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The Auto Industry Of Today

Submitted by oppapers on July 26, 2002

Category: Business
Words: 2268 | Pages: 10
Views: 863
Popularity Rank: 7,269
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The Auto Industry of Today

There is no industry more present in the worldwide community than the automobile industry.

The automobile has changed the lives, culture, and economy of the people and nations that

manufacture and demand them. Ever since the late 1800s when Benz and Daimler in Germany

invented the first “modern” car, the industry has grown into a billion dollar industry affecting so

many aspects of our lives. There are more than 400 million passenger cars alone on the roads

today. During the early part of the twentieth century, the United States was home to more than

90 percent of the world’s automotive industry, but has shrunk to about 20 percent in today’s

world (Tardiff 394).. This drastic change has occurred by the booming economies in such nations

as Japan, Germany, Canada, France, Italy, and other nations.

The US auto industry “sales totaled $205 billion, or 3.3 percent of the total Gross Domestic

Product” (Tardiff 394). By the end of 19th century, there were about 500 auto manufacturers, but

that number dropped sharply to 23 by 1917, and today the Big Three dominant the market. Ford,

General Motors, and Chrysler make up the Big Three, which account for 23 percent of the

world’s motor vehicle production in 1997, with the Japanese industries coming in second,

producing 21 percent. Germany produces 9 percent; Spain, France, South Korea, and Canada

each produce 5 percent of the international market in 1997. In the US alone, the auto-industry,

which includes it’s 500,000 car-related businesses, creates 12 million jobs (Broughty 290). The

automobile is clearly an oligopoly, but each company’s control of the market has gradually

...

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