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BERA - Business & Economics Research Advisor - A Quarterly Guide to Business & Economics Topics

Issue 2: Fall 2004 : The Automotive Industry
Updated March 2014

Global Automobile Industry

Today, the modern global automotive industry encompasses the principal manufacturers, General Motors, Ford, Toyota, Honda, Volkswagen, and DaimlerChrylser, all of which operate in a global competitive marketplace. It is suggested that the globalization of the automotive industry, has 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.1

Industry specialists indicate that the origins in the expansion of foreign commerce in the automobile industry, date back to the technology transfer of Ford Motor Company's mass-production model from the U.S. to Western Europe and Japan following both World Wars I and II.2 The advancements in industrialization led to significant increases in the growth and production of the Japanese and German markets, in particular. The second important trend in industrial globalization was the export of fuel efficient cars from Japan to the U.S. as a result of the oil embargo from 1973 to 1974. Figures from the International Organization of Motor Vehicle Manufacturers show that the countries that manufactured the most vehicles were in descending order - China, the U.S., Japan, German, and South Korea - with China's manufacturing being about double that of the U.S. Sales figures indicate that while registrations grew between 2005 and 2013, the growth by country was uneven. In 2009 sales in the U.S. hit their lowest point while in EU countries their lowest point was and -though overall losses were offset by a doubling of sales in Asia generally, and more specifically in China.3

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Table of Contents

Introduction
Automotive History
Global Automobile Industry
    North American Market
    European & Russian Market
    East Asian Market
Automobile Manufacturing
Retail
Company Research
Statistics
Associations
Industry News and Analysis
Electronic Resources

Increasing global trade has enabled the growth in world commercial distribution systems, which has also expanded global competition amongst the automobile manufacturers. Japanese automakers in particular, have instituted innovative production methods by modifying the U.S. manufacturing model, as well as adapting and utilizing technology to enhance production and increase product competition.

There are a number of trends that can be identified by examining the global automotive market, which can be divided into the following factors:4

Global Market Dynamics - The world's largest automobile manufacturers continue to invest into production facilities in emerging markets in order to reduce production costs. These emerging markets include Latin America, China, Malaysia and other markets in Southeast Asia.

U.S. automakers, "The Big Three" (GM, Ford and Chrysler) have merged with, and in some cases established commercial strategic partnerships with other European and Japanese automobile manufacturers. Overall, there has been a trend by the world automakers to expand in overseas markets.

Industry Consolidation - 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.

1st Tier Company Mergers - Volkswagen-Lamborgini; BMW-Rolls Royce
2nd Tier Company Mergers - Chrysler-Mercedes Benz; Renault-Nissan-Fiat
3rd Tier Company Mergers - Mazda-Mitsubishi; Kia-Volvo

This section presents literature that examines three major automotive markets in North America, Europe and East Asia. This material is intended to provide a thorough examination of industry trends, structure, and the effects of global market dynamics of the automotive industry within each region, as well as their interrelationships, followed by literature researching the East Asian automotive market.

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Research on the Global Automobile Industry

The Beyond BRIC Auto Markets: A Close Look at Four Clusters: An In-Depth Look at the Challenges and Opportunities. Boston Consulting Group, October 22, 2013.
https://www.bcgperspectives.com/content/articles/..._close_look_four_clusters/ External Link

The full report is only available to subscribers but this is looking at BRIC countries - Brazil, Russia, India and China.

Business Monitor International (BMI)
http://www.businessmonitor.com/industry/autos External Link

BMI produces industry reports by country. Industry reports for emerging markets are for subscribers only but can be found in alternative sources like EMIS Emerging Markets Information Service.

Global Auto Report Scotia Bank, March 7, 2014.
http://www.gbm.scotiabank.com/English/bns_econ/bns_auto.pdf External Link [PDF format: 510 KB / 8 p.]

Brief overview of the automotive industry worldwide.

Hashmi, Aamir Rafique and Johannes Van Biesebroeck. Market Structure and Innovation [electronic resource] : a dynamic analysis of the global automobile industry. Cambridge, MA : National Bureau of Economic Research, c2010.
LC Catalog Record: 2010655999
Full text on NBER web site External Link

This is a study of the relationship between market structure and innovation in the global automobile industry from 1982 to 2004.

