This website uses cookies to ensure you have the best experience. Learn more

Evolution Of Automotive Industry Essay

1800 words - 8 pages

Evolution of Automotive Industry
The automotive industry is a competitive yet lucrative business industry. Everyone is designing and developing the latest revolutionary model car. Automotive manufacturers and dealers are able to price their products at exorbitant prices if they so choose because in most cases the consumer does not have a choice but to purchase a car. We all need transportation and with that in mind automotive traders basically determine product pricing.
The market structure of the automotive industry is relative to the number, size, kind and distribution of buyers and sellers (ModernIr LLC [MILLC], 2008). Needless to say the automotive industry is a very huge market. The ...view middle of the document...

Also noted in the article, “so far this year Chrysler has reported big declines in monthly vehicle sales, as customers switch from trucks and sport utility vehicles to small cars and crossovers.”
The main factors dictating the way in which producers in the automotive industry price their products are supply and demand. Along with the supply and demand factor companies in the automotive industry also take into account the production costs when placing a price on their product. When setting prices producers have to determine whether the product price reaches the company’s financial goals, are consumers willing to buy at the set price and the product identity. “A good pricing strategy would be the one which could balance between the price floor (the price below which the organization ends up in losses) and the price ceiling (the price beyond which the organization experiences a no demand situation)” McKinney 2006.
The creation of automotive technology over the past years has been greatly affected by

government regulations. Congressional Committees and regulatory agencies have passed rules a

and guidelines with the purpose of enhancing safety, limit air pollution, and decrease fuel intake.

The creation of the automobile has had a deeper influence globally than any other creation in this

nation. With this being said, manufactures and designers have always had to keep up with new

demands of the economy and technology. The connection Americans have with the automobile

goes more in-depth than many people can imagine, especially those who made the transition

from horse to automobile. The biggest satisfaction was personal mobility. Even with that said,

the demand for personal mobility was the foundation for the private wants for automobiles. With

the growth of communities and industries in large cities, the automobile seem to be the

solution to many obstacles getting from one point to another.

The life span of automobile regulation is young, but deep in experience. Government

regulations on vehicle have played a great role in a time of new technology. Automobiles are now safer and uses less fuel, miles per gallon Government regulations was the core in limiting emissions and enhancing safety. Because of the large support for cleaner air and more safety from consumers, Government pushed for government regulations on emissions. The modern day automobile burns less fuel and cleaner air, yet the impact from a financial point of view, is no greater now then it was before. Safety restraints, for an example airbags, were complexes and delayed by automakers for years. However, with the introduction/requirement of airbags in 1991, the consumer demand for safety evolved to fast and strong, vehicle manufacturer incorporated airbags before the deadline of cars in 1998 and light trucks in 1999.

More debate has been over energy regulation then any other regulation thus far. With the


Other Papers Like Evolution Of Automotive Industry

Gold Mining Essay

1098 words - 5 pages Economy What are the things include in Automotive Industry Sectors? Draw the diagram also. What are the different supplier’s participation opportunities? What is the Factors Causing Shift from DIY To DIFM What were the limitation & problems associated with the automotive industry during 1920? Explain the upstream & downstream of OEM & OES? Write any 5 developments related to evolution of automotive industry Explain aftermarket

China Automotive Seat Motor Industry Report 2013-2014: Global Market Research Report

929 words - 4 pages Global and China Automotive Seat Motor Industry Report, 2013-2014 Passenger vehicle seat motors account for above 95% of the entire automotive seat motor market. Only mid-range and upscale passenger vehicles were equipped with seat motors before 2010, but, with intensified configuration competition among vehicle manufacturers and users’ growing appetite for comfort, the installation rate of automotive seat motor has been gradually

Automotive Transmission Market Will Represent Us$181.8 Mn Opportunity by 2021, Consumer Preference Shifting Toward Automatic Transmission Systems

523 words - 3 pages According to a new market report published by Transparency Market Research “Automotive Transmission Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021,” the automotive transmission market was valued at US$119.7 mn in 2014, which is expected to reach US$181.8 mn by 2021, logging a CAGR of 5.9% from 2015 to 2021. The automotive transmission transfers the required torque from the engine to the drive wheels

Automotive Airbag Inflators Market in India

609 words - 3 pages inflators are the most dominant type in the global automotive airbag inflators market. Compact cars, MPVs, and LCVs are expected to offer a robust growth opportunity for airbag inflators in the global automotive industry. Asia Pacific is set to experience the highest growth in the coming years with most of the growth coming from developing nations including India and China. China is the world’s largest light vehicle manufacturer. With its CNAP

