...plant that produces parts for the auto industry, I’m going to identify a brief history of the automotive industry, how it impacts the GDP, the unemployment rate, and the inflation rate as measured by the Consumer Price Index (CPI). The supply and demand of the automotive industry as well as the profits derived from the sector are clearly impacting by then macroeconomic policies. The industry’s history demonstrates the trends it follows in the business cycle and how economic indicators have impacted the performance of the industry over the years. The measure of production, interest rates, real GDP, automotive sales and inflation and unemployment are some of the most compelling instruments that can be used to assess the state of the automotive industry. Business Cycles The U.S automotive industry saw a steady expansion from its inception until 1978 in which where production reached its all-time peak. The industry showed a small contraction and a quick recovery leading to its peak between 1972 and 1976. In the early 1980 there was a big drop in production units and the industry fell into its first true recession. The industry recovered in the mid 80s peaking in 1988, but never reached its previous high before falling into another recession that lasted from 1990 to 1992 (Smith, 1996). The automotive industry’s production rates have been cycling through different business phases throughout history. In 1999 the automotive industry finally recovered and reached its previous high...
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...established strong brands • Market Leaders in a protected market o 60 percent in the Brazil o 30 percent in Argentina • Combine operations in order to overcome obstacles in the Brazilian market. • Share the risk of operating in a volatile market • Offer wide range of products to meet different customers’ requirements in an environment where noncompeting models exists • Strong engineering capabilities • Wide range of distributors and dealers • Fast revenue growth • High Brand Equity • Big success in a market protected from foreign imports. • Offered inexpensive models, with different sizes. • Focus on Innovation o VW focused on building small cars o Ford focused on building bigger cars and pickup trucks o The two partners also produced shared products • The firms unified their marketing and sales staffs • Hired specialists and consultants to accommodate the two different company cultures. • Production of Autolatina cars grew rapidly over time. • At some point of time both companies had succeeded in identifying the key factors contributing to Autolatina’s success • Reasonably well integrated operationally even exchanging model fabrication • Consolidation reduces cost of administration and value-chain activities, WEAKNESS • Autolatina was unprepared by renewed economic growth. • Autolatina’s products, built for a protected market, fell out of step with the rapidly evolving marketplace (dynamic changes in the market) • Conflicts arose in the strategies of...
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...Alex Bernauer Block 2/3 World Studies Since the automotive industry constitutes more than 40% of North American trade, NAFTA saves the automotive industry immense amounts of money. The North America Free Trade Agreement is a trilateral agreement that encourages free trade between Mexico, Canada, and United States. The NAFTA agreement has affected the automotive industry by increasing the amount of U.S. automotive imports. It has also increased the amount of U.S. automotive exports to NAFTA partners and it has caused outsourcing in the automotive industry. The North American Free Trade Agreement came into effect on January 1, 1994. The president of Mexico, Carlos Salinas de Gortari, the prime minister of Canada, Brian Mulroney, and the president of the U.S., George H. W. Bush, signed NAFTA in 1992, which then required the legislatures of the three countries to approve it before it went into effect. After the legislatures passed the NAFTA agreement, it became in effect on January 1, 1994. Under NAFTA, the partnering countries agreed to eliminate and reduce most barriers to trade freely between the countries. Most of the United States automotive trade is done with Mexico. This is because the United States and Canada were already highly integrated following the U.S.-Canada Free Trade Agreement and a U.S.-Canada Auto Pact in 1965. Before the NAFTA agreement, Mexico had strict automotive decrees on foreign automotive production in Mexico. After NAFTA was signed...
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...Opportunities and Challenges Facing FIAT to Enter Ukraine Opportunities and Challenges Facing FIAT to Enter Ukraine Report Team: NO.10 Italy Class period: Tuesday 8, 9 Team Member Zhou Wen Duan Jiaqi Han qingxiu English Name Cookie Todd May Student Number 41006044 41032003 41029021 Contact Information 289192701@qq.com 917686559@qq.com 304593546@qq.com 1 Opportunities and Challenges Facing FIAT to Enter Ukraine Executive summary The report is going to analysis the opportunities and challenges facing FIAT to enter Ukraine automobile market. We first identify the strength and weakness of global strategy of Fiat with the SWOT analysis (Appendix 1) to find out entering Ukraine could contribute to Fiat’s global strategy, and then we evaluate the investment potential in Ukraine with PEST analysis (Appendix 2) to find out that Ukraine government is encouraging foreign investment by incentive policy and regulation, moreover, the automobile market in Ukraine is large. However, under the condition of financial crisis, the trade protectionism is on the rise in Ukraine, making the existing competition fiercer than before. To solve the problem, we suggest Fiat to export light vehicle and manufacture installation kit by joint venture to minimize risk and mitigate challenges. Besides, the board should pay attention to balancing the relationship among local government, local employees and management layer. 2 Opportunities and Challenges Facing FIAT to Enter Ukraine Content...
