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Automotive Industry

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Articles 1 Big Three (automobile manufacturers) 10 Automotive industry in Brazil 15 Troller Veículos Especiais S/A 16 Automobile industry in China 17 Automotive industry in Germany 28 Automobile industry in India 30 Automotive industry in Japan 34 Automotive industry in South Korea 36 References Article Sources and Contributors 47 Image Sources, Licenses and Contributors 48 Article Licenses License 49 Automotive industry 1 Automotive industry

The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles. The automotive industry is one of the most important economic sectors by revenue. The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations.

Worldwide Trends In 2007, worldwide production reached a peak at a total of 73.3 million new motorvehicles produced worldwide.[1] In 2009, worldwide motorvehicle production dropped 13.5 percent to 61 million. Sales in the U.S. dropped 21.2 percent to 10.4 million units, sales in the European Union (supported by scrapping incentives in many markets) dropped 1.3 percent to 14.1 million units. China became the world's largest motorvehicles market, both by sales as by production. Sales in China rose 45 percent in 2009 to 13.6 million units.[2] In recent years, private Chinese manufacturers emerge. About 250 million vehicles are in use in the United States. Around the world, there were about 806 million and light trucks on the road in 2007; they burn over 260 billion gallons of and diesel fuel yearly.[3] In the opinion of some, urban transport systems based around the have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars.[4] [5] [6] The sustainable transport movement focuses on solutions to these problems.

History The first practical automobile with a was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-distance trip in August 1888 - from Mannheim to Pforzheim and back - that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event. Soon after, and Wilhelm in in 1889 designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first in 1886, but 's , of the University of Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle;.[7] :p.26 Bernardi enlarged the tricycle in 1892 to carry two adults.[7] :p.26

World motor vehicle production

By Year Global Production of Motorvehicles (cars and commercial vehicles) Automotive industry 2

Year Production Change Source

1997 52,987,000 [8]

1998 57,987,000 -2.70% [8]

1999 56,258,892 2.98% [9]

2000 58,374,162 3.80% [10]

2001 56,304,925 -3.50% [11]

2002 58,994,318 4.80% [12]

2003 60,663,225 2.80% [13]

2004 64,496,220 6.30% [14]

2005 66,482,439 3.10% [15]

2006 69,222,975 4.10% [16]

2007 73,266,061 5.80% [17]

2008 70,520,493 -3.70% [18]

2009 60,986,985 -13.50% [19]

Company relationships It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies. Notable current relationships include: • Daimler AG holds a 20% stake in Eicher Motors, a 10.0% stake in KAMAZ, a 10% stake in Tesla Motors, a 6.75% stake in Tata Motors and a 3.1% in the - Motors alliance. They are in the process of selling back their 40% stake in McLaren Group. This process will be finalized in 2011. • Dongfeng Motor Corporation is involved in joint ventures with several companies in China, including: , Hyundai, Nissan, Nissan Diesel, and PSA Citroen. • holds a 85% stake in and a 20% stake in Chrysler, that can be increased to 35%; with the option of increasing its stake further. • holds a 13.4% stake in and an 8.3% share in . • Automobile holds a 23% stake in Manganese Bronze Holdings. • and Shanghai Automotive Industry Corporation (SAIC) have two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile. • Hyundai Automotive Group holds a 38.67% stake in Kia Motors, down from the 51% that it acquired in 1998. • Renault Pars is a , 51 percent of which belongs to Renault of France. Forty-nine percent of Renault Pars' shares is jointly held by Iran's Industrial Development and Renovation Organization, IKCO and Saipa. The company was established in 2003.[20] • MAN SE holds a 17.01% voting stake in Scania. • Porsche Automobil Holding SE has a 50.74% stake in Volkswagen Group. Due to liquidity problems, Volkswagen Group is now in the process of acquiring Porsche. Automotive industry 3

• Renault-Nissan Motors have an alliance involving two global companies linked by cross-shareholding, with Renault holding 44.3% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares. The alliance holds a 3.1% share in Daimler AG. • Renault holds a 25% stake in AvtoVAZ and 20.5% of the voting stakes in Volvo Group. • holds a 51% stake in Daihatsu, and 16.5% in Fuji Heavy Industries, parent company of . • Volkswagen Group and FAW have a joint venture. • Volkswagen Group and Shanghai Automotive Industry Corporation (SAIC) have a joint venture in Shanghai Volkswagen Automotive. • Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), and a 29% stake in MAN SE. • Volkswagen Group has a 49.9% stake in Porsche AG. Volkswagen is in the process of acquiring Porsche, which will be completed in mid-2011. • Volkswagen Group has a 19.9% stake in , and Suzuki has a 5% stake in Volkswagen.

Top vehicle manufacturing groups (by volume) The table below shows the world's largest motor vehicle manufacturing groups, along with the marques produced by each one. The table is ranked by 2009 end of year production figures from the International Organization of Motor Vehicle Manufacturers (OICA)[21] for the parent group, and then alphabetically by marque. Joint ventures are not reflected in this table. Production figures of joint ventures are typically included in OICA rankings, which can become a source of controversy.[22] [23]

Marque Country of Ownership Markets origin

1. Toyota Motor Corporation ( Japan) Daihatsu Subsidiary Global, except North America and Australia Hino Subsidiary Asia Pacific, North America and South America Division Global Scion Division North America Toyota Division Global

2. General Motors Company ( United States) Buick Division North America, Middle East, East Asia Cadillac Division Global, except South America, South Asia, South East Asia, Pacific Chevrolet Division Global, except Australia, New Zealand, South Korea Daewoo Subsidiary South Korea GMC Division North America, Middle East Holden Subsidiary Australia, New Zealand, Japan Subsidiary Europe (except UK), Africa, Asia, Oceania, South America

