Premium Essay

Future of Autos

In:

Submitted By kdubois
Words 8290
Pages 34
The Future of the Automobile Industry
Diala Albirini, Karen DuBois, Missy Habig, Craig Naugle

The Future of the Automobile Industry
Industry Scope
When we first started organizing our thoughts on what to focus on within the automobile industry we found ourselves drawn to the population size and safety features (safety for individuals and for environment). We stimulated our strategic thinking by asking the following questions: What will the automobile industry at large look like in 2025? What trends/shifts will shape mobility in the years to come? What will drive the success of future winners? We quickly realized that our project scope needed to be broader to cover all of the megatrends we indentified and address them as it pertains to specific geographic regions of the world.
Cars being mass produced on the assembly line will be a thing of the past. The commercials today for Buick of not ‘driving your father’s Buick’ will even be more pronounced in 2025. In fact, my father would have thought he was living in a science fiction movie! The mantra of ‘have it your way’ will become the mission statement of the automobile industry – both from a consumer and an employee perspective…if they want to remain successful in the industry.
Our results? The automobile industry will remain a capital-intensive business model and thus limited in terms of its margin growth. However, over the next fifteen years the automobile industry will remain an exciting place. The industry’s center of gravity will change, core technologies will change, new forms of organizational setup will emerge, employees will have to meet new requirements and new business models will develop. Fasten your seatbelts for an exhilarating ride as we fast forward you to the year 2025!

Global vs. Local Scope
This report will look at the automobile industry from a global perspective. Although in 2025 the

Similar Documents

Free Essay

O'Reilly Auto Parts Stakeholder Analysis

...O’Reilly Auto Parts Stakeholder Analysis Amanda Gilreath BUAD 4000 University of Colorado, Colorado Springs 06/02/2014 Professor Van Scotter O’Reilly Auto Parts Stakeholder Analysis Being one of Fortune 500’s dominating corporations in the United States, O’Reilly Auto Parts influences a large amount of people and groups. These influences affect primary stakeholders who are entities and individuals that are immediately and directly influenced, and secondary stakeholders who are entities and individuals that are affected less immediately and in sometimes a more trivial manner. Although these effects may be small or large, it is imperative that O’Reilly Auto Parts considers its influence over the well being of all stakeholders, as its actions are proprietary to its subordinate’s obtainment of benefit or burden. Generally corporations focus on its primary stakeholders because they are the most noticeable and affected. However, it is myopic for a corporation to ignore or act in reluctance to its secondary stakeholders in naivety of the actual ripple that its action may cause. This is why stakeholder consideration and action is becoming a more ascendant quality of corporations. The analysis of four O’Reilly Auto Parts stakeholders will be discussed in this paper, each with its own synopsis of this corporations attempt to perpetuate its positive influence, and/or its failure to do so in particular areas. The stakeholders analyzed are customers, a primary stakeholder, and...

Words: 1388 - Pages: 6

Premium Essay

Big Drive Auto

...Running head: BIG DRIVE AUTO Big Drive Auto Michelle International Economics August 29, 2011 Big Drive Auto In the automotive industry there is evidence that supports the future of economics within the automotive industry such as Big Drive Auto, a multi-manufacture of cars and trucks. Not only does the company conduct contributions in the coolant, tire replacement and motor oil industry, but Big Drive Auto, also, services parts for repairs and sales vehicles. Big Auto will have to forecast their prior records kept within the past ten years in order to remain successful as well as needing growth within the automotive industry if they are to stay ahead of the automotive industry. An evaluation, in spite of the fluctuations in the economy, of the revenue generated on service and auto sales and of the companies past sales of parts, this evaluation and/or information will assist Big Auto Drive’s management for the organization for future production plans. A future demonstration pricing strategy will be used from the data of previous years and in keeping the company moving forward, the management’s awareness of the economy in recent years will be considered in helping with product recommendations for Big Drive Auto. In moving forward, Big Drive Auto will need to assess in the upcoming years the mathematical equations and take into consideration operations, cost, economic analysis and productivity in order to create a strategy that is solid in dealing with the automotive...

Words: 1690 - Pages: 7

Free Essay

Topic

...The topic I would like to choose is about auto industry, in recent years, cars had played a vital role in people’s everyday life, and it makes life much more easier than ever before. With the rise of gas price, people are more and more concern about what type of energy they will use after using up gas? What I concern is not only the current state of this sector, but also the future car technology. I want to find the issues and opportunities of future car technology. The answers I would like to know by searching this topic are listed. First, I want to know the current situation about auto industry, is there enough gas for us to use? How long can we use before exhaustion of resources. Second, what exactly is new energy, how many types of energy are there can be used on vehicles, is new energy expensive, and the process of what’s the rate of process. Finally, I would like to know what would be the future operation strategies for large auto companies like Toyota, Benz, BMW, etc. I think this paper will be as long as 5 to 7 pages, I will first focus on current auto industry state, how much fuel we use everyday, and raise up to future auto industry, relating with future car technology, site the resources which I found on Wall street Journal and give my own analysis. I found that it might be hard to search for the topic that is completely what I want; I will spend more time on...

