Automobile Industry and the Recession

0
133

The automobile industry has a special impact on modern-day man’s daily life, which requires fast mobility with reliability. The rapid growth in the automobile industry has had its ebbs and flows. Currently, it is undergoing a recession globally. The auto industry is evolving new strategies and signing up new contracts and joint ventures to stabilize itself and avoid further slump.

There is a particular need for rationalization of taxation and customs policies to support enterprises producing automobile components.

Automobile Industry

Automobile and automotive parts & components manufacturers make a major portion of the automotive industry throughout the world. The automobile manufacturing sector consists of truck manufacturers, motor vehicle body manufacturers, motor vehicle parts, and supplies manufacturers. This is engaged in manufacturing automotive and light-duty motor vehicles, personal utility transport vehicles and chassis, cabs, trucks, automobile and utility trailers, buses, military small and heavy vehicles, and the main parts of the motor vehicle engines.

In 1997, most automobile construction enterprises had passed through the lowest critical point. They began to increase production volume, restructuring themselves while considering consumer requirements, their solvency, and the overall economic situation. Thus, in the first six months of 1997, there was a substantial increase in production volume compared to the corresponding period in 1996.

The global automotive industry is highly diversified and includes different sectors like manufacturers, suppliers, dealers, retailers, original equipment manufacturers, automotive engineers, spray painters, motor mechanics, auto electricians, aftermarket parts manufacturers, body repairers, fuel producers, environmental and transport safety groups and even many of trade unions Page Design Pro.

The auto industry’s global leaders are United States, Japan, China, Germany, and South Korea. The United States of America is the world’s largest producer and consumer of motor vehicles and automobiles, accounting for almost 6.6 million direct and indirect jobs. The automobile industry is one of the world’s significant ones that employ 25 million people worldwide. This industry is largely dominated by the five giant automobile manufacturing corporations, namely Toyota, General Motors, Ford Motor Company, Volkswagen AG, and Daimler Chrysler. These corporations have their presence in almost every country of the world. They continue to invest in production facilities in emerging markets, namely Latin America, Middle East, Eastern Europe, China, Malaysia, and other Southeast Asia markets. To overcome certain production costs, many mainstream auto corporations have established their units worldwide.

Engine parts form one of the largest segments of the automotive components industry. The latest trend in this sector is outsourcing a part of the engine to different vendors who provide good comparative technological expertise. Recently auto industry is going through its worst periods. The global giants are facing the toughest economical crisis. This is also resulting in heavy losses to the workforce in the form of lost jobs. There are varied factors behind this decline of the automobile industry that have badly affected it. Nonetheless, it is hoped that this industry, which is an integral part of modern-day life and has stood the test of time in previous recessions, has the tenacity and the resilience of bouncing back once again.