Hiraoka, Leslie. S. Global Alliances in the Motor Vehicle Industry. Westport, CT: Quorum Books, 2001.
LC Call Number: HD9710.A2 H57 2001
LC Catalog Record: 00037269

This study examines the origins, consequences, and trends of globalization in the motor vehicle industry, with chapters on transplants from Japan, US recovery, the DaimlerChrysler merger NAFTA, Mercosur, and the development of the motor vehicle industry in China and India. Book review by Book News, Inc.

Lung, Yannick. Cars, Carriers of Regionalism. Houndsmills, Basingstoke, Hampshire; New York: Palgrave MacMillan, 2004.
LC Call Number: HE5611 .C279 2004
LC Catalog Record: 2003068747

This highly topical book brings together some of the world's leading specialists on the global car industry who discuss the ins and outs of the faster lane of regionalism at a time that the world is reassessing the ins and outs of globalization. It provides a thorough and up-dated mapping of the worldwide geography of the car industry, in the triad regions (Europe, North America and Japan), and in the emerging countries and regions. Review by Books In Print.

Maxton, Graeme P. Time for a Modle Change: Re-engineering the Global Automobile Industry for the 21st Century. New York: Cambridge University Press, 2004.
LC Call Number: HD9710.A2 M3863 2004 (in process as of November 2004)
LC Catalog Record: 2004045634
Table of Contents
Publisher Description

This work examines the automotive industry, making recommendations for change and improved industry performance. Review by Books In Print.

Plunkett's Automobile Industry Almanac. Houston, Tex. : Plunkett Research, c2003-
LC Call Number: HD9710.U5 P58
LC Catalog Record: http://lccn.loc.gov/2003252437

This title includes industry statistics, analysis, and company profiles. This source is also available to onsite researchers via the database Plunkett Research. Plunkett has produced a brief, free look at the automotive industry .External Link

Shimokawa, Koichi. Reorganization of the Global Automobile Industry and Structural Change of the Automobile Component Industry. International Motor Vehicle Program at MIT.
http://dspace.mit.edu/handle/1721.1/1417 External Link

This paper examines the global reorganization of the automobile industry and the direction of its global strategies; The role of economies of scale in the global reorganization and the production sytems of various models and quantities; and the direction of global structural change in the automobile component industry.

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North American Automotive Market

The automobile manufacturing industry is one of the largest industries within the U.S., and is a vital engine for the U.S. economy. The U.S. automotive industry continues to experience on-going organizational and technological change, but has taken steps to increase its global presence by expanding global alliances and seeking greater collaboration with other U.S. automakers.

The financial crisis that began in 2007 hit the automotive industry hard for several years and only began to rebound in 2009/2010 though improvement has been slow. During the slowdown over a dozen manufacturing facilities where shut down and many laid off. Since then, statistics indicate production is increasing - the number of motor vehicles was over 10 million units in 2012 up from just under 8 million units in 2011.5 Chrysler and GM both entered bankruptcy and hearings were held before Congress November of 2008 where the heads of GM, Ford, and Chrysler all spoke out in favor of government aid. Eventually Chrysler and GM received assistance from the United States government via the Troubled Asset Relief Program (TARP) while Ford received money via Term Asset-Backed Securities Loan Facility (TALF). The firms survived, though Chrysler was taken over by Fiat and by January 21, 2014 became a wholly owned subsidiary.6 By the end of 2013 the government sold the last of the shares External Link it owned in GM- officially closing the chapter on the automotive bailout.

In terms of U.S. market share, the Big Three U.S. automakers -GM, Ford, Chrysler - together made up just under 45 % of U.S. passenger vehicle production in 2012. Toyota was the third largest company in terms of market share at 11% - just behind GM at 18% and Ford at 15.3%. In Canada Ford held the top spot at 16.3% followed by Chrysler at 14.5%, GM at 13.6%, and Toyota at 11.5%.7 Unlike the Japanese and European automotive markets, the U.S. does not rely significantly on foreign exports. The U.S. auto trade relies mostly on its own domestic market, and to some degree on the Canadian market. Integration of the U.S. and Canadian automotive industry dates back to the U.S.-Canadian Automotive Products Trade Agreement established in 1965.

