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Automotive industry

Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells the world’s motor vehicles. In 2007, more than 73 million motor vehicles, including cars and commercial vehicles were produced worldwide.[1] In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.[2] The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most rapid growth. About 250 million vehicles are in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and India.[3] Urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars.[4][5][6] The sustainable transport movement focuses on solutions to these problems. In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers reevaluate their private vehicle usage.[7] Roughly half of the US’s fifty one light vehicle plants are projected to permanently close in the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade.[8]

The Brazilian automotive industry produced almost 3 million vehicles in 2007. Most of large global companies are present in Brazil, such as Fiat, Volkswagen, Ford, GM, Nissan, Toyota, Mitsubishi, Mercedes-Benz, Renault etc, and also the emerging national companies such as Troller, Marcopolo S.A., Agrale, Randon among others. The Brazilian industry in regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), created in 1956, which includes Auto makers (automobiles, light vehicles, trucks and buses)and Agriculture machines with factories in Brazil. Anfavea is part of the Organisation Internationale des Constructeurs d’Automobiles (OICA), based in Paris.


Lotus Cars final assembly line The British motor industry has always been export oriented. Today it employs about 850,000 people and produces about 1.5 million cars and 216,000 commercial vehicles per year, 75% of which are exported.[9] The top five UK car producers are Nissan, Toyota, Honda, MINI and Land Rover.[10] However, international competitiveness of UK cars have declined consistently since the 1990s and the country became unable to sustain production on par with Germany or France. Since 2000, motor vehicle production fell from 1,813,894 to 1,750,253.[11] The country



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was overtaken by fast industrializing economies such as Brazil, India and Mexico.[11] The UK is the 12th largest automobile producer in the world but Russia is poised to overtake it in 2008.[11]

Automotive industry
province of Ontario: General Motors of Canada, Honda Canada, Chrysler Canada, Toyota Canada, and Ford of Canada. True Canadian domestics have long since gone under or been absorbed into the US "Big 3". The auto industry is Canada’s biggest sector, and the province of Ontario surpassed Michigan in 2006 to become the largest auto-producing jurisdiction on the American continent. In addition to production facilities, 3,500 car dealers employ 140,000 individuals. Magna International is Canada’s biggest domestic firm in the sector, and is the world’s third-largest auto parts firm, producing entire vehicles at its Magna Steyr plant in Austria.

Canada is currently the 9th largest auto producer in the world, down from 7th a few years ago. Brazil and Spain recently surpassed Canadian production for the first time ever. Canada’s highest ranking ever was 2nd largest producer in the world between 1918 and 1923. The Canadian auto industry traces its roots to the very beginning of the automobile. The first large-scale production of automobiles in Canada took place in Walkerville, near Windsor, Ontario in 1904. In the first year of operations, Gordon McGregor and Wallace Campbell, along with a handful of workmen produced 117 Model "C" Ford vehicles at the Walkerville Wagon Works factory. Through marquees such as Brooks Steam, Redpath, Tudhope, McKay, Galt Gas-Electric, Gray-Dort, Brockville Atlas, C.C.M., and McLaughlin, Canada had many domestic auto brands. In 1918 McLaughlin was bought by an American firm, General Motors, and was re-branded as General Motors of Canada. Driven by the demands of World War I, Canada’s automotive industry had grown, by 1923, into the second-largest in the world, although it was still comprised of relatively inefficient plants producing many models behind a high tariff wall. High consumer prices and production inefficiencies characterized the Canadian auto industry prior to the signing of the 1965 Automotive Products Trade Agreement with the United States. The 1964 Automotive Products Trade Agreement or “Auto Pact” represents the single most important factor in making the Canadian automotive industry what it is today: a strong, successful industry that has a significant positive impact on the Canadian economy. Key features of the Auto Pact were the 1:1 production to sales ratio and Canadian Value Added requirements. Today, the Canadian auto industry is closely linked to that of the U.S., due to the Automotive Products Trade Agreement and later the North American Free Trade Agreement (NAFTA). There are five firms manufacturing automobiles in Canada, all in the

China’s automobile industry is in rapid development since the year 2000. In 2008, 9.345 million motor vehicles were manufactured in China, surpassing United States as the second largest automobile maker, after Japan. Moreover, due to the current financial crisis, China is the largest automobile market in the world for the first four months of year 2009, with total sale of 3.84 million vehicles. China may surpass United States and become the largest car market for the whole year of 2009. The top 5 car sellers are Volkswagen, GM, Toyota, Nissan and Chery.


