The Evolution of the Automobile Sector for the Next 20 Years - Research Paper Example

The global automotive industry is comprised of various stakeholders from manufacturers, suppliers, dealers, to aftermarket parts manufacturers, automotive engineers, motor mechanics, etc. In terms of major producers or manufacturers, the countries that are involved with a major chunk are United States, Japan, China, Germany, and South Korea. However, the largest manufacturer of the world as far as volume is concerned is the USA and so far they are the highest consumer as well but this is expected to be overtaken by China in 2010.

The automobile manufacturing sector provides employment to more than 25 million people worldwide and indirect employment is much higher (Haie-Fayle, et al. 2009).The auto industry is currently dominating by 10 big manufacturers that are accounting for 77% of the volume manufactured. In the first quarter of 2010, General Motors was the market leader with a 19.2% market share in the U.S. followed by Ford Motor Co. with a 17.3% market share, Toyota Motors Corp. even after recall controversy held a market share of 15.

1% giving a tough time to Ford and the GM (Zacks Equity Research 2010).The Americans, Germans and Japanese auto manufacturers dominate the international automotive industry with South Korea catching up the race. Out of these manufacturing companies Toyota, General Motors, Ford Motor Company, Volkswagen AG, PSA Citroen, and Hyundai-Kia are the largest. These corporations have penetrated almost every region and they are continuously investing in the new developing markets such as Brazil, Eastern Europe, China, Southeast Asia, and India.

Yet with all this development, taking place in the industry the economic crisis that recently hit the world economy has affected the auto industry adversely. The new situation has changed the rules of the game and big corporations like GM and Ford are seeking help from smaller firms to continue to remain in the business. The turmoil in the auto manufacturing industry is undoubtedly far from over.