The Canadian automotive industry may be seeing changes in the future. In 2013 a potential new trade agreement between Canada and the EU was announced. It is expected to have an impact on every sector of the Canadian economy including the automotive sector and may result in an increase in the number of vehicles exported from Canada to the EU and cheaper European produced cars for Canadians as tariffs on vehicles and parts are phased out over seven years.

Research on the North American Automotive Market

Encyclopedia of American Cars: A Comprehensive History of the Automakers and the Cars they Built. Lincolnwood, IL: Publications International, c2002.
LC Call Number: TL23 .E53 2002
LC Catalog Record: 2002727235

A comprehensive, and authoritative encyclopedia that covers American cars from 1930 to 2002 and includes Chrylser, Ford, and GM, plus major independents, such as Duesenberg, Hudson, Checker, Shelby, and others. Also includes more than 3,500 photographs. The publication provides a comprehensive portrait of the workers and machines that contributed to developments in American automotive history.

Congressional Oversight Panel (COP) Archive.
http://cybercemetery.unt.edu/archive/cop/20110401222823/http:/cop.senate.gov/ External Link

This is an archive site of the Congressional Oversight Panel (COP) . It includes "Final Report on the TARP" (March 16, 2011) as well as "The Use of TARP Funds in Support and Reorganization of the Domestic Automotive Industry" (September 9, 2009), "The Unique Treatment of GMAC Under TARP" (march 11, 2010), etc.

Examining the state of the domestic automobile industry : hearing before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Tenth Congress, second session, on examining the state of the U.S. domestic automotive industry and its overall impact on the nation's economy, the automotive workers, and the companies involved in the supply chain and their employees. Washington : U.S. G.P.O. : For sale by the Supt. of Docs., U.S. G.P.O., 2009-
LC Call Number: KF26 .B39 2008b
LC Catalog Record: 2009438656

Industry and Trade Summary: Motor Vehicles. U.S. ITC Publication ITS-09, May 2013. Washington, D.C.: U.S. International Trade Commission, 2013.
http://www.usitc.gov/publications/332/working_papers/pub_ITS_09_PassengerVehiclesSummary5211.pdf [PDF format: 973 KB / 107 p.]

An analysis of the basic factors affecting trends in consumption, production, and trade in the motor vehicle industry. Includes discussion of the competiveness of the U.S. motor vehicle industry in domestic and foreign markets. This report covers the period 1997-2001.

Ingrassia, Paul. Crash Course : The American Automobile Industry's Road to Bankruptcy and Bailout ... and Beyond. New York : Random House, c2011.
LC Call Number: HD9710.U52 I55 2011
LC Catalog Record: 2012357013

Keenan, Philip T. and Paich, Mark. Modeling General Motors and the North American Automobile Market. March 24, 2004. Prepublication draft.
http://www.systemdynamics.org/conferences/2004/SDS_2004/PAPERS/134KEENA.pdf External Link [PDF format: 217 KB / 16 p.]

This study discusses General Motor's North American Enterprise Model, a system dynamics model of the North American automotive market, and examines the corporation and its marketplace, as well as production functions, such as engineering, manufacturing, marketing, and external competition.

Klepper, Steven. The Evolution of the U.S. Automobile Industry and Detroit as its Capital. Danish Research Unit for Industrial Dynamics Conference Paper, November 2001.
http://www.druid.dk/conferences/winter2002/gallery/klepper.pdf

Author examines the evolution of the U.S. automobile industry and industry consolidation. The paper focuses on the developments leading up to the concentration of the U.S.'s Big Three firms around Detroit, Michigan.

Klier, Thomas H. Who really made your car?: restructuring and geographic change in the auto industry Kalamazoo, Mich. : W.E. Upjohn Institute for Employment Research, 2008.
LC Call Number: HD9710.3.U52 K55 2008
LC Catalog Record: 2008017763
Table of contents

McAlinden, Sean P. and Debra Maranger Menk. "The Effect on the U.S. Economy of the Successful Restructuring of General Motors." CAR Research Memorandum. Center for Automotive Research, December 5, 2013.
https://custom.cvent.com/.../6340447b16954722a21798240e57acb3.pdf External Link [PDF format: 640 KB / 15 p.]

Ramey, Valerie A. and Vine, Daniel J. Tracking the Source of the Decline in GDP Volatility: An Analysis of the Automobile Industry. NBER Working Paper No. 10384, March 2004.
Abstract External Link
Full text on NBER web site External Link [PDF format: 436 KB / 51 p.]

