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Federal State Budgetary Educational Institution of Higher Professional Education

"St. Petersburg State University of Economics"
COURSE WORK
in the discipline "Economic theory"
on the topic: "Automotive industry"
Completed:
student of group E-1415
1 course
Faculty of Economics
Pak Sergey Valerievich
Supervisor:
Plotnikov Vladimir Alexandrovich
2015
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Content
Introduction
1. Global automotive market
1.1 Automotive crisis
1.2 Overcoming the crisis on the example of Hyundai
2 Trends and processes in the global automotive industry
2.1 US automotive industry
2.2 Automotive industry in Europe
2.3 Automotive industry in the Asian region
Conclusion
List of used literature
Appendix 1
2
Introduction
The importance of the automotive industry cannot be overestimated. It is by

no means only the largest user of labor, material and financial resources, but also
one of the main producers of industrial products, it occupies an important niche in
the progress of social reproduction, the world economy in general, and a single
state in particular. A huge number of people are interested in the automotive
industry, first of all, consumers who expect high-tech, high-quality, reliable,
beautiful cars from manufacturers. Secondly, these are manufacturers who compete
with each other to maximize customer satisfaction, while using the latest
technology, the work of designers to attract to their product. Thirdly, states are
interested in the automotive industry to maintain the economy,
Road transport is of great importance in the overall transport system of the
economy of any country. It is widely used in all sectors of the national economy.
Road transport is used to deliver the most important goods (grain, building
materials, etc.) to railway stations, seaports and river piers, to deliver goods
arriving at stations, ports and piers, to consumers. Road transport, which is widely
used on main lines, frees railways from transporting goods over relatively short
distances. Automobiles in cities are served by industrial and commercial
enterprises, and in rural areas - by collective farms and state farms. Cars also play
an important role for passenger transportation (buses, taxis and official cars).
The object of research is the global automotive industry.
The subject of the study is the territorial features of the development of the
world car market.
The purpose of this work is to refer to the current state of the automotive
industry in the world.
The main tasks of the work: to find out what niche the automotive industry
occupies in the global economy; consider what are the prospects for a further rise
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in the automotive industry; show the statistical base and see the dynamics of car
exports in different regions of the world;
Determine who occupies a leading position in the supply of cars over the
past 10 years;
When writing this term paper, various sources were used, including
educational literature on this topic, articles from thematic journals and resources of
the global Internet.
The method of writing the work: analytical - allows, on the basis of the
information provided, to conduct a comparative description and analysis with
subsequent conclusions. The statistical method makes it possible to group and
structure the data in order to group them in a convenient form. The cartographic
method of research makes it possible to visually analyze the features of the
location of enterprises in the industry. Programs such as Microsoft Word 2014,
Microsoft Excel 2014 were used.
economic crisis automaker export automotive industry
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1. Global automotive market
At the beginning of the 20th century, the automobile industry caused a large-
scale production of goods. The automotive industry, which initially appeared in
France and Germany, fully matured only in the United States as a result of the
introduction of the assembly line by Henry Ford. For a long time, the automotive
industry was the very first among other industries in terms of the level of
organization of the production process, which is why it was called the "industry of
industries." At the same time, this industry was the first to meet with great
indignation of buyers (this happened in the 60s, when consumers considered
American cars not safe), the increase in oil prices due to the energy crisis of the
70s. In addition, this industry has come under strict control by the state: from the
environmental friendliness of production to issues of antimonopoly policy.
An important factor was the fact that the automotive industry guarantees a
large share of the employment of the able-bodied population of the country where
cars are manufactured or sold. Car-producing countries also guarantee jobs to other
countries with which they have signed cooperation agreements. In addition, a large
percentage of the population is employed in related industries that supply the
automotive industry. In America, for example, 12.5 million people are employed in
the manufacture of automobiles, as well as in motor transport and in the road
sector, and this is one in six people working in industry. That's why the automotive
industry is always in demand.
At the present time, in the context of globalization, as well as the fiercest
competition and constant growth in research and development costs, and, at the
same time, a decline in sales growth in the markets of developed countries, it has
become unrealistic for many automakers to be completely independent. In the
1990s, a wave of mergers with foreign firms swept through American automobile
enterprises. Chrysler merged with Daimler-Benz. Ford took control of the Mazda
company, in addition, he now owns such firms as Jaguar, Aston Martin and Volvo.
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The company "General Motors" began to own half the capital of the Swedish
"Saab".
While the main world markets are stagnant, developing countries such as
Korea, China, India, Mexico are taking the lead. The American, European and
Japanese markets, which together account for 80% of the world's car sales, have
actually lost their growth rates. The American car market, for example, is clearly
crowded, because the products of European, Japanese, South Korean and American