Volkswagen assembly line in 1973 The automobile was invented in Germany by Carl Benz. Furthermore, the four-stroke internal combustion engine used in most automobiles worldwide today was invented by Nikolaus Otto in Germany. In addition, the diesel engine was also invented by German Rudolf Diesel. On the one hand, Germany is famous for the high-performance and high-


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quality sports cars made by Porsche, on the other hand, the cars by Mercedes-Benz are famous for their quality, safety and innovativeness. Daimler-Benz is the industry’s oldest firm, building automobiles since the late 1880s; its current structure dates from 1926. In 1998 it bought the American automobile manufacturer Chrysler, then sold out in 2007 at a heavy loss as it never managed bring the division to long term profitability. In the popular market, Opel and Volkswagen are most well known. Opel was a bicycle company that started making cars in 1898; General Motors bought it out in 1929, but the Nazi government took control and GM wrote off its entire investment. In 1948 GM returned and restored the Opel brand. Volkswagen is dominant in the popular market; it purchased Audi in 1964. VW’s most famous car was the small, beetleshaped economical "people’s car" with a rear-mounted, air-cooled engine. It was designed in the 1930s by Ferdinand Porsche upon orders from Adolf Hitler, who was himself a car enthusiast. However production models appeared only after the war; until then only rich Germans had automobiles. By 1950 Volkswagen was the largest German automobile producer,[12] today, it is one of the three biggest automotive companies, but it is now part of the Porsche Automobil Holding SE. In the meantime, ten different car manufacturers belong to the multicorporate enterprise: Porsche, Volkswagen, Audi, Bugatti, Lamborghini, Bentley, Škoda Auto, MAN, SEAT and Scania AB. Germany is famous for its upscale sedans. They feature suspension systems that provide both a soft ride and good handling characteristics. Many manufacturers limit their automobiles electronically to driving speeds of 250 km/h (155 mph) for safety reasons. Daimler AG produces the upscale Mercedes-Benz, long a famous name in racing, as well as the innovative city vehicle Smart. BMW (founded 1916), Audi and Porsche are major factors in the sportive luxury market worldwide.[13] Porsche formed his own company, which today produces expensive, high-quality sports cars.[14] In 2008 the Porsche company sought control of the much larger Volkswagen company; Porsche cornered the market for Volkswagen stock and made profits of tens of billions of Euros, while apparently gaining control of the bigger company.

Automotive industry

Japan, with its large population squeezed into very high density cities with good public transit, has limited roadways that carry very heavy traffic. Hence most automobiles are small in terms of size and weight. From a humble beginning, Japan is now the biggest auto manufacturing country in the world. Nissan began making trucks in 1914, and sold cars under the Datsun brand until it switched to Nissan in the 1980s. It opened its first U.S. plant in Tennessee in the early 1980s and a U.K. plant in 1986. Its luxury models carry the brand Infiniti. Honda, which began with motorcycles, emerged after World War II. Its luxury vehicles are sold under the Acura brand. Toyota began making cars in the 1930s and is now the world’s largest producer. The Toyota Corolla is the worlds best selling nameplate. Its luxury models carry the Lexus brand. Toyota is famous for its innovative, quality-conscious management style, and its hybrid gas-electric vehicles, especially the Prius, which was launched in 1997. Other major companies include Subaru, Mitsubishi, Mazda, Suzuki, and Isuzu. Japan became the world’s leading auto maker in 1980, the first year since 1905 that the United States had been outproduced by any other nation. Japanese Cars are often associated for their Excellent Dependability, Excellent Quality, and well engineered engines and advanced Technology.

South Korea

Assembly line at Hyundai Motor Company car factory in Ulsan, South Korea. The South Korean automobile industry is today the fifth largest in the world in terms of production volume and the sixth largest in


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terms of export volume. 50 years ago, its initial operations were merely the assembling of parts imported from Japan and the United States. The Hyundai Kia Automotive Group is today the second largest automaker in Asia, after Toyota. Annual domestic output exceeded one million units in 1988. In the 1990s, the industry manufactured numerous in-house models, demonstrating not only its capabilities, and signalling its coming of age thanks to the heavy investment to infrastructure in the country over the decades. While the quality of their automobiles have improved in recent years, South Korean makers continue to face image problems in the minds of many buyers.

