Overview of Automotive IndustryFirst automobile with petrol engine was built on 1885 and soon the figure for total cars in the world will be touching a mark of 1000 million cars and light trucks. This article presents a quick overview of what we mean with Automative Industry and how it started and what is the scale of this industry today.The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the earth's most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations.The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-distance trip in August 1888 (104 km from Mannheim to Pforzheim and back) that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event.Soon after, in 1889, Gottlieb Daimler and Wilhelm Maybach in Stuttgart designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle.Until 2005, the U.S.A. led the world in total automobile production. In 1929 before the Great Depression, the world had 32,028,500 automobiles in use, and the US automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. By producing 18.3 million units in 2010, China produced nearly twice the number of second place Japan (9.6 million units), with the U.S. in third place with 7.8 million units.Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion US gallons (980,000,000 m3) of gasoline and diesel fuel yearly. The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful automotive markets are Iran and Indonesia. Emerging auto markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study expects this trend to accelerate.India is home to a vibrant automobile of more than 40 million vehicles. It has been one of the few countries worldwide which saw growing passenger car sales during the recession of the past two years. It is believed this upward trend will be sustained in the foreseeable future due to a strong domestic market and increased thrust on exports. The Indian economy has grown at an average rate of around 9 percent over the past five years and is expected to continue this growth in the medium term. This is predicted to drive an increase in the percentage of the Indian population able to afford vehicles. Indias car per capita ratio (expressed in cars per 1,000 population) is currently among the lowest in the worlds top 10 auto markets. The twin phenomena of low car penetration and rising incomes, when combined with increasing affordability of cars, are expected to contribute to an increase in Indias automobile demand.Next >- Learn more at www.technofunc.com. Your online source for free professional tutorials.

ry of Automotive IndustryStudy of the automotive industry is inherently interesting: it is massive, it is competitive, and it is just few years older than a century. It is expected to undergo major changes in recent times due to the impact of globalization, increased regulations because of environmental concerns and rising fossil fuel prices due to decreasing oil reserves.The evolution of the automotive industry has been influenced by various innovations in fuels, vehicle components, societal infrastructure, and manufacturing practices, as well as changes in markets, suppliers and business structures.Year 1600:Some historians cite examples as early as the year 1600 of sail-mounted carriages as the first vehicles to be propelled by something other than animals or humans. However, it is believed by most historians that the key starting point for the automobile was the development of the engine.First Fuel Engine in 1876:The engine was developed as a result of discovering new energy carrying mediums, such as steam in the 1700s, and new fuels, such as gas and gasoline in the 1800s. Shortly after the invention of the 4-stroke internal combustion gasoline-fueled engine in 1876, the development of the first motor vehicles and establishment of first automotive firms in Europe and America occurred.First Practical Automobile in 1885:The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-distance trip in August 1888 (104 km (65 mi) from Mannheim to Pforzheim and back) that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event.Birth of Automotive Industry (1890 1910):During the 1890s and early 1900s, developments of other technologies, such as the steering wheel and floor-mounted accelerator, sped up the development of the automotive industry by making vehicles easier to use. Almost simultaneously, in America, the societal infrastructure that would provide fertile ground for the proliferation of automobiles was being set. Drivers licenses were issued, service stations were opened, and car sales with loan structures were instituted. Famous vehicle models such as Fords Model T were developed during these times and, by 1906, car designs began abandoning the carriage look and taking on a more car like appearance.Early Automotive Infrastructure Put in Place (1910-1920):During the 1910s, the development of technologies and societal infrastructure continued in addition to new manufacturing practices and business strategies. Traffic lights started appearing in the U.S. and thousands of road signs