automobile companies are supplied there. In addition, American companies are
constantly increasing output in order to successfully compete with foreign
manufacturers. The US automotive market is going through hard times. In 2009,
one of the symbols of the American economy, General Motors, “died”. GM's debts
exceeded its earnings by $90 billion. The GM automaker has filed for bankruptcy.
Its assets amounted to 82.29 billion dollars, but the debts - 172.81 billion dollars.
Prior to the onset of the global economic crisis, General Motors successfully
competed with the Japanese Toyota in a duel for leadership in the global car
market. The concern produced 13 brands of cars, owning the German Opel, the
British Vauxhall, as well as the Swedish Saab and the Chinese Wuling. But
General Motors is not the only American concern that suffered from the crisis. In
May 2009, another major American automaker, Chrysler LLC, also filed for
bankruptcy. But General Motors is not the only American concern that suffered
from the crisis. In May 2009, another major American automaker, Chrysler LLC,
also filed for bankruptcy. But General Motors is not the only American concern
that suffered from the crisis. In May 2009, another major American automaker,
Chrysler LLC, also filed for bankruptcy.
Bankruptcy is not the best solution for America's automakers. At the very
least, experts say that the authorities do not take into account the reactions of
motorists. After all, the demand for cars has fallen, and after bankruptcy, motorists
will completely stop buying cars of these brands.
For clarity of the development of the automotive industry, see Appendix 1
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1.1 Automotive crisis
The collapse in sales caused by the debt crisis in the southern countries of
the eurozone has sharply exacerbated the problem of excess capacity in Europe.
The crisis in the European automotive industry, which has been growing over the
past year, is now entering a new phase: manufacturers have already stopped
sounding the alarm and are starting to hit the brakes.
The American corporation Ford resorted to the most radical measures.
Calculating that the production activities of its very extensive European division
will bring it more than $ 1.5 billion in losses this year, it decided to close three
plants at once - two medium-sized in England, which employ a total of about 1,400
people, and one large in Belgian Genk. There, by the end of 2014, 4,300 people
will lose their jobs at once. In addition, over 5,000 more jobs directly dependent on
the closure of the enterprise will be at risk in the region.
The European auto industry is suffering from overcapacity and production
cuts are inevitable. German manufacturers are saved by specialization in the
premium segment and an export boom.
As a result of this restructuring, Ford's production capacity in Europe will be
reduced by 18% or 355,000 vehicles per year. This should generate $450-500
million in annual savings and, along with a host of other measures, including
launching 15 new models over the next five years, should see Ford Europe return
to profitability by around 2015.
Large-scale job cuts are always painful: they lead to fierce union resistance,
strong political backlash and undermine the brand's image in the eyes of
consumers. So the 24-hour spontaneous blockade of Ford's most important
European test site in Lommel, Belgium, is just the first protest against the decision
to shut down production in Genk.
However, Ford clearly sees no other way out. Director of the Institute for the
Automotive Industry in Nürtingen-Geislingen, Professor Willy Dietz, welcomes
the fact that the company has taken on the problem of overcapacity and openly
7
announced its plans. At the same time, he regards the decisions taken as a bad
omen: "If there were hopes for an improvement in the situation in 2014 or 2015,
they would not do this."
Peugeot Citroen (PSA), the largest automaker in France and the second
largest in Europe, cannot do without a large-scale restructuring. Its leadership has
already announced the need to cut about 8,000 jobs at its French enterprises. For
this, in particular, in 2014 it is planned to completely close the plant in Aulnay-
sous-Bois near Paris, which currently employs about 3,000 people.
This measure is long overdue, says Professor Stefan Bratzel, founder and
director of the Center for Automotive Management at the Higher School of
Economics in Bergisch Gladbach. However, the former French government
prevented the automaker from carrying out the necessary structural reforms, he
emphasizes: "Those who do not do the right work on time, have to pay for it in a
crisis."
Both Willy Dietz and Stefan Bratzel welcome the emerging strategic
alliance between Peugeot Citroen and the American corporation General Motors:
joint design development and the use of common model platforms will reduce
costs in the future. On October 26, the German Antimonopoly Office gave the
green light to such an alliance. This is an additional wake-up call for Opel, the
German subsidiary of General Motors. Its excess production capacity, according to
experts, is about 30 percent. Therefore, the chances of survival of the Opel plant in
Bochum, which has just celebrated its 50th anniversary, are rapidly falling. It is
possible that the fate of 3,200 of its employees is about to be decided - already in
late October - early November.
In any case, the head of Peugeot Citroen is convinced that not only he, but
also the heads of other automakers will have to close enterprises. Some experts
believe that about ten factories are superfluous in Europe now, others say about
five more or less large factories such as Ford in Genk and Opel in Bochum. In this
case, we are talking primarily about manufacturers of machines for the lower and
middle price segments. It was this market that suffered the most from the debt
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crisis in the eurozone. Therefore, companies whose products have traditionally
been in high demand in Italy, Spain and France and which have been too oriented
towards Europe in their business have now found themselves in a particularly
dangerous situation.
1.2 Overcoming the crisis on the example of Hyundai
The largest auto corporations turned to the government for financial