Automotive industry
• Ford holds a 13.4% stake in Mazda and an 8.3% share in Aston Martin. • Geely Automobile holds a 23% stake in Manganese Bronze Holding, manufacturing the London taxi. • General Motors and SAIC have two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile. • General Motors still holds a 3% stake in Suzuki. GM is currently in the process of selling the 3% stake back to Suzuki. Suzuki is also partner with GM in GMDAT, CAMI, and GM Argentina.[17] • GM and Toyota have a joint venture in New United Motor Manufacturing, Inc, an automobile plant in Fremont, California. • Porsche Automobil Holding SE announced on January 6, 2009 that it now owns 50.76% of Volkswagen, making the Volkswagen Group a subsidiary. • The Renault-Nissan alliance involves two global companies linked by crossshareholding, with Renault holding 44.3% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares. • Renault holds 20.5% of the voting stakes in Volvo Group. • Toyota holds a 51% controlling stake in Daihatsu, and 16.5% in Fuji Heavy Industries, parent company of Subaru. • The Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), and a 29% stake in MAN. • Volkswagen Group and SAIC have a joint venture in Shanghai Volkswagen Automotive.

United States

Crisis in the auto industry World motor vehicle production
See also: List of countries by motor vehicle production

Company relationships
It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies. Notable current relationships include: • Chrysler is currently engaged in negotiations with Fiat that would have Fiat take a 20% stake in Chrysler that would be increased to 35%; with the option of increasing its stake further.[15]. • Daimler AG holds a 19.9% stake in Chrysler and a 40.0% stake in McLaren Group . • Daimler AG holds a 20% stake in Eicher Motors , a 6.75% stake in Tata Motors and a 10.0% stake in KAMAZ . • Dongfeng Motor Corporation is involved in joint ventures with several companies in China, including: PSA Peugeot Citroen of France, Honda, Nissan of Japan, Nissan Diesel (Volvo Group) of Japan, and Hyundai Kia of South Korea. • Fiat S.p.A. holds a 85% stake in Ferrari[16]

Top vehicle manufacturing groups (by volume)
The table below shows the world’s largest motor vehicle manufacturing groups, along with the marques produced by each one. The table is ranked by the latest production figures from OICA 2007[18] for the parent group, and then alphabetically by marque. Notes * The OICA statistics rank the Toyota subsidiary companies Daihatsu and Hino separately, and Porsche separately from the Volkswagen Group and Hyundai separately from Kia; in this table they are included with Toyota[19] and Porsche[20] and Hyundai Kia[21] respectively.


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Marque Country of origin Ownership Markets Japan)

Automotive industry

1. Toyota Motor Corporation (
Daihatsu* Hino* Lexus Scion Toyota Subsidiary Subsidiary Division Division Division

Global, except North America and Australia Asia Pacific, Canada and South America Global North America Global United States)

2. General Motors Corporation (
Buick Cadillac Chevrolet Daewoo GMC Holden Hummer** Opel** Pontiac*** Saab** Saturn*** Vauxhall Division Division Division Subsidiary Division Subsidiary Division Division Division Subsidiary Division Subsidiary

North America, China, Israel, Taiwan Global Global Asia, South America, South Africa North America, Middle East Australia, New Zealand, Middle East Global Europe (except UK), South Africa North America Global North America, Japan, Taiwan United Kingdom Germany)

3. Porsche Automobil Holding SE (
Audi Bentley Bugatti Lamborghini Porsche Scania SEAT Škoda Volkswagen Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Global Global Global Global Global Global

Europe, Latin America Global, except North America Global

4. Ford Motor Company (
Ford Lincoln Mercury Troller Volvo (cars)

United States) Global North America, Middle East North America, Middle East South America and Africa Global South Korea)

Division Division Division Subsidiary Subsidiary

5. Hyundai Kia Automotive Group (
Hyundai Division Global


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Kia Subsidiary

Automotive industry

Global, except Middle East and Africa (except South Africa)

6. Honda Motor Company (
Acura Honda Division Division

Japan) North America, China, Russia Global France) Global, except North America Global, except North America

7. PSA Peugeot Citroën S.A. (
Citroën Peugeot Subsidiary Subsidiary

8. Nissan Motor Company (
Infiniti Nissan Division Division Italy)

Japan) North America, Middle East, Taiwan, South Korea, Russia, Caucasus, Europe Global