were posted by B. F. Goodrich on over 100,000 miles of U.S. roads. Henry Fords famous assembly line was launched in 1913, which allowed vehicles to be mass produced and thus achieved economies of scale. Ford also introduced the concept of using interchangeable and standard parts to further enable the mass production process. Automakers also started to merge with other companies (e.g., GM acquired Chevrolet) and to expand to other markets (e.g., GM of Canada).Era of Mass Production and Variety (1920-1930):In the 1920s, the development of infrastructure, adoption of new manufacturing practices, and the merging of companies continued (e.g., Benz and Daimler, Chrysler and Dodge, Ford and Lincoln). In the U.S., the Bureau of Public Roads and the enactment of the Kahn-Wadsworth Bill helped facilitate road-building projects and develop a national road system. In manufacturing, mass production methods became better established, which led to the availability of a wide range of satisfactory cars to the public. While Ford had focused on a single model, GM adopted a new production strategy for providing greater product variety, which helped the company increase their market share by snatching it from Ford.Decade of New Market Players (1930-1940):In the 1930s, several new vehicle brands were developed (e.g., Ford Mercury, Lincoln Continental, Volkswagen) and trends in vehicle consumer preferences were established that differentiated the American and European market. In the U.S. market, consumers preferred luxurious and powerful cars, whereas in Europe consumers preferred smaller and low-priced cars. Also during this time, GMs product variety strategy continued to give them a competitive advantage over Ford, allowing GM to continue increasing their market share while Ford kept losing theirs.The End of World War II (1940-1950):Many European and Asian-Pacific countries led to the development of new production and business strategies. In the 1940s, during World War II (WWII), automotive factories were used to make military vehicles and weapons, thus halting civilian vehicle production. After WWII, the economies of most European and some Asian-pacific countries, such as Japan, were decimated; this required the development of new production and business strategies such as those of Toyota, which began to develop Just in Time (JIT) manufacturing. Most of the first models produced were similar to the pre-war designs since it took some time for the plants to revamp their operations to make new designs and models. Using this strategy there were able to improve return on investment by reducing in-process inventory and lowering carrying costs.Era of Technological Innovations (1950-1960):In the 1950s and 1960s, more technological innovations, brought many changes in the automotive industry. Some new concepts were, new look and feel of the automobiles, fiberglass bodies, higher compression ratio fuels, vehicle comfort, look and feel, emerging safety and environmental regulations, vehicle speed limits, front seat belts, and, heating and ventilation equipment.Era of Fuel Efficient Cars (1970-1980):The 1970s were marked by stricter environmental regulations and the oil crisis of the early 70s, which led to the development of low emission vehicle technologies, such as catalytic converters. Foreign cars like the Japanese Honda Civic started appearing in the U.S. market. Consumer interest in fuel efficient vehicles was increasing due to high oil and fuel prices. Vehicles made in Asia that were highly fuel efficient began increasing their market share in developed markets. This decade also marked the beginning of Lean production by Japanese automakers.Start of Globalization (1980 1990):In this decade affordable, fuel-efficient vehicles continued to increase their market share. The U.S. automotive industry began losing market share to the higher quality, affordable, and fuel efficient cars from Japanese automakers. Due to this, vehicle manufacturing became more globalized as auto manufacturers started assembling vehicles from around the world. This trend was accelerated in the 1990s with the construction of overseas facilities and mergers between multinational automakers. This global expansion gave automakers a greater capacity to infiltrate new markets quickly and at lower costs.Variety & Empowerment of Consumer (1990 2000):Influence of globalization continued in the 1990s. Huge overseas assembly plants were built and many mergers took place between large, multinational automakers. This resulted in a greater variety of products in the marketplace available for consumers to choose from and increased competition among the automotive players. Increasing sophistication and empowerment of the consumer led to new and more specialized markets with diverse consumer base such as Southeast Asia and Latin America. This further fuelled global alliances and commercial strategic partnerships with foreign automakers.Era of Financial Troubles (2000 Present):This decade has been tumultuous for automobile and light duty motor vehicle manufacturers. Industry revenue growth was very low compared to past and skyrocketing fuel prices and growing environmental concerns shifted consumers' preferences away from fuel-guzzling pickup trucks to smaller, more fuel-efficient cars. The global economic crisis that began in 2007, led to financial troubles for many of the world's largest automakers and rippled through other countries around the globe, causing unemployment to rise and wealth to dive. General Motors was hit particularly hard, filing for Chapter 11 bankruptcy in June 2009. Due to lower disposable income and growing pessimism about the future, demand for cars dropped. Motor vehicle sales crashed in 2008 and 2009, although they have recovered strongly since.