Very Important Final Paper-7pages

AUTOMOTIVE  MANUFACTURING

8.2  INTS  2370

Definition  and  Structure

• Evolution  of  the  industry – Key  contributor  to  industrialization  and  still  heavily  defended – Moving  assembly  line  to  lean  production

• Current  structure – Sensitive  to  changing  preferences – Badly  hit  by  the  2008  financial  crisis

• Technological  developments – Shared  platforms – Modularization  of  components – Efficiency  improvements  and  alternative  power – Role  of  electronics  (Google,  Nokia,  etc.)

Consumption  Patterns

• Changes  in  consumption  patterns – Necessary  goods? – Strong  discretionary  element – Volatile  demand:  market  cycles  and  structural  changes  in  demand – Alternatives  and  external  disruptors?

• Increasing  market  fragmentation – Changes  in  production  relationships,  branding

• Developed  world  stagnation  leading  to  developing  world  growth

Role  of  the  State

• Perceived importance  of  automobile  industry  as  key  developmental   sector

• Domestic  defense  while  seeking  access  to  foreign  firms • Ongoing  protectionism,  usually  NTBs • Post-­‐2008  bailouts • Environmental  regulation  vs.  degredation • Intercountry variation

Consolidation  Trends • Producer  level – Consolidation   – Collaborative  agreements

• Supply  chain  level – Supply  system  fragmented – Emergence  of  standardizers,  integrators – Diverse  relationships  between  suppliers  and  assemblers – ‘Industrial  condominiums’  and  ‘supplier  parks’

• Regionalization  of  the  market