This study identifies a dramatic decline in volatitlity of U.S. GDP growth beginning in 1984, and attempts to correlate various sources of the decline in volatility, specifically by studying the U.S. automobile industry.

Ramifications of Auto Industry Bankruptcies. Hearings. House of Representatives, One Hundred Eleventh Congress, first session, 2009.
Part 1 - May 21, 2009
Part 2 - July 21, 2009
Part 3 - July 22, 2009

Reuters GM Timeline - July 20, 2009
http://www.reuters.com/article/2009/07/10/gm-bankruptcy-idUSLA64177720090710

This is a timeline of events related to GM, that begins in 2008 - 2009.

Rubenstein, James M. The Changing U.S. Auto Industry. London; New York: Routledge, 2002.
LC Call Number: HD9710.U52 R83 1992 (Library has the 1992 edition only)
LC Catalog Record: 91016821

Drawing on rarely used archive material and recent interviews with industry officials, this book examines the radical changes which have affected automobile production in recent years. Review by Books in Print

Full text also available online to patrons onsite at the Library of Congress via EBSCOhost.

Rubenstein, James M. Making and selling cars : innovation and change in the U.S. automotive industry. Baltimore : Johns Hopkins University Press, 2001.
LC Call Number: HD9710.U52 R836 2001
LC Catalog Record: 00012496
Table of contents
Publisher description

Stabilizing the Financial Condition of the American Automobile Industry : hearing before the Committee on Financial Services, U.S. House of Representatives, One Hundred Tenth Congress, second session, November 19, 2008.
LC Call Number: KF27 .B5 2008w
LC Catalog Record: 2009416106
Serial no. 110-146
Access to full text and archived webcast

CEO's of Detroit's Big Three automakers petitioned Congress for emergency loans fearing the possible collapse of the American auto industry. Witnesses included:
  • Mr. G. Richard Wagoner, Jr. (Chairman and Chief Executive Officer, General Motors Corporation)
  • Mr. Robert Nardelli (Chief Executive Officer, Chrysler, LLC)
  • Mr. Alan Mulally (President and Chief Executive Officer, Ford Motor Company)
  • Mr. Ron Gettelfinger (President, United Auto Workers)
  • Mrs. Annette Sykora (Chairman, National Automobile Dealers Association)
  • Mr. James S. McElya (Chairman and Chief Executive Officer, Cooper-Standard Automotive, Inc.)
  • Professor Jeffrey D. Sachs, Director (The Earth Institute; Quetelet Professor of Sustainable Development and Professor of Health Policy and Management, Columbia University)
  • Dr. Matthew J. Slaughter (Professor of International Economics, Tuck School of Business, Dartmouth College)

Treasury Department - Troubled Asset Relief Programs / Automotive Programs
http://www.treasury.gov/.../TARP-Programs/automotive-programs/Pages/default.aspx

The Automotive Industry Financing Program (AIFP) was launched in December 2008 to prevent the liquidation of Chrysler and General Motors (GM) and the collapse of the U.S. auto industry.

Tuman, John P. Reshaping the North American Automobile Industry: Restructuring, Corporatism, and Union Demoracy in Mexico. New York: Continuum, 2002.
LC Call Number: HD6534.A8 T86 2003
LC Catalog Record: 2002073315

This book examines the responses of unions and workers to regional integration and restructuring in the automobile industry in North and South America.

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European and Russian Automotive Market

In 2012, western Europe manufactured 15.8% of the world's vehicles - over 13 million vehicles down from 18.4% in 2011. The production in Eastern and Central European countries improved from just over 5.5 million vehicles in 2011 to just over 7 million in 2012. The top three producers were Germany, France, and Russia.8

The western European automotive industry is considered a leader in the global market with integrated operations consisting of: research, design, development, production and sales. It is comprised of a concentrated and sophisticated global network, which includes joint-ventures, cooperatives, productions and assembly sites. EU automotive industry producers have a combined output that exceeds that of the U.S. and Japan, however no one individual EU country produces more than its U.S. or Japanese competitor. The importance of the automotive industry on the economies of individual EU countries varies country to country. Of the 27 EU member countries, 9 countries produced over 93% of the passenger vehicles produced in the EU in 2012. Between 2007 and 2012 overall production declined - though unevenly. It declined in western EU countries but increased in eastern EU countries. The EU's largest automotive producer is Germany, followed by France, Spain, the United Kingdom, and the Czech Republic.9

