Auto Industry

7 Pages 1758 Words

Automotive Industry The Automotive Industry is one of the largest industries in the world.
Transportation needs is something that effects all of us. In the automative industry there are several
production types, parts, accessories, vans, mini vans, trucks, SUV's, compacts, sedans, sports and
luxuries. There is over 30 different manufacturing automotive companies. Many of these companies
have merged and have part ownership of each other. The two largest companies today are GMC #1
and Ford Motor Company #2. Ford and GMC both consist of about ten companies each. Sales of these
cars is done form companies to dealers and dealers to consumers. Consumers can do this over the
Internet or at a dealer. In 1998 Internet sales were 80 billion and expected to be 726 billion by 2003. The
Internet seems to be a convenience because you don't have to find your vehicle and deal with sales
men. You can even have it delivered at your door for a similar cost. The Internet decreases incremental
marketing, advertising, and personal cost per sale. Prices range from lowest around ten thousand and
highest around one hundred thousand. The average car today runs about twenty-five thousand
dollars new. There are many factors in the price of cars. Prices rise when options become standard like
airbags, safety standards and emission controls become strict. When consumers demands fluctuate
prices go up and down. When sales go down automakers offer rebates and discounts to bring them up
again. Also the demand factor goes up when the economic growth and employment are good. Also
safety, style, and engineering helps sell cars. Having a name is important also. Safety captures every
buyers interest because of the great danger in driving. Scrap rates also help sell cars because getting
beaters of the road causes people to buy new cars. Twelve and a half million cars ...