to merge and network alliances to minimize new investment initiatives, consolidate and streamline control and development functions. The unique parts in the vehicles, different designs and production tools, the number of direct supplier relationships have all been the direct impact of shifting the industry to change. Expectations of the development of new products to facilitate the industry with automotive productive capacity to new geographic regions are new venture that will be...
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