Nobody downloaded yet

How EU policy affects the European Automotive Industry - Essay Example

Comments (0) Cite this document
Summary
The automotive industry is one of the biggest of all industries. It manufactured nearly 60 million cars and trucks a year and employs several million people around the world. It is a key indicator of economic growth and a main contributor to the gross domestic product (GDP) of several Member States and the EU (EMCC dossier)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful
How EU policy affects the European Automotive Industry
Read TextPreview

Extract of sample "How EU policy affects the European Automotive Industry"

Download file to see previous pages However, during the last five years, there has been a slowdown in economic output across the EU, and, while the forecasts are positive, modest growth of 2.0%-2.3% is expected in 2004. Weak growth has led to reduced consumer and business confidence. Industrial production has decreased, including the production of durable consumer goods. Levels of private consumption have fluctuated during early 2003, following modest growth in the previous two years. This is partly due to poor labor market conditions, with EU unemployment rising during 2003. Economic indicators are weak in some major EU economies such as Germany, France, Italy and Spain. Only the United Kingdom (UK) has managed to resist these trends (Trends and drivers). This has greatly affected the car industry, given the car's status as the ultimate consumer and fashion item, as well as the importance of engineering and design in the manufacturing process. Average profit margins have declined from around 10% in the 1960s to less than 5% today, and some volume car makers are actually losing money (EMCC dossier).
Despite increasing competition worldwide, European automotive has maintained a strong position in exports and global sales. The strong bond between Europe's vehicle manufacturers and the sophisticated customer base in the largest car market in the world constitutes a prominent competitive advantage, while the notable presence of European producers in emerging markets, such as China and the Russian Federation, offers a potential for future growth and profits (info-crono-archivio). Furthermore, EU enlargement created new opportunities for the European automotive industry. The combination of expertise, affordable labor and the proximity to the large European markets has led to the emergence of a very dynamic cluster in the new Member States - especially Poland, the Czech Republic, the Slovak Republic and Hungary (info-crono-archivio).
Despite these advantages, many challenges remain: the EU automotive industry lags behind the US and Japan in terms of productivity. Labor productivity in the EU-15 is 25 per cent lower than in the US and 30 per cent lower than in Japan; labor costs per hour worked in the EU-15 are comparable to those in the US, but more than ten per cent above those in Japan and almost three times as high as in Korea (data for 2001, converted using purchasing power parities). Annual working time in the automotive industry in EU-15 is more than 20 per cent shorter than in the US (in 2001); there are major technological challenges ahead, most prominently the fuel cell (info-crono-archivio).
Influences of EU policies
European legislation is one of the main drivers of the European automotive industry. Emissions and recycling legislation have a strong impact both on vehicle technologies and construction (Trends and drivers). EC, industry and consumer concerns for environmental sustainability, road safety and mobility have led to a number of significant technological developments. These have both positive and negative effects on profitability. For example, a limited number of specialist high technology suppliers might prosper while vehicle makers see their already narrow profit margins cut even further. Such a development would make vehicle makers vulnerable to further consolidation and restrict ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“How EU policy affects the European Automotive Industry Essay”, n.d.)
How EU policy affects the European Automotive Industry Essay. Retrieved from https://studentshare.org/law/1527416-how-eu-policy-affects-the-european-automotive-industry
(How EU Policy Affects the European Automotive Industry Essay)
How EU Policy Affects the European Automotive Industry Essay. https://studentshare.org/law/1527416-how-eu-policy-affects-the-european-automotive-industry.
“How EU Policy Affects the European Automotive Industry Essay”, n.d. https://studentshare.org/law/1527416-how-eu-policy-affects-the-european-automotive-industry.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF How EU policy affects the European Automotive Industry

Automotive Industry Analysis

.... The other current trend in the industry is the penetration of new markets, for example, in Latin America and Southeast Asia. This has facilitated the development of production facilities and formation of global association and strategic partnerships with other foreign automakers. The China new market seems to be more promising (Pearlstein 1). Recent events that have significantly affected the structure of the industry Recent events have affected the structure of the automotive industry, for example, Toyota Company has had difficulty in dealing with political institutions. This is due to the increased government...
9 Pages(2250 words)Research Paper

