Automotive Industry

The automotive industry, one of the most important industries in the world, has left its mark not only on the economy but also on the world cultures. The automotive industry is involved in the design, development, manufacture, marketing, and sale of motor vehicles.

More than 73 million motor vehicles, such as cars and commercial vehicles were produced worldwide in 2007 with a total of 71.9 million of new automobiles sold: 22.9 million in Europe, 21.4 million in Asia-Pacific and 19.4 million in USA and Canada. While markets in North America and Japan have stagnated, those in South America and Asia have grown, with the most rapid growth coming from Russia, Brazil and China.

The Automotive Industry produces automobiles and other gasoline-powered vehicles, like buses, trucks, aeroplanes, and motorcycles, but also electricity-powered vehicles, such as trains. Not only does it provide jobs for millions of people worldwide, but the revenues generated reach well over billions of dollars, providing the necessary base for a wide range of other service and related industries.

The invention of automobiles revolutionized transportation in the early 20th century, and the way people lived and commuted for pleasure or business was forever changed. Goods could be taken farther and faster, and new market areas were now opened to facilitate business and commerce.

Overall costs of production were brought to a minimum with methods such as mass production, meaning that several products were made at once, mass marketing- products were sold nationally not only locally), and last but not least, globalization of production assembling products with parts manufactured all over the world.

However, in 2008 due to increased oil prices the automotive industry is subject to pressures from higher prices of raw material combined to changes in the buying habits of consumers. Moreover, the industry is at the same time up against external high competition coming from the public transport sector, since consumers are just now starting to evaluate the use of their private vehicle.

In North America, the automobile industry is dominated by the famous Big Three:

General Motors (producer of Chevrolet, Pontiac, Buick and Cadillac, etc)
Chrysler (Chrysler, Jeep and Dodge)
Ford Motor Co – (Ford, Lincoln and Volvo)

Unfortunately, the automobile also means related problems, like air pollution, the emission of gases leading to imminent global warming, traffic, not to mention fatalities. Nevertheless, the automotive industry is still an important source of employment and transportation for billion of people all over the world.

And if any part of the automotive industry incites passion it is racing.

Automotive racing is about speed and power and its history evokes romance. Today races are run over well-constructed tracks protected from the viewers. The drivers climb into their cars with the confidence that they were meticulously tuned by top mechanics who have worked to the point of exhaustion to insure that the machines at the starting post are as perfect as human expertise can achieve. However, in its infancy, racing was a different story. Races were run on blocked off sections of roads. Drivers drove with the hope that their vehicles could make it to the finish line and perhaps even be the first across. This was the era before television when only artists could convey the passionate hope that accompanied each entrant.

One such artist was Rene Vincent. Vincent was a French artist, born in 1879. Very little is known about his life. He began his art career as a fashion illustrator and gained recognition in that genre. But his obsession with automobiles soon drove him to racing and automotive art. Vincent was fond of illustrating race cars but he also did advertising posters. Vincent was featured in a number of top magazines of his day including La Vie Parisienne and the Saturday Evening Post. And he crafted posters for the Au Bon Marche Department Store. As a result of his various commissions he became known as the automobile poster artist of his era.

Nevertheless, the influence of fashion can be seen in his automotive works. In creating advertising illustrations for the cars of his times it is obvious he appreciated the selling power of a beautiful lady along side the automobile. His “Irat Automobiles Georges” depicts a young man seated behind the wheel giving a good night kiss to his high fashion lady friend standing along side the car. “Salmson,” considered one of his best works, shows a lady outfitted in a heavily fur trimmed jacket over a long, flowing skirt standing next to the automobile.

Vincent died in 1936 but he would be succeeded by Geo Ham, another noted vintage poster artist. Ham whose birth name was Georges Hamel was born in 1900 in Lavelle, France. Like many small boys of that age and this one, George fell in love with cars, especially the early racecars. For a while, he was a part-time racecar driver and his experiences on the track lent a certain realism to his work.

Ham attended the Ecole des Arts Decoratifs in Paris where he studied art. He did numerous illustrations for automotive catalogs and magazines. However, his most famous works are his posters depicting the Grand Pix of Monaco and the 24 Hours of LeMans. Ham died in 1972.

The automotive industry is facing its worst crisis in living history. Sales of vehicles have slumped in most markets and many Vehicle Manufacturers around the world are facing bankruptcy or bail out by governments. ( http://www.bharatbook.com/detail.asp?id=51010&rt=Global-Automotive-Logistics.html )

The consequences for the logistics industry are severe. With so much of the logistics sector’s revenues linked to the fortunes of the auto industry it is unsurprising that many companies face an uncertain future. Closure or mothballing of major plants results in shock waves throughout the supply chain.

