Cost drivers and economies of scale in the automobile industry

Business & Finance, Management & Leadership, Industrial Management
Cover of the book Cost drivers and economies of scale in the automobile industry by Matthias Arnold, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Matthias Arnold ISBN: 9783638505901
Publisher: GRIN Publishing Publication: May 29, 2006
Imprint: GRIN Publishing Language: English
Author: Matthias Arnold
ISBN: 9783638505901
Publisher: GRIN Publishing
Publication: May 29, 2006
Imprint: GRIN Publishing
Language: English

Seminar paper from the year 2005 in the subject Economics - Industrial Economics, grade: 60%, University of Bradford (School of Management), course: Business Economics, 15 entries in the bibliography, language: English, abstract: This assignment aims at comparing and contrasting the driver of costs in the automotive industry, both in the short and the long run. Secondly it critically evaluates the benefits from economies of scale in the global automobile industry. The global automobile manufacturing sector accounts to a sales value of $ 1,172 billion in 2004 with a cumulated annual growth rate of 2.7% over the last 4 years. Whereas currently sales in the US are ranked first with stagnating 37%, followed by Europe with also static 30%, rising sales figures in China and India clearly show the growth regions of the next decade (Datamonitor 2005). This slack in well-established markets combined with hard competition from Asia as well as rising costs of production concludes in serious problems for the western giants (Economist 2005). In the first part of this paper, the cost drivers are analysed and implications for the automobile industry are drawn. Normally a mature stage of a sector's life leads to hard and fast competition and an industry consolidation with only the biggest one's surviving. Interestingly, while clearly being in an mature stage of the industry lifecycle, the biggest companies, excluding Toyota, are the most unprofitable in the automobile sector (SEIDELet al2005). The second part of this assignment therefore evaluates the validity of the theory of economies of scale in the automobile sector.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2005 in the subject Economics - Industrial Economics, grade: 60%, University of Bradford (School of Management), course: Business Economics, 15 entries in the bibliography, language: English, abstract: This assignment aims at comparing and contrasting the driver of costs in the automotive industry, both in the short and the long run. Secondly it critically evaluates the benefits from economies of scale in the global automobile industry. The global automobile manufacturing sector accounts to a sales value of $ 1,172 billion in 2004 with a cumulated annual growth rate of 2.7% over the last 4 years. Whereas currently sales in the US are ranked first with stagnating 37%, followed by Europe with also static 30%, rising sales figures in China and India clearly show the growth regions of the next decade (Datamonitor 2005). This slack in well-established markets combined with hard competition from Asia as well as rising costs of production concludes in serious problems for the western giants (Economist 2005). In the first part of this paper, the cost drivers are analysed and implications for the automobile industry are drawn. Normally a mature stage of a sector's life leads to hard and fast competition and an industry consolidation with only the biggest one's surviving. Interestingly, while clearly being in an mature stage of the industry lifecycle, the biggest companies, excluding Toyota, are the most unprofitable in the automobile sector (SEIDELet al2005). The second part of this assignment therefore evaluates the validity of the theory of economies of scale in the automobile sector.

More books from GRIN Publishing

Cover of the book Persistence of Authoritarianism in the Middle East and North Africa by Matthias Arnold
Cover of the book 'AmeRícan' by Tato Laviera: A Puerto Rican in New York by Matthias Arnold
Cover of the book History of Science and Technology in India in the Context of the 'Great Synergy' by Matthias Arnold
Cover of the book Doing Business in the Global Environment: Corporate Social Responsibility as an Organization's Core Business Strategy? by Matthias Arnold
Cover of the book Das 'Pfahlbürgertum' - Status einer 'doppelten' Rechtsstellung by Matthias Arnold
Cover of the book Semiotics of historical reflection - A study of Julian Barnes's 'Evermore' by Matthias Arnold
Cover of the book Knowledge transfer through narrations - Wissenstransfer mit Hilfe von Narrationen by Matthias Arnold
Cover of the book Analysis of different rewards at ABC House to improve employee's performance by Matthias Arnold
Cover of the book EU and Religion by Matthias Arnold
Cover of the book A Book Analysis of 'The Hidden Connections: A Science for Sustainable Living' by Fritjof Capra by Matthias Arnold
Cover of the book Migrating from Oil- to Electricity-Powered Vehicles: Modeling Germany's Transition to the EV until 2040 in System Dynamics by Matthias Arnold
Cover of the book Nick Hornby's 'About a Boy' and Kazuo Ishiguro's 'The Remains of the Day' by Matthias Arnold
Cover of the book United States of America's Foreign Policy in the Security of Asia-Pacific Region by Matthias Arnold
Cover of the book Die Problembewältigung von Jugendlichen im Wandel der Zeit by Matthias Arnold
Cover of the book I am my supervisor's slave by Matthias Arnold
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy