An Assessment of the Auto Industry of Europe: Prospects for Growth and Development - Essay Example

From the research it can be comprehended that the auto industry is one of the most important industries of Europe. According to an estimate, the auto production sub-sector accounts for almost 6% of the total labour force of the European manufacturing sector. Moreover, 7% of the total output of the manufacturing sector comes from the auto industry. It is not just in numbers that the auto industry contributes to the whole continent. The industry also contributes to the economy through its linkages locally and worldwide.

These national and international linkages benefit the whole economy in terms of investments coming in Europe. It has also been estimated that almost 20% of all the research and development of the manufacturing sector is due to the auto industry. It has been noticed that the contribution of Europe for the total value added production is the same as that of the United States. The table below presents the total value added production of motor vehicles in Europe. In summary, it can be said that the auto industry is an important part of Europe’s manufacturing sector.

The section below discusses the economic importance of the auto industry. As earlier mentioned, the auto industry of Europe contributes almost 7% of the total output of Europe’s manufacturing industry. It was estimated that value added production were the same as that of the US in 2002. It has been noted, though, that not all of Europe takes part in the success of the auto industry.