assistance to save themselves from bankruptcy. Losses are borne even by the
recognized leader of the world car market - the Japanese company Toyota. And
against this gloomy background, the performance of the Korean Hyundai group
unexpectedly sharply contrasts. In the same two months, the company increased
US sales by 4.9%, while the combined market share of its two brands, Hyundai
and Kia, rose from 7.1% to 7.6%. However, this success is not accidental: thanks
to a combination of the optimal range, quality, service and aggressive marketing,
Hyundai turned out to be more resistant to the crisis than its competitors.
As the practice of recent months shows, the most persistent during the global
crisis were those companies that managed to improve their managerial and
financial efficiency even before it began. And, of course, it is easier in such a
situation for firms that have recently themselves been forced to overcome
difficulties and correct their mistakes.
In this regard, the Korean Hyundai Motor Group has gone through a really
severe hardening. For the past twenty years, she has constantly had to change, deal
with economic turmoil, correct her own mistakes and overcome weaknesses. This
testing period began for the company, perhaps, back in the second half of the 80s,
when the automotive division of one of the largest Korean manufacturers decided
to enter the world market, and with its original products, and not with cheap
replicas of Ford cars with Japanese engines.
In 1986, Hyundai made a successful breakthrough into the US market with
the low-cost subcompact Excel, but the initial euphoria quickly faded. The quality
9
of Korean cars did not stand up to criticism and very soon became the object of
numerous caustic jokes. However, Hyundai did not give up. In 1990, its design
center was founded in the USA, Japanese quality management systems began to be
introduced at factories in Korea. However, during the 1990s, progress was quite
slow, and it accelerated only with the onset of the Asian crisis of 1997-1999.
Unlike a number of other leading Korean corporations, Hyundai was able to
avoid bankruptcy and even took over the bankrupt Kia. At the same time, during
the reorganization, the automotive division became one of the largest in the group,
which was actually divided into several independent companies.
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2. Trends and processes in the global automotive industry
The automotive industry is one of the main industries in the economy of

