Automotive Industry

Porsche GTN Automotive1

The automotive industry designs, develops, manufactures, markets, and sells the world’s motor vehicles. In 2007, more than 73 million motor vehicles, including cars and commercial vehicles were produced worldwide.

In 2007, a total of 71.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North America and Japan were stagnant, while those in South America and Asia grew strongly. Of the major markets, Russia, Brazil, India and China saw the most rapid growth.

About 250 million vehicles are in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and India. Urban transport systems based around the car 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. The sustainable transport movement focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. Roughly half of the US’s fifty one light vehicle plants are projected to permanently close in the coming years with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade.

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:

  • Chrysler is currently engaged in negotiations with Fiat that would have Fiat take a 20% stake in Chrysler that would be increased to 35%; with the option of increasing its stake further.
  • Daimler AG holds a 19.9% stake in Chrysler and a 40.0% stake in McLaren Group .
  • Daimler AG holds a 20% stake in Eicher Motors , a 6.75% stake in Tata Motors and a 10.0% stake in KAMAZ .
  • Dongfeng Motor Corporation is involved in joint ventures with several companies in China, including: PSA Peugeot Citroen of France, Honda, Nissan of Japan, Nissan Diesel (Volvo Group) of Japan, and Hyundai Kia of South Korea.
  • Fiat S.p.A. holds a 85% stake in Ferrari.
  • Ford holds a 13.4% stake in Mazda and an 8.3% share in Aston Martin.
  • Geely Automobile holds a 23% stake in Manganese Bronze Holding, manufacturing the London taxi.
  • General Motors and SAIC have two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile.
  • General Motors still holds a 3% stake in Suzuki. GM is currently in the process of selling the 3% stake back to Suzuki. Suzuki is also partner with GM in GMDAT, CAMI, and GM Argentina.
  • GM and Toyota have a joint venture in New United Motor Manufacturing, Inc, an automobile plant in Fremont, California.
  • Porsche Automobil Holding SE announced on January 6, 2009 that it now owns 50.76% of Volkswagen, making the Volkswagen Group a subsidiary.
  • The Renault-Nissan alliance involves two global companies linked by cross-shareholding, with Renault holding 44.3% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares.
  • Renault holds 20.5% of the voting stakes in Volvo Group.
  • Toyota holds a 51% controlling stake in Daihatsu, and 16.5% in Fuji Heavy Industries, parent company of Subaru.
  • The Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), and a 29% stake in MAN.
  • Volkswagen Group and SAIC have a joint venture in Shanghai Volkswagen Automotive

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