< PrevNext >- Learn more at www.technofunc.com. Your online source for free professional tutorials.Automotive Industry: Industry SectorsIn this article we will discuss the business sectors of the automotive industry. We will understand the major sectors in the automotive industry and the role they play and their impact on the industry. The major business sectors of automotive industry are suppliers, auto-manufacturers and auto dealerships.Pillars of Automotive Industry:The automotive industry can be divided into three business sectors that form the pillars of the industry. The three business sectors are:Car and Automobile Manufacturers:Companies in this industry manufacture chassis for automobiles and light duty motor vehicles and assemble final automobiles and light duty motor vehicles. These vehicles include passenger cars, pickup trucks, sports utility vehicles (SUVs), crossover utility vehicles, people movers and vans. Many parts are acquired from many different suppliers and finally assembled by the Auto Manufacturer. They use these parts to build vehicles and assembled vehicle is sold under their brand names. Auto manufacturers produce and sell light-duty vehicles, such as passenger cars, vans, and pickup trucks. They also sell heavy-duty vehicles, such as trucks, transit buses, school buses, and military vehicles.Industry Products: Cars Pickup trucks and SUVs Vans Trucks Transit Buses School Buses Military VehiclesIndustry Activities: Manufacturing passenger cars, light trucks, sport utility vehicles and vans Manufacturing chassis for passenger cars, light and utility trucks, and vans Manufacturing electric automobiles for highway use Hearses assembling on chassis of ownAuto Parts and Accessories Manufacturers:Companies in this industry manufacture motor vehicle parts and accessories other than engines, engines parts, batteries, tires, bodies and chassis. Motor vehicle assembling is not included in this industry. Manufacturers typically supply parts and accessories to original equipment manufacturers (OEM) for use in the manufacturing of complete motor vehicles or for replacement parts in OEM dealerships. They also supply parts to the aftermarket.Suppliers form part of a highly complex supply chain that transforms raw materials and components into ready-made auto parts that are then delivered to auto manufacturers. The supplier business sector also includes aftermarket parts, replacement parts, and rubber fabrication companies.Industry Products: Electrical and electronic components Steering and suspension Brake systems Transmission and power train Seating and interior trim Metal stamping Air conditioning, air bag, wheel and all other partsIndustry Activities: Motor vehicle electrical and electronic part Motor vehicle steering and suspension part Motor vehicle brake system Motor vehicle transmission and power train part Motor vehicle seating and interior trim part Motor vehicle part metal stampingCar & Automobile Sales / Auto Dealerships:This industry is involved in the retailing of new and used motor vehicles mainly through dealerships, commission agents and car auctions. Products sold in this industry include: passenger cars, SUVs and light trucks, heavy trucks, buses, recreational vehicles, and specialty vehicles such as ambulances and fire trucks. Retail sales of motorcycles, mopeds and bicycles are not included in this industry.Auto dealerships distribute the finished vehicles to the customers. They trade in new vehicles and there also exists a huge demand and market for used vehicles. These dealerships can deal in either new or used, or both. Generally dealerships also provide additional services for vehicle owners, such as vehicle maintenance services and replacement parts. Some dealerships also arrange financing options for vehicle buyers.Industry Products: Cars Sports utility vehicles and pickup trucks Light commercial vehicles Heavy trucks Buses Recreational vehicles Specialty vehiclesIndustry Activities: Sales and service of cars and light trucks Sales and service of heavy trucks Sales and service of specialty vehicles Sales and service of buses Sales and service of vans and other commercial vehicles Sales and service of recreational vehicles< Prev- Learn more at www.technofunc.com. Your online source for free professional tutorials.

