The Global Car Industry in 2004


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Case Details:

Case Code : ECOA126
Case Length : 12 Pages
Period : 2004
Organization : -
Pub Date : 2004
Teaching Note :Not Available
Countries : Global
Industry : Auto and Ancillaries

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

The car industry was born in Germany more than 100 years ago. Early development of the industry began in France in the 1900s. It was in America that the industry came of age thanks to Henry Ford, who introduced the assembly line production system.

The car industry pioneered many innovative business practices. For example, the industry introduced the concept of "planned obsolescence," i.e. frequent changes in design to induce customers to switch to a new model every other year...

The US

In the 1980s, America's car markers had been in deep trouble. While the Ford family (which had a controlling stake in the Ford company) had bailed out Ford Motor, the federal government had given a loan guarantee that enabled Lee Iacocca to rescue Chrysler...

Europe

Through the 1990s, the European car industry had struggled. Volkswagen (VW) had been dragged down by the acquisition of the Spanish firm SEAT, and by its high production costs (especially high wages) in Germany...

Japan

The Japanese car industry had achieved major success in the past four decades. Toyota was generally considered to be the strongest car maker in the world. The company continued to unleash various product and process innovations...

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