Automobile Industry: Opportunities, Markets, and Globalization



In this video, you will learn how automobile companies are making the transition to producing a lot more fuel-efficient vehicles. CEO, Jack W. Plunkett, guides you through the trends that are going to take over one of the world’s most influential industries.

00:00:46,400 – 00:00:51,390
The problem is that within the United States, the industry is forced to make

00:00:51,390 – 00:00:57,440
more investment than it wants to in small highly fuel-efficient cars because

00:00:57,440 – 00:01:03,620
as the years go by, the C-A-F-E, or the required average fuel efficiency rate for each

00:01:03,620 – 00:01:07,689
manufacturer gets higher and higher. Pretty soon, automakers are gonna have

00:01:07,689 – 00:01:12,670
to post more than 50 miles per gallon average per automobile. Now that’s gonna be

00:01:12,670 – 00:01:17,929
hard to do. It’s going to take a lot of engineering. It also takes away from their investments in big

00:01:17,929 – 00:01:23,560
gas-guzzling vehicles. In Europe, automakers are pretty well focused on

00:01:23,560 – 00:01:28,530
selling more fuel-efficient vehicles because fuel prices in Europe are always

00:01:28,530 – 00:01:33,859
so high, where fuel is taxed at a much higher rate per gallon or per liter than it is

00:01:33,859 – 00:01:40,310
in the United States. Finally, in many places in Asia, automakers are working

00:01:40,310 – 00:01:46,689
under the problem that big luxury cars that might be imported, pay huge import tariffs.

00:01:46,689 – 00:01:51,709
While their local manufacturing is more focused for instance in China on smaller

00:01:51,709 – 00:01:54,509
lighter cars and vans. Today,

00:01:54,509 – 00:01:59,450
car-makers are more than ever focused on efficiency, which to them means optimum

00:01:59,450 – 00:02:06,380
lean production, which means relying more and more on their outsourced makers of

00:02:06,380 – 00:02:11,720
parts, components, and assemblies, which the automaker’s then bring into their

00:02:11,720 – 00:02:15,819
own factories and assemble as much as manufacture. They want to rely on

00:03:03,549 – 00:03:08,510
Mexico is absolutely hot in this regard. What’s the long-term future of the

00:03:08,510 – 00:03:12,430
automobile industry? At one time, analysts were thinking of as many as

00:03:12,430 – 00:03:17,939
three billion cars and light trucks on the planet by 2050. Roughly three times

00:03:17,939 – 00:03:25,099
today’s rate. However, the sharing economy may well put a hold on that thought as consumers

00:03:25,099 – 00:03:29,579
around the world more and more are using everything from bike sharing to car sharing

00:03:29,579 – 00:03:35,240
services like Zipcar; eliminating to some extent the need for personally owned

00:03:35,240 – 00:03:40,460
automobiles. Other things for the future that must be considered, are natural

00:03:40,460 – 00:03:44,970
gas-powered vehicles with the world awash in natural gas, particularly in

00:03:44,970 – 00:03:49,330
North America. There will be more reliance on using natural gas for big

00:03:49,330 – 00:03:54,680
transportation, at least things like buses and long range trucks. What about

00:03:54,680 – 00:03:59,190
electric cars? All-electric things like Tesla and hybrid cars like the Prius

00:03:59,190 – 00:04:04,660
still represent a very, very small portion of the total automobile market.

For more information, visit us at:

Google Plus:

source