9. Fiat S.p.A. (
Abarth Alfa Romeo Ferrari Fiat Iveco Lancia Maserati

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary France) Subsidiary Division Subsidiary

Global, except North America Global Global Global, except North America Global, except North America Global, except North America Global

10. Renault S.A. (
Dacia Renault (cars) Renault Samsung

Europe, Latin America, Asia, Africa Global, except North America Asia, South America Japan) India, Middle East, South America Global

11. Suzuki Motor Corporation (
Maruti Suzuki Suzuki Subsidiary Division United States) Division Division Division Germany) Division Subsidiary Division Division

12. Chrysler LLC (
Chrysler Dodge Jeep

Global Global Global

13. Daimler AG (
AMG Freightliner Maybach MercedesBenz

Global North America, South Africa Global Global


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Mitsubishi Fuso Orion Setra Smart Thomas Western Star Subsidiary Subsidiary Subsidiary Division Subsidiary Subsidiary Germany) Division Division Subsidiary Global Global Global Japan) Global North America Europe

Automotive industry

North America, Western Europe, Southeast Asia, South Africa North America North America

14. BMW AG (
BMW MINI Rolls-Royce

15. Mitsubishi Motors Corporation (
Mitsubishi NedCar Division Subsidiary Global Global Japan) Global

16. Mazda Motor Corporation (
Mazda Division Russia) Division Division

17. AvtoVAZ (
Lada VAZ

Russia, Europe Russia, Eastern Europe

18. FAW Group (
Besturn Haima Hongqi

People’s Republic of China) Division Subsidiary Division China China China

19. Tata Motors Limited (
Hispano Jaguar Land Rover Tata Tata Daewoo

India) Europe Global Global India, South Africa South Korea

Subsidiary Subsidiary Subsidiary Division Subsidiary

20. Fuji Heavy Industries (
Subaru Division

Japan) Global People’s Republic of China)

21. Chang’an Automobile Company (
Chang’an Division Japan) Division

China, South Africa

22. Isuzu Motors (

Global, except North America People’s Republic of China) China China

23. Beijing Automobile Works (
BAW Beijing Jeep Division Subsidiary


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Foton Haice Subsidiary Subsidiary China China

Automotive industry

24. Dongfeng Motor Corporation (
Dongfeng Division China

People’s Republic of China)

25. Chery Automobile (

People’s Republic of China) China, South Africa, Southeast Asia People’s Republic of China)


26. Shanghai Automotive Industry Corporation (
MG Roewe Soyat SsangYong Yuejin Subsidiary Division Division Subsidiary Division UK China China

South Korea, South Africa, Europe, Australia China People’s Republic of China)

27. Brilliance China Automotive Holding (
Brilliance Jinbei Division Subsidiary Russia) Division Subsidiary Subsidiary Sweden) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Division Global Global Global North America North America Global Russia Europe Russia China China

28. GAZ (

29. Volvo Group (
Mack Renault (trucks) Nissan Diesel NovaBus Prevost Volvo (trucks)

30. Harbin Hafei Automobile Industry Group (
Hafei Division China

People’s Republic of China)

31. Geely Automobile (
Geely Maple

People’s Republic of China) China China People’s Republic of China)

Division Division

32. Anhui Jianghuai Automobile Company (
JAC Division India) Division United States) Subsidiary China

33. Mahindra (

India, South Africa

34. Paccar Inc (

Global, except North America


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Kenworth Leyland Peterbilt Division Subsidiary Division North America Europe North America People’s Republic of China)

Automotive industry

35. Great Wall Motor Company (
Great Wall Division

China, South Africa

36. Changhe (

People’s Republic of China) Division China

37. BYD Auto (
BYD of China) Huanghe Sinotruk

People’s Republic of China) Division China People’s Republic

38. China National Heavy Duty Truck Group Company (
Division Division Germany) Division Division Europe South America United States) North America North America China China

39. MAN AG (
MAN VW Trucks

40. Navistar International (
IC International Division


41. Fujian Motor Industry Group (
Fujian Division Russia) Division China

People’s Republic of China)

42. UAZ (

Russia People’s Republic of China)

43. Shaanxi Automobile Group (
Shaanxi Division


44. Kaima (

People’s Republic of China) Division China are mostly regional or operating in niche markets.

