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The Major General Environment Developments that Impinge Upon the European Automotive Industry - Essay Example

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This essay "The Major General Environment Developments that Impinge Upon the European Automotive Industry" investigates the problem of the European automotive manufacturer which is located in a region that has the second highest customer of automobiles.  In 2002, 17.4 million were manufactured in Europe alone out of the global total of 59 million units. …
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The Major General Environment Developments that Impinge Upon the European Automotive Industry
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Download file to see previous pages Further Europe has highly evolved manufacturing facilities with automobiles constituting 36% of the total manufacturing of Europe. Of the five major automobile giants General Motors, Toyota Ford, Daimler-Benz, and Volkswagen, the last two are indigenous to Europe but all have a strong European presence with a number of smaller groups adding to the competition. GM markets its products under popular brand names of Opel and Vauxhall. The Ford Europe has staged major acquisitions in Europe by buying Land Rover, Aston Martin, and Volvo, Jaguar. Ford was the first US company to set up its manufacturing base in Europe as far back as 1920. Volkswagen, the German manufacturer is the most aggressive of all the European companies having acquired brands like Skoda, Bentley, Lamborghini, Audi, Buggati, and Seat.
Since the early twentieth-century European car manufacturers enjoyed the competitive advantage due to their location. Europe accounted for the maximum percentage of consumers while it also has the largest number of manufacturers. However, it faced the first trans-continental threats first from the US car majors like Ford, GM in the early twentieth century and then from the highly efficient Japanese cars in the 70s.
Political: Europe is an economically integrated region of 27 countries. The industries have to conform to near equality in trade laws and manufacturing standards especially the emission standards of the European Union. European Commission, for example, wants to do away with the rigid system of national car dealers (Madslien).
Since dismantling of the Communist regimes in the Warsaw Pact countries, a large East European market has opened up for the European manufacturer. Due to the advantage provided by a common culture and proximate culture, the European automotive manufacturers were quick to capitalise on it. Companies like Volkswagen, Ford Europe, Daimler-Benz, and Peugeot Citroen have set up manufacturing facilities in East Europe.   ...Download file to see next pagesRead More
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