Vauxhall Subsidiary

3. Volkswagen Group AG ( Germany) Audi Subsidiary Global Subsidiary Global Subsidiary Global Subsidiary Global Automotive industry 4

Scania Subsidiary Global SEAT Subsidiary Europe, South America, North Africa, Middle East Škoda Subsidiary Global, except North America and South Africa Volkswagen Subsidiary Global Volkswagen Commercial Subsidiary Global Vehicles

4. Ford Motor Company ( United States) Ford Division Global Lincoln Division North America, Middle East, South Korea, Japan Mercury** Division North America, Middle East Troller Subsidiary South America and Africa

5. ( South Korea) Hyundai Division Global Kia Division Global

6. PSA Peugeot Citroën S.A. ( France) Citroën Subsidiary Global, except North America, South Asia Peugeot Subsidiary Global, except North America, South Asia

7. Honda Motor Company ( Japan) Division North America, East Asia, Russia Honda Division Global

8. Nissan Motor Company ( Japan) Division Global, except South America and Africa Nissan Division Global

9. Fiat S.p.A. ( Italy) Subsidiary Global, except North America Subsidiary Global Ferrari Subsidiary Global Fiat Subsidiary Global Subsidiary Global, except North America Irisbus Subsidiary Global, except North America Subsidiary Global, except North America Subsidiary Europe Subsidiary Global

10. Suzuki Motor Corporation ( Japan) Maruti Suzuki Subsidiary India, Middle East, South America Suzuki Division Global

11. Renault S.A. ( France) Dacia Subsidiary Europe, Latin America, Asia, Africa Renault (cars) Division Global, except North America, South Asia Renault Samsung Subsidiary Asia, South America Automotive industry 5

12. Daimler AG ( Germany) Freightliner Subsidiary North America, South Africa Master Subsidiary Pakistan Maybach Division Global -Benz Division Global Mitsubishi Fuso Subsidiary Global Orion Subsidiary North America Setra Subsidiary Europe Division North America, Europe, South East Asia, South Africa Thomas Built Subsidiary North America Western Star Subsidiary North America

13. Chana Automobile Company, Ltd ( People's Republic of China) Chana Division China, South Africa Subsidiary China

14. BMW AG ( Germany) BMW Division Global Division Global Rolls-Royce Subsidiary Global

15. Mazda Motor Corporation ( Japan) Mazda Division Global

16. Chrysler Group, LLC ( United States) Chrysler Division Global Dodge Division Global GEM Division North America Jeep Division Global Ram Division North America

17. Corporation ( Japan) Mitsubishi Division Global

18. Beijing Automotive Industry Holding Corporation, Ltd ( People's Republic of China) BAW Division China Foton Subsidiary China

19. Tata Motors, Ltd ( India) Hispano Subsidiary Europe Jaguar Subsidiary Global Land Subsidiary Global Tata Division India, South Africa Tata Daewoo Subsidiary South Korea

20. Dongfeng Motor Corporation ( People's Republic of China) Dongfeng Division China Automotive industry 6

21. First Automotive Group Corporation ( People's Republic of China) Besturn Division China Freewind Subsidiary China Haima Subsidiary China Division China Jiaxing Subsidiary China Vita Subsidiary China Xiali Subsidiary China

22. Automobile Company, Ltd ( People's Republic of China) Chery Division China, Africa, South East Asia, Russia Division China Rely Division China

23. Fuji Heavy Industries, Ltd ( Japan) Subaru Division Global

24. BYD Auto ( People's Republic of China) BYD Division China, Russia

25. Shanghai Automotive Industry Corporation ( People's Republic of China) MG Subsidiary United Kingdom, Chile, Argentina SsangYong*** Subsidiary South Korea Division China Soyat Division China Yuejin Division China

26. Anhui Jianghuai Automobile Company, Ltd ( People's Republic of China) JAC Division China

27. Geely Automobile ( People's Republic of China) Geely Division China, Russia, North Africa Division China Volvo (Cars) Subsidiary Global

28. Isuzu Motors, Ltd ( Japan) Isuzu Division Global, except North America

29. Brilliance China Automotive Holding, Ltd ( People's Republic of China) Brilliance Division China, North Africa Subsidiary China

30. OAO AvtoVAZ ( Russia) Division Russia, Europe, North Africa VAZ Division Russia, Europe

31. Great Wall Motor Company, Ltd ( People's Republic of China) Great Wall Division China, South Africa, Russia, North Africa, Australia

32. Mahindra & Mahindra, Ltd ( India) Automotive industry 7

Mahindra Division India, South East Asia, Europe, North Africa, North America

33. Shandong Kaima ( China) Kaima Division China Jubao Division China Aofeng Division China

34. , Bhd ( ) Proton Division Asia Pacific, South Africa, United Kingdom, Middle East Lotus Subsidiary Global

35. China National Heavy Duty Truck Company, Ltd ( People's Republic of China) Division China

36. AB Volvo ( Sweden) Mack Subsidiary Global Nissan Diesel Subsidiary Global NovaBus Subsidiary North America Prevost Subsidiary North America Renault (trucks) Subsidiary Global Volvo (trucks) Division Global

37. Chongqing Lifan Automobile Company, Ltd ( People's Republic of China) Lifan Division China

38. Fujian Motor Industry Group Company ( People's Republic of China) Division China

39. Kuozui Motors, Ltd ( Taiwan) Kuozui Subsidiary Taiwan

40. Company, Ltd ( People's Republic of China) Shaanxi Division China

41. Porsche ( Germany) Porsche Subsidiary Global

42. Ziyang Nanjun Automobile Co., Ltd. ( People's Republic of China) Nanjun Division China

43. GAZ Group ( Russia) GAZ Subsidiary Russia KAvz Subsidiary Russia LiAZ Subsidiary Russia Ural Division Russia

44. Navistar International Corporation ( United States) IC Subsidiary North America International Division North America, South Asia

