Automotive
This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Automotive".

Industrial robots welding a car body in an assembly line.

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

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 re-evaluate their private vehicle usage.⁴

Crisis in the auto industry

Main article: Automotive industry crisis of 2008

The automotive industry crisis of 2008 occurred mainly as a result of the global financial crisis and the related credit crunch. In the United States, other contributing factors were pricing pressures on raw materials and substantially more expensive automobile fuels which, in particular, caused customers to turn away from large vehicles such as SUVs. In certain countries, particularly the United States, the industry has also suffered from relatively cheap imports available from countries such as Japan and South Korea and to some extent from Europe. As of November 2008, the Big Three U.S. manufacturers, (General Motors, Ford and Chrysler), indicated that unless additional funding could be obtained over the short to medium term, there would be real dangers of bankruptcy.

History

Britain

Main article: British motor industry

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.⁵ The top five UK car producers are Nissan, Toyota, Honda, MINI and Land Rover.⁶

1896-1945

Hindered by the Red Flag Act (legislation designed to severely restrict the use of mechanically propelled vehicles on the public highway) the auto industry developed late in Britain. Following a law change in 1896, the Daimler Motor Company became the first British company created for the production of automobiles, and by 1900 there were more than fifty, and by 1905 more than two-hundred and twenty British companies concentrating on automobile production, with only America and France having a higher annual automobile production.⁷ The stress was on high quality hand-made craftsmanship, regardless of high cost.

Ford opened a UK plant as early as 1911 and briefly had 40% of the British market. General Motors entered in 1925 by buying Vauxhall Motors.

By the end of the 1920s, the Morris Motor Company (founded by William Morris) and the Austin Motor Company (founded by Herbert Austin) dominated the domestic market, taking a 60% share between them. Morris modeled his methods after Henry Ford, and sought high volume production of inexpensive cars geared to the urban middle class. In 1931 Ford opened the largest auto plant in Europe at Dagenham, near London. In 1932 Britain became Europe's largest auto producer ahead of France. Rootes by this time had acquired Hillman and Humber and later in the 1930s added Talbot and the Sunbeam Car Company. At the end of the 1930s the leading producers were Morris, Austin, Ford, the Standard Motor Company, Rootes and Vauxhall.

Social impact

The 1920s were the great decade of expansion; private cars in use grew from 315,000 in 1922 to 1,042,000 in 1930, along with 334,000 trucks and 700,000 motorcycles. The gentry who bought cars before 1939 found driving was easy on rural Britain’s smooth road surfaces in its generally mild weather. The rural roads were famously narrow and winding, so cars were small with stiff springs for good handling characteristics on them. High taxes on gasoline and crowded streets encouraged smaller, fuel-efficient cars in the cities, where traffic lights came into use in the 1930s. Most cities replaced their trams with trolley-buses between 1926 and 1939. In London the first double-decker buses appeared in 1923.⁸

1945-2005

During the war all production was concentrated on war materials. After 1945 Britain became the world's largest automobile exporter, providing 52% of the world's exported vehicles in 1950. In 1953 Morris merged with Austin to form the British Motor Corporation (BMC), becoming the UK's largest producer. BMC specialized in small, economy sedans and sports cars, with 4 cylinder engines.

By the late 1950s, West German automobile manufacturers were benefiting from the Economic Miracle and rapidly gained market share, followed soon by the French and Italian producers, and the UK lost most of its continental market through neglect and stagnation. At the end of the 1950s, the Rootes group acquired Singer. In 1966 BMC merged with Jaguar Cars and Pressed Steel to form British Motor Holdings, which then merged, in 1968, with the Leyland Motor Corporation, which had by then acquired the Rover Company and the Triumph Motor Company, to form the British Leyland Motor Corporation (BLMC) as Europe's fourth largest automaker.⁹ Chrysler UK finished acquiring the Rootes group in 1967, a process it had started in 1964.

By 1970 Japanese firms identified the British market as the first major European market to attack because of the relative weakness of the domestic car industry.¹⁰

Stiff competition from Japanese and German cars, a reputation for shoddy workmanship and a breakdown in labor relations brought the British companies to near bankruptcy by 1975. The UK government effectively nationalized the bankrupt BLMC in 1975, rationalising the company into British Leyland, which produced 40% of the cars sold in Britain. The government provided £11 billion (in terms of 2008 £, or $16.5 billion in 2008 $) in bailouts. Wildcat strikes consumed more than 32 million worker-hours in 1977. Management cut employment in half, from 200,000 to 105,000 to cut expenses. In 1977 Chrysler sold its European interests to Peugeot, with Chrysler UK being renamed Peugeot Talbot.

