Automobile IndustryEssay Preview: Automobile IndustryReport this essayAutomobile Industry, industry that produces automobiles and other gasoline-powered vehicles, such as buses, trucks, and motorcycles. The automobile industry is one of the most important industries in the world, affecting not only the economy but also the cultures of the world. It provides jobs for millions of people, generates billions of dollars in worldwide revenues, and provides the basis for a multitude of related service and support industries. Automobiles revolutionized transportation in the 20th century, changing forever the way people live, travel, and do business.
The automobile has enabled people to travel and transport goods farther and faster, and has opened wider market areas for business and commerce. The auto industry has also reduced the overall cost of transportation by using methods such as mass production (making several products at once, rather than one at a time), mass marketing (selling products nationally rather than locally), and globalization of production (assembling products with parts made worldwide). From 1886 to 1898, about 300 automobiles were built, but there was no real established industry. A century later, with automakers and auto buyers expanding globally, automaking became the worlds largest manufacturing activity, with nearly 58 million new vehicles built each year worldwide.
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The economy of the early 19th century was characterized by two major trends.
• economic growth averaged 1 percent a year from 1680 to 1895 and in 1900 it dropped to 30 percent of gross domestic product.
• This was because new industries, especially those involving machinery, increased the costs of labor and brought new manufacturers to markets. This accelerated the emergence of the new technologies of transportation and the increasing demand for new production for those same industries.
The advent of the automobile, however, led to an additional decline in economic growth. With automobile demand in the low-to-mid 30s, the number of vehicles on the road increased, but this increased, particularly in high-income areas like China. During the early 20th century, the rise of the automobile allowed new cars to enter the market with increased efficiency and lower fuel costs, but no new vehicles were launched. In fact, the first two decades of the 21st century proved that the introduction of automobiles in many areas, especially for the poor, would lead to substantial reductions of costs. During this same period, high inflation led to a sharp drop in purchasing power and an increase in the price of gasoline.
This has led to shortages, in one form or another.
Although there have been few serious effects on the prices of automobiles, the decline of automobile production since the 1980s has been very dramatic.
Despite its considerable importance to many developing countries with their increasing reliance on agriculture and other forms of subsistence, many still cannot afford to trade any longer with industrialized nations. As economic growth accelerated, the industrial production of automobiles declined by 3 percent a year, and it has even increased in the form of machinery.
In addition, large-scale production of small vehicle parts resulted in large changes in the distribution and use of the parts and the associated expenses of labor, and the production practices of automobile companies were far from uniform. This means that only small-scale cars and smaller cars have grown in their economic value.
Large-scale production of automobiles is now largely dependent on motorized employment and on the transportation of goods, and other forms of consumer goods.(p>[
The automotive industry is also characterized by a new class of technological advances that have significantly diminished the size of the automotive production capacity. For example, in the automobile industry, the amount of raw materials needed is less than 10 percent of the demand for the car. However, large-scale automotive production is expected to grow rapidly.
In addition, automobile sales and inventory are high, and new vehicles are being developed for the automobile industry. But the high quality of automobiles that already exist has to be supplied and maintained by a new class of automobile production companies.
Despite the fact that many large-scale production processes have to use fewer resources, the automobile industry is rapidly increasing and in many ways continues to grow at record rates. In addition to the fact that production of automobiles has increased over the past few decades, these new automobiles have not only increased consumer
As a result of easier and faster transportation, the United States and world economies have become dependent on the mobility that automobiles, trucks, and buses provide. This mobility allowed remote populations to interact with one another, which increased commerce. The transportation of goods to consumers and consumers to goods has become an industry in itself. The automobile has also brought related problems, such as air pollution, the emission of greenhouse gases that contribute to global warming, congested traffic, and highway fatalities. Nevertheless, the automobile industry continues to be an important source of employment and