Within this market environment, understanding the strategies of the Vehicle Manufacturers, Component Suppliers and Logistics Service Providers—whether contract, rail or road—is fundamental to survival and success.

The unique set of circumstances which the industry finds itself in, means that companies need not only long term, strategic information on the production and supply chain management strategies which the major players in the market have adopted, but also information on the impact which crisis-driven management decisions are having right across the logistics industry.

How will you benefit from Global Automotive Logistics 2009?

Global Automotive Logistics 2009 will enable you to gain insight into:

leading Vehicle Manufacturers’ supply chain strategies and their relationships with their logistics providers.

decisions being taken to cut production and their impact on logistics service providers.

development strategies of the key global logistics service providers.

automotive business specific to the shipping, rail and integrated logistics sectors

structure of the industry in the Americas, Asia Pacific (including Japan and China), Western and Central European regions.

inbound, spare parts and finished vehicle logistics markets.

market size and future growth forecasts for the market in the key regions and segments.

key production locations for all the major Vehicle Manufacturers.

Market trends, developments, size and forecasts

Global Automotive Logistics 2009 is packed full of insightful analysis and quantitative data which will give you an all-round understanding of the market and the manufacturers, component suppliers and logistics service providers which operate in it. The report examines the crisis which is affecting the demand-side of the industry and how this is impacting on the key logistics sectors associated with it. It includes market sizing, broken down into inbound, spare parts and finished vehicle segments for the North American, European and Japanese markets as well indicative growth forecasts.

To know more and to buy a copy of your report feel free to visit : http://www.bharatbook.com/detail.asp?id=51010&rt=Global-Automotive-Logistics.html

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The Automotive Hall of Fame was originally founded on October 18, 1939 in New York City by a group of men that had devoted their lives to the automotive industry. They met in New York City with the intention of creating an organization that would forever perpetuate the memories of the early automotive pioneers as well as the leaders in the industry at the time. The original organization was known as the ‘Automobile Old Timers’ and has since had its name changed to the Automotive Hall of Fame. The organization is dedicated to honoring automotive people from all of the industries segments and from around the world.

The Automotive Hall of Fame was originally based in Washington D.C. but has since moved and made its permanent home in Midland, Michigan. Midland is roughly 120 miles out of Detroit, the hub of the automotive world in the United States. The organization moved to D.C. in 1960 and then left for Midland in 1971. The first Automotive Hall of Fame building was constructed in Midland, Michigan in 1975.

After 22 years in Midland, the Automotive Hall of Fame decided to move once again. This time, in 1997, the organization moved to Dearborn, Michigan. Since its inception over 60 years ago, the Automotive Hall of Fame has enshrined over 200 members that include pioneers from Benz, Bosch, Bugatti, Chevrolet, Chrysler, Citroen, Daimler, Dodge, Durant, Duryea, Ferrari, Ford, Honda, Maybach, Olds, Peugeot, Porsche, Renault, Sloan and Toyoda. The Automotive Hall of Fame welcomes nearly 30,000 visitors on a yearly basis.

There are four categories recognized by the Automotive Hall of Fame. Those four categories are induction, the distinguished service citation, the industry leader of the year, and the young leadership and excellence award. To become an inducted member in the Automotive Hall of Fame that person must either be retired from the industry or deceased. The Hall of Fame’s standards say that that person “must have significantly impacted the development of the automobile or the motor vehicle industry.” Usually there are anywhere from four to eight members inducted each year.
The distinguished service citation is the organization’s oldest award and was initiated in 1940. To win this award, one must either be employed in the industry or recently retired. Anywhere from five to six people are given this award each year. The industry leader of the year award is given to one individual each year that demonstrates outstanding industry leadership. The fourth award, the young leadership and excellence award, is awarded to people in the industry 35 years or younger. The award is given out annually and is awarded to only four people. The purpose of the award is to recognize the future of the industry and its next generation of leadership within the industry.

Anyone can nominate candidates for each award by simply logging onto the Automotive Hall of Fame’s website. The Automotive Hall of Fame is operated by a Board of Directors currently headed by Chairman Jason Vines who is the Senior Vice President of Communications for the Compuware Corporation. There are also two vice chairmen, a treasurer, a secretary, executive directors, a president, directors, and directors emeriti.

Automotive magazines are just as popular as sports magazines and home improvement magazines. Why? Automotive magazines are so popular because they showcase classic cars, new cars, model cars, how to build cars from scratch and much more. The automotive industry is a popular one in the United States today and people love their cars and they want to know as much about their car as possible after they are done reading the car’s manual.

