A Quick Synopsis Of Automotives
The past couple of years have been hard on the automotive industry. An economy that made people think twice before buying new cars had a lot to do with it. When the United States Government decided to give money to the companies who were having difficulties, the previously loyal customer base started thinking twice.
The car industry is far more than just the selling of vehicles at a lot. While most of us know the location of several new car lots, there is much more to the process before the cars reach those lots. There is constant research and development going on behind the scenes as companies try to come up with designs that get better gas mileage, are more ecologically friendly and will appeal to the masses.
Unlike in the early years of car manufacturing, today most companies have partnerships with other makers. When you dive in and study a bit about the industry, you discover that cars that are made in the USA have parts that are made outside of the country. The globalization of the car industry has affected most every major car manufacturer. Countries in South America, Africa and Asia and Europe all work together creating vehicles.
Since the auto industry must focus more on the environment and on the global impacts of their emissions, there is a laser like focus on creating vehicles that are cleaner burning and more efficient. Fiat has recently designed and built a car that boasts a 30% decrease in gasoline consumption. American owned Smith Electric Vehicles recently applied for and received a grant from the Department of Energy (US). The grant was for thirty two million dollars and will be used to develop electric trucks. Previously electric cars were quite small.
Because the auto industry is a “high capital” industry, we should probably take a look at where the dollars go to understand the costs of a vehicle. First of all, there is a lot of labor involved, from research and development to the actual workers putting the cars together. Materials are also part of the high cost of building a car. With the industry always looking for sleeker, more mileage friendly materials, the cost of said materials continues to climb. Lastly, the marketing of autos is extremely competitive. Manufacturers are always looking for the next catchy advertisement to catch the consumers eye. This all leads to rather costly products.
Auto parts makers are different than the manufacturers themselves. While it is true that many of the larger auto manufacturers create their own parts, many of them are also out-sourced. Everything from the door handles to the car seats are manufactured outside of the auto-maker. Tires are a whole other manufacturing unit. Tire companies compete to supply the auto manufacturers with their tire, sometimes even customizing a tire for a particular vehicle. There are other rubber products like the belts and hoses under the hood that go into the economy of building a car as well.
Most dealerships do service their own brands of cars, but there is also a huge market for independent garages. For many consumers, trusting the dealer to fix an issue is all they need. For others, finding a less expensive alternative, such as a garage who has a “AAA” rating is their preferred method of fixing their vehicles. This is just one more layer of the whole industry.
The automotive industry is a gigantic player in the global economy. Even countries like China are becoming more and more involved in the manufacturing of cars. As the United States strives towards creating a global market for our vehicles, the automotive industry must learn to work internationally to be competitive.
Locating an Orlando auto repair business for needed repair work on your automobile is important if you have been in an accident. An Orlando paint and body work session can make your vehicle look showroom perfect.
