The car industry: A move to concentration

Type :

Presentation

Pages :

7 pages

Format :

.doc

Published date :

01/20/2009

Category :

Economics & finance

Sub category :

Economics

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Summary :

Introduction.
Market definition.
History of European motor industry.
The entry and exit process.
Investigation: Four major firms.
1. Volkswagen Group, PSA Group, Ford Group and Renault.
Cost structure of the industry.
The European motor industry from a demand side perspective.
Possibility of collusion in the European motor industry.
Conclusion.
Bibliography.

Abstract

The motor industry is over 100 years old and has an interesting history and uncertain future. It provides an interesting example of an industry that had to quickly evaluate due to constant evolution of technologies employed. This evolution was so money-demanding that it caused a typical movement of concentration of the industry. The car industry makes nearly 60 million cars and trucks every year and employees millions of people around the world. Products are responsible for almost half the world's oil consumption and their manufacture uses up nearly half the world's annual output of glass and rubber and 15% of steel. The car industry is the epitome of mass production, mass marketing and mass consumption involving some of the strongest brands in the world. However, in America, Europe and Japan, where over 80% of the world's cars and trucks are sold, the industry has been running out of growth (The Economist, 2004).