Automotive Industry: The Key Industry DriversThere are four key business drivers that impact the automotive industry: economic conditions, consumer preferences, government, and technological advances. Globalization is also influencing industry to a great extent. In this article we will discuss in detail about each of these business drivers.Economic Conditions:The first key driver is economic conditions. When economic conditions are favorable, people are more likely to purchase new vehicles giving momentum to the industry. Slowdown in economic output leads to reduced consumer and business confidence and levels of vehicle consumption goes down.Automotive manufacturers need to plan capacity to achieve economies of scale. Companies plan their capacities based on their sales predictions which are totally dependent on economic cycles. The capacity issue has a strong influence on industry economics as vehicle prices are calculated on forecast capacities and reduced capacity means higher unit costs. Vehicle makers, therefore, get heavily impacted due to economic conditions.Consumer Demand and Interests:The second key driver is consumer interest, their preferences and demand. There is a growing demand for more choice. Volume production may become similar to that for premium cars, with a greater number of vehicles being made to order on the basis of a multi-option choice. The market for niche vehicles is growing, as consumers demand more variation of body shape and styling. This has led to a variety of body shapes being constructed on standard platforms.There is an increased awareness of occupant and pedestrian safety, and consumers also look for greater fuel economy, exemplified by the growing rise of fossil fuel prices. Consumer are becoming more aware of specifications and looking for inclusion of more on-board electronics and telecommunications systems. Automobile safety is tremendously important to consumers in all markets and consumers are willing to pay more for vehicles with safety features.Globalization:The third key driver is globalization and global industry influences. Today, the modern global automotive industry operates in a global competitive marketplace. Globalization of the automotive industry has been greatly accelerated during the last half of the 1990's due to the construction of important overseas facilities and establishment of mergers between giant multinational automakers. The world's largest automobile manufacturers invest into production facilities in emerging markets in order to reduce production costs. Automakers, have merged with, and in some cases established commercial strategic partnerships with other automobile manufacturers, enabling them to expand in overseas markets.Increasing global competition amongst the global manufacturers and positioning within foreign markets has divided the world's automakers into three tiers, the first tier being GM, Ford, Toyota, Honda and Volkswagen, and the two remaining tier manufacturers attempting to consolidate or merge with other lower tier automakers to compete with the first tier companies.Technological Innovations:The fourth key driver influencing automotive industry significantly is Technology. Automotive companies seek to take advantage of sophisticated technology to address the competitive pressure and to meet increased customer expectations on quality and cost. Technological advances help them add value to their vehicles and offset the squeeze on costs and profit margins. Technology also helps them meeting the demands of environmental legislation. It is through technology that manufacturers are able to address consumer demands for increased safety and sophistication.Other innovations that consumers are interested in include features that improve navigation, like GPS, and features that enhance entertainment, including satellite radio and in-car access to digital music.In terms of the vehicle, the innovations that are likely to be in demand are more electronics and telematics, move to a 42-volt electrical system, safety improvements, electrically controlled steering, braking, ABS and suspension. There might be continued development of electric, hybrid and fuel cell drives, especially for city cars and fleet vehicles.Features likely to be introduced could be sophisticated route guidance, inter-model route planning, lane guidance and proximity radars for speed control and warning systems. The consumer in this sector always demands innovation and technology-driven innovations such as fuel-efficient, safer, more comfortable low-emission vehicles will shape the future of the industry.Government & Regulations:The fifth key driver of the automotive industry is government. Legislation is a major driver of the industry; emissions and recycling legislation have a strong impact both on vehicle technologies and construction. In many countries, governments have imposed strict environmental regulations dealing with fuel economy and emissions control on auto manufacturers. These environmental legislations vary in different countries and define standards that are compulsory for all vehicles sold in those countries. This has huge impact on global auto manufacturers as they must keep updating the products they sell in different parts of the world to comply with these regulations. This can add significantly to manufacturing costs.< PrevNext >Next Article Automotive Industry Supply & Value ChainPrevious Article Automotive Industry: Industry SectorsRelated Downloads Click here for Related Downloads- Learn more at www.technofunc.com. Your online source for free professional tutorials.