There are over 20 vehicle manufacturers in the EU, with the largest automakers producing multiple brands, such as General Motors, Ford, Daimler (formerly DaimlerChrysler), Volkswagen, Fiat (now home to Chrysler) and Peugeot. There are also independent automakers, such as Porsche, BMW, and Bertione. Like the other markets in the global automobile industry trade, the EU auto industry has experienced significant restructuring and consolidation, which includes mergers, such as Chrysler and Daimler-Benz (and the later purchase of Chrysler by Fiat); GM acquisition of Saab; Ford's acquisition of Jaguar and Volvo's passenger car division; BMW's take over and then sale of Rover; and Volkswagen's acquisition of Bentley, Lamborghini, SEAT and Skoda. There continues to be co-production efforts and supply arrangements among the EU automakers, as well as with foreign partners outside of the European Union.

In 2005 the EU launched the CARS 21 (Competitive Automotive Regulatory System for the 21st century) process to make short-, medium-, and long-term public policy and regulatory framework recommendations. It was re-launched at the end of 2010 and their final report was published in June 2012. That effort has since been followed up with CARS 2020 which was launched in November 2012.

Research on the European Automotive Market

"The Automotive Industry in Germany." Germany Trade & Invest
http://www.gtai.de/GTAI/Navigation/EN/Invest/Industries/Mobility/automotive.html

It includes in the Downloads & More section, a 2010/2011 issue of Germany Trade & Invest, which is an historical overview of 125 years of automotive manufacturing in Germany and the 2012/2013 issue that covers the overall industry numbers as it relates to Germany. This analogous to the reports put out in by the ITC in the United States.

Automotive News - Europe
http://europe.autonews.com/

English language news source for current events in the automotive industry produced by Crain Communications who also produces AutoNews in the U.S. and the German language Automobilwoche.

Automotive section of Enterprise and Industry portal. European Commission
http://ec.europa.eu/enterprise/sectors/automotive/index_en.htm External Link

Provides information on automotive industry in European Union and access to documents such as legislative proposals, directives and regulations and more.

Brenkers, Randy and Verboven, Frank. Liberalizing a Distribution System: The European Car Market. Research Paper, European University Insitute, September 2002.
http://ideas.repec.org/a/tpr/jeurec/v4y2006i1p216-251.html External Link

This paper quantifies the competitive effects of removing vertical restraints, based on the recent proposals to liberalize the selective and exclusive distribution system in the European automobile market.

CARS 2020
http://ec.europa.eu/enterprise/sectors/automotive/cars-2020/index_en.htm

This continues the work of the EU's Competitive Automotive Regulatory System for the 21st Century (CARS 21). It was aimed at reinforcing Europe's automotive industry's competitiveness and sustainability.

Competitive Automotive Regulatory System for the 21st Century (CARS 21)
http://ec.europa.eu/enterprise/sectors/automotive/competitiveness-cars21/cars21/index_en.htm

This is an EU project that was initially launched in 2005, CARS 21 aims to make recommendations for the short-, medium-, and long-term public policy and regulatory framework of the European automotive industry. Information includes hearings, recommendations, and other related documents. This process ended and was re-launched. The re-launch finished in June 2012 and was followed by CARS 2020.

Freyssenet, Michael and Shimizu, Koichi. Globalization or Regionalization of the European Car Industry? New York: Palgrave Macmillan, 2003.
LC Call Number: HD9710.E82 G58 2003
LC Catalog Record: 2002030791
Publisher Description

This publication presents a systematic description and analysis of the internationalization of strategies that are being pursued by European automobile manufacturers, suppliers, and dealers.

Furukawa, Sumiaki and Gert Schmidt, eds. The Changing Structure of the Automotive Industry and the Post-lean Paradigm in Europe : Comparisons with Asian business practices Fukuoka, Japan : Kyushu University Press, c2008.
LC Call Number: HD9710.E82 C53 2008
LC Catalog Record: 2008614974

Lung, Yannick. "The Changing Geography of the European Automobile System." International Journal of Automotive Technology and Management, Vol. 4, No. 2/3, 2004. pp. 137 - 165
Also presented at the 10th GERPISA International Colloquium.External Link Co-ordinating competencies and knowledge in the auto industry.
Available via IDEAS bibliographic database
Full text External Link [PDF format: 348 KB / 32 p.]