45. Guangzhou Automobile Group ( China) Changfeng Division China Automotive industry 8

46. Paccar, Inc ( United States) DAF Subsidiary Global, except North America Kenworth Division North America Leyland Subsidiary Europe Peterbilt Division North America

47. Chenzhou Ji'ao ( China) Ji'ao Division China

48. Company Ltd. ( China) Qingling Division China

49. Hebei ZXAUTO ( China) Zhongxing Division China

50. Ashok Leyland ( India) Ashok Leyland Division India

Notes * Porsche Automobil Holding SE has a 50.7 percent share in the Volkswagen Group.[24] However, Volkswagen Group will acquire Porsche AG, the automotive manufacturer under a new "Integrated Automotive Group". This merger/acquisition is expected to be fully completed in mid-2011.[25] [26] ** Ford Motor Company has announced that the production of Mercury Automobiles will cease in 2010.[27] *** Shanghai Automotive Industry Corporation is in the process of selling SsangYong Motor Company to Mahindra & Mahindra.

Minor automotive manufacturers There are many automobile manufacturers other than the major global companies. They are mostly regional or operating in niche markets.

See also • Alliance of Automobile Manufacturers • Automotive industry by country • Automotive industry crisis of 2008–2009 • Automotive market • Big Three automobile manufacturers • Effects of the 2008-2009 automotive industry crisis on the United States • List of countries by motor vehicle production Automotive industry 9

References

[1] http:/ / oica. net/ category/ production-statistics/ 2007-statistics/

[2] http:/ / www. thetruthaboutcars. com/ car-sales-around-the-world-in-2009-mostly-down/

[3] Plunkett Research, "Automobile Industry Introduction" (2008) (http:/ / www. plunkettresearch. com/ Industries/ AutomobilesTrucks/

AutomobileTrends/ tabid/ 89/ Default. aspx)

[4] Kenworthy, J R (2004). "Transport Energy Use and Greenhouse Emissions in Urban Passenger Transport Systems" (http:/ / cst. uwinnipeg.

ca/ documents/ Transport_Greenhouse. pdf) (PDF). Institute for Sustainability and Technology Policy. . Retrieved 2008-07-22.

[5] World Health Organisation, Europe. "Health effects of transport" (http:/ / www. euro. who. int/ transport/ hia/ 20021009_2). . Retrieved 2008-08-29.

[6] Social Exclusion Unit, Office of the Prime Minister (UK). "Making the Connections - final report on transport and social exclusion" (http:/ /

www. google. ca/ url?sa=t& source=web& ct=res& cd=1& url=http:/ / www. carplus. org. uk/ Resources/ pdf/

Making_the_Connections_Final_Report_on_Transport_and_Social_Exclusion. pdf& ei=SzLBSbDFKYHaMbvwgK0N&

usg=AFQjCNFCbKeT7rQ0zt7aOL5K-1OTXBm9EA& sig2=o-ASe9xe84uOEJTQt-DxuQ) (PDF). . Retrieved 2003-02-01. [7] Georgano, G. N. Cars: Early and Vintage, 1886–1930. (London: Grange-Universal, 1985)

[8] http:/ / oica. net/ wp-content/ uploads/ 2007/ 06/ cl98type. pdf

[9] http:/ / oica. net/ category/ production-statistics/ 1999-statistics/

[10] http:/ / oica. net/ category/ production-statistics/ 2000-statistics/

[11] http:/ / oica. net/ category/ production-statistics/ 2001-statistics/

[12] http:/ / oica. net/ category/ production-statistics/ 2002-statistics/

[13] http:/ / oica. net/ category/ production-statistics/ 2003-statistics/

[14] http:/ / oica. net/ category/ production-statistics/ 2004-statistics/

[15] http:/ / oica. net/ category/ production-statistics/ 2005-statistics/

[16] http:/ / oica. net/ category/ production-statistics/ 2006-statistics/

[17] http:/ / oica. net/ category/ production-statistics/ 2007-statistics/

[18] http:/ / oica. net/ category/ production-statistics/ 2008-statistics/

[19] http:/ / www. oica. net/ category/ production-statistics/

[20] http:/ / previous. presstv. com/ detail. aspx?id=114593& sectionid=351020102

[21] "World Motor Vehicle Production: World Ranking of Manufacturers 2009" (http:/ / oica. net/ wp-content/ uploads/ ranking-2009. pdf) (PDF). OICA. . Retrieved 2010-07-27.

[22] "GM Slips to Number Two Worldwide, Ford to Fourth" (http:/ / www. thetruthaboutcars. com/

gm-slips-to-number-two-worldwide-ford-to-fourth/ ). The Truth About Cars. . Retrieved 2010-06-12.

[23] "TTAC Announces World’s Top Ten Automakers" (http:/ / www. thetruthaboutcars. com/

ttac-announces-world’s-top-ten-automakers/ ). The Truth About Cars. . Retrieved 2010-06-12.

[24] "Volkswagen Group - Shareholder Structure" (http:/ / www. volkswagenag. com/ vwag/ vwcorp/ content/ en/ investor_relations/ share/

Shareholder_Structure. html). Volkswagen Aktiengesellschaft. VolkswagenAG.com. . Retrieved 22 December 2009. [25] Porsche Automobil Holding SE, Stuttgart (20 November 2009). "Porsche Supervisory Board agrees on the contracts of implementation"

(http:/ / www. porsche-se. com/ pho/ en/ news/ ?pool=pho& id=2009-11-20). Press release. . Retrieved 22 November 2009. [26] Volkswagen Aktiengesellschaft (13 August 2009). "Volkswagen Supervisory Board approves Comprehensive Agreement for an Integrated

Automotive Group with Porsche" (http:/ / www. volkswagenag. com/ vwag/ vwcorp/ info_center/ en/ news/ 2009/ 08/

Volkswagen_Aufsichtsrat_stimmt_Grundlagenvereinbarung_fuer. html). Press release. . Retrieved 22 November 2009.