Auto Industry Effect on Households

1199 words - 5 pages Auto Industry’s Impact on Households The automotive industry is an essential piece to the economy of the United States. Currently, there are about 850,000 manufacturing workers and 1.8 million auto dealership workers that are employed in the automotive industry today (Amadeo). This industry was and continues to be negatively impacted by the recession that has plagued our nation’s economy since 2008. Unemployment has been one of the biggest

Global and China Automotive Turbocharger Market Analysis 2015-2017

1016 words - 5 pages A turbocharger is actually an air compressor that increases air inflow by compressing air to reduce fuel consumption and exhaust emission and to improve output power. It is mainly used inside the engines of automobiles, engineering machinery, agricultural machinery, ships, and airplanes. The biggest turbocharger demand in China was none other than auto industry. In 2013, 4.004 million units of automotive turbochargers were sold, accounting

Automotive Production Levels

1937 words - 8 pages traders basically determine product pricing. The market structure of the automotive industry is relative to the number, size, kind and distribution of buyers and sellers (Modern Ir LLC [MILLC], 2008). Needless to say the automotive industry is a very huge market. The automotive industry is considered to be in the perfectly monopolistic competition market structure, having many sellers of a similar product yet each seller’s product is somewhat

Determining Causes and Effects

812 words - 4 pages manufacturer importing from the international markets. It effects the decision of people and the economy. [pic] The demand to produce high quality and exceptional automotive materials is the major cause for importing from foreign markets. With lofty competition in the automotive industry, manufacturers exercise all means to guarantee that they fabricate the unsurpassed automotive products in the market. When the local materials will


1137 words - 5 pages China’s Automotive Modernization and history The automotive industry in China has been the largest in the world measured by automobile unit production since 2008. Since 2009 annual production of automobiles in China exceeds that of the European Union or that of the United States and Japan combined. China’s automobile industry had Soviet origins mainly (plants and licensed auto design were founded in 1950s with the help of USSR) and had small

British Car Sector

1778 words - 8 pages governments. Statistics show: * 40% reduction in CO2 exhaust per car produced over the last decade. * 92% of production sites have environmental management systems. * 57% reduction in waste to landfill per vehicle produced since 1999 * Five year development period for a new car * 94% of dealerships display the colour coded CO2-label, up by 20% since 2006 * ... Secondly, the automotive industry is becoming increasingly

Brazilian Automotive Market

737 words - 3 pages The Brazilian automotive industry is at a crossroads. If the industry and the government take the right steps, there are great prospects on the domestic market and increasing export opportunities. That is the conclusion of a study conducted by Roland Berger Strategy Consultants entitled "The Brazilian automotive industry at crossroads". "Brazil is an up-and-coming market with great potential – also for the automotive industry," says Stephan

Related Essays

Analysis Of Automotive Industry

548 words - 3 pages Analysis of the Automotive Industry | Threat of New Entrants – LOW | Supplier Power - LOW | Buyer Power – MEDIUM | Threat of Substitutes - LOW | Competitive Rivalry – HIGH | Capital Requirements * High upfront capital expenditure for designing and manufacturing. Cost Disadvantages * Car manufacturing has a long learning and experience curve, which results in higher defect costs.Product Differentiation * Established companies

Mc Donald's: Evolution Of The Food Industry

1532 words - 7 pages McDonald's: Evolution of the Food Industry History McDonald's has had a global impact on the food industry. McDonald's developed a revolutionary idea known today as fast-food. This impact began in 1930 when Maurice and Richard McDonald left New Hampshire seeking to make a fortune in Hollywood, started up a drive-in restaurant in San Bernardino. Unlike so many other food-service operations at the time, McDonald's came up with new ideas

South Africa Government’s Support Of The Automotive Industry: Prospects Of The Productive Asset Allowance

886 words - 4 pages Economics Executive Summary South Africa Government’s Support of the Automotive Industry: Prospects of the Productive Asset Allowance Index Introduction p. 3 International Competitiveness p. 3 Productive Asset Allowance p. 3 PAA applications and claiming process p. 4 Investment under the PAA p. 4 Global Integration p. 5 Conclusion p. 5 Reference list p. 6

Global Automotive Instrument Panel Industry Report 2015

599 words - 3 pages Summary The Global Automotive Instrument Panel Industry Report 2015 is a professional and in-depth study on the current state of the Automotive Instrument Panel industry. The report provides a basic overview of the industry including definitions, classifications, applications and industry chain structure.The Automotive Instrument Panel market analysis is provided for the international markets including development trends, competitive