Our Industry Is Automobile: 1. Give A Half Page Brief Profile of That Industry

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Our industry is Automobile

1. Give a half page brief profile of that industry


The automobile industry is a broad extent of organizations and companies, that’re associated
in the design, advancement, production, marketing, and selling of automobiles, some of them
are known as automakers. It is among the one of world's most crucial economic zones in
terms of revenue. The automobile industry does not involve industries that are committed to
the maintenance of motor vehicles provided to the end-user/consumer, e.g. mechanics that
repairs motor vehicles and owns repair shops and gas or fueling stations.
 History1
The automobile industry introduced in around
1890’s with hundreds of producers that originated
or developed the horseless freights by putting
motors.
For many time, the U.S led the globe in total
automotive manufacturing.
In 1929, just before the Great recession after WW I,
the world had approximately 32,028,500 motor
vehicles in use, and the U.S. automobiles industry
manufactured around 90% of them. Which means
that the U.S. had one car per 4.87 persons at that
time.
Just after WW II, the U.S. manufactured about 75
percent of world's auto production.
In 1980, the U.S. was beaten by Japan and then
Japan developed into world's ruler in terms of
automobile production again in 1994.
In 2006, Japan barely crossed the U.S. in
manufacturing and grasped this position until 2009,
when China took the top rank with 13.8 million
units. With 19.3 million units produced in 2012,
China almost doubled the figures which U.S. was
manufacturing, with 10.3 million units, while Japan
was stood at third place with 9.9 million units.

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Reference: Plunkett Research,® Ltd.”, https://en.wikipedia.org/wiki/History_of_the_automobile.
 Industry Statistics2

i. New Vehicle Sales by Vehicle Type: 2009-2017, Business and Industry Statistics:

ii. New Car & Truck Market Shares by Company: 2012-2016, Business and Industry Statistics:

iii. Personal Transportation Expenditures, U.S.: 2009-2016, Business and Industry Statistics:

iv. Toyota Motor Corporation Overview, Business and Industry Statistics:

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These are roughly surveyed statics, secondary data, reference is: “Plunkett Research,® Ltd.”
 Industry Trends3

For OEMs, the price tag is high — as


much as 20 percent greater than the cost
of the previous generation of
automobiles.

Taken as a whole, innovation-related challenges are


reshaping traditional auto industry structures and
relationships — in particular, by threatening the existing
distribution of profits and the boundaries between
OEMs and Tier One or Tier Two suppliers, as well as
between automotive and tech companies.

In
2016,
the top
10 OEMs returned an anemic 4 percent, about
half of the industry’s cost of capital. The
leading 100 suppliers have done a little better,
just beating their costs of capital to enjoy a
small positive return, after many years of
negative net returns.
Conclusion: This assessment suggests that
there will be relatively few winners in the auto industry during the next five years and beyond.
Those that do stand out will be the companies that harness their limited capital resources in
creative ways, to navigate a still-unfolding and unfamiliar landscape.

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Reference: 2017 Automotive Trends
By Rich Parkin, Reid Wilk, Evan Hirsh, and Akshay Singh

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