developed countries. The share of the automotive industry in world exports of
industrial goods is 12.6%. This industry employs millions of people around the
world. The automotive industry accounts for almost half of the world's oil use. The
automotive industry uses almost 51% of the annual production of rubber, 26% of
glass and 16% of steel. Oddly enough, in wealthy countries, the share of the
automotive industry in GDP is about 10%.
Car production is currently carried out in almost 50 countries around the
world. At the same time, more than 60% of the world production of automotive
equipment belongs to Western Europe, the USA and Japan. Currently, there are
more than 40 automotive companies in the world, the largest of which are:
American companies - the "big three" - General Motors, Ford and Chrysler;
European companies – Volkswagen Group, PSA Peugeot Citroen, Renault, Fiat,
BMW; Japanese companies - Toyota, Nissan, Honda, Mitsubishi, Mazda; as well
as Korean - Hyundai-KIA, Daewoo.
In the last decade, the motorization of the world has been quite intensive:
from 1996 to 2005. The rate of growth in car production was almost twice that of
population growth. This increased the average life of the car. In the USA, he was
in 1980-1995. increased from 6.6 to 8.5 years. Indicators of the world car fleet per
1000 people. for the 1990s increased by almost half. In the world markets, as a
result of saturation with cars, a sales problem arose, which caused the need to
reduce costs and at the same time significantly improve the design of the car itself
and expand the model range. Between 1997 and 2005 car production in the world
increased by 20%. At the same time, the total output of Western Europe, the USA
and Japan remained at the same level (38–39 million units). At the same time, their
share in the global automotive industry has been steadily declining. In 1997,
Western Europe, the US and Japan accounted for 72% of the world's car
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production. By 2000, their participation had dropped to 69%, by 2005 to 62%.
Significantly increased production in the largest developing countries - China,
South Korea, Mexico, Brazil, India. China managed to increase its share in the
global automotive industry from 3 to 8%. The share of other countries in Asia and
Oceania such as: Australia, Indonesia, Iran, Malaysia, Pakistan, Philippines,
Taiwan, Thailand, Vietnam increased by 4%. The countries of Central and Eastern
Europe have strengthened their participation in world car production from 5 to 6%;
India - from 1 to 3%. Significantly increased production in the largest developing
countries - China, South Korea, Mexico, Brazil, India. China managed to increase
its share in the global automotive industry from 3 to 8%. The share of other
countries in Asia and Oceania such as: Australia, Indonesia, Iran, Malaysia,
Pakistan, Philippines, Taiwan, Thailand, Vietnam increased by 4%. The countries
of Central and Eastern Europe have strengthened their participation in world car
production from 5 to 6%; India - from 1 to 3%. Significantly increased production
in the largest developing countries - China, South Korea, Mexico, Brazil, India.
China managed to increase its share in the global automotive industry from 3 to
8%. The share of other countries in Asia and Oceania such as: Australia, Indonesia,
Iran, Malaysia, Pakistan, Philippines, Taiwan, Thailand, Vietnam increased by 4%.
The countries of Central and Eastern Europe have strengthened their participation
in world car production from 5 to 6%; India - from 1 to 3%. The countries of
Central and Eastern Europe have strengthened their participation in world car
production from 5 to 6%; India - from 1 to 3%. The countries of Central and
Eastern Europe have strengthened their participation in world car production from
5 to 6%; India - from 1 to 3%.
The top 15 auto-producing countries include 7 developing countries: China,
South Korea, Brazil, Mexico, India, Russia, Thailand. In total, the top 15 car
manufacturing countries account for approximately 87% of global car production,
including 26% of cars produced in developing countries, which is 7% higher than
in 1997.
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In a highly competitive environment, cost reduction is becoming a core
strategy for global automakers. The payroll cost factor is extremely important in
the automotive industry when considering where it should be located. Cheap
resources are the main competitive advantage of developing countries. Thus, the
average wage in the Japanese industry is 16.46 dollars per hour, in the USA -
16.14, in Europe - 14.13. While in the industry of countries such as Russia and
China, the average wage is 1.4 and 0.61 dollars per hour, respectively. In this
regard, the share of labor costs in the selling price of a car in developed and
developing countries differ significantly. Of the developed countries, the highest
labor costs are in Japan (19%), on average in Europe - 13%, in the USA - 14%. In
Russia and China - 5 and 6%. The long working hours in Central and Eastern
Europe, the presence of an motivated and skilled workforce, low wages, and
proximity to the Western European market have attracted investment from the
world's leading automakers. The growth rates of the industry there are noticeably
higher than those in traditional Western European centers. In Poland in 2004,
compared to 2003, the production of cars increased by 84%. In 2005, compared to
2004, the Czech Republic and Slovenia saw a 35% increase in car production, and
24% in Hungary. * In the Czech Republic and Slovakia, the two leading centers for
the automotive industry in the East, the share of the automotive industry in total
industrial production is approximately 18-20%, which is higher than, for example,
in France, Italy, England and Spain. low wages, as well as proximity to the
Western European market, have attracted investment from the world's leading
automakers. The growth rates of the industry there are noticeably higher than those
in traditional Western European centers. In Poland in 2004, compared to 2003, the
production of cars increased by 84%. In 2005, compared to 2004, the Czech
Republic and Slovenia saw a 35% increase in car production, and 24% in Hungary.
* In the Czech Republic and Slovakia, the two leading centers for the automotive
industry in the East, the share of the automotive industry in total industrial
production is approximately 18-20%, which is higher than, for example, in France,
Italy, England and Spain. low wages, as well as proximity to the Western European
13
market, have attracted investment from the world's leading automakers. The
growth rates of the industry there are noticeably higher than those in traditional
Western European centers. In Poland in 2004, compared to 2003, the production of
cars increased by 84%. In 2005, compared to 2004, the Czech Republic and
Slovenia saw a 35% increase in car production, and 24% in Hungary. * In the
Czech Republic and Slovakia, the two leading centers for the automotive industry
in the East, the share of the automotive industry in total industrial production is
approximately 18-20%, which is higher than, for example, in France, Italy,
England and Spain. The growth rates of the industry there are noticeably higher
than those in traditional Western European centers. In Poland in 2004, compared to
2003, the production of cars increased by 84%. In 2005, compared to 2004, the
Czech Republic and Slovenia saw a 35% increase in car production, and 24% in
Hungary. * In the Czech Republic and Slovakia, the two leading centers for the
automotive industry in the East, the share of the automotive industry in total
industrial production is approximately 18-20%, which is higher than, for example,
in France, Italy, England and Spain. The growth rates of the industry there are
noticeably higher than those in traditional Western European centers. In Poland in
2004, compared to 2003, the production of cars increased by 84%. In 2005,
compared to 2004, the Czech Republic and Slovenia saw a 35% increase in car