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...After years and years of hearing how muscle cars are out of here never to be seen again, I'm beginning to think that all these people that hate muscle cars are losing the battle. Back in the mid to late 1970's I heard that gas prices would kill American muscle cars. Then again in the 1980's when the government got tough on emissions, and began to kill power that all cars had, yet still the muscle car had made it through the storm, maybe you just can't kill American automotive history. We had Ralph Nader telling us that cars were the cause of all of the pollution problems on our planet, when in actuality cars only encompass about 1% of the problem, and you can get less emissions and still have power. This entire thing is just people that...
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...Table of Contents Executive Summary………………………………………………….2 History of General Motors…………………………………………...3 General Motors Exports to Argentina………………………………3 General Motors Exports to Brazil…………………………………...4 Trade Agreement between South America………………………...5 General Motors and WW II…………………………………………...6 General Motors in South Africa………………………………………7 General Motors in China………………………………………………7 The Chevrolet Brand…………………………………………………..8 Conclusion………………………………………………………………9 Works Cited……………………………………………………………..10 Executive Summary General Motors (GM) is one of the big three auto makers in the world and they have built some of the most famous vehicles on the road which have met all different types of consumer’s needs. General Motors has taken an unexpected turn in the past several years for the worse due to the changing economy that is affecting the world. Many economists claim that the United States has been pressed into a recession that started with the housing crisis in 2008. From this crisis restricted a major banking crisis that has led to financial institutions implementing tighter lending guidelines for businesses. This has greatly affected General Motors since the company relies heavily on short term returns. Out of all the auto making companies during the crisis of falling sales and crashing returns, General Motors was hit the hardest and filed bankruptcy. The fact that General Motors has such a large portfolio is working directly against...
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...ignored. However, automakers continue to build fuel-inefficient vehicles. The vehicles we drive are contributing to this problem, but automakers don't seem particularly concerned. Fuel efficient cars such as the Volkswagon New Beetle produce around 54 tons of carbon dioxide. While fuel in-efficient cars such as SUV’s are said to produce over 100 tons. By choosing a more fuel efficient car, tons of thousands of tons of carbon dioxide Federal law gives heavy sport utility vehicles permission to emit higher levels of toxic and noxious pollution - carbon monoxide, hydrocarbons, and nitrogen oxides. Sport utility vehicles can spew 30 percent more carbon monoxide and hydrocarbons and 75 percent more nitrogen oxides than passenger cars. These combustion pollutants contribute to eye and throat irritation, coughing, nausea, dizziness, fatigue, confusion and headaches. Hydrocarbons and nitrogen oxides are precursors to ground level ozone, which causes asthma and lung damage. Finally, it is important to note that fuel in-efficient vehicles are contributing to our dependence on imported oil. The more gasoline we use, the more oil we have to import from other countries. Currently, more than half of the oil we use is imported. This level of dependence on imports is the highest in our history, and will only increase unless we do a better job with conservation and alternative fuels. If current rates of consumption were to...
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...History And Background The Toyota Motor Corporation started with humble beginnings. Kiichiro Toyoda in 1933 visited the United States and several automobile plants. He returned to Japan and started an automobile division in his father's loom factory. General Motors and Ford had already established automobile plants in Japan but this did not stop Toyoda. Toyota Motor Corporation was founded August 28, 1937. In the year 2000, Toyota was the world's third largest car company and the largest car company in Japan. The current president of Toyota is Akio Toyoda. Toyota maintains a 9.8 percent share of the automobile global marketplace. Japan itself, has very few natural resources, which prompted the Toyota Motor Corporation to develop fuel-efficient vehicles. Change in political environment in Japan, prompted Japanese auto manufacturers to rely on new technologies to guarantee success in the industry such as the birth of the small car. While other countries concentrated on large, luxury vehicles, Japanese manufactures were busy focusing on building small, fuel-efficient vehicles that would grow to dominate the automotive industry. Political unrest can lead to military action and wars, which make materials needed for car manufacture difficult to find. Such was the situation Toyota Motor Company faced during Word War II, when a crippled Japanese economy forced the company to start building 'recycled' vehicles. Corporations must also comply with the laws of trade both nationally...