[27] "Mercury production to end this year - The Boston Globe" (http:/ / www. boston. com/ business/ articles/ 2010/ 06/ 03/

mercury_production_to_end_this_year/ ). Boston.com. 2010-06-03. . Retrieved 2010-06-12. Pioneer Auto Compaines 1897-1904; N.Y.S. • Amsterdam NY: Tillerwilliger Steamer • Buffalo; Thomas 1902 Runabout • Elmira, Steam Car 1902 • IlLion NY; 1900 Remington Runabout • Fort Plain NY; Spring and Axel. 1897, 1902, 1903 Dr. Runabouts • Utica NY: 1903 Buckmobile Automotive industry 10

External links

• Alliance of Automobile Manufacturers (http:/ / www. autoalliance. org)

• Doumental Detroit Industry Automotive (http:/ / www. youtube. com/ watch?v=Tb16lETVBKs/ )

• Automotive engineering learning website (http:/ / www. howautowork. com)

• Plunkett Research, "Automobile Industry Introduction" (2008) (http:/ / www. plunkettresearch. com/ Industries/

AutomobilesTrucks/ AutomobileTrends/ tabid/ 89/ Default. aspx)

• Automotive Industry Analysis (http:/ / www. academicmind. com/ unpublishedpapers/ business/ management/

2004-11-000aaa-automotive-industry-analysis. html)

• All vehicle manufacturers in the world (in Dutch with English etc. translation) (http:/ / www. deautogids. nl/ auto/

landenlijst. asp)

• Car makes of the world, 1894—present (http:/ / members. chello. nl/ j. baartse/ cars/ )

• Automotive history and photos (http:/ / www. automotivehistoryonline. com)

• Automaker Rankings 2007: The Environmental Performance of Car Companies (http:/ / www. ucsusa. org/

clean_vehicles/ vehicles_health/ automaker-rankings-2007. html)

• GFC - Motor Industry Repurcussions (http:/ / carsguide. news. com. au/ site/ news-and-reviews/ story/

chrysler_may_file_for_bankruptcy/ ) - Carsguide - Chrysler to file for bankruptcy

• GFC - Motor Industry Repercussions (http:/ / carsguide. news. com. au/ site/ news-and-reviews/ story/ gm_kills_pontiac_brand) - Carsguide - GM kills Pontiac

• List of car trims (car sub models) 1989 - present (http:/ / www. car-trims. com)

Big Three (automobile manufacturers)

The Big Three, when used in relation to the automotive industry, most generally refers to the three major American automotive companies: General Motors, Ford, and Chrysler. The term is also sometimes used in relation to the three major automakers of other countries.

United States and Canada General Motors, Ford and Chrysler are often referred to as the "Big Three" or, more recently the "Detroit Three",[1] being the largest automakers in the United States and Canada. They were for a while the largest in the world and two of them are still a mainstay in the top five. Ford has held the position of second-ranked automaker for the past 56 years, being relegated to third in North American sales, after being overtaken by Toyota in 2007. That year, Toyota produced more vehicles than GM, though GM still outsold Toyota that year, giving GM 77 consecutive calendar years of top sales. For the first quarter of 2008, however, Toyota overtook GM in sales as well.[2] [3] In the North American market, the Detroit automakers retained the top three spots, though their market share is dwindling.[4] Honda passed Chrysler for the fourth spot in 2008 US sales.[5] [6] The Big Three are also distinguished not just by their size and geography, but also by their business model. The majority of their operations are unionized (United Auto Workers and Canadian Auto Workers), resulting in higher labor costs than other multinational automakers, including those with plants in North America.[7] The 2005 Harbour Report estimated that Toyota's lead in labour productivity amounted to a cost advantage of $350 US to $500 US per vehicle over American manufacturers.[1] The UAW agreed to a two-tier wage in recent 2007 negotiations, something which the CAW has so far refused.[8] Delphi, which was spun off from GM in 1999, filed for Chapter 11 bankruptcy after the UAW refused to cut their wages and GM is expected to be liable for a $7 billion shortfall.[9] [10] [11] In order to improve profits, the Detroit automakers made deals with unions to reduce wages while making pension and health care commitments. GM, for instance, at one time picked up the entire cost of funding health insurance premiums of its employees, their survivors and GM retirees, as the US did not have a universal health care Big Three (automobile manufacturers) 11