production, and 24% in Hungary. * In the Czech Republic and Slovakia, the two
leading centers for the automotive industry in the East, the share of the automotive
industry in total industrial production is approximately 18-20%, which is higher
than, for example, in France, Italy, England and Spain.
Asian markets are developing dynamically. The highest growth rate of
registration of new motor vehicles in 2005 compared to 2004 was observed in
China (16.1%). In Malaysia, the number of new motor vehicle registrations
increased by 14.5%; in Indonesia - by 12.6%; in India, the increase was 7.1%; in
South Korea - 4.3%. In Japan, sales of new motor vehicles remained unchanged.
As a result of these large-scale and multidimensional processes, the volume
of cars produced at foreign enterprises by the largest TNCs from 1998 to 2005.
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increased from 39.7 to 50.8%. Currently, almost 30 million cars are produced
outside the countries where the headquarters of the largest automotive concerns are
located.
Almost 53.3% of world exports of automotive products in 2005 were carried
out by the countries of the European Union, which amounted to 486.8 billion
dollars, including 134.2 billion dollars - exports within the Union. North America
occupies the second place in the world in terms of exports of automotive industry
products - 20.6% (compared to 2000, its share decreased by almost 7%). About
83% is exported within North America. In third place is Japan (13.4%). Japan
sends almost half of its exports to North America, 20% to Asia and 18% to Europe.
The share of world exports of automotive products from Japan decreased by 1.9%
compared to 2000, while exports from Asian countries as a whole increased from
19.8 to 21.3%. Since 1980, the share of exports of automotive industry products
from such countries as Korea, Mexico, Brazil, China, Turkey,
The main importers of automotive products are the countries of the
European Union, their share is 44.1%; 22.2% is in the USA; Canada imports 6% of
the world's automotive products. Japan accounts for only 1.4% of automotive
imports.
Of great importance in expanding the international trade flows of automotive
products is the unification of the efforts of consolidated TNCs. For example, the
merger of Nissan with Renault allowed it to increase sales of its products using
Renault channels. Renault, in turn, was able to use Nissan's dealer network in
Japan and its spare production capacity in the US, Mexico and Asia in the amount
of 0.5 million vehicles per year.
In the conditions of the most acute competition, it has become almost
impossible for most corporations to survive in the automotive market, being
completely independent. The world leader in the production of automobiles - the
concern General Motors - in the early 1990s. united the brands under his control
into a single system, releasing Buick, Cadillac, Chevrolet, Pontiac, Oldsmobile,
Holden. Then GM bought Adam Opel in Germany, Vauxhall in the UK, Saab in
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Sweden. In 1998, GM increased its stake in the Japanese company Isuzu to 44%
and in Suzuki to 10%. In 2002, GM acquired 42% of the capital of the bankrupt
South Korean company Daewoo. *
The second largest car manufacturer in the United States, Ford has acquired
a group of companies in the UK that produce Jaguar, Aston Martin, and Land
Rover. In 2000, Ford began to produce cars of the brand Volvo, acquired in
Sweden, in countries such as Belgium and the Netherlands; and since 2001 also in
Malaysia, Thailand and Botswana. In addition, Ford controls the Japanese
company Mazda.
The united concern, created in 1998 by the merger of the German Daimler-
Benz and the American Chrysler, produces Mercedes, Chrysler, Jeep, Dodge,
Smart cars. In addition to the production of 1.9 million passenger cars, 2.3 million
light commercial vehicles, the concern has acquired capacities for the production
of trucks and buses in Canada. The merger strengthened the positions of both
partners, both in Europe and in North America.
Concern Volkswagen Group has recently acquired the capacity to produce
cars of expensive brands: Lamborghini and Bugatti - in Italy, Rolls-Royce - in the
UK. In addition, he closed his US division and moved mass production to his
facility in Mexico to market his products to the North American and European
markets. Since 2001, the Volkswagen Group began producing Bentley cars, and in
2004 it stopped producing Rolls-Royce cars. The company expands sales thanks to
its multi-brand policy and traditional quality. In 2001, Volkswagen made a profit
of $2.7 billion, while GM made $0.6 billion, Ford made a loss of $5.4 billion and
DaimlerChrysler made a loss of $0.6 billion. The largest profits were made by
Japanese concerns: Toyota - $5.0 billion, Nissan - $3.0 billion and Honda - $2.9
billion.
The French company Renault in 1999 acquired a 36% stake in the Japanese
company Nissan. Renault and Nissan are currently developing plans to unify their
vehicle production platforms, reducing their total number from 40 in 2000 to a
planned 10 by 2014. Commerce Bank analysts believe that this unification will
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save the combined company more than $500 million. pounds sterling a year. The
acceleration of scientific and technological progress, which began at the end of the
20th century, gave rise to profound qualitative changes in the automotive industry
and a technical leap in the design of the car itself. The main directions in the
development of the automotive industry in recent years have been: a significant
reduction in fuel consumption through the use of new types of fuel and reducing
the weight of the car; carrying out measures to reduce the toxicity of exhaust gases
and background noise; transition to the automation of driving; improving the
comfort of the car; as well as diversification of model lines both in terms of quality
and price, and in terms of functionality.
The analysis showed that the production of cars in the world is increasing
every year. At the same time, a significant part of the world's car production is
produced in Western Europe, the USA and Japan, but in the last decade their share
in the global production of automotive products has decreased significantly, which
is associated with the relocation of automotive plants to developing countries. By
building cross-border chains with the rational use of local advantages, the largest
TNCs reduce the cost of producing automotive products and bring production
closer to consumption zones.
Asian brands have recently shown significant activity in the global
automotive markets, which is explained by the stagnation of the economies of
Western Europe and the United States and the increase in demand for small
affordable cars.
The main exporters and importers of automotive products are the countries
of the European Union (the main share of exports and imports is carried out within
the Union itself); in second place is the United States. Japan accounts for 13.4% of
exports and only 1.4% of imports of automotive products.
In the conditions of the most intense competition, automotive manufacturers
unite into unions, consolidating their efforts to implement technical progress and
meet market demands and technological requirements.
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Started in the late 1990s. the acceleration of scientific and technological
progress has led to qualitative changes in the automotive industry. The main
directions of its development in recent years have been: reducing fuel consumption
through the use of new types of fuel and reducing the weight of the car; reduction
of toxicity of exhaust gases and background noise; increasing the level of safety
and comfort of the car. All this contributed to a reduction in road traffic accidents
and a decrease in the number of victims of car accidents.
2.1 US automotive industry
Automotive companies based in the United States are not entirely

