THE GLOBAL AUTOMOBILE INDUSTRY IN 2004
Eliana Cardenales Garcia
BADM-6500-0 - 1870
HISTORY, DEVELOPMENT AND GROWTH
The Automobile industry began in 1913 when the black Model T Fords mass production started. In the 20’s General Motors segmented the automobile buyers market and decided to start a production for each purse and each purpose. By 1960 General Motors, Ford, and Chrysler were the car producers companies dominated the United States market. Also during the 60’s a significant part of the operations of this companies were done in Europe because these producers were now multinationals. As a consequence of the 1970 oil price hike, the foreigner companies such as Toyota, Volkswagen, Honda, and Nissan started to pick up part of the market share. Foreigner’s cars use to have smaller engine with lower gasoline consumption than American cars. In the late 80’s Toyota developed the “just in time” inventory system which gave them a competitive advantage over other car producers. Later other Japanese producers try to imitate Toyota’s inventory system and by the 1990’s the inappropriate response from American manufacturers made them lose even more market. The three American companies remain part of the market because of the many sales of light trucks and sport utility vehicles. By 2003, the Japanese and European SUV models were eating up the American three manufacturer sales. In 2004, the oil prices started going up again and the gasoline economizing passenger car sales went up leaving behind the American manufacturers. Today we have the new creative consumer which is looking for lots of features in the new car models and also ways to lower the gasoline consumption and defeat global warming.
NATURE OF THE EXTERNAL ENVIRONMENT
The nature of the external environment for the automobile industry in 2004 was one of decline for the overall automobile vehicle sales. The situation was one of excess capacity because there has...