system.[12] With most of these plans chronically underfunded in the late 1990s, the companies have tried to provide retirement packages to older workers, and made agreements with the UAW to transfer pension obligations to an independent trust.[13] In 2009, the CBC reported that the non-unionized Japanese automakers, with their younger American workforces and fewer retirees will continue to enjoy a cost advantage over the Big Three.[1] Despite the history of their marques, many long running cars have been discontinued or relegated to fleet sales[14] [15] ,[16] as the Big Three shifted away resources from midsize and compact cars to lead the "SUV Craze". Since the late 1990s, over half of their profits have come from light trucks and SUVs, while they often could not break even on compact cars unless the buyer chose options. [17] Ron Harbour, in releasing the Oliver Wyman’s 2008 Harbour Report, stated that many small “econoboxes” of the past acted as loss leaders, but were designed to bring customers to the brand in the hopes they would stay loyal and move up to more profitable models. The report estimated that an automaker needed to sell ten small cars to make the same profit as one big vehicle, and that they had to produce small and mid-size cars profitably to succeed, something that the Detroit three had trouble doing.[18] SUV sales peaked in 1999 but have not returned to that level ever since, due to high gas prices. The Big Three have suffered from perceived inferior initial quality and reliability compared to their Japanese counterparts, which has been difficult to overcome. They have also been slow to bring new vehicles to the market, while the Japanese are also considered the leader at producing smaller, fuel-efficient cars.[1] Falling sales and market share have resulted in the Big Three's plants operating below capacity (GM's plants were at 85% in November 2005, well below the plants of its Asian competitors), leading to production cuts, plant closures and layoffs. They have been relying heavily on considerable incentives and subsidized leases to sell vehicles. which was crucial to keeping the plants running, which in turn drove a significant portion of the Michigan economy.[19] These promotional strategies, including rebates, employee pricing and 0% financing, have boosted sales but have also cut into profits. More importantly such promotions drain the automaker's cash reserves in the near term while in the long run the company suffers the stigma of selling vehicles because of low price instead of technical merit. Automakers have since been trying to scale back on incentives and raise prices, while cutting production. The subprime mortgage crisis and high oil prices in 2008 resulting in the plummeting popularity of best-selling trucks and SUVs, perhaps forcing automakers to continue offering heavy incentives to help clear excess inventory.[1] [20] The Big Three sued California Governor Arnold Schwarzenegger to prevent a tailpipe emissions requirement. In response, Governor Schwarzenegger told the Big Three to "get off their butt".[21] In 2008, with high oil prices and a declining US economy due to the subprime mortgage crisis, the Big Three are rethinking their strategy, idling or converting light truck plants to make small cars.[7] [22] [23] [24] Due to the declining residual value of their vehicles, Chrysler has stopped offering leases on its vehicles.[25] It was revealed on October 10, 2008 that GM may exchange its remaining 49% stake in GMAC to Cerberus for Chrysler, potentially merging two of the Big Three automakers.[26] On June 1, 2009 under pressure from a mounting debt of tens of billions of dollars, and President Barack Obama's auto task force, General Motors filed for Chapter 11 Bankruptcy in the United States and will undergo restructuring. General Motors of Canada did not file for bankruptcy. The result will mean a cost of 50 billion dollars in addition to 15 billion in bailout relief already paid by the United States government for a 60 percent ownership. The Canadian and Ontario governments owns 12.5 percent. The United States and Canadian government control are reported as temporary. Big Three (automobile manufacturers) 12

Japan Japanese automakers Toyota, Honda, and Nissan, among many others, have long been considered the leaders at producing smaller, fuel-efficient cars.[1] Their vehicles were brought to the forefront, due to the 1973 oil crisis which had a major impact on the auto industry. For instance, the Honda Civic was considered superior to American competitors such as the Chevrolet Vega and Ford Pinto. The civic is the best-selling car in Canada for 12 straight years in a row.,[1] As well, the Nissan 240Z was introduced at a relatively low price compared to other foreign sports cars of the time (Jaguar, BMW, Porsche, etc.), while providing performance, reliability, and good looks. This broadened the image of Japanese car-makers beyond their econobox successes, as well as being credited as a catalyst for the import performance parts industry. Before Honda unveiled Acura in 1986, Japanese automobiles exports were primarily economical in design and largely targeted at low-cost consumers. The Japanese big three created their luxury marques to challenge the established brands. Following Honda's lead, Toyota launched the Lexus name with the LS 400 which debuted at $38,000 in the U.S., in some markets being priced against mid-sized six cylinder Mercedes-Benz and BMW models),[27] and was rated by Car and Driver magazine as better than both the $63,000 Mercedes-Benz 420 SEL and the $55,000 BMW 735i in terms of ride, handling and performance.[28] It was generally regarded as a major shock to the European marques; BMW and Mercedes-Benz's U.S. sales figures dropped 29% and 19%, respectively, with the then-BMW chairman Eberhard von Kuenheim accusing Lexus of dumping in that market.[28] Nissan's Infiniti became a player on the luxury market mostly thanks to its popular Q45. The vehicle included a class-leading (at the time) 278 hp (207 kW) V8 engine, four wheel steering, the first active suspension system offered on a motor vehicle, and numerous interior luxury appointments. These made it competitive against the German imports like Audi, BMW and Mercedes-Benz, which by the time of Infiniti's release had overtaken Cadillac and Lincoln in dominating the luxury segment of the American market. In 1990, four years after the debut of the Legend and Integra, Acura introduced the NSX, a midship V6 powered, rear-wheel-drive . The NSX, an acronym for "New Sports eXperimental", was billed as the first Japanese car capable of competing with Ferrari and Porsche. This vehicle served as a halo car for the Acura brand. The NSX was the world's first all-aluminum production car, and was also marketed and viewed by some as the "Everyday Supercar" thanks in part to its ease of use, quality and reliability, traits that were unheard of in the supercar segment at the time.[29] The success of the Japanese automakers contributed to their American counterparts falling into a recession in the late 1970s. Unions and lobbyists in both North America and Europe put pressure on their government to restrict imports. In 1981, Japan agreed to Voluntary Export Restraints in order to preempt protectionism measures that the US may have taken, where it be tariffs or import quotas. Consequently, Japanese companies responded by investing heavily in US production facilities, as they were not subject to the VER. Unlike the plants of domestic automakers, Japanese plants are non-unioned (save for NUMMI), so they have lower wage expenses and do not face the risk of strikes.[30] The VER was lifted in 1994 upon agreement of all members of General Agreement on Tariffs and Trade (GATT).[31] Establishing US production facilities was also a significant step in improving public relations, along with philanthropy, lobbying efforts, and sharing technology.[32] Europe has still largely maintained its protectionism policies against Japanese cars, though their varies considerably.[28] Toyota has always been by far Japan's largest automaker, and it recently overtook perennial world leader GM in both production and sales by early 2008. As the most aggressive of Japan's companies when it came to expanding into light trucks and luxury vehicles, this proved largely successful. Their high-end brand Lexus became the top-selling luxury marque worldwide in 2000, despite being only started up in 1989. Consequently, Toyota's stock price has traded at a much higher premium than other automakers.[33] Nissan was formerly in second place, until financial difficulties in the late 1990s caused it to lose its place to Honda. Honda is Japan’s second largest automaker and ranks sixth in the world, behind Toyota, GM, Volkswagen, Ford, and Hyundai. Mitsubishi and Mazda are in a distant fourth and fifth place compared to the Japanese Big Three. Big Three (automobile manufacturers) 13