Words: 265 - Pages: 2

Premium Essay

The Automotive Industry

...the industry is doing now and how the future looks for automakers. Contents The Automotive Industry Recovery 1 Transmittal Letter ii Contents iii Figures iii Executive Summary iv Introduction 1 Finding 1 Pre-Recession 1 Post Recession 2 How is it now? 3 The Future Outlook 3 Analysis 3 Summary 3 Conclusions 4 Reference 5 Figures Figure 1, Annual Auto Sales in the U.S. 2 Executive Summary The Automotive Industry was hit hard by the “Great Recession”. Jobs and sales declined rapidly as the economy and Americans were coming up short financially. After a couple years and some restructuring the automotive industry started making a comeback. Increasing sales by focusing on consumer needs helped bring workers back to work. Now the industry is booming again with continued growth in the future. The Automotive Industry Recovery INTRODUCTION PURPOSE The nationwide effect from the Great Recession on the auto industry was apparent everywhere. With the bail-outs of some of the big auto makers and loss of jobs, the economy really went into a slump. But with the automotive industry appearing to be on the up rise, there’s one question lurking in the many heads of the auto workers as well as the consumers. Will the U.S. automotive industry rebound to its pre-recession fame and glory? This report will focus on pre-recession, post-recession, the current state of automotive industry as well as the future outlook of the automotive...

Words: 1111 - Pages: 5

Premium Essay

Big Drive Auto

...Team Consultants (April Hill, Kenechia Nelson, Nicki Stoops, Tina Parker, Teresa Tessier) University of Phoenix ECO/561: Economics MEMO: To: Big Drive Auto From: Alpha Team Consultant, LLC Date: January 16, 2010 Re: Business Recommendations for Big Drive Auto based on Economic Projections This memo will present three specific economic futures over the next five years for the Big Drive Auto Company. This memo features recommendations from year to year and several graphs to provide visual support of the business recommendations from the Alpha Team Consultants (Alpha). Alpha would like the opportunity to present our recommendations for your future business management decisions. Our recommendations will provide you with money and time saving options regarding organizing, managing and integrating finances, product manufacturing and development, consumer relations and supply chain all while continuously increasing revenues and growth within Big Drive Auto. As your exclusive consulting firm we have composed several forms of data including diagrams, graphs and charts that aide in depicting the effects of our business recommendations over the next five years. This data is based solely on the GDP and any current economic contributing factors. The presented data and recommendations will aid the Big Drive Auto Company in staying ahead of the competition, while developing other methods that aide in business decisions making. [pic] GDP, Inflation, Pricing...

Words: 1486 - Pages: 6

Free Essay

Indian Auto Industry

...INDIAN AUTO INDUSTRY …. the way forward Presentation bySunil Kakkar General Manager (SupplyChain) Maruti Suzuki India Ltd Indian auto industry : Among the top 10 in world Two Wheelers Small Cars Commercial Vehicles 2nd 3rd 5th Automobile Industry – A Global Hub • • • • • 15 manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial vehicles, 16 manufacturers two/ three wheelers, 14 manufacturers tractors, 5 manufacturers of engines. Key drivers for the growth of Indian Auto industry Finance Availability Poor public transport system Improved Infrastructure Low car penetration Key drivers Rising Family Income Exchange of Cars Favorable duty structure Changing lifestyle Impact of infrastructure 2 key projects of strategic importance for India NHDP project: • Largest highway development project • Golden quadrilateral - Connects 4 metros • NSEW project – Connecting North, South & East, West lengths of India Rapid Urbanization Urban Percentage of Total Population Rising GDP per Capita Per Capita GDP (US $) 2010 2011 2012 2013 2014 2015 Accelerated overall growth of other industrial segments …..a key enabler to fuel auto demand Indian Pockets growing Deeper Annual Income (INR) Number of Households in 2010(million) Expected Households in 2015 (million) More than1000000 1.2 3.3 500000-1000000 2.4 5.5 200000-500000 ...