** GM is in the process of selling Hummer, Opel, and Saab, to focus on four brands in its main markets; Buick, Cadillac, Chevrolet, and GMC. [22] *** GM announced April 27, 2009 that production for Pontiac and Saturn would cease by the end of 2009, and GM would also retire the Pontiac brand, while still considering the sale of Saturn.

See also
• • • • • • Big Three automobile manufacturers Category:Automotive industry by country Automotive market Automotive industry crisis of 2008 Alliance of Automobile Manufacturers Top 20 motor vehicle producing companies in 2007

Minor automotive manufacturers
There are many automobile manufacturers other than the major global companies. They

[1] "World Motor Vehicle Production by Country: 2005 - 2007". OICA.


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Automotive industry[14] Giancarlo Reggiani, Porsche: The statistics/. Legend: 1948 to Today (2007) [2] "2008 Global Market Data Book", [15] [1] Agence France-Presse Automotive News, p.5 [16] "Guide to global automaker [3] Plunkett Research, "Automobile Industry partnerships" (PDF). Introduction" (2008) [4] Kenworthy, J R (2004). "Transport _media/ Energy Use and Greenhouse Emissions c5ac9bd746b96200.2007_global_automaker_partners in Urban Passenger Transport Systems" Retrieved on 2009-04-06. (PDF). Institute for Sustainability and [17] Technology Policy. [18] "World Motor Vehicle Production: World Ranking of Manufacturers 2007" (PDF). Transport_Greenhouse.pdf. Retrieved on OICA. 2008-07-22. world-ranking-2007.pdf. Retrieved on [5] World Health Organisation, Europe. 2008-07-29. "Health effects of transport". [19] our_business/investor_relations/ 20021009_2. Retrieved on 2008-08-29. financial_data/2008/ [6] Social Exclusion Unit, Office of the Prime 20081106_supplemental.pdf Minister (UK). "Making the Connections [20] "Structure - Porsche SE - HOME final report on transport and social Porsche Automobil Holding SE". Porsche exclusion" (PDF). SE. url?sa=t&source=web&ct=res&cd=1& porschese/structure/. Retrieved on ASe9xe84uOEJTQt-DxuQ. Retrieved on 2009-05-01. 2003-02-01. [21] "Hyundai-Kia Automotive Group is [7] IBISWorld Newsletter, June 2008, world’s sixth largest automaker in GLOBAL TRENDS Oil – The Crude 2005 - Kia Motors Australia". Reality of Current trends, IBISWorld [8] Jeff Rubin (2009-03-02). "Wrong Turn" (PDF). CIBC World Markets. default.asp?action=article&ID=23739. Retrieved on 2009-05-01. economic_public/download/sfeb09.pdf. [22] CNBC [9] "Record breaking figures for 2007 UK vehicle production". SMMT. 2008-01-25. • Alliance of Automobile Manufacturers article.cfm?articleid=16852. Retrieved • Automotive engineering learning website on 2008-11-19. • Plunkett Research, "Automobile Industry [10] "Motor Industry Facts 2008" (PDF). Introduction" (2008) SMMT. • Automotive Industry Analysis downloads/MotorIndustryFacts2008.pdf. • All vehicle manufacturers in the world (in [11] ^ "List of countries by motor vehicle Dutch with English etc. translation) production - Wikipedia, the free • Car makes of the world, 1894—present encyclopedia". • Automotive history and photos • List_of_countries_by_motor_vehicle_production.Automaker Rankings 2007: The Environmental Performance of Car Retrieved on 2009-05-01. Companies [12] Terry Shuler, Volkswagen: Then, Now • GFC - Motor Industry Repurcussions and Forever(1997) Carsguide - Chrysler to file for bankruptcy [13] David Kiley, Driven: Inside BMW, the • GFC - Motor Industry Repercussions Most Admired Car Company in the World Carsguide - GM kills Pontiac (2004); Ferry Porsche, We at Porsche: The Autobiography of Dr. Ing. h.c. Ferry Porsche (1977)

External links

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Automotive industry

Categories: Automotive industry, Car manufacturers This page was last modified on 17 May 2009, at 12:10 (UTC). All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.) Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a U.S. registered 501(c)(3) taxdeductible nonprofit charity. Privacy policy About Wikipedia Disclaimers


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