McLauglin, Andrew M. The European Automobile Industry: Multi-Level Governance, Policy and Politics. London: New York: Routledge, 1999.
LC Call Number: HD9710.E82 M34 1999
LC Catalog Record: 98031831

This work presents an analysis of some of the changes that have transformed the automobile industry in the last 30 years illustrating some of the most significant consequences of globalization. Review by Books In Print.

Motor Business Europe. London: Economist Intelligence Unit. (Quarterly)
LC Call Number: HD9710.E8 E9
LC Catalog Record: 96648115

This quarterly publication provides analysis and forecasts of vehicle sales and production for each of the 17 countries, analysis of vehicle manufacturers and markets, interviews with leaders of Europe's auto industry and producitivity trends.

Stephen, Roland Francis. Vehicle of Influence: Building a European Car Market. Ann Arbor: University of Michigan Press, c2000.
LC Call Number: HD9710.E82 S74 2000
LC Catalog Record: 00008328

An examination of the political aspects of the integration of the European automobile industry. The book also discusses the role the European automakers played in role influencing the institutions of the European Union. Synopsis by Books In Print.

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East Asian Automotive Market

The Asian motor vehicle market is comprised of three 'core' markets, Japan, South Korea and China. It is an industry that continues to grow in Asia and foreign investment has begun to increase substantially. U.S. and European automakers have targeted the region to not only establish a greater presence in the Asian marketplace, but also to expand its production capacity in Asia. In addition, there have been undertakings by both the U.S. and European automakers to collaborate with Asian automakers.

The Asian financial crisis during the late 1990's slowed down the demand and production of the auto industry. However, with the continued strong production growth of the automotive industry in Asia the region did eventually recover. After recovering from the 1990's slowdown the industry was hit by the economic slowdown that began in 2007. This didn't overly impact vehicle manufacturing and sales in the Asia/Pacific area generally, but production and sales in individual countries was definitely impacted. The top two countries in manufacturing in Asia are China followed by Japan and looking at figures from the International Organization of Motor Vehicle Manufacturers,External Link Asian production vehicle figures held steady even during the global slowdown. China is by far the largest market for sales followed by Japan, India, Indonesia, and Australia. Sales figures 2005 to 2013 indicate that sales for vehicles in China doubled while Indonesia and India saw nice gains. However, there were dips in sales during this time in Australia, New Zealand, and Japan.10

The automotive industry represents a significant portion of Japan's economy and is the third leading producer of motor vehicles after China and the U.S. with much of the industry relying on exports. The country is home to 11 automobile manufacturers consisting of: Toyota Motor Corp., Honda, Nissan, Mazda Motor Corp., Isuzu Motors, Ltd., Suzuki Motor Corp., and Fuji Heavy Industries, Ltd., and Daihatsu Motor Co. Each of these automakers have manufacturing operations in the U.S. except Suzuki and Daihatsu. However, Suzuki is part of a joint-venture with GM, which is located in Canada. Like the auto industries in the other regions, the industry has also experienced major restructuring, which is the a result of a downturn in domestic demand. Japanese automakers have in the past responded to stagnate domestic economic conditions by reducing production capacity through plant closures, and have offered equity ownership to foreign automakers to receive financial and managerial assistance. GM has equity in Suzuki and Subaru and controlling interests in Isuzu; Ford has majority equity in Mazda; DaimlerChrysler has majority equity control in Mitsubishi; and Renault has controlling interests in Nissan.11 Production was affected in the short term due to the economic slowdown that began in 2007 but has shown improvement.