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...up China’s cooperation with SAIC. 1. Background Information General Motors (GM) is one of the world's largest car companies. Although GM lost its first-mover advantage to Volkswagen, in 2003, China became the second largest single market for General Motors, selling 201,188 vehicles, an 81.6% percent increase over the previous year. In that year Shanghai GM achieved a 13% market share in mainland China, second only to Volkswagen Group China among foreign carmakers. Sales dropped in 2004 when the company retired the Buick Sail and the release of its replacement, the Chevrolet Sail, was delayed to February, 2005, knocking General Motors Shanghai to seventh place in mainland China market share. 2. Automobile industry history and development Development situation can be divided into sevens stages as follows |Time |market demand |local competitor |foreign competitor |Economy |Technology |Political Social | |1950-1965 |small:only for |state-owned |No |the beginning of |Soviet Union provide |have no reference | | |party officials |company | |economy development|technology | | |1966-1976 |small:only for |state-owned |No |Economic stagnation|imports of foreign auto |rampant xenophobia | | |party officials |company | ...
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...globalization according to (International Business, 2009) is to Trend away from distinct national economic units and toward one huge global market. This means that instead if just using resources from a business’s country of origin that business may use several countries to manufacture or provide a service to the rest of the world. Some of the traditional trade theories were that if a business uses or outsources its labor or materials it is only hurting the labor force in its own country. However, from history it shows that if only the country of origin is used it hurts the competitiveness of the company using it still hurting its own country. Also in the past high tariffs were levied against imports making the countries own companies resort to charging more to cover the import costs. Some of the major drivers of globalization are labor costs, cost of manufacturing, and that in the global economy of today’s business is a 24-hour operation. To start with the labor costs to make car parts in America the average pay is about nine dollars an hour when in Malaysia it would be about 75 cents an hour the same would be true in Mexico and other less developed countries. When looking at cost of manufacturing there is not only labor but also environmental regulations that are more on the business side, and even safety. When there are fewer rules to follow the manufacturing, process costs can be lowered because of fewer regulations to follow. Third is the 24-hour marketplace where some computer...
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...General Motors could have made to make their diversification venture more successful. The analysis will include the company’s core business, the size of the companies, and the 2009 financial statements of the companies, the company’s global presence, and their use of e-business. The analysis will also contain the primary reason for the different outcomes. History of General Motors General Motors was founded by William Durant on September 16, 1908, in Flint Michigan. GM’s core business is making and selling automobiles. At the beginning, General Motors designed automobiles for the Buick Motor Company, but in a short amount of time General Motors acquired more than 20 companies. These companies include Oldsmobile, Cadillac, and Pontiac, to name a few. General Motors went through many phases of development from 1910-1929. General Motors new design over Ford’s Model T design set the pace for production, design, and the marketing innovation of vehicles. General Motor’s first diversification took place when it added Chevrolet, Vauxhall, and Opel. General Motors used its philosophy and strategy for marketing by stating “A car for every purse and purpose” (General Motors, 2011). Today General Motors is one of the largest automakers in the world. GM’s global headquarters is in Detroit, Michigan, and General Motors employs 209,000 people across the world. General Motors does business in 120 countries also. General Motors produces vehicles in 31 countries, and sells and services...
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...I chose the automobile industry because I feel that it is one of the largest and most innovative industries. The automobile industry is forever growing and forever changing. The history of the automobile begins as early as 1769, with the creation of steam engine automobiles capable of human transport. In 1806, the first cars powered by an internal combustion engine running on fuel gas led to the modern gasoline- or petrol-fueled internal combustion engine. The early history of the automobile can be divided into a number of eras, based on the prevalent method of automotive propulsion during that time. Ferdinand Verbiest, a member of a Jesuit mission in China, built the first steam-powered vehicle around 1672. By 1784, William Murdoch had built a working model of a steam carriage in Redruth, and in 1801 Richard Trevithick was running a full-sized vehicle on the road in Camborne. In Russia in the 1780s, Ivan Kulibin started working on a human pedalled carriage with a steam engine. He finished working on it in 1791.The first automobile patent in the United States was granted to Oliver Evans in 1789. In 1805, Evans demonstrated his first successful self-propelled vehicle, which not only was the first automobile in the USA, but was also the first amphibious vehicle. His steam-powered vehicle was able to travel on the road, on land, and via a paddle wheel in the water. What some people define as the first "real" automobile was produced by Amédée Bollée in 1873, who built self-propelled...