Toyota, Honda, and Nissan are all in the BusinessWeek magazine's The 100 Top Global Brands by dollar value, as ranked by leading brand consultancy Interbrand. The Toyota marque was valued at US$22.67 billion, ranking it ninth among all global brand names - automotive or non-automotive, edging out that of Mercedes-Benz.[34] [35]

Germany The German trio Mercedes-Benz, BMW and Audi are often referred to as "Germany's Big Three",[36] although the actual major automobile manufacturers are Daimler AG (producer of Mercedes-Benz) and the Volkswagen Group (producer of Audi), along with BMW. Volkswagen Group has long been the largest automaker in Europe. As of 2007 it edged out Ford to rank third in the world after General Motors and Toyota. It is also the parent group of Audi, SEAT, Škoda, Bugatti, Lamborghini and Bentley. Daimler AG holds major stakes in other automakers including Mitsubishi Fuso. BMW also produces MINI branded vehicles, and has been the parent company of Rolls-Royce Motor Cars since 1998. BMW, Mercedes-Benz and Audi make up about 86% of the luxury midsize market.[36]

See also • Automotive industry • Automotive market • Effects of the 2008-2009 automotive industry crisis on the United States • / Doumental Detroit Industry Automotive [37]

References

[1] "The not-so-Big Three" (http:/ / www. cbc. ca/ money/ story/ 2008/ 12/ 10/ f-big-three-bailout. html). CBC News (CBC). 2008-06-03. . Retrieved 2008-08-08.

[2] Bunkley, Nick (2008-04-24). "G.M. Says Toyota Has Lead in Global Sales Race" (http:/ / www. nytimes. com/ 2008/ 04/ 24/ business/

worldbusiness/ 24auto. html?_r=3& ref=business& oref=slogin& oref=slogin& oref=slogin). The New York Times. . Retrieved 2008-10-26.

[3] "Toyota Claims World's Best-Selling Automaker Title" (http:/ / usnews. rankingsandreviews. com/ cars-trucks/ daily-news/

080424-Toyota-Claims-World-s-Best-Selling-Automaker-Title/ ). U.S. News Rankings & Reviews. 2008-04-24. . Retrieved 2008-10-26.

[4] "Big Three automakers retain U.S. positions" (http:/ / www. msnbc. msn. com/ id/ 6785766/ ). MSNBC. 2005-01-04. . Retrieved 2008-10-26.

[5] Ohnsman, Alan; Mike Ramsey (2008-09-04). "Honda Passes Chrysler as Asia Brands Widen U.S. Share" (http:/ / www. bloomberg. com/

apps/ news?pid=20601080& sid=anS5a7Btk8AE& refer=asia). BloomBerg.com. . Retrieved 2008-10-26.

[6] "'Big Three' automakers not so big" (http:/ / business. theage. com. au/ business/ big-three-automakers-not-so-big-20080904-491y. html). The Age. 2008-09-04. . Retrieved 2008-10-26.

[7] Van Praet, Nicolas (2008-06-04). "CAW Girds For War" (http:/ / www. financialpost. com/ related/ links/ story. html?id=562830). Financial Post. . Retrieved 2008-10-28.

[8] "CAW says “no two-tier wages” in bargaining" (http:/ / www. canadiandriver. com/ thenews/ 2008/ 03/ 27/

caw-says-“no-two-tier-wages”-in-bargaining. htm). CanadianDriver. 2008-03-27. . Retrieved 2008-10-28.

[9] Carty, Sharon (2007-03-02). "Delphi files Chapter 11 after union, GM talks break down" (http:/ / www. usatoday. com/ money/ industries/

manufacturing/ 2005-10-08-delphibankruptcy_x. htm). USA Today. . Retrieved 2008-10-28.

[10] Shepardson, David (2007-04-09). "Parting shot: Delphi exec Steve Miller blasts UAW in new book" (http:/ / www. detnews. com/ apps/

pbcs. dll/ article?AID=/ 20080409/ AUTO01/ 804090420). Detroit News. . Retrieved 2008-10-28.

[11] Welch, David (2005-08-25). "Bankruptcy Is Delphi's Trump Card" (http:/ / www. businessweek. com/ magazine/ content/ 05_32/

b3946057_mz011. htm). BusinessWeek. . Retrieved 2008-10-28.

[12] "German auto union head suggests GM cut US costs" (http:/ / www. wsws. org/ articles/ 2004/ nov2004/ opel-n17. shtml). Wsws.org. . Retrieved 2008-11-01.

[13] "UAW, General Motors Temporarily Table Health Care Trust Negotiations After Five-Day Deadlock on Issue" (http:/ / www.

kaisernetwork. org/ Daily_reports/ rep_index. cfm?DR_ID=47646). Kaiser Daily Health Policy Report. Kaisernetwork.org. 20 September 2007. . Retrieved 2009-07-09. Big Three (automobile manufacturers) 14

[14] "Storied Ford Taurus reaches end of line" (http:/ / detnews. com/ apps/ pbcs. dll/ article?AID=/ 20061023/ AUTO01/ 610230304/ 1148). Detroit News. 2006-10-23. . Retrieved 2007-08-14.

[15] Final Ford Taurus interview (http:/ / www. youtube. com/ watch?v=CwuCm8hNXgI). ABC News. 2007-07-26. .

[16] "So long, friend. Ford producing last Taurus next week" (http:/ / www. autoblog. com/ 2006/ 10/ 19/

so-long-friend-ford-producing-the-last-taurus-next-week/ ). Autoblog. . Retrieved 2007-07-26.