Words: 814 - Pages: 4

Free Essay

Cameron Autoparts Case Report

...Cameron Auto Parts Case Report Cameron Auto Parts Case Report October 16th 12 October 16th 12 08 Fall 08 Fall Problem Statement Given, the increasingly competitive domestic market and the increases in foreign demand, Alex Cameron is faced with the decision of how to efficiently expand into foreign markets. Situation Analysis External Analysis When Alex first took control of Cameron Autoparts, the company was facing much adversity in the markets as well as economy. Sales in 1991 (Alex’s first year of operation) dropped from 48 million to 18 million in the first six months, this was due the American economy suffering from a recession, as well as foreign companies from japan were beginning to grasp a larger share of the market. Alex quickly realized he would need to come up with a solution to diversify his company from the competition. He used this opportunity to bring in new engineers to develop a product that related to the existing line but also had non-automotive market appeal. The gamble paid off and Cameron’s sales began to rise again. As the new product became more and more successful Alex began to explore foreign markets and quickly seized a European patent on the flexible coupler. While having the patent provided Cameron with the exclusive rights to the coupler, if Alex did not begin to produce the product in Europe he would lose the money he sunk into the process. After attaining the patent he quickly set up a licensing agreement...

Words: 2022 - Pages: 9

Premium Essay

Case Study on Clutch Auto

...Company Background Clutch Auto, established in 1971, is India's largest clutch manufacturer and exporter with over threedecades of undisputed leadership. Its production facility is located at Faridabad. The company enjoys over60% market share in tractors and commercial vehicles (CVs). Its clientele includes Tata Motors, AshokLeyland, Maruti Udyog, Mahindra & Mahindra, Bajaj Auto, TAFE, Toyota, BEML, Escorts and State-runtransport undertakings. In CVs, it is a major supplier to Tata Motors with a 60% market share. It hasdominant market share of 80% in tractors and supplies to all manufacturers in India. CAL is growing both organically and inorganically. In FY05, it expanded clutch plate capacity by 122% to2 millions pieces and trebled clutch cover capacity to 1.5 millions pieces at capital expenditure (capex) ofover Rs 5 crore. It acquired the clutch division of Pioneer Inc, US, in March 2006, which was renamedPioneer Clutch Inc. Thrust on exports CAL is targeting the US heavy-duty clutch market (estimated at $550 million) with its patented products.The acquisition of the clutch division of Pioneer Inc will strengthen its foothold in the US. Pioneer is aquasi manufacturing and distribution company in the US with a warehouse facility of over 55,000 squarefeet, access to 7 warehouses, 20 marketing networks, sales force of over 100 people, and most importantlya client base of 500 companies in the replacement market. Pioneer's established distribution would helpCAL acquire...

Words: 1744 - Pages: 7

Premium Essay

Auto Mechanic Research Paper

...Most jobs will offer a retirement plan. When looking for a job with benefits always make sure the job has a retirement plan. Other benefits like vacation days and insurance are good too. May work evenings and weekends if employed in a shop with extended hours (“Working Conditions” 1). If someone owns their own business they should pretty much benefit themselves. They can manage their own vacation days, insurance, retirement plan and everything. Being an automobile mechanic is going to offer benefits either way. Being an auto mechanic is likely for anyone. For me it should be relatively easy to get the job. I have a few qualifications for the job. I know specific parts on automobiles. I can deconstruct and reconstruct certain parts and areas on vehicles. Mechanics will always repeat the same movements (“Physical Demands” 1).When I start my first job, I would like to live in Missouri and over time move to a different state. I would eventually like to live and work in Florida. The career outlook of this state is good because it is always warm, and lots of people live in...

Words: 1130 - Pages: 5

Premium Essay

Operationalizing Sustainability in Toyota

...University CSR 650 Operationalizing Sustainability in Toyota Toyota is famous for making quality cars at reasonable prices. Recently, while some American auto-makers concentrated on making large, luxury vehicles, Toyota was focusing on building small, fuel-efficient vehicles that would grow to dominate the automotive industry. Although quality and efficiency are two important features of economic sustainability, this paper will look into more aspects of sustainability to determine how Toyota has operationalized sustainability. Energy bulletin, 2007, published that oil accounts for 95% of the global energy use for transportation. This fact alone makes the job of auto makers in general and Toyota specifically, in making fuel efficient cars, of outmost importance. Emitting CO2 is another harmful side effect that results from operating the existing autos.  “Seventy-five percent of carbon monoxide emissions come from automobiles. In urban areas, harmful automotive emissions are responsible for anywhere between 50 and 90 percent of air pollution.”1 Considering the above, in order to operationalize sustainability, Toyota needs to step in and produce autos that are fuel efficient and pollute less in order to lower the energy consumption and save the environment. The sheer size of Toyota operations as one of the largest auto makers in the world, and it’s strive to always be the leader, has put the responsibility of coming up with an alternative technology that lowers harmful emissions...