South Korea has seven automobile manufacturers, which include: Hyundai, Daewoo, Kia, Samsung, Asia Motors, Jinda, and Ssanyong. Prior to 1987, foreign auto imports were prohibited and Japanese automotive imports were not permitted until 1999. As in Japan, South Korea's automotive industry has also experienced restructuring. In 1999, Hyundai acquired Kia and Asia Motors, and sold 10 % of its equity to DaimlerChrysler in 2000; Daewoo purchased 52% equity in Ssanyong in 1998; and GM purchased 42% equity of Daewoo; and in 2000, French automaker Renault purchased Samsung Motors. South Korea is the world's 4th largest passenger vehicle manufacturer and sales figures have seen a steady increase since 2005. South Korea exports many automobiles produced, with a significant number of those going to the U.S. Within the Asian market only China, India, and Japan have a larger share of vehicles sold.12

Within the Asian region's automotive industry, China's place and role has changed and become more prominent. The FAW, China's first large-scale motor vehicle producer, has an agreement with Volkswagen to produce Jetta's and Audi sedans. The Shanghai Motor Group began producing cars during the 1960's and established a joint-venture with Volkswagen in the 1980's that has contributed to the increase in automobile production in China's domestic market. China's automobile industry has continued to grow and develop both in sales and production of vehicles. According to figures from the International Organization of Motor Vehicle Manufacturers External Link since 2005, sales of vehicles in China has gone from just under 4 million in 2005 to just under 18 million in 2013.13 Production of vehicles in China has also seen steady growth. In 2012, the top three manufacturers were FAW Volkswagen, Shanghai GM, and third Shanghai VW. Other companies within FAW and the Shanghai were significant manufacturers as well. 14

Government officials in China have initiated policies that are intended to encourage the continuing development of China's domestic automobile manufacturing industry. Nevertheless, there are significant trade barriers for foreign competitors in the way of tariff policies that are applied to foreign auto imports. This restrictive trade environment has contributed to the serious problem of illegal imports of foreign cars into China. In the past China relied on its foreign partners to develop new vehicles but Chinese automakers are looking to create new policies and methods through foreign joint-ventures to continue the development of China's automotive industry. These conditions present a significant challenge for China's automotive industry, and it is expected to take a considerable amount of time before China becomes a global competitor in the automotive market.

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Research on the East Asian Automotive Market

AutoAsia
http://www.autoasia.net/ External Link

News source for automotive, OEM, and aftermarket.

Automotive News - China
http://www.autonewschina.com/en/index.asp External Link

English language news source for current events in the automotive industry produced by Crain Communications who also produces AutoNews in the U.S.

Busser, Rogier, and Sadoi, Yuri. Production Networks in Asia and Europe: Skill Formation and Technology Transfer in the Automobile Industry. London; New York: Routledge, c2003.
LC Call Number: HD9710.J32 P76 2003 (in process as of November 2004)
LC Catalog Record: 2003005316
Table of Contents

This book explores Japanese investment in Europe and Southeast Asia, in relation to the automobile industry.

Chin, Gregory T. China's Automotive Modernization: The Party-state and Multinational Corporations. Houndmills, Basingstoke, Hampshire ; New York : Palgrave Macmillan, 2010.
LC Call Number: HD9710.C52 C55 2010
LC Catalog Record: 2009045158

This book focuses on how industrial modernization in Chinas leading automotive production center of Shanghai, Beijing, Guangzhou, Changchun, Hubei province, and Tianjin has changed China's automotive market and how that in turn has affected the global market.

Dunne, Michael J. American Wheels, Chinese Roads: The Story of General Motors in China. Singapore : John Wiley & Sons (Asia), 2011.
LC Call Number: HD9710.C54 D46 2011
LC Catalog Record: 2011410492
Table of contents

FOURIN, Inc.
http://www.fourin.com/english/ External Link

This is a research firm that looks at the Asian automotive market. Information if for a fee/by subscription. There is an English language pages as well as one in Japanese and another in Chinese.

Freyssenet, Michel, Shimizu, Koichi, and Volpato, Giuseppe. Globalization or Regionalization of American and Asian Car Industry? Hampshire; New York: Palgrave MacMillian in association with GERPISA, 2003.
LC Call Number: HD9710 U52 G54 2003
LC Catalog Record: 2002030787
Publisher Description

This book argues that this is not entirely the case due to the heterogeneity of firms and the diversity of strategies pursued. It highlights the diversity and forms of internationalization and the preference for regionalization rather than globalization that has occurred over the past decade. This book looks specifically at the American and Asian car industry. Synopsis taken from OCLC's WorldCat database.

Gallagher, Kelley Sims. "Foreign Technology in China's Automobile Industry: Implications for Energy, Economic Development, and Environment." China Environment Series, Issue 6. Washington, D.C.: Woodrow Wilson International Center for Scholars.
http://www.wilsoncenter.org/sites/default/files/2-feature_1.pdf External Link [PDF format: 248 KB / 18 p.]