The Automotive Industry 1945-1960

...?The Automotive Industry 1945-1960 The end of Second World War has created hope as well as fear in the minds of Americans. Even the fear of war endedafter WW2, many Americans thought that another economic depression may cause immense damage to American economy. The lessons learned from the Great Depression forced Americans to think in that direction. However, history proved that such anticipations or beliefs were not true. Instead of economic decline, American economy started grow after WW2 mainly because of the energy provided by the automobile industry. “After World War II there was a striking expansion of motor vehicle production. During a 35-year period the total world output...
10 Pages(2500 words)Term Paper

Global Marketing - Automotive Industry

...? Toyota: Becoming a truly global player in the automotive industry BY YOU YOUR SCHOOL INFO HERE HERE TABLE OF CONTENTS 0 Introduction.................................................................................................................. 2.0 Background................................................................................................................... 2.1 Industry analysis................................................................................................ 2.2 Competitor analysis........................................................................................... 2.3 Current target...
16 Pages(4000 words)Essay

Automotive Industry in UK

...and last section of the Vehicles division looks into the policy needs of the components section. Concerning the European car market, the Directorate General III is also responsible for the automotive section whereas the Directorate General IV takes care of the needs concerning state aids cases(Maloney, 1999; p. 92). Further, the monetary success in the automotive industry in the United Kingdom symbolizes many of the changes that are occurring in the manufacturing atmosphere starting in the 1980s. Sadly, the manufacture of passenger cars here had dropped from the high one million nine hundred thousand units in 1972 to the very low nine hundred...
40 Pages(10000 words)Coursework

Automotive Industry Marketing

...MARKETING of the industry Car industry or automotive industry is one of the oldest industries in the world. It has a long history that starts with the discovery of wheel in Mesopotamia and the consequent construction of John Macadam's roads. It was made a dream with the invention of the engine which actually revolutionized the industry. The industry is involved in the design, development, manufacture, marketing and sale of motor vehicles. The industry is involved in the production and sales of more that 70milino cars in the world. There are major places in the industry with Japan...
5 Pages(1250 words)Essay

European policy

...and power have been replaced by the US, with sporadic inroads sought to be made by Russia either on its own initiatives or on invitation one or the other of some Arab states. One explanation why this happened was that the Europeans had developed a mindset after all that had happened in WW II that it was in their interest to accept the United States "as their common leader".2 However, for some years during the period of the Cold War, France sought to follow somewhat of a 'lonely foreign policy. France had warned Israel against going to war against the Arabs in 1967, even though de Gaulle had good personal relations with Israel's Ben-Gurion. What may be termed a French "Arab policy" had...
5 Pages(1250 words)Case Study

European Union (EU) Law

...(EP) enjoys delegated powers in the legislative process through which EU policy is created, in the budgetary process through which the EU budget is shaped and adopted, under the control and supervision of the Commission. The empirical analysis demonstrates that the ECJ being a supranational institution have played an independent role in the development of a European enforcement system that is more constraining than national governments ever intended. Dissatisfied with existing means of enforcement at the European level and with governments' reluctance to delegate more powerful instruments, the ECJ and the Commission independently created and perfected...
12 Pages(3000 words)Essay

Financial Management & Improving Automotive Industry

...of the company and its ability to remain competitive and to survive will depend on how its finances are budgeted and managed. Activity 2 In any industry the need to develop the efficiency of production and of the working environment of the company is necessary to ensure that the organization is able to meet its needs. The automotive industry, the main focus of the video, elaborates on the various methods applied in order to improve the competitive edge of the company. There are various tools and techniques that were shown that helped in the enhancement process. The significant conclusion was that ultimately there is no one sure way that can be recommended to apply for...
2 Pages(500 words)Essay

Future of 2020 Automotive Industry

...24 April Future of 2020 Automotive Industry Research Background and Purpose: Research Background: The automotive industry is in the midst of considerable alteration, with rising challenges in customer demands, growth of technology, globalization, amalgamation, and collaboration. This industry is a very strong pillar that supports the world financial system. It affects all aspects of every day life, and it is a significant source of employment. Around 5% of the global workforce is directly or indirectly employed in industry. The global financial crisis struck the automotive industry right...
25 Pages(6250 words)Research Paper

The United State Automotive Industry

...The United automotive industry is the largest in the automotive manufacturers. The industry comprises thirteen manufacturers. The industry market is characterised by a healthy completion that has enabled to industry to thrive with revolutionized automotive in the past few decades. In the period between 2008 and 2012, the industry produced more than eight million vehicles every year in the country. Prior to 1982, the auto industry comprised of local companies alone. However, since Honda established it plant in the U.S. other major automotive industries...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic How EU policy affects the European Automotive Industry for FREE!

Contact Us