harmonious - more than 60% are located on the Pacific coast and in the centers of
the northern regions, and the total share of finished goods output is about 80%.
Important centers for the production of automobiles and metal rolling: Detroit,
Dallas-Fort Worth, Boston, Chicago, New York, Cleveland, Milwaukee, Los
Angeles, Philadelphia, more than 40% of the production of automobiles and
metallurgy falls on these cities.
Cars are the primary means of transportation for more than a million people
in the United States, and truck-based logistics plays an important role in America's
entire transportation system. About 20 million Americans are employed in the
manufacture of cars, in their sale and operation for commercial purposes. In the
assembly of cars, the main part of the forging and pressing equipment and the fleet
of machine tools is used. Automotive production in the United States is at its peak,
but it is worth saying that this industry is vulnerable to market fluctuations and
recessions that affect both the automotive industry and related industries: machine
tool, chemical, rubber and metal industries, etc., leading to unemployment and
undercapacity. In the US automotive market, competition from foreign companies
is increasing every year, such as brands from Germany and Japan. The success of
the rivalry of these cars was helped by the fuel energy crisis and the rapid increase
in fuel prices for refueling cars.
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Auto manufacturers in the US were hit hard by the global economic crisis
that also hit the US auto industry in 2008. Since then, car sales have declined at a
constant rate. This resulted in many major automakers in the US, such as General
Motors, nearly going bankrupt. Several car manufacturing companies were forced
to file for bankruptcy.
Seeing the bankruptcy situation, many automakers in the US believe that
simply pouring money into the US auto industry will not be the only solution. A
number of important companies in the US auto industry have said that the federal
government should take action on the credit system. The loans will help the US
auto industry maintain its current position.
Auto suppliers in the US are having difficulty keeping their operating costs
down and this is putting them in financial trouble. The main reason for this is the
capital-intensive nature of their economic activities. It is difficult for car buyers to
get the loans they need to buy cars. This is reflected in US car sales.
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2.2 Automotive industry in Europe
The automotive industry is one of the main industrial sectors in Europe. It

