The Roaring 20 # 39; s: Crash Course US History # 32
The automotive industry economic impact and location issues.
The industry is more than 100 years began in Germany and France, and came of age in the United States in the era of mass production vehicle volumes, efficiency, safety, features and choices have increased steadily throughout the history of the industry is therefore synonymous with the industrial development of the 20th century, and so intertwined with his binoculars wonders, mass production and mass consumption, that it was called the industrial industry.
However, all is not in the world of the automobile in the world, the average margins fell from 20 in 1920 to 5 now, with many companies lose money this poor performance in profitability is reflected in the market capitalization of the industry, despite its huge income and employment, the financial statements for the automotive industry for just 1 6 stock market in Europe, and 0 6 United States there is a great contrast between the sluggish financial success industry and its oversized social role, the share of jobs and political influence.
These developments mask a wide range of operational and financial performance Toyota, the largest automobile company the most successful, has a market value 15 times greater than General Motors.
The overall performance of the industry can be attributed to overcapacity and mature markets in developed countries to the United States in Europe and Japan, which account for 80 of global sales, growth was stalling for years the natural response slow growth and increased productivity is to reduce the ability However, existing facilities are very painful to the mass production scrap gives a strong cost advantage, which has always encouraged very large and expensive facilities is the result excess capacity worldwide even continued consolidation in the industry is not reflected in the reduction of capacity.
Focusing on the US the big 3 automakers have lost market share for three decades, and new plants by non-U S -Based companies increased capacity and competition, the two largest US domestic companies are losing money and market share obviously, this is not a sustainable situation, the industry is very big changes.
The automotive industry economic impact and location Questions, automotive, industry, the economy, the impact.