After a decline in the UK market's significance for multinational automakers, Japanese manufacturers hoping to get around EEC trade restrictions established manufacturing plants in the UK. Nissan, Toyota and Honda all manufacture passenger cars in UK factories, primarily for car markets in Europe, Africa and the Middle East.

After a series of divestitures, British Leyland was renamed the Rover Group, which was eventually acquired by BMW, then split up into various divisions that were sold separately. MG Rover finally went bankrupt in 2005, ending the era of mass production by UK-owned automobile manufacturers. The remnants were bought by the Chinese government-owned manufacturers, SAIC and NAC, which later merged. Former British Leyland car brands include Jaguar and Land Rover, now owned by Tata Motors, MINI, owned by BMW and MG owned by SAIC/NAC. Only 22,000 workers remain employed at successor firms.¹¹

Germany

Main article: Automobile industry in Germany

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 Chrysler, then sold out in 2007 at a heavy loss as it never integrated the new car in its line.

In the popular market, Opel and Volkswagen are most famous. 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, beetle-shaped 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

Germany is famous for its upscale sedans. They feature well-designed suspension systems that provide both a soft ride and good handling characteristics on winding country roads. Many manufacturers limit their automobiles electronically to driving speeds of 250 km/h (155 mph) for safety reasons.

Daimler-Benz produces the upscale Mercedes-Benz, long a famous name in racing. BMW (founded 1916) and Porsche are major factors in the luxury market.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.

Japan

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. Japan is now biggest auto manufacuring country in the world with its humble beginning. 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. It is 44% owned by Renault of France. Honda, which began with motorcycles, emerged after World War II. Its luxury cars carry the "Acura" brand. Toyota began making cars in the 1930s and is now the world's largest producer. 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, and Mazda. 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.

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 terms of export volume. While 50 years ago, its initial operations were merely the assembling of parts imported from Japan and the United States, South Korea is today among the most advanced automobile-producing countries in the world.^{citation needed} The Hyundai Kia Automotive Group is today the second largest automaker in Asia only after Toyota and one of the top five automakers in the world.¹⁵ South Korean car marques have grown to compete with top established European brands and Hyundai operates the world's largest integrated manufacturing facility.^{citation needed} Annual domestic output exceeded one million units in 1988. In the 1990s, the industry manufactured numerous in-house models, demonstrating not only its capabilities in terms of design, performance, and technology, but also signalling its coming of age thanks to the havy investment to infrastructure in the country over the decades, and new car prefered market trends. South Korea overtook France in 2005 as one of the top five automotive manufacturing nations in the world.

World motor vehicle production

v • d • e « previous year Top 20 motor vehicle producing countries 2007
Motor vehicle production (1000 units)
Country																				1000										2000										3000										4000										5000										6000										7000										8000										9000										10000										11000										12000
Japan																																																																																				11596
United States																																																																																				10781
PR China																																																																																				8882
Germany																																																																																		6213 (includes GM Belgium)
South Korea																																																													4086
France																																																		3019
Brazil																																																		2971
Spain																																																	2890
Canada																																														2578
India																																											2307
Mexico																																									2095
UK																																						1750
Russia																																					1660
Italy																																	1284
Thailand																																1238
Turkey																															1099
Iran																														997
Czech Rep.																													939
Belgium																												844
Poland																												785
Reference: "World Motor Vehicle Production by Country: 2006–2007". OICA. Retrieved on 2008-03-18.

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 2007¹⁶ for the parent group, and then by marque.

