The Automotive Industry in the 21st Century Essay

The Automotive Industry in the 21st Century - Essay Example This industry is of great economic meaning to various countries that have exploited it largely for trade and employment creation. It is also evident that the industry has largely experienced change and improvement in technology, though to a limited extent. The case note from European Case Clearing House (ECCH) on the automobile industry covers the social and political significance of the automobile industry within the first ten years of the 21st century. It gives information on the challenges faced by the industry in the constant profit making process at each stage. It also gives details on the value chain involved in the industry. Challenges in the introduction and effects of new technology are also given a wide view, including the rigidity in the application and use of particular raw materials. The competition in the industry has been on with different innovations emerging, as a result. More improvements have been seen, which has brought a variety of commodities for consumers to choose from. The major players in the field include the general motors’ company of the United States, Toyota Motor Corporation of Japan, Hyundai motors of South Korea, Renault of France among others. Background Background The development automobile traces its origin late in the twentieth century. Entrepreneurs and engineers dealing in machinery in Europe and the US geared its progress. The countries included Germany producing their first car, France, United States and Japan, which also made their first cars between 1890 and 1914. 1) Scale and economic importance of the industry The industry scale is one that can be termed as large in a general view. This is because it ranges from large-scale manufacture of cars and car parts widely spread in renowned nations such as China, Japan, USA, Germany, UK, among others. It is global since the trade barriers reduction has encouraged wide investments in the emerging markets (Mitchell, Borroni-Bird & Burns, 2007). Most manufacturers export their automobile products and some kept for their domestic markets. There is various economic importance of the industry being exhibited worldwide. To begin with, it provides market for fuel producing industries. Al l automobiles require fuel or energy to propel them. Petroleum is the most widely used fuel by most automobiles. Petroleum refining industries, therefore, market their products to the automobile users. Refined steel has been used constantly used in the bodybuilding, as explained by Constable and Procter (2007). Another sector that has developed is employment creation. For instance, in Germany, the sector provides for not less than 14 percent of people employed in the manufacturing. The world has, to a significant extent, experienced unemployment problems in the 21st century; motor vehicle industry has helped curb the problem through employing engineers, entrepreneurs, and managers, sales personnel among other professionals on permanent and casual basis. The industry is a major source of income. Innovation in the automobile industry has led to an increase in flexibility and mobility of cash inflow to the various countries that deal in the industry. Marketing of the products and their spare parts locally and abroad generates cash. It can be noted that the industry is a major global driver of growth. 2) The static technology of the industry and factors that make it difficult for the industry to change to technology Technological innovations in the automobile sector has been rather static due to various factors including safety, risk of job loss, and