Automotive Industry Supply & Value ChainMost of the automotive manufacturers employ a business model that demands collaboration between different assemblers and cadre of parts suppliers with a lean, flexible, just-in-time (JIT) assembly process. In this article we will discuss the business model of typical automotive manufacturer and the various stages from planning to final retailing of the product.Industrys Business Model:Most of the automotive manufacturers employ a business model that demands collaboration between different assemblers and cadre of parts suppliers with a lean, flexible, just-in-time (JIT) assembly process.JIT is predicated upon short supply lines that can deliver small batches of components to the assembly line steadily and without interruption (often hourly, and sometimes synchronized to match a particular vehicle), coupled with the facility to immediately correct quality problems as they are discovered, and to make running changes in product specifications or volume requirements when needed.Supplier Types:The modern automotive industry is a labor-intensive industry and creates differentiation by innovation and research and development (R&D). Structurally, the OEMs supply chain is divided into three distinct, but sometimes overlapping layers. Those firms that sold finished components (such as a starter or generator) directly to the vehicle manufacturers are Tier 1 suppliers. Those that sold directly to the Tier 1s (copper wire or carbon brushes) are Tier 2. Those that supplied raw materials to any of the above were usually characterized as Tier 3.An Original Equipment Manufacturer (OEM), supply chain progresses through the following stages:Planning:The executive team in an automotive manufacturing company plans overall concepts and ideas for new vehicles. These teams often involve suppliers at all tiers as development partners.Design:After researching consumer wants and needs, automakers begin designing models which are tailored to the public demand. In the past, this design process has taken up to five years. Today, however, through the extensive use of computers, it is possible to develop prototypes, or "concept cars," from sketches in less than a year.OEM engineers design most of the bought-in components, developing all product parameters in the process. R&D teams design conceptual sketches for a new vehicle. Based on these sketches, a model is created. Product design engineers collaborate with auto manufacturers to ensure that newly designed products can be successfully integrated into the design specifications of a model.Prototyping:Once the design is ready, then, a build-feasibility check is performed. The build feasibility check validates whether the special options and specifications are feasible for the production, follows to determine whether special options and specifications are available for that vehicle in the market. Experts are consulted to troubleshoot potential problems and conduct extensive tests. Next, a simplified model of the new vehicle, called a prototype, is built. The prototype is used to determine whether the final design will be functionally feasible and cost-effective to manufacture.Raw Material Procurement:Once the prototype is successfully validated, then the next stage is to procure raw materials for production and assembly. These may include rubber, glass, steel, plastic, and aluminum. Parts are also procured. Some examples of parts are tires, windshields, and air bags.Production:Once a new product is designed and successfully prototyped, it can move to the production stage to be manufactured. To ensure the production stage runs smoothly, tier one, two, and three suppliers work simultaneously on creating key components and parts.The OEMs provide detailed blueprints to potential suppliers and invite them to bid against each other for a contract, employing an auction market model in which the two lowest price bidders usually won a build to print contract for an agreed fixed price, for an agreed quantity, supplied over a finite time period of generally not more than one year.OEMs would pay for and retain legal ownership of any unique molds, tool sets, or stamping dies used to manufacture the products they engineered. A third supplier frequently was selected for each item, held in reserve in case one of the primes fell out of favor. Price was the dominant factor in contract awards.Inventory Management:During the inventory management stage, logistical decisions are made about the transportation and storage of the vehicles. Auto manufacturers ensure that production and supplier schedules run smoothly by working with logistic service providers. These providers collect parts from suppliers, consolidate them, and deliver them to the assembly plant on time. Vehicle distribution or outbound logistics is the process of transporting vehicles from the assembly plant to the dealership or final customer with large fleets. The outbound distribution logistics is always done via train, truck, and ship.Retailing:During the retailing stage, the finished vehicle is sent to retailers or dealers. Here focus groups test the vehicle's suitability. Based on these results, the retailer's advertising department creates a campaign for the vehicle. R&D teams also use feedback from the focus groups to continuously refine or improve their models.Distribution:Dealers and retailers distribute the vehicles to customers, and the supply chain cycle is completed. Before a vehicle is distributed to customers, dealers and retailers train service technicians to service the vehicle. Sales assistants are given accurate and reliable product information so they can sell the vehicle and answer any questions that a customer may have. As the automotive vehicles have a life cycle of several years, dealers and retailers ensure that service network is available to periodically repair and service the vehicle post sales.