This paper explores the role of foreign automakers - particulary the Big Three (General Motors, Ford, and DaimlerChrysler) - in transferring technology, which have helped in modernizing China's automobile industry.

Laurel, William C., ed. U.S. and Asian Motor Vehicle Industry in the Global Economy. Hauppauge, N.Y. : Nova Science Publishers, c2011.
LC Call Number: HD9710.U52 U135 2011
LC Catalog Record: 2010031453

This title looks at how the U.S. automotive industry has been affected by the rise of a Chinese automotive industry.

Motor Business Asia-Pacific: The Automotive Industry Within Asia-Pacific. London: Economist Intelligence Unit. (Quarterly)
LC Call Number: HD9710.A782 M68
LC Catalog Record: 97649920

A quarterly publication that provides analysis on the vehicle and components industries of China, India, South Korea, Malaysia, Indonesia, Phillipines, Taiwan, Thailand and Vietnam.

Nag, Biswajit; Banerjee, Saikat; Chatterjee, Rittwik. Changing Features of the Automobile Industry in Asia: Comparison of Production, Trade and Market Structure in Selected Countries. Asia-Pacific Research and Training Network, 2007.
Archived full text version External Link [PDF format: 347 KB / 32 p.]

The Asia-Pacific Research and Training Network on Trade External Link is housed within the United Nations ESCAP.External Link The study examines the growth patterns, changes in ownership structures, trade patterns and role of governments of selected Asian countries (viz. China, India, Indonesia and Thailand).

Shimokawa, Koichi. Japan and the Global Automotive Industry. Cambridge ; New York : Cambridge University Press, 2010.
LC Call Number: HD9710.J32 S5137 2010
LC Catalog Record: 2010283112
Table of Contents

This books looks at the recovery of the Japanese automotive industry after the 1990's.

Veloso, Francisco, and Kumar, Rajiv. "The Automotive Supply Chain: Global Trends and Asian Perspectives." Economics and Research Department Working Paper Series No. 3. Manila: Asian Development Bank, 2002.
http://www.adb.org/publications/automotive-supply-chain-global-trends-and-asian-perspectives External Link
LC Call Number: HC411 .E73 no. 3
LC Catalog Record: 2003318266

This report provides an overview of the major trends taking place in the automotive industry across the world, with an emphasis on the Asian market.

Yang, Xiaohua. Globalization of the Automobile Industry: The United States, Japan, and the People's Republic of China. Westport, CT: Greenwood Press, 1995.
LC Call Number: HD9710.A2 Y36 1995
LC Catalog Record: 94037887

Explains the seemingly contradictory trends toward global integration and national balkanization since World War II as a bifurcation of economic and political borders. The author examines the three countries' relationship involving government-economic relations, and the global automobile trade.

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References

1. Hiroaka, Leslie S. Global Alliances in the Motor Vehicle Industry. Westport, CT: Quorum Books, 2001, p. 1.
2. Ibid, p. 1.
3. International Organization of Motor Vehicle Manufacturer, World Motor Vehicle Sales by country and type 2005-2013. http://www.oica.net/category/sales-statistics/ External Link Accessed March 10, 2014.
4.Hiroaka, p. 15.
5. Ward's Automotive Yearbook. Detroit: Ward's Report, Inc., 2012, p. 6.
6. Industry and Trade Summary: Motor Vehicles. U.S. ITC Publication ITS-09, May 2013. Washington, D.C.: U.S. International Trade Commission, p. 9.7-8. http://www.usitc.gov/publications/332/working_papers/pub_ITS_09_PassengerVehiclesSummary5211.pdf [PDF format: 973 KB / 107 p.] Accessed March 10, 2014.
7. Ward's 2012, p. 99.
8. Ward's 2012, p. 6.
9. Industry and Trade Summary: Motor Vehicles, May 2014. p. 43.
10. International Organization of Motor Vehicle Manufacturer, World Motor Vehicle Sales by country and type 2005-2013.
11. Industry and Trade Summary: Motor Vehicles. U.S. ITC Publication 3545, September 2002. Washington, D.C.: U.S. International Trade.
12. International Organization of Motor Vehicle Manufacturer, World Motor Vehicle Sales by country and type 2005-2013.
13. Ibid.
14. Ward's 2012, p. 31.

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