Automotive magazines are sold everywhere today and are collector’s items just like sports magazines become when they have historic covers on certain issues. Automotive magazines are sold at convenience stores, department stores, book stores, on their individual websites and on search engines by people looking to make a buck here or there because they have more than one copy of the magazine. Automotive magazines not only offer tips on how to take care of a car, how to build a car, how to remodel a car, but also how to repair a car yourself.

Collecting classic cars has become a popular hobby over the years and some of the most famous people in the world are car buffs. One of them for example is late night host Jay Leno. Leno owns over 100 classic vehicles that date back to the early 1900s. His collection also includes modern vehicles and motorcycles. His collection of cars has been featured on his show, “The Tonight Show,” in books, movies, other television shows, and in automotive magazines quite often.

There are all types of automotive magazines out there. There are print magazines and online magazines available for people to subscribe to. They can be delivered by the mail, through email, or can be purchased in stores or at newsstands when they are published. There are hundreds of automotive magazines offered for subscription and purchase around the world today and the number continues to grow with the continued popularity of the automotive industry.

There are automotive magazines for almost every major manufacturer, for individual makes and models, for model cars, for the avid and beginner collector, for the seller, for the buyer, for the builder, for the repair man, for the traveler and much more. One of the most popular automotive publications to hit the newsstands every year is the Kelly Blue Book. The Kelly Blue Book releases the values of every car in production today and every car that has been produced in the past. The Kelly Blue Book is used by buyers and sellers alike to figure out what price they should purchase a car at or at what price they should put a car up for sale.

The automotive magazine industry is a lucrative one that thrives off of people’s different hobbies with their cars or for their sheer love of their own car. Automotive magazines make a great gift for the car lover in the family as well a fun read for anyone with just the tiny bit of interest in the automotive industry. They can be informative, helpful, fun to read and a great collector’s item all in one.

The rise in foreign investment has led to the rapid growth of automobile production, its export and developing of a more strong automobile industry. Overseas companies are making huge investments and are installing extensive production capacities in many developing countries. Today, the increase in the purchasing power and standards of living of people has resulted in the increased demand of automobiles especially four-wheelers in the developing nations. The fast pace of life and changes in lifestyles necessitates safer mobility for commuting to and from the work place and for traveling long distances. Research & development has resulted in increased productivity, better quality of automobiles and automotive accessories all across the globe. Low cost vehicles that are scooters and motorcycles have led to the massive growth of some of the fastest developing economies. The future of automotive industry in the developing countries seems bright and promising because of its further growth potential.

A lot of the major automotive giants are shifting their production facilities to almost all emerging markets with the main purpose of gaining better access and reduction in their production costs. According to the figures, South America and Asia have witnessed a boom in the past years. The various factors such as cheap financing and price discounts, rising income levels and infrastructure development have helped increasing the growth and development of automotive sector in the majority of developing countries around the world. The global automobile industry along with components and parts is expected to reach US$ 1.9 trillion by 2015, growth and it is thus evident that the economical potential of the auto industry is very high.

Reasons for the boost witnessed in the certain regions for the automobile industry are due to the availability of infrastructure facilities such like power supply, machinery, capital and availability of raw materials with efficient and relatively cheaper labor. Automotive industry is providing employment to a population of about 25 million people in the world. This industry not only provides millions of jobs to the people, but also produces billions of dollars in terms of worldwide revenues to many countries that are linked directly or indirectly with automobile industry.

This industry is developing new markets worldwide but major shares still remain in the prominent automotive manufacturing regions. North American regions like New England, New York and the Mid-Atlantic, Central New York, Pittsburgh/Cleveland, Western Great Lakes, St. Lawrence Valley, Ohio and Eastern Indiana, Kanawha and middle Ohio Valley, St. Louis, the Southeastern region, Gulf Coast, Central Florida, and the West Coast are the major contributors towards the automotive industry in the USA. The European Union has the largest automotive production regions in the World. The key automobile manufacturing regions are United Kingdom, Rhine-Ruhr River Valley, Upper Rhine – Alsace – Lorraine region, and the Po Valley in Italy.

The global automotive component industry is highly diverse and comprises of various product segments like engine parts, drive transmission and steering parts, suspension & braking parts, electrical parts and other auto components parts.

Rising fuel prices, unstable financial markets and taxation changes with the apparent aim of getting us to use our cars less often (or at least pay more to use them) have been just some of the issues that have affected the automotive industry in the past 12 months. This article looks at what 2008 may hold for the automotive industry and road users in general.

