Automoblie Industry
There is no industry more present in the world-wide community than the automobile industry. The automobile has changed the lives, culture, and economy of the people and nations that manufacture and demand them. Ever since the late 1800s when the first "modern" car was invented by Benz and Daimler in Germany, the industry has grown into a billion dollar industry affecting so many aspects of our lives. There are more than 400 million passenger cars alone on the roads today. During the early part of the twentieth century, the United States was home to more than 90 percent of the world's automotive industry, but has shrunk to about 20 percent in today's world. This drastic change has occurred by the booming economies in such nations as Japan, Germany, Canada, France, Italy, and other nations. The US auto industry "sales totaled $205 billion, or 3.3 percent of the total Gross Domestic Product." (Tardiff 394) By the end of 19th century, there were about 500 auto manufacturers, but that number dropped sharply to 23 by 1917, and today the Big Three dominate the market. Ford, General Motors, and Chrysler make up the Big Three which account for 23 percent of the world's motor vehicle p
In many Japanese firms, like Toyota, a new system has been created and has been coined 'lean production'. The basic manufacturing ideas are the same, but it emphasizes developing relationships between the company and those it deals with. When Toyota begins developing a new car model, it already has a team assembled which has worked on previous models. The Toyota team then collects the same information about what the public wants just like the GM team but has a much cheaper way of going about it. Unlike the GM firm, Toyota has formed business ties with car dealerships, and in some cases even owns them. These dealerships use a new set of techniques to sell their cars, called "aggressive selling," in which a very permanent, personal, and hopefully life-long relationship is created between the company, the dealer, and the buyer. Since the company keeps ties to its consumers, it already knows what the consumer wants, and the consumer is more willing to buy from the company. Toyota continues developing and producing its car, and it comes across the same problem as the GM team of not having all the specialized parts it needs. Like with the dealerships, Toyota has formed many symbiotic relationships with car part suppliers. These suppliers work hand in hand, with the Toyota team and develop any products that Toyota needs for its new model. The automobile industry is also spending great amounts of time and money in developing new cars and luxuries to offer their customers. Like in airplanes, car makers are looking into placing a "black box" in each car to record valuable information in case of a car accident. Intelligent Vehicle Highway Systems was a government sponsored study analyzing traffic patterns and ways to improve motor transportation. The auto industry is also a major source of jobs in the world. "During the early 1990s, approximately one of every seven jobs in the US domestic economy is related to the production, sale, operation, or maintenance of motor vehicles" (Tardiff 396) which makes abundantly clear the impact the car industry has on society, with GM, Chrysler, and Ford Companies making up three fourths of those jobs. Auto workers are also among the most highest paid workers in any industry and also the most productive. This great increase in worker productivity, due to advancing technology, also accounts for the huge profit gains the Big Three have received in the past few years. Until the late 1960s, the government did not get involved in implementing regulations on the automobile industry. Most of the regulations now placed on car manufacturers have to do with making the car drive safer and be more environmentally sound. Seat belts, reflectors, bumpers, windshield wipers, defrosters, dashboard controls and specialized lights, brakes, tires, and windows were all the result of government action. Today safety has become extremely important to car makers because of the high deaths that result from automobile accidents, the government, and most influentially, people's growing concern for their well-being. When planning a new car model, the company tries to create what the consumer wants. This is very difficult because as stated earlier it take between three and four years to develop a car. When General Motors begins developing a new product, it starts by assembling a new team to coordinate the production. After this t
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Approximate Word count = 2268
Approximate Pages = 9 (250 words per page double spaced)
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