High Noon in the Automotive Industry by Helmut Becker

By Helmut Becker

The automobile markets of the industrialized international are saturated. there is not any longer any progress for the ''growth-minded'' automobile undefined. this example isn't essentially replaced through international locations like China, India, and jap Europe, their markets are too small and strengthen their very own car creation. for this reason, car sees a cutthroat pageant, resulting in an explosion of latest types and rebates. This booklet deals a powerful research and provides a legitimate forecast for the worldwide automobile within the subsequent ten years. Expecially, the ebook deals a radical research of the eleven monstrous car businesses on the planet and their outlook for the long run. It solutions vital questions: Who will live on, who will drop out? what is going to be the implications for providers? Which areas will unfastened, for you to win? do not pass over this breath-taking perception into the fight for survival of the car businesses!

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The suppliers are expected not only to develop new technologies efficiently and offer them exclusively, but also to finance themselves in advance. In addition they are expected to continually optimize the manufacturing processes of existing products, in order to generate regular price reductions. In this manner, the supply industry serves as a cost buffer for the manufacturers, who sometimes exploit their market power as buyers to 38 1 The current situation: markets in upheaval, turbulence in the sector oligopoly such an extent that suppliers are forced to accept orders with no cost coverage, in order not to lose their customers.

But it is the traditional volume segments in the middle range which are in a real fix, previously the domain of the solid middle class. This is precisely the group of buyers that was hit particularly hard by the economic lull which has affected incomes since 2000. The automobile manufacturers especially hit by this demand structure are therefore the classic mass producers such as Volkswagen, Ford, Opel and Fiat. g. Mercedes M-class, VW-Touareg, etc. 30 1 The current situation: markets in upheaval, turbulence in the sector oligopoly behaviour if they control their costs and can offer innovative products and product solutions.

Wherever the exhaustion of a company's own cost reduction potential is not sufficient, manufacturers are now forming strategic coalitions, which would have been unthinkable only a few years ago. It remains to be seen whether this is enough for a consolidation of the crowding-out competition among the remaining manufacturers. For why should the strong producers go easy on the weak ones, if, as a result of the weak ones withdrawing from the market, they are able to generate the profitable growth they need?

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