The US economy and the resulting weakness of the dollar looks like it may well contribute to the price of crude oil continuing to rise as investors have been holding the commodity instead of dollars. This means that as the cost of a barrel of crude oil comes close to the $100 figure then so fuel prices have also continued to rise.

So do higher fuel costs mean we are likely to buy or use cars, vans and Lorries less in 2008? Well seemingly not based on a latest poll of motorists. Despite fuel prices increasing at alarming rates a whopping 79 percent of motorists questioned said they had not changed their petrol and fuel buying habits and had no plans to do so. In fact the motorists questioned said petrol prices would have to increase at even more alarming rates to stop them from filling up.

Environmental issues would it seem not be as important as governments throughout the world as over 1 in 3 motorists confirmed they had no plans to replace their vehicles for more environmentally friendly cars before 2010.

And so if motorists are seemingly unaffected by rising fuel costs and are prepared to continue driving despite increased road tax and the impact on the environment surely positive times are ahead for the industry in 2008?

Well before car manufacturers and dealers start doing cartwheels, caution would certainly be advised as whilst General Motors can seen promising performance in emerging markets they have seen big losses in both American and European markets.

And with the world economy in such an uncertain state as 2007 draws to a close 2008 could well see new car sales fall with used car sales increasing. Car sales and indeed sales of all types are also likely to increase via the internet in 2008 so car dealers (new and used) without an internet presence should really be looking at establishing themselves in this emerging marketplace.

And what of the actual motorist, what does 2008 have in store for us? Well how about further increases in vehicle tax, more toll roads, increased congestion charges and still a seeming lack of a viable alternative to road use through reliable, clean and safe public transport.

The good news for some motorists on one front is that whilst the government is seemingly do all they can to penalise the motorist, insurance premiums including car insurance, van insurance and motor trade insurance are pretty stable. In fact with such competition in the insurance industry the cost of insurance like combined motor trade insurance could even fall and savings could be made.

And motor traders who are looking to make savings on their motor trade insurance premiums in 2008 using a specialist insurance broker could well be the route to take to make sure they get the protection they need at a price that is right.

It is no surprise that amidst the increasingly larger hikes in fuel prices driven by the fact that the planet’s supply of petroleum is dissipating, the automotive industry is feeling the pinch more than any other. With many companies falling or are already fallen, the surviving ones are now wisely channeling their resources in developing vehicles which run on alternative fuel and the most popular choice is clearly the hybrid.

Hybrids are the first forms of cars to battle the ongoing fuel crisis. Evidently, the name which pops up anywhere across the world when the term hybrid is brought up is the Toyota Prius. This is mainly because the Prius was the first hybrid vehicle to be built in masses as they have proven among all the other alternative fuel concepts during the late 90s and early years of the new millennium to be the most practical and applicable in real world situations. Basically, hybrids are cars which run on the usual gasoline with the difference being the addition of an extra fuel supply, most commonly in the form of electricity which gets supplied from battery cells. While the Prius has been dominating over all these years, many other hybrids are available on the road today but one of the most notable cars in this segment is the upcoming second generation of Honda’s Insight, a hybrid car designed and engineered specifically to go up against the Prius in a blatant one on one.

While the idea of electric cars have always been a point of discussion but not so in application due to cost and practicality issues, they are hitting the roads lately and one of the one model swarming roads the most across the globe is possibly the Reva G-Whiz. Being under lots of controversy in the automotive industry due to its minimalist nature which is considered unsafe and not up to the standards of being a car, this tiny two-seater from India is in fact labeled as a quadtricycle in markets like the UK’s. On a more fast and furious note, the Tesla Roadster, an electric sports car borrowing the body of Lotus’ well-proven Elise’. While this car is earning rave reviews for its performance despite its electric underpinnings, many are expressing their doubts over the durability and sustainability of the electric cells that power not only the Tesla, but other electric vehicles alike.

Over the years, there have been debates about hybrids not being as good as people are made to think and the technology of electric cars as yet being simply impractical for normal usage. Diesel cars have gained in popularity due to this combined with rising prices at the pumps as cars such as Volkswagen’s entry level green car, the Polo Bluemotion, has on many tests and occasions proved that it can easily dwarf the mpg ratings of a Toyota Prius. Electric vehicles cannot be considered as economical or environmental either as most of our electricity supply comes from plants which burn petroleum to generate the electricity as well.

With ever changing takes on alternative fuel, Honda has made a breakthrough of late, introducing the Honda FCX Clarity, a car which runs of hydrogen and with the debates still going strong on alternative fuel vehicles, the technology Honda is implementing here might be the most significant yet in this battle as hydrogen is unlike the rest, an element which is never likely to run out. Only the world of tomorrow shall tell.