Marque	Country of origin	Ownership	Markets
1. Toyota Motor Corporation ( Japan)
Daihatsu *		Subsidiary	Global, except North America
Lexus		Division	Global, apart from South America with the exception of Chile and Argentina.
Scion		Division	United States
Toyota		Division	Global
2. General Motors Corporation ( United States)
Buick		Division	North America, China
Cadillac		Division	Global
Chevrolet		Division	Global
Daewoo		Subsidiary	Asia, Europe, South America
GMC		Division	North America, Middle East
Holden		Subsidiary	Australia, New Zealand, Middle East
Hummer		Division	Global
Pontiac		Division	North America
Opel		Subsidiary	Continental Europe, South Africa, apart from Asia, with the exception of Japan
Saab (cars)		Subsidiary	Global
Saturn		Subsidiary	North America, Japan, Republic of China
Vauxhall		Subsidiary	United Kingdom
3. Volkswagen Group (Volkswagen AG) ( Germany)
Audi		Subsidiary	Global
Bentley		Subsidiary	Global
Bugatti		Subsidiary	Global
Lamborghini		Subsidiary	Global
Scania		Subsidiary	Global
SEAT		Subsidiary	Europe, Latin America, South Africa
Škoda		Subsidiary	Global, except North America
Volkswagen		Subsidiary	Global
4. Ford Motor Company ( United States)
Ford		Division	Global **
Lincoln		Division	North America, Middle East
Mercury		Division	North America, Middle East
Troller		Subsidiary	South America
Volvo (cars)		Subsidiary	Global
5. Honda Motor Company ( Japan)
Acura		Division	North America, China
Honda		Division	Global
6. PSA Peugeot Citroën ( France)
Citroën		Subsidiary	Global, except North America
Peugeot		Subsidiary	Global, except United States and Canada
7. Nissan Motors ( Japan)
Infiniti		Division	North America, Middle East, Taiwan, Korea
Nissan		Division	Global
8. Fiat S.p.A. ( Italy)
Abarth		Subsidiary	Global, except United States and Canada
Alfa Romeo		Subsidiary	Global, Canada (the 8C is sold in the USA)
Ferrari		Subsidiary	Global
Fiat		Division	Global, except United States and Canada
Iveco		Subsidiary	Global, except North America
Lancia		Subsidiary	Global, except North America
Maserati		Subsidiary	Global
9. Renault S.A. ( France)
Dacia		Subsidiary	Europe, Latin America, Asia, Africa
Renault (cars)		Division	Global, except United States and Canada
Renault Samsung		Subsidiary	Asia, South America
10. Hyundai Motor Company ( South Korea)
Hyundai		Division	Global
11. Suzuki Motor Corporation ( Japan)
Maruti Suzuki		Subsidiary	India, Middle East, South America
Suzuki		Division	Global
12. Chrysler LLC ( United States)
Chrysler		Division	Global
Dodge		Division	Global
Jeep		Division	Global
13. Daimler AG ( Germany)
Freightliner		Subsidiary	North America, South Africa
Maybach		Division	Global
Mercedes-Benz		Division	Global
Mitsubishi Fuso		Subsidiary	Global
Smart		Division	North America, Western Europe, Southeast Asia, South Africa
14. BMW AG ( Germany)
BMW		Division	Global
MINI		Division	Global
Rolls-Royce		Subsidiary	Global
15. Mitsubishi Motors Corporation ( Japan)
Mitsubishi		Division	Global
16. Kia Motors ( South Korea)
Kia		Subsidiary	Global
17. Mazda Motor Corporation ( Japan)
Mazda		Division17	Global
18. AvtoVAZ ( Russia)
Lada		Division	Russia, Finland, Sweden, Europe
VAZ		Division	Russia, Eastern Europe
19. First Automobile Works ( People's Republic of China)
Besturn		Division	China
Hongqi		Division	China
Huali		Subsidiary	China
Xiali		Subsidiary	China
20. Tata Motors Limited ( India)
Hispano		Subsidiary	Europe
Jaguar		Subsidiary	Global
Land Rover		Subsidiary	Global
Tata		Division	India, South Africa
Tata Daewoo		Subsidiary	South Korea
21. Fuji Heavy Industries ( Japan)
Subaru		Division	Global
22. Chang'an Motors ( People's Republic of China)
Chana		Division	China, South Africa
23. Isuzu Motors ( Japan)
Isuzu		Division	Global exept North America
24. Beijing Automotive Industry Holding Corporation ( People's Republic of China)
BAW		Subsidiary	China
25. Dongfeng Motor Corporation ( People's Republic of China)
Dongfeng		Division	China
26. Chery Automobile ( People's Republic of China)
Chery		Division	China, South Africa, Southeast Asia except Thailand
27. Shanghai Automotive Industry Corporation ( People's Republic of China)
MG		Subsidiary	UK
Roewe		Division	China
SsangYong		Subsidiary	South Korea, South Africa
28. Brilliance China Automotive Holdings ( People's Republic of China)
Brilliance		Division	China
Jinbei		Subsidiary	China
29. GAZ ( Russia)
GAZ		Division	Russia
LDV		Subsidiary	Europe
LiAZ		Subsidiary	Russia
30. Volvo Group ( Sweden)
Mack		Subsidiary	Global
Renault (trucks)		Subsidiary	Global
Nissan Diesel		Subsidiary	Global
Volvo (trucks)