< Prev- Learn more at www.technofunc.com. Your online source for free professional tutorials.Automotive Industry: The Competitive LandscapeIn this article we will discusses the top key competitors in the automotive industry. This will help you gain understanding of the major players in automotive industry. We will start with a brief history of the major players, their competitive advantage and financial profiles in this section.The top players in automotive industry are Toyota, General Motors,Volkswagen, Hyundai, Ford and Honda. Given below is the competitive profile for each one of them.1. ToyotaToyota is a large, multinational auto manufacturer headquartered in Japan. Toyota also owns several other companies, including Lexus, Scion, Daihatsu, and Hino Motors. Toyota Motor Corporation, abbreviated TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. According to the 2008 Fortune Global 500, Toyota is the fifth largest company in the world. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. TMC is part of the Toyota Group, one of the largest conglomerates in the world.Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms developed by it and known as "Lean Manufacturing" and Just In Time Production. Toyota's managerial values and business methods are known collectively as the Toyota Way. Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries.Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast its first annual loss in 70 years. In 2008, it overtook General Motors to become the world's largest auto manufacturer. In January 2009 it announced the closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold vehicles. In 2010, Toyota's sales were $235.89 billion USD. It employed approximately 317,000 people.In 2011-2012 Toyota employs 317,716 people and has to cope with a slowdown in production due to massive factory damage caused by March's devastating earthquake and tsunami in Japan. While sales in North America, Europe and Japan declined during 2010, Toyota sales picked up in emerging car markets, including Asia, Central and South America and Africa. Emerging markets ended up being strong enough to carry the company, which sold over 7 million units in 2010, an increase of 71,000 from the previous year.Toyota has dominated the market through innovation in hybrid vehicles. Their vision for 2015 plans to foster demand in emerging markets with locally produced core models, including the innovative international multipurpose vehicle models and newly developed subcompact models. They intend to deploy hybrid models extensively in markets worldwide.2. General Motors:General Motors, or GM for short, is an American-based auto manufacturer headquartered in Detroit, Michigan. Formerly incorporated (until 2009) as General Motors Corporation, is an American multinational automotive corporation and was the world's largest automaker, by vehicle unit sales, in 2011. For most of the 20th century, General Motors remained the biggest company in the most important automobile industry in the world. It was the worlds largest car maker from 1931 to 2008, when it was surpassed by Toyota. GM employs 202,000 people and does business in some 157 countries. General Motors produces cars and trucks in 31 countries, and sells and services these vehicles.In December 2008, it received $9 billion in federal aid at the order of President George W. Bush to sustain its operations. In March 2009, government rejected the companys restructuring plan and forced it into bankruptcy court. The bankruptcy process was completed on July 10, 2009, when G.M. sold its good assets to a new, government-owned company. Brands like Chevrolet, Cadillac and GMC were folded into the new company, renamed the General Motors Company. In 2009, the company emerged from government backed Chapter 11 reorganization. In 2010, GM made an initial public offering that was one of the world's top 5 largest IPOs to date. GM returned to profitability in 2011. GM's business is focused around six core brands: GMC, Chevrolet, Buick, Cadillac, Opel and Vauxhall.The new G.M. is far smaller and leaner. Brands like Saturn, Hummer and Pontiac were shut down or sold. Hourly labor costs were cut by more than two-thirds, to $5 billion from $16 billion in 2005 and the company announced in February 2011 that it earned $4.7 billion in 2010, the most in more than a decade. It was the first profitable year since 2004 for G.M., which became publicly traded in November 2010, ending a streak of losses totaling about $90 billion.The company, which went through bankruptcy protection in 2009 and is 26 percent owned by the federal government, earned $7.1 billion through the first nine months of 2011. In the first quarter of 2012, G.M. posted $1 billion in net income attributable to common stockholders, down from $3.2 billion a year earlier. Revenue in first quarter of 2012 increased 4 percent to $37.8 billion.3. Volkswagen:Volkswagen AG is a Germany-based automobile manufacturer. The Company develops vehicles and components, and also produces and sells vehicles, in particular Volkswagen brand passenger cars and commercial vehicles. The Company consists of two divisions: Automotive and Financial Services division. The Automotive division is responsible for the development of vehicles and engines, the production and sale of passenger cars, commercial vehicles, trucks and buses, and the genuine parts business. The Financial services division's portfolio of services includes dealer and customer services in the field of financing, leasing, direct bank, insurance and fleet business. It became part of an integrated automotive firm with Porsche in 2009.The