[17] "Ford Taurus: Oedipus Wrecks" (http:/ / www. thetruthaboutcars. com/ ford-taurus-oedipus-wrecks/ ). The Truth About Cars. . Retrieved 2008-04-05. [18] ALISA PRIDDLE June 2008. "Chevrolet Volt and Aveo, Pontiac G3 Among Small Cars That Need Big Profits - Car News/Latest News

&amp;amp;amp; Reviews/Car Shopping/Hot Lists/Reviews/Car and Driver - Car And Driver" (http:/ / www. caranddriver. com/ reviews/

hot_lists/ car_shopping/ latest_news_reviews/ chevrolet_volt_and_aveo_pontiac_g3_among_small_cars_that_need_big_profits_car_news). Caranddriver.com. . Retrieved 2008-11-01.

[19] John D. Stoll, Liz Rappaport And Matthew Dolan (July 30, 2008). "GM, Ford Scale Back Car Leases as Era Ends - WSJ.com" (http:/ /

www. wsj. com/ article/ SB121737722208895269. html?mod=fpa_mostpop). Wsj.com. . Retrieved 2008-11-01.

[20] "The discounting treadmill - BusinessWeek" (http:/ / www. businessweek. com/ autos/ autobeat/ archives/ 2008/ 09/ the_discounting. html). Businessweek.com. . Retrieved 2008-11-01.

[21] Arnold Schwarzenegger at LA Auto Show 60 Minutes Interview Energy Green (http:/ / www. youtube. com/ watch?v=6lDt8HJK36E) - YouTube video

[22] Krisher, Tom (2008-07-03). "Why Honda is growing as Detroit falls behind" (http:/ / www. sfgate. com/ cgi-bin/ article. cgi?f=/ c/ a/ 2008/

07/ 03/ BUUM11IVF4. DTL& type=autos). San Francisco Chronicles. . Retrieved 2008-10-30.

[23] Isidore, Chris (2008-06-03). "GM: Trucks out, cars in" (http:/ / money. cnn. com/ 2008/ 06/ 03/ news/ companies/ gm_announcement/ index. htm). CNN Money. . Retrieved 2008-10-30.

[24] White, Jerry (2000-05-27). "GM, Ford idle 1,365 workers—auto industry layoffs signal coming downturn in US economy" (http:/ / www.

wsws. org/ articles/ 2000/ may2000/ jobs-m27. shtml). World Socialist Website. . Retrieved 2008-10-30.

[25] Plummeting Resale Values Lead Chrysler to End Leases (http:/ / www. nytimes. com/ 2008/ 07/ 26/ business/ 26auto. html?_r=1&

partner=rssyahoo& emc=rss& oref=slogin). 27 July 2008. Nick Bunkley. 26 July 2008.

[26] Yahoo! News Reports: Chrysler, GM discuss merger, acquisition (http:/ / news. yahoo. com/ s/ ap/ 20081011/ ap_on_bi_ge/ gm_chrysler_merger_talks)

[27] "Lexus LS 400, LS 430 and LS 460 Generations: Setting the Standard in the Most Comfortable Way Possible" (http:/ / www. edmunds.

com/ insideline/ do/ Features/ articleId=115368). Edmunds.com. 2003-03-13. . Retrieved 2007-04-08.

[28] Detroit, S.C. Gwynne (1990-09-17). "Zen and the Art of Automotive Maintenance" (http:/ / www. time. com/ time/ magazine/ article/

0,9171,971153-1,00. html). Time Magazine. . Retrieved 2007-04-29.

[29] The Legend was built on the Accord platform, and the Integra was built on the Civic platform. Acura History page > timeline (http:/ / www.

acura. com/ )

[30] Nicolas Van Praet, Financial Post Published: Wednesday, June 04, 2008. "Caw Girds For War" (http:/ / www. financialpost. com/ related/

links/ story. html?id=562830). Financialpost.com. . Retrieved 2008-11-01.

[31] "PERC - The Property and Environment Research Center: Voluntary Export Restraints on Automobiles" (http:/ / www. perc. org/ articles/

article416. php). Perc.org. . Retrieved 2008-11-01.

[32] "Why Toyota Is Afraid Of Being Number One" (http:/ / aol. businessweek. com/ magazine/ content/ 07_10/ b4024071. htm). Aol.businessweek.com. . Retrieved 2008-11-01.

[33] "About | Press Release Articles" (http:/ / www. lexus. com/ about/ news/ articles/ 2006/ 1/ 20060104_1. html). Lexus.com. . Retrieved 2008-11-01.

[34] "Toyota Named World's Top Automotive Brand - AutoWeb News" (http:/ / www. autoweb. com. au/ cms/ A_102232/

title_Toyota-Named-Worlds-Top-Automotive-Brand-/ newsarticle. html). Autoweb.com.au. . Retrieved 2008-11-01. [35] "BusinessWeek Reports Interbrand's Annual Ranking of the 100 Top Global Brands in August 2nd Issue. Most Successful Companies on

This Year's List Are Building Communities Around Their 'Cult Brands'" (http:/ / www. prnewswire. com/ cgi-bin/ stories. pl?ACCT=109&

STORY=/ www/ story/ 07-22-2004/ 0002216542& EDATE=). Prnewswire.com. . Retrieved 2008-11-01.

[36] "Saab, Alfa and Citroen prepare to take on Germany’s Big 3" (http:/ / www. egmcartech. com/ 2007/ 06/ 22/

saab-alfa-and-citroen-prepare-to-take-on-germanys-big-3/ ). eGMCarTech. 2007-06-22. . Retrieved 2009-04-03.