started in Germany and France about a hundred years ago. But mass production
began later than America. After the First World War, after the Second World War,
it turned into an industry with a well-known export activity, but after the raging
energy crisis in the 1970s, it suffered a decline, and nowadays it is in growth mode.
Producing annually 15-16 million cars, Western Europe overtakes both Japan and
the USA in this indicator. The largest producing countries are Germany (5.8
million), France (3.2 million), Spain (2.8 million), Great Britain (1.7 million), Italy
(1.2 million). In total, approximately 2 million Europeans are employed in the
production of automobiles.
For a long time, the automotive industry developed only where it originated.
In France, these are the Paris region (“Renault”, “Citroen”) and the southeast
(“Peugeot”), the VFRG - the regions of Stuttgart (“Daimler-Benz”), Frankfurt am
Main (“Opel”) and for England - West Midland and South East ("British
Leyland"), for Italy - Turin (FIAT),. But already in the late 20's - early 30's. In the
twentieth century, the automotive industry was developed in other parts of Europe.
These are Bavaria and Munich (“BMW”) and Wolfsburg (“Volkswagen”). Also in
Sweden (Volvo). In terms of production, these enterprises were factories-combines
engaged not only in assembly, but also in the manufacture of spare parts and parts.
Since the beginning of the scientific and technological revolution in the 50s.
XX century, there was a turning point in the automotive industry in the region.
There was a transition to mass production from small serial production, the former
combines became large factories, productivity increased from 100 to 600 machines
per year.
In more modern times, globalization has a very noticeable impact on the
automotive industry in Europe. It is expressed in an increase in production
cooperation and international specialization, as well as in an increase in exports. Of
20
the 16.7 million cars manufactured in the specialized regions of Europe in 1998,
12.7 million were exported (8.4 million to other European countries, 4.4 million
outside Europe).
The main factor in the automotive industry in Europe is a high level of
monopolization. These automakers dominate here:
The leading place belongs to the German Volkswagen, from year to year 4.9
million cars are produced (this is 10% of the global automotive industry) of 50
different models. Volkswagen has 42 plants located in different parts of the world,
300 thousand employees. In 1999, Volkswagen became the first European car
manufacturer to produce its 100 millionth vehicle. Then comes the German
"Daimler-Benz", which became in the 80-90s. 20th century diversified supergiant
engaged in the production of cars "Mercedes", which are considered prestige class
cars. Mercedes produces 4.5 million cars a year (this is about 8.5% of world
production). For trucks, the share of Mercedes is much larger (more than 16%).
The third line is occupied by the Italian FIAT (more than 2.6 million cars per
year), followed by the French manufacturer Renault (2.3 million), then - also the
French "PSA Peugeot Citroën" (2.2 million). Closes the German “BMW” and the
Swedish “Volvo”. There is constant competition and regrouping between them.
It is also important to note that Japanese and American car manufacturers
are entering the European market. The American "GeneralMotors" subjugated the
German "Opel", built a large number of concerns in "Ford". As a result, Americans
meet 10–12% of the needs of Europeans in the automotive market. Japanese
manufacturers - Toyota, Nissan, Honda, Mazda, Mitsubishi - also took root well.
They provide 10-12% of the European market, but this figure in some countries
reaches 20-30% (Switzerland, Belgium, Sweden, the Netherlands), 30-35%
(Norway, Austria, Greece, Denmark) and 40% (Finland , Ireland). European Union
in the 1990s decided that the import of Japanese cars to Europe should be kept at
the level of 1-1.2 million units per year. South Korean cars are also imported to the
European market. As a result, the automotive industry of some European countries
21
has become international. A good example is Spain, where there are 14 large car
factories that export at least 80% of the assembled cars.
2.3 Automotive industry in the Asian region
Japan, Korea and China are leaders in the Asian automotive industry. For a
long period of time, the main distinguishing feature of Asian countries was cheap
labor in a huge supply, so they produced "public cars". In the current period, the
level of wages in Japan and Korea can be said to have become the same as in
America or Europe. However, the advantage of Asian cars as “general availability”
has been preserved.
South Korea is represented by the three largest automakers, Kiya, Daewoo
and Hyundai. The sales figures of these cars around the world are growing year by
year, but in some countries it is believed that the quality of the Korean car industry
is inferior to that of Japan to a large extent. In the states of the former USSR, there
is a significant difference in cost between American and Korean cars and the
choice is in favor of an Asian car, even if “Americans” are considered better.
Daewoo “Sens” can also be called an inexpensive car designed for a small budget,
and the quality of this car leaves much to be desired.
The Land of the Rising Sun is one of the leaders in the automotive industry
in the world today. The Japanese took into account the interests of all segments of
the population from the poorest to the richest. You can give an example, Toyota
and Lexus, differences in comfort and quality of certain instances, but visually the
same. Safety from breakdowns, a high level of reliability of Japanese cars, their
economical consumption, thanks to which “Japanese women” can rightfully be
recognized as the best.
Advantages of Japanese RHD cars:
- not a single breakdown during continuous operation for a long time,
regardless of the conditions (including on Russian roads). But in this aspect, it is
important to take care of this high-precision device, but the truth remains the truth,
22
in order to be convinced of this, it is worth looking at the car reliability ratings in
foreign print media. And all thanks to manufacturability, thoughtfulness and the
highest build quality;
- domestic Japanese cars are also considered very good technically. We are
talking about the introduction of the latest technologies in almost all manufactured
models for the Japanese market. Approximately 95-98% of small cars made for the
national market have air conditioning. What European and Japanese cars, released
for export, for Europe cannot boast of this.
- It is also an important fact that Japanese cars for export are quite cool
underestimated in their characteristics, unlike cars for Japanese consumers. This is
reflected in the power of the engines and equipment. For example, the QG18DE
(NISSAN) engine with 125 hp for the national market, and for export its power is
already 110 hp. There are many such examples. To all of the above, it is worth
adding that the quality of Japanese cars assembled outside of Japan itself is very
high, but still largely loses in all respects to cars assembled at home.
China is a newcomer to the automotive industry, but it is rapidly gaining
more and more positions in the automotive market, overtaking Japan in the
production of cars. But in reality, Chinese cars cannot boast of excellent quality.
They win the hearts of motorists with their low price. The Chinese safely import
their cars to the countries of the former USSR, to Latin America, Africa, but North
America, as well as Europe, remain out of reach for them, due to high competition,
which China falls short of. Chinese automakers use cheap low-quality raw
materials, do not comply with international standards and safety requirements.
Chinese analysts admit that their automotive industry is ten years behind the
world's automakers. Not a small number of defects in a Chinese car appear already
in the first half of the year of operation. So the Middle Kingdom is still to grow
and grow in the automotive industry towards quality and reliability.
23
Conclusion
The automobile was to the 20th century what railroads and coal were to the
19th: a catalyst for profound change in industry and society at large. The
automotive industry not only changed the way we live by making the population
mobile, but also led to the creation of many new management methods, such as
Henry Ford's assembly lines, Alfred Sloan's management philosophy, and Taichi
Ohno's "lean manufacturing" methods. Today, the automotive industry has reached
the largest production volume in the world, consuming 15% of the world's steel,
40% of rubber and 25% of glass. No wonder Peter Drucker called it "a branch of
industries."
As the industry enters the 21st century, the need for change becomes clear.
Many OEMs and their suppliers are in an almost endless fight for survival as the
industry constantly faces overcapacity and price wars. We are also seeing a rapidly
shifting balance in the world economy and the formation of a multipolar world in
which the US and Europe share economic power with the growing economies of
Asia.
A brief overview of the state of affairs in the automotive industry presented
in this course work allows us to draw the main conclusion that it is necessary to
intensify work to overcome the consequences of the global financial crisis, the
trend of declining business activity and falling production volumes.
24
List of used literature
1. Bulletin of foreign commercial information. - 2014. - July 15, December 7.

