Tuesday, November 10, 2009

History of industry


Australia first began to produce cars in 1897 with cars made by Tarrant Motor & Engineering Co. The first major Australian carmaker was the Ford Motor Company of Australia, followed by Holden.


The Brazilian automotive industry produced almost 3 million vehicles in 2007. Most of large global companies are present in Brazil, such as Fiat, Volkswagen, Ford, GM, Nissan, Toyota, Mitsubishi, Mercedes-Benz, Renault etc, and also the emerging national companies such as Troller, Marcopolo S.A., Agrale, Randon among others. The Brazilian industry in regulated by the Associação Nacional dos Fabricantes de Veículos Automotores (Anfavea), created in 1956, which includes Auto makers (automobiles, light vehicles, trucks and buses)and Agriculture machines with factories in Brazil. Anfavea is part of the Organisation Internationale des Constructeurs d'Automobiles (OICA), based in Paris.


Canada is currently the 9th largest auto producer in the world, down from 7th a few years ago. Brazil and Spain recently surpassed Canadian production for the first time ever. Canada's highest ranking ever was 2nd largest producer in the world between 1918 and 1923. The Canadian auto industry traces its roots to the very beginning of the automobile. The first large-scale production of automobiles in Canada took place in Walkerville, near Windsor, Ontario in 1904. In the first year of operations, Gordon McGregor and Wallace Campbell, along with a handful of workmen produced 117 Model "C" Ford vehicles at the Walkerville Wagon Works factory. Through marquees such as Brooks Steam, Redpath, Tudhope, McKay, Galt Gas-Electric, Gray-Dort, Brockville Atlas, C.C.M., and McLaughlin, Canada had many domestic auto brands. In 1918 McLaughlin was bought by an American firm, General Motors, and was re-branded as General Motors of Canada. Driven by the demands of World War I, Canada's automotive industry had grown, by 1923, into the second-largest in the world, although it was still comprised of relatively inefficient plants producing many models behind a high tariff wall. High consumer prices and production inefficiencies characterized the Canadian auto industry prior to the signing of the 1965 Automotive Products Trade Agreement with the United States. The 1964 Automotive Products Trade Agreement or “Auto Pact” represents the single most important factor in making the Canadian automotive industry what it is today: a strong, successful industry that has a significant positive impact on the Canadian economy. Key features of the Auto Pact were the 1:1 production to sales ratio and Canadian Value Added requirements. Magna International is Canada's biggest domestic firm in the sector, and is the world's third-largest auto parts firm, producing entire vehicles at its Magna Steyr plant in Austria.


China's automobile industry has been developing rapidly since the year 2000. In 2008, 9.345 million motor vehicles were manufactured in China, surpassing United States as the second largest automobile maker, after Japan. Moreover, due to the current financial crisis, China was the largest automobile market and manufacturer in the world for the first ten months of year 2009, with total sale of 10.891 million and total production of 10.873 million vehicles. China probably will surpass United States and become the largest car market for the whole year of 2009. The top 8 car sellers for the first nine months of 2009 are General Motors, Volkswagen, Hyundai, Chana, Nissan, Chery, BYD and Toyota.


Volkswagen assembly line in 1973

The automobile was invented in Germany by Karl Benz. Furthermore, the four-stroke internal combustion engine used in most automobiles worldwide today was invented by Nikolaus Otto in Germany. In addition, the diesel engine was also invented by German Rudolf Diesel. Germany is famous for the high-performance and high-quality sports cars made by Porsche, and the cars of BMW are famous for their quality, safety and technological innovation. Daimler-Benz's predecessor Daimler-Motoren-Gesellschaft was the industry's oldest firm, Daimler-Benz company dates from 1926. In 1998 it bought the American automobile manufacturer Chrysler, then sold out in 2007 at a heavy loss as it never managed to bring the division to long term profitability. In the popular market, Opel and Volkswagen are most well known. Opel was a bicycle company that started making cars in 1898; General Motors bought it out in 1929, but the Nazi government took control and GM wrote off its entire investment. In 1948 GM returned and restored the Opel brand. Volkswagen is dominant in the popular market; it purchased Audi in 1964. VW's most famous car was the small, beetle-shaped economical "people's car" with a rear-mounted, air-cooled engine. It was designed in the 1930s by Ferdinand Porsche upon orders from Adolf Hitler, who was himself a car enthusiast. However, production models appeared only after the war; until then, only rich Germans had automobiles. By 1950, Volkswagen was the largest German automobile producer. Today it is one of the three biggest automotive companies and is now controlled by Porsche Automobil Holding SE. In the meantime, ten different car manufacturers belong to the multicorporate enterprise: Porsche, Volkswagen, Audi, Bugatti, Lamborghini, Bentley, Škoda, MAN, SEAT and Scania AB. Germany is famous for its upscale sedans. They feature suspension systems that provide both a soft ride and good handling characteristics. Many manufacturers limit their automobiles electronically to driving speeds of 250 km/h (155 mph) for safety reasons. For pretuned models like AMG from Mercedes Benz, Audi S from Quattro Gmbh, and BMW M from M Gmbh, for some payment it is possible to open up their topspeed, so that the fastest models easily reach more than 300km/h.