Company's brands include Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, Scania and Volkswagen Commercial Vehicles and each brand offers a product range from low-consumption small cars to luxury class vehicles, as well as pickups, busses and heavy trucks in the commercial vehicle sector.During 2011 Volkswagen reported record results by claiming sales of more than eight million vehicles for the first time in its 75-year history. It reported a net income of $20.6 billion with revenue soaring to almost 26 percent to 159 billion. Volkswagens sales move it to the No.2 spot worldwide, behind General Motors, which sold 9.03 million vehicles in 2011, and ahead of Toyota Motor.4. Hyundai:Hyundai is a Korean multinational auto manufacturer based in Seoul. Hyundai vehicles run the gamut from budget cars to luxury sedans to commercial trucks. South Korea's leading carmaker, Hyundai Motor produces compact and luxury cars, SUVs, minivans, trucks, buses, and other commercial vehicles. Its cars are sold in 180 countries through some 6,000 dealerships, employing 80000 people. Hyundai generates about half of its sales in South Korea, but its vehicles are also popular in emerging markets such as China and India. The company operates a dozen manufacturing plants in China, the Czech Republic, India, Russia, South Korea, Turkey and the US. It earned revenue of over $97 billion USD in 2011. It sold 3.6 million passenger cars in 2010 and almost 3 million vehicles in 2011.The group was formed through the purchase of 51% of South Korea's second-largest car company, Kia Motors, by Hyundai Motor Company in 1998. As of July 2, 2011, Hyundai owns 49.2% of Kia Motors. The company also produces Kia automobiles and has been the world's fourth largest automaker since 2009. Consumer Reports magazine ranked Hyundai as the fourth best auto manufacturer in the world.5. Ford:Ford Motor Company was founded in 1903 by automotive and industrial pioneer Henry Ford in Dearborn, Michigan. Being first to implement a moving assembly line for automotive manufacturing, Ford was able to more efficiently mass produce their products than their competitors. In 1908 the Model T was introduced and went on to sell over 15 million vehicles, firmly establishing Ford as the major player in the early automotive industry with 50% market share by the 1920s. The company went public in 1956 and since then has grown to be a significant presence in the global automotive market.Ford Motor Company (Ford) is a producer of cars and trucks. The Ford Motor Company is an American-based auto manufacturer headquartered in Dearborn, Michigan. Ford Motor began a manufacturing revolution with mass production assembly lines in the early 20th century, and today, it is one of the world's largest automakers. It operates about 70 plants worldwide, but gets more than half of its sales from North America.The Company and its subsidiaries also engage in other businesses, including financing vehicles. Its Automotive Sector includes Ford North America, Ford South America, Ford Europe and Ford Asia Pacific Africa. In addition to the Ford and Lincoln brands, Ford is also a shareholder and strategic partner with Mazda and Aston Martin. Ford North America includes the sale of Ford- and Lincoln-brand vehicles and related service parts in North America (the United States, Canada and Mexico), together with the associated costs to develop, manufacture, distribute and service these vehicles and parts.In 2008, Ford was the fourth largest automaker in sales. In 2008, Ford sold its Jaguar and Land Rover brands to the Indian firm, Tata Motors. The company also discontinued its Mercury brand. Ford operates approximately 90 plants and facilities worldwide. In 2011, Ford's sales were $128.954 billion USD and it employed approximately 164,000 people.The Ford Motor Company reported net income of $1.4 billion against total revenue of $32.4 billion. The net income was 45 percent less than the $2.55 billion it earned in the same period of 2011, profit felling by almost half in the first quarter of 2012.6. HondaHonda Motor Co. (HMC) was established by Soichiro Honda in 1946. It originally began producing motorcycles in the mid-20th century and began manufacturing automobiles (the Honda Civic) in 1972. After the original Civics inception, Honda produced many variants of this highly successful vehicle, such as the four-door sedan, wagons, hatchback, coupe, and more recently the hybrid. Honda currently has two automotive brands (Honda and Acura) and it produces over 20 other vehicle models, such as the Accord, Element, Insight, Odyssey Minivan, Pilot SUV, and Ridgeline Truck, CR-V, and Fit; gasoline-electric hybrid versions of the Civic and Accord; and seven models of the luxury Acura line. Almost 70% of Honda Motor sales come from outside Japan.Since Honda began producing automobiles it has been a leader in producing fuel efficient and low emissions vehicles. In 1977 and 1983, Civic models ranked first in U.S. fuel-economy tests. Honda has also introduced hybrid vehicles such as the Insight, Civic, and Accord, in 1999, 2002, and 2004, respectively, with the 2006 Insight being the most fuel efficient car of 2006.Currently, Honda ranks sixth in sales within the automotive industry. They have overseas plants in over 12 countries including the U.K., Italy, Brazil, Taiwan, Indonesia, Malaysia, Thailand, Nigeria, U.S., and Canada. Honda has been increasing their production capacity worldwide in response to their steady growth in total sales over the last few years.As of March 31, 2012, the Company had 378 consolidated subsidiaries and 88 associated companies. It employed 187000 employees in 2012.< PrevNext Article- Learn more at www.technofunc.com. Your online source for free professional tutorials.