2. Hybrid engine // Foreign trade bulletin CORINTH. - 2015. - No. 2.
3. Ivanov A.S. The world car market is at the forefront of globalization processes //
Foreign Economic Bulletin. - 2014. - No. 2.
4. On the European automotive market // Foreign trade bulletin CORINTH. - 2005.
- No. 6.
5. Environmentally friendly cars powered by hydrogen // Foreign Trade Bulletin of
CORINTH. - 2015. - No. 13.
6. Organization Internationale des Constructeurs d'Automobiles [www.OICA.net]
7.WTO. International Trade Statistics
8. Perpetual motion // The Economist. – 2014. – Sep 2nd
9. The new European order // The Economist. – 2014. – Sep 2nd
10. Auto World [http://worldautoblog.ru]
25
Appendix 1
This table of countries producing cars displays the number of cars produced
1950-2012 in descending thousandths.
This information is based on the "Organization Internationale des
Constructeurs d'Automobiles" for the years 2000-2014.
Place Country/Region 2014 2014 2005 2000 1990 1980 1970 1960 1950
The whole
84141
77858
66482
38565
28419
16488
10577
- 58374 48554
world
1710 1817
16240
- European Union 17142 - - - - -

2 7
1826
19272
01 China 5708 2069 509 222 87 23 0

5
1194
10329
02 USA 7761 12800 9783 8067 8240 7869 8003

7
1080 1094
03 Japan 9943 9626 10141 13489 5238 474 28
0 1
04 Germany 5649 5906 5758 5527 4977 3892 3842 2055 304
05 South Korea 4558 4272 3699 3115 1322 123 29 0 0
06 India 4145 3537 1639 801 364 113 82 52 0
07 Brazil 3343 3648 2531 1682 914 1145 417 133 0
08 Mexico 3002 2345 1624 1936 821 444
09 Thailand 2483 1645 1123 412
10 Canada 2464 2071 2688 2962 1947 1375 1193 398 390
eleven Russia 2232 1403 1351 1206 1884 737 490 342
12 Spain 1979 2388 2753 3033 2053 1172 532 59 0
13 France 1968 2228 3549 3348 3769 3992 2750 1369 357
fourteen Great Britain 1577 1393 1803 1814 1566 1414 2099 1811 784
fifteen Czech Republic 1577 1393 1803 1814 1566 1414 2099 1811 784
16 Turkey 1072 1095 879 431
17 Indonesia 1066 703 501 293 103
26
eighteen Iran 989 1599 817 278 80
nineteen Slovakia 900 557 218 182
twenty Argentina 764 717 320 340 282 218 89
21 Italy 672 838 1038 1738 2121 1612 1854 645 129
22 Poland 648 869 613 505 412 105 37 one
23 Malaysia 572 568 563 283
24 Belgium 542 555 929 1033 1248
25 South Africa 539 472 525 357
26 Taiwan 339 303 446 373
27 Romania 338 351 195 78 94 124 59 12
28 Uzbekistan 236 222 94 52 0 0 0 0 0
29 Hungary 218 211 152 137 3
Place Country/Region 2012 2014 2005 2000 1990 1980 1970 1960 1950
thirty Australia 210 243 395 347 284 361 475 204 58
31 Pakistan 166 109 153 103
32 Portugal 164 159 227 246 26 91
33 Sweden 163 217 339 301 344 317 311 129 28
fourt
34 Austria 143 105 253 141 7 13
een
35 Slovenia 131 206 187 99
36 Morocco 109 42 34 31 0 0 0 0
37 Venezuela 104 104 135 123 153
38 Ukraine 76 83 216 31
39 Colombia 71 42 109 80 43
ninet
40 Netherlands 57 94 102 99 97 79
een
41 Egypt 56 92 123 79
42 Philippines 554 64 64 39
43 Vietnam 40 33 32 7
ninetee ninet
44 Belarus 25 17 27 40 thirty 2
n een
45 Ecuador 24 6 32 41
eleve eighte fourte
46 Serbia 13
n en en
47 Kenya 3 3 0.4 0.3
48 Finland 3 7 22 39
49 Tunisia 2 2
Chile five 7 five
Ireland 47
New Zealand 90 55 32 10
Bulgaria 21 12
27
North Korea 3
fourtee
Uruguay
n
Botswana 2
Nigeria 3 eight
information
- about former - - - - - - - - -
countries
- USSR - - - - 2199 2114 869 524 363
- Czechoslovakia - - - - 242 233 168 75 31
- Yugoslavia - - - - 239 278 124 16 one
- GDR - - - - - 217 151 77 eight
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Federal State Budgetary Educational Institution of Higher Professional Education

The importance of the automotive industry cannot be overestimated. It is by

1. Global automotive market

1.2 Overcoming the crisis on the example of Hyundai

The largest auto corporations turned to the government for financial

2. Trends and processes in the global automotive industry

The automotive industry is one of the main industries in the economy of

2.1 US automotive industry

Automotive companies based in the United States are not entirely

2.2 Automotive industry in Europe

The automotive industry is one of the main industrial sectors in Europe. It

2.3 Automotive industry in the Asian region

List of used literature

1. Bulletin of foreign commercial information. - 2014. - July 15, December 7.

- European Union 17142 - - - - -

01 China 5708 2069 509 222 87 23 0

02 USA 7761 12800 9783 8067 8240 7869 8003

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