Words: 1612 - Pages: 7

Premium Essay

Conceptualizing a Business Paper

...pass a bill to keep the government from completely shutting down, this has placed doubt in customer spending. Generating information of what the consumers need within the consumers market will determine the success of an organization. A business must create an outstanding staff that will be able to identify the problem that the organization will need to address, as well as an outstanding product; this process will form the company’s business strategy and place the business on the correct path for outstanding results. Classic Auto My entire life I have adored all types of automobiles from Oldsmobile, Chevrolet and Ford to the more exotic models like BMW, Bentley, and Ferrari. Out of all of the cars produces from the early 60’s until present, my favorite automobiles would be the 1970 – 76 GM convertibles. I have created the perfect business that will get both older generations and younger generations the chance to relive the day of old, Classic Auto is not only the name brand of a good business, but it is also the lifestyle of a stress free generation. Understanding the different areas of a good business plan is the start of this process. One of the primary areas that a company must focus on is the area of a great mission statement, vision of the company’s way ahead, and the values in which the company will be based on. A company’s...

Words: 1053 - Pages: 5

Premium Essay

B2B Case Analysis

...products they sold are holding up. These constant check ups shows the customers that Snap On cares about them. Snap On prioritizes the customer relationship so much that they created an advertising campaign for the blue collar, grease monkey mechanics. These mechanics had a bad image in the eyes of the public due to the lack of trust from their customers, so Snap On started monthly newsletters and used other media propaganda's to create a new image of the auto technician. This increased business for the auto repair shops around the nation which in turn created more business for Snap On. To further extend their relationship building with these lower to middle income auto technicians they created a small, no interest loan of their tools to the auto shops. The sales force was granted permission to give out loans and collect fees on a weekly basis to allow these mechanics to use these tools and pay off their debt when possible. This is high risk for Snap On, but the trust and relationship built with each auto shop is what keeps auto technicians coming back to Snap On when in need of a great product. Customers of Snap On know what they are getting each time they make a purchase; they know that they are getting the best while being...

Words: 2057 - Pages: 9

Premium Essay

Persuasive Essay On Half And Half Autos

...appear to get any less expensive. Individuals all finished are getting some information about the ascent in cost, and frequently the appropriate response is to pick an alternate vehicle. That is basic, correct? Be that as it may, what sort of vehicle would it be a good idea for you to pick? Quite possibly, you should attempt a mixture auto. The half and half autos are all the rage nowadays. They come in incredible hues, smooth styles, and they will make your drive more affordable. When you take a gander at those qualities of a crossover auto, how might you not raced to the auto merchant at this moment and lift one up? Indeed, we as a whole wish we could do only that, yet before you run out, possibly you ought to take in more about these autos. A half and half auto is a vehicle that is keep running on power. A mix of a regular impetus framework and a rechargeable vitality stockpiling framework that is locally available the vehicle cooperate to give the vehicle preferred mileage over autos that run entirely on fuel....

Words: 565 - Pages: 3

Free Essay

Network Attached Storage

...Nowadays just like we use what is called smart phones well we also have and use smart cars, which is cool. Detroit’s big three auto industry (or what’s left of it remaining in the city) is on a come up with new and improved auto innovations especially looking toward the future. Looking forward twenty years from now I would say that at that point cars will be able to drive and guide themselves, more car companies will produce more battery powered vehicles, and cars will be equipped to better help prevent accidents and accidental injury. So again, in my opinion I feel that over the next twenty years of living we finally will have smart, precise and advanced self-less drivable vehicles produced by our big three. The impact and significance of this feature could actually do us as drivers good. Just think for a second, people fall asleep while driving, people get side tracked quite often, people get distracted just by in-car activities alone, etc. We are not really any closer to having this special feature in motion. However Google has been experimenting with self-driving ever since May, 2012. From past research they have actually put together a drive-less car and have tested it out. The only accident that has taken place on their end was in 2011 and it was located in California. Another impact on cars toward the future would be that more car companies would produce battery powered vehicles. A battery electric vehicle is a type of vehicle that...

Words: 694 - Pages: 3

Premium Essay

The Big Three

...reasons the companies were unable to make a profit. The government has also stated that the unions must give concessions to the companies to enable them to survive and obtain additional funds from the government. What are those work rules and portions of the contract that make it difficult for the companies to make money? If you feel that the blame is found else where it is and what effect does it have on the bottom line. General Motors Ford and Chrysler were known for decades as the Big Three. The automotive industry crisis of 2008-2009 was a global financial crisis. President Barack Obama asserted unprecedented government control over the auto industry of General Motors Corporation and Chrysler LLC. His demand was fresh concession for long-term federal aid and raising the possibility of quick bankruptcy for either ailing auto giant. President Obama took the extraordinary step of announcing the government will back new car warranties issued by both GM and Chrysler. This concession would involve concessions from its union workers and bondholders. Two of the three automotive CEO’s vowed to their employers the following statements. Fritz Henderson, CEO for General Motors stated, “He would take whatever steps are necessary to successfully restructure the company, which could include a court-supervised process.” Chrysler Chairman Bob Nardelli sought to assure customers, dealers, suppliers and employees that the automaker “will operate “business as usual” over the next...

Words: 1081 - Pages: 5