[37] http:/ / www. youtube. com/ watch?v=Tb16lETVBKs Automotive industry in Brazil 15 Automotive industry in Brazil

The Brazilian automotive industry started in 1956, in the city of Santa Bárbara d'Oeste (São Paulo) with the production of the Romi-Isetta. In 1958, Toyota started to produce its famous Land Cruiser. In 1959, in the municipality of São Bernardo do Campo, the first Volkswagen factory was built. It started manufacturing the Kombi, which preceded the famous Beetle (known in Brazil as Fusca). At the same time, a Brazilian entrepreneur, Mr. Sebastiao William Cardoso, started producing an electrical small jeep called Tupi. Chevrolet and Ford started manufacturing trucks and work vehicles and automobiles in Brazil in the 1960s. The Italian giant Fiat established its first factory in Brazil in the 1960s, and Mercedes Benz started to produce trucks and buses during this time, and eventually opened an automobile factory in 1998. These companies dominated the Brazilian market until the middle 1990s when the Brazilian market was finally opened to imports. In the 1990s, more auto companies settled and opened factories in Brazil, including: Nissan, Renault, Peugeot, Citroën, Honda, Hyundai, Chrysler and Audi. Currently, the most successful genuine Brazilian auto company is Troller, with its T4 and Pantanal models. It sells all over Latin America and Africa. In the last few years, the Brazilian auto industry has grown quickly, attracting investments from the main global automakers. In 2007, Brazilian production grew 14% compared to 2006 figures, reaching more than 3 million vehicles. Preliminary numbers from 2008 show that Brazil has passed France and its the worlds fifth largest producer.

See also • Troller • Ethanol fuel in Brazil Troller Veículos Especiais S/A 16 Troller Veículos Especiais S/A

Type Subsidiary of Ford do Brasil

Industry Automotive

Founded 1995

Headquarters Horizonte, Ceará, Brazil Area served Latin America

Key people Marcos de Oliveira

Products 4x4 vehicles

Parent Ford

[1] Website Official Site

Troller Veículos Especiais S/A (Troller) is a manufacturer of off-road vehicles in Brazil. It was founded in 1995, in Horizonte, Ceará. Troller T4 3.0 Turbodiesel is Troller's flagship. It has featured successfully in several rally races around the world, including the Paris Dakar Rally.

Name The name Troller is a non-official Brazilian Portuguese adaptation of the English word troll.[2]

History

The Troller company started in 1995, by Rogério Farias.[3] In April 1996, the first prototype was built.[3] In 1997, Troller was bought by the entrepreneur Mário Araripe, who formed a partnership with Rogério Farias,[3] and the first gasoline-powered T4s were built.[2] The mass-production of the vehicles started in 1999, when a factory was built.[3]

In 2005, a manufacturing plant opened in the African country of Angola to build the T4 for the African market.[4] Troller T4 Ford do Brasil announced in January 2007 the acquisition of Troller for an undisclosed price.[5] On the 14th of December 2009, a Troller made the news when it cleared São Paulo's flooded city streets during a live broadcast.[5]

Important models

• Troller RF Esporte • Troller T4 3.0 Turbodiesel • Troller T4-M

• Troller Pantanal Troller Pantanal Troller Veículos Especiais S/A 17

External links • Official Site [1] (Portuguese)

References

[1] http:/ / www. troller. com. br/

[2] "História" (https:/ / www. troller. com. br/ site. php?area1=sobre& area2=sobreaempresa_sobre_a_troller. swf) (in Portuguese) (SWF). Troller. . Retrieved 2008-07-14. "This vehicle is not to be mistaken with the Jeep Wrangler TJ, an off-road vehicle produced by Chrysler."

[3] "Troller" (http:/ / www. inova. unicamp. br/ inventabrasil/ troller. htm) (in Portuguese). Inova UNICAMP. . Retrieved 2008-07-14.

[4] "Troller vai exportar tecnologia" (http:/ / www. carroecia. com. br/ noticia. asp?cod_noticia=8413& cod_grupo=6) (in Portuguese). Carro e Cia. 2004-10-28. . Retrieved 2008-07-14.

[5] "Ford to boost Brazilian operation" (http:/ / news. bbc. co. uk/ 2/ hi/ business/ 6232653. stm). BBC. 2007-01-04. . Retrieved 2007-01-06.

Automobile industry in China

Since November 2009, China is the largest auto market in the world.[1] [2] [3] China's automobile industry has been in rapid development since the early 1990s. In 2009, China produced 13.79 million units of automobile, of which 8 million units were passenger cars (sedans, sport utility vehicles (SUV), multi-purpose vehicles (MPV) and crossovers), and 3.41 million units were commercial vehicles (buses, trucks, and tractors). Of the automobiles produced, 44.3% are local brands (BYD, Chery, Geely, Hafei, Jianghuai (JAC), Chang'an (Chana), Great Wall, Roewe, Martin Motors, etc.), the rest being produced by joint ventures Chang'an Avenue in Beijing. with foreign car makers such as Volkswagen, General Motors, Hyundai, Nissan, Honda, Toyota etc. Most of the cars manufactured in China are sold within China, with only 369,600 cars being exported in 2009.

China's annual automobile production capacity first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China's entry into the World Trade Organization (WTO) in 2001, the development of the automobile market further accelerated. Between 2002 and 2007, China's national automobile market grew by an average 21 percent, or one million vehicles year-on-year. In 2006, China’s vehicle production capacity successively exceeded six, then seven million, and in 2007, China produced over eight million automobiles.[4] In 2009, 13.759 million motor vehicles were manufactured in China, surpassing Japan as the largest automobile maker in the world.

The number of registered cars, buses, vans, and trucks on the road in China reached 62 million in 2009, and is expected to exceed 200 million by 2020.[5] The consultancy McKinsey & Company estimates that China's car market will grow tenfold between 2005 and 2030.[6] The main national industry group is the China Association of Automobile Manufacturers (中国汽车工业协会).