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...Title: Housing and car prices push up inflation Introduction: Singapore is a country where has very limited natural resources which therefore Singapore have to highly depend on imports goods. As we can see from statistic, the Import Price Index rose 2.3 per cent in March 2012, following the 2.4 per cent increase registered in the previous month, Ministry of Trade & Industry told. (March 2012). Retrieved from http://www.singstat.gov.sg/pubn/prices/ipimar12.pdf. As we are consuming a lots of imports products, , the prices of the products are more expensive compare to other countries such as Malaysia who has natural resources that can produce their own goods. Singapore, we can see that the prices of goods and services around us are continuing increasing. (Alvina Soh). (October 2011). On Wednesday, the COE price for big cars registered the steepest jump, of S$12,289 to S$75,889. This was followed by the Open Category COE which rose S$8,542 to S$73,600. Retrieved from http://www.channelnewsasia.com/stories/singaporelocalnews/view/1160394/1/.html. (Global Property Guide). (August, 2011). Non-landed property prices rose by 1.4% q-o-q in Q2 2011, compared to a 1.7% rise the previous quarter. Retrieved from http://www.globalpropertyguide.com/Asia/Singapore/Price-History. The goods that have the most rapid increase on the price are the houses and vehicles, as shown above, which therefore led to a sharp, accelerate inflation that I will discuss from the newspaper...
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...History of Central African Republic: The Central African Republic (CAR) is located in the heart of equatorial Africa. The country, with an estimated population of 4.4 million and a landmass of 622,984 sq km , is landlocked, sharing borders with Chad, Sudan, Democratic Republic of the Congo (DRC), Republic of the Congo, and Cameroon. The country, a former colony of France (formerly known as Ubangi-Shari), gained independence on August 13, 1960. Like most former colonies, CAR was subject to interference in domestic affairs by its former colonizer. The French were linked to the death of Barthélémy Boganda, the country’s pre-independence leader . The French were also directly involved in several coups within the CAR. Following the death of Boganda, David Dacko a former Boganda aide, would go on to become the country’s first President (with assistance from France). During his first term as president, Dacko significantly increased the country’s diamond production, and even had a diamond cutting facility built in the country’s capital city of Bangui. As a result, diamonds became the co... ... middle of paper ... ... documents, administrative fees for customs clearance and technical control, terminal handling charges and inland transport. The cost measure does not include tariffs or duties. Based on the Bank’s data the cost for importing one 20-foot container into the CAR is $ 5,554, and the cost for exporting, $5,491. Compared to the Sub-Saharan average of $2,365 and $1...
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...History of Central African Republic: The Central African Republic (CAR) is located in the heart of equatorial Africa. The country, with an estimated population of 4.4 million and a landmass of 622,984 sq km , is landlocked, sharing borders with Chad, Sudan, Democratic Republic of the Congo (DRC), Republic of the Congo, and Cameroon. The country, a former colony of France (formerly known as Ubangi-Shari), gained independence on August 13, 1960. Like most former colonies, CAR was subject to interference in domestic affairs by its former colonizer. The French were linked to the death of Barthélémy Boganda, the country’s pre-independence leader . The French were also directly involved in several coups within the CAR. Following the death of Boganda, David Dacko a former Boganda aide, would go on to become the country’s first President (with assistance from France). During his first term as president, Dacko significantly increased the country’s diamond production, and even had a diamond cutting facility built in the country’s capital city of Bangui. As a result, diamonds became the co... ... middle of paper ... ... documents, administrative fees for customs clearance and technical control, terminal handling charges and inland transport. The cost measure does not include tariffs or duties. Based on the Bank’s data the cost for importing one 20-foot container into the CAR is $ 5,554, and the cost for exporting, $5,491. Compared to the Sub-Saharan average of $2,365 and $1...
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