An embryonic automotive industry started in India in the 1940s. However, for the next 50 years, the growth of the industry was hobbled by the Socialist policies and the bureaucratic hurdles of the license raj. Following economic liberalisation in India from 1991, and the gradual easing of restrictions on industry, India has seen a dynamic 17% annual growth in automobile production and 30% annual growth in exports of automotive components and automobiles. India produces around 2 Million automobiles currently.Largest company in India is TATA and Mahindra & Mahindra. Total turnover of the Indian automobile industry is expected to grow from USD 34 Billion in 2006 to USD 122 Billion in 2016.[11] Tata Motors has just launched Tata Nano, the cheapest car in the world at USD 2200. Recently India has overtaken China in global auto exports of compact car this year . Suzuki Motor Corp, Hyundai Motor Co, and Nissan Motor Co are making India a manufacturing hub of minicars.


The automotive industry in Italy began with the construction of the first FIAT plant (Fabbrica Italiana Automobili Torino) in 1899 by Giovanni Agnelli. In the following years at least 50 other manufacturers appeared, the best known being Isotta Fraschini in 1900, Lancia in 1906, Alfa Romeo in 1910, Maserati in 1914, Ferrari in 1939, and Lamborghini in 1963. During the first and the second World Wars and the economic crisis of the 70's, many of these brands disappeared or were bought by Fiat or foreign manufacturers. Today the Italian automotive industry boasts a wide range of products, from very compact city cars to sport supercars such as Ferrari and Maserati. As of June 2009 Fiat also holds roughly 20% stake in the American brand Chrysler.


Japan, with its large population squeezed into very high density cities with good public transit, has limited roadways that carry very heavy traffic. Hence, most automobiles are small in terms of size and weight. From a humble beginning, Japan is now the biggest auto manufacturing country in the world. Nissan began making trucks in 1914, and sold cars under the Datsun brand until it switched to Nissan in the 1980s. It opened its first U.S. plant in Tennessee in the early 1980s and a U.K. plant in 1986. Its luxury models carry the brand Infiniti. Honda, which began with motorcycles, emerged after World War II. Its luxury vehicles are sold under the Acura brand. Toyota began making cars in the 1930s and is now the world's largest producer. The Toyota Corolla is the world's best selling nameplate. Its luxury models carry the Lexus brand. Toyota is famous for its innovative, quality-conscious management style, and its hybrid gas-electric vehicles, especially the Prius, which was launched in 1997. Other major companies include Subaru, Mitsubishi, Mazda, Daihatsu, Suzuki, and Isuzu. Japan's production of cars increased from 3.179 million to 7.038 million between 1970 and 1980, while demand for larger American cars was disastrously falling. Japanese cars are often credited with superior dependability, efficiency and advanced technology.

South Korea

Assembly line at Hyundai Motor Company car factory in Ulsan, South Korea.

The South Korean automobile industry is today the fifth largest in the world in terms of production volume and the sixth largest in terms of export volume. 50 years ago, its initial operations were merely the assembling of parts imported from Japan and the United States. The Hyundai Kia Automotive Group is today the second largest automaker in Asia, after Toyota. Annual domestic output exceeded one million units in 1988. In the 1990s, the industry manufactured numerous in-house models, demonstrating not only its capabilities, and signaling its coming of age thanks to the heavy investment to infrastructure in the country over the decades. The quality of their automobiles has improved dramatically in recent years, gaining international recognition. Hyundai has been named the 2009 North American car of the year.


In 2009 the automotive industry generated 3.5 percent of the country`s GDP and gave employment to about nine percent of the working population. Spain is on the eight place in car manufacturing countries, but 2008 and 2009 showed a decrease in car production. The downward spiral started about ten year ago, with an abandoning policy of many consecutive governments. The result has been the loss of all Spanish car brands manufacturers, which are now in hands of foreign companies.


The Thai-based automobile manufacturer is ThaiRung or well-known as TR, manufactured by Thai Rung Union Car Public Co. Ltd. (TRU). The company was established in 1967 in Bangkok, Thailand. Original name was Thai Rung Engineering Co. Ltd., and changed its name to Thai Rung Union Car Co. Ltd. in 1973. TRU was listed on the Stock Exchange of Thailand in 1994. TRU business is ranging from product design and development, automotive parts manufacturing, industrial equiptemnts manufacturing, car assembly lines and financial business. Some discontinued TR vans powered by Land Rover engine in combination with Thai-developed body design and platform. Modern TR cars are built on small or medium trucks base into SUV or seven-seat multi-purpose vehicles using TR-owned technology, design, development and assembly skills. The current models are 2009 TR Adventure and TR Allroader.

United Kingdom

Lotus Cars final assembly line

The British motor industry has always been export oriented. Today it employs about 850,000 people and produces about 1.5 million cars and 216,000 commercial vehicles per year, 75% of which are exported. The top five UK car producers are Nissan, Toyota, Honda, MINI and Land Rover. However, international competitiveness of UK cars has declined consistently since the 1990s and the country became unable to sustain production on par with Germany or France. Since 2000, motor vehicle production fell from 1,813,894 to 1,750,253. The country has been overtaken by fast industrialising economies such as Brazil, India and Mexico. The UK is the 13th largest automobile producer in the world.

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