A profile of the automobile and motor vehicle industry : innovation, transformation, globalization

164 Pages·2014·5.774 MB·English

by  Rubenstein, James M

THE BUSINESS A Profile of the Automobile R Industry Profiles Collection
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EXPERT PRESS B
and Motor Vehicle Industry E Donald N. Stengel, Editor
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DIGITAL LIBRARIES
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Innovation, Transformation, E
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EBOOKS FOR N
Globalization
BUSINESS STUDENTS
Curriculum-oriented, born-
James M. Rubenstein
digital books for advanced A Profile of the
business students, written The motor vehicle industry is one of the world’s larg-
by academic thought est. More than 1 billion vehicles are in use around the
world, and 80 million are produced and sold annually.
leaders who translate real-
Motor vehicles—including passenger cars, trucks, and Automobile and
world business experience
commercial vehicles such as buses and taxis—are the
into course readings and principal means by which people and goods are trans- A
reference materials for ported within and among most communities in the PR Motor Vehicle
students expecting to tackle world. O
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management and leadership This book details the history of the motor vehicle IL
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professional careers. how cars are made and sold; the leading suppliers of F T Industry
parts that go into a car; the increasing role of govern- H
POLICIES BUILT
ment in regulating vehicles; and future challenges for E
BY LIBRARIANS A
the industry. U
• Unlimited simultaneous The motor vehicle industry includes corporations TO Innovation, Transformation,
usage that design, develop, and manufacture cars and trucks. M
• Unrestricted downloading These carmakers, such as Ford and Toyota, are among O
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and printing the world’s most-familiar corporate brands. The motor IL Globalization
• Perpetual access for a vehicle industry also encompasses lesser-known busi- E A
one-time fee nesses, including several thousand parts makers, tens of N
• No platform or thousands of retailers, and specialized lending agencies. D M
maintenance fees The importance of the motor vehicle industry tran- O
• Free MARC records scends even its central role in the global economy. The T
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• No license to execute industry was responsible for many of the fundamen- R
tal innovations of 20th century production, such as V
The Digital Libraries are a corporate organization, manufacturing processes, and EH
comprehensive, cost-effective labor relations, as well as sales innovations including IC
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way to deliver practical product branding and consumer financing. In the 21st E
treatments of important century, the motor vehicle industry has been a leader IN James M. Rubenstein
in adopting new production strategies and expanding D
business issues to every U
into new markets. S
student and faculty member. T
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James M. Rubenstein is Professor of Geography at Mi- Y

ami University in Oxford, Ohio. He is author or co-
author of eight books, including three on the auto in-
For further information, a dustry, and three dozen journal articles and chapters. Dr.
Rubenstein received his AB from the University of Chica-
free trial, or to order, contact: 
go, MSc from the London School of Economics and Politi-
[email protected] cal Science, and PhD from the Johns Hopkins University.
www.businessexpertpress.com/librarians
Industry Profiles Collection
Donald N. Stengel, Editor
ISBN: 978-1-60649-536-0
www.businessexpertpress.com www.businessexpertpress.com
A Profile of the
Automobile and Motor
Vehicle Industry

A Profile of the
Automobile and Motor
Vehicle Industry
Innovation, Transformation,
Globalization
James M. Rubenstein
A Profile of the Automobile and Motor Vehicle Industry: Innovation,
Transformation, Globalization
Copyright © Business Expert Press, LLC, 2014.
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted in any form or by any
means—electronic, mechanical, photocopy, recording, or any other
except for brief quotations, not to exceed 400 words, without the prior
permission of the publisher.
First published in 2014 by
Business Expert Press, LLC
222 East 46th Street, New York, NY 10017
www.businessexpertpress.com
ISBN-13: 978-1-60649-536-0 (paperback)
ISBN-13: 978-1-60649-537-7 (e-book)
Business Expert Press Industry Profiles Collection
Collection ISSN: Forthcoming (print)
Collection ISSN: Forthcoming (electronic)
Cover and interior design by Exeter Premedia Services Private Ltd.,
Chennai, India
First edition: 2014
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Abstract
The motor vehicle industry is one of the world’s largest. More than
1  billion vehicles are in use around the world, and 80 million are produced
and sold annually. Motor vehicles—including passenger cars, trucks, and
commercial vehicles such as buses and taxis—are the principal means by
which people and goods are transported within and between most com-
munities in the world.
The motor vehicle industry includes corporations that design,
develop, and manufacture cars and trucks. These carmakers, such as
Ford and Toyota, are among the world’s most-familiar corporate brands.
The motor vehicle industry also encompasses lesser-known businesses,
including several thousand parts makers, tens of thousands of retailers,
and specialized lending agencies.
The importance of the motor vehicle industry transcends even its
central role in the global economy. The industry was responsible for many
of the fundamental innovations of 20th century production, such as cor-
porate organization, manufacturing processes, and labor relations, as well
as sales innovations, such as product branding and consumer financing.
In the 21st century, the motor vehicle industry has been a leader in adopt-
ing new production strategies and expanding into new markets.
Keywords
auto industry, motor vehicles, cars, trucks, carmakers, auto alley

Contents
List of Figures ����������������������������������������������������������������������������������������ix
List of Tables ������������������������������������������������������������������������������������������xi
Chapter 1 Introduction to the Motor Vehicle Industry .......................1
Chapter 2 Operation of the Motor Vehicle Industry .........................11
Chapter 3 Organization of the Motor Vehicle Industry:
Production .......................................................................33
Chapter 4 Organization of the Motor Vehicle Industry: Sales ...........65
Chapter 5 Outside Market Forces .....................................................87
Chapter 6 Regulation of the Motor Vehicle Industry ......................109
Chapter 7 Challenges and Opportunities for the Motor
Vehicle Industry .............................................................119
Notes��������������������������������������������������������������������������������������������������131
Resources for Further Study ������������������������������������������������������������������135
Index �������������������������������������������������������������������������������������������������139

List of Figures
Figure 2.1 Motor vehicle assembly plants with annual
production above 100,000 vehicles ..................................13
Figure 2.2 GM’s ladder of consumption, 1955 .................................19
Figure 3.1 Global production of motor vehicles, 1950–2012 ...........33
Figure 3.2 Motor vehicle production by company, 2011 ..................34
Figure 3.3 Motor vehicle production by
world region, 1950–2012 ................................................51
Figure 3.4 Motor vehicle production in North America ...................53
Figure 3.5 Motor vehicle production in Europe ................................55
Figure 3.6 Motor vehicle production in East Asia .............................57
Figure 4.1 V ehicles per 1,000 persons, 2012 .....................................66
Figure 4.2 Sales by region, 2000–2012 .............................................70
Figure 4.3 Trade in motor vehicles by region, 2012 ..........................72
Figure 4.4 Market share by company in the
United States, 2013 .........................................................78
Figure 4.5 Market share by company in Europe, 2013 .....................79
Figure 4.6 Market share by company in Japan, 2013 ........................79
Figure 4.7 Market share by company in China, 2013 .......................80
Figure 5.1 Distribution of parts suppliers in North America ...........102
Figure 5.2 Distribution of parts suppliers in Europe .......................102