1. Describe the car industry. Is a global industry?

The automotive industry is made up of a diverse group of businesses and organizations that
are involved in the design, development, production, marketing, and sale of automobiles. It is
one of the world's most profitable industries. Its refer to as a car industry. Passenger cars and
light trucks, such as pickups, vans, and sport utility vehicles, are the mainstays of the sector.
Commercial vehicles (such as delivery trucks and huge transport trucks, commonly referred
to as semis) are secondary in importance to the sector. The articles automobile, truck, bus,
and motorcycle explore the design of modern automobiles, while gasoline and diesel engines
describe automotive engines.

History of the car industry

Despite its limited history compared to that of many other businesses, the automotive
industry's impact on history from the twentieth century has piqued curiosity. Although the
vehicle was invented in Europe in the late nineteenth century, the United States dominated
the global industry during the first half of the twentieth century thanks to the introduction of
mass manufacturing techniques. The situation changed dramatically in the second half of the
twentieth century, as western European countries and Japan became major manufacturers and
exporters.
The origins of the automotive industry are rooted in the development of the gasoline engine
in the 1860s and ’70s, principally in France and Germany. By the beginning of the 20th
century, German and French manufacturers had been joined by British, Italian, and American
makers. The majority of the first automotive firms were small shops, with hundreds of them
producing a few handcrafted automobiles apiece and nearly all of them abandoning the
industry soon after starting it. The few that made it into the era of large-scale production
shared some traits. First, they were either bicycle manufacturers, such as Opel in Germany
and Morris in the United Kingdom, or horse-drawn vehicle builders, such as Durant and
Studebaker in the United States, or, most commonly, machinery manufacturers. Stationary
gas engines (Daimler of Germany, Lanchester of Britain, Olds of the United States), marine
engines (Vauxhall of Britain), machine tools (Leland of the United States), sheep-shearing
machinery (Wolseley of Britain), washing machines (Peerless of the United States), sewing
machines (White of the United States) and woodworking and milling machinery (White of
the United States) were among the types of machinery available (Panhard and Levassor of
France). Almost all of the producers in the United States were assemblers who put together
components and pieces made by different companies. The assembly approach also lent itself
to a cost-effective financing mechanism. By buying parts on credit and selling the finished
automobiles for cash, it was possible to start producing motor vehicles with a small initial
commitment of money; the cash sale from manufacturer to dealer has been a fundamental
part of the marketing of motor vehicles in the United States ever since. During this period,
European automobile companies tended to be increasingly self-sufficient.
Is it a global industry?
Yes, it is. Car manufacturing has been a global industry since its beginning. It has been a
major employer and, over the last 100 years, has provided safer and more accessible transport for
increasing numbers of people, including in newly industrialized countries. However, car-related
pollution and congestion have become an issue in many major cities.
Globalization; The car industry has been globalized from its early days. There has been
fierce competition between countries to invent better cars and obtain finance to manufacture.
Countries such as Australia imported or assembled cars from Europe or the USA. Cars are
still often designed in one country and built from components that originated in a number of
countries by a company based in a third country.
The USA led car manufacturing until the 1980s when Japan became a major producer. Since
2009, China has produced the highest number of cars, nearly four times as many as the USA.
Over time, car manufacturing has become increasingly automated and workers more skilled.
High Employment rate; In 2012, the manufacturing industry directly employed 48,000
people, of whom around 17,000 worked at Ford, General Motors-Holden's and Toyota.
Emerging markets; In 2010, the world's population of cars reached one billion. High growth
rates of car ownership in Thailand, Indonesia, China, India, and Brazil reflect economic
development and catch-up demand in those countries. The rapidly rising middle class in China is
engaging with the world through the internet, television, and mobile phones, and purchasing
luxury items at a vast rate. Bo, a 31-year-old teacher who lives in interior China, recently bought
an American model car, whereas his parents traveled by motor scooter and his grandparents
traveled by bicycle or walked.
Future car ownership; Globalization has meant increasing wealth and demand for cars in newly
emerging economies. Expanding markets mean continued growth for car manufacturers and
related employment. Congestion, pollution, fuel, and steel availability challenge future
expansion, but research continues to improve safety and efficiency.