Short Presentation Of The Automobile Industry

By Jack Wogan


If we try to trace back in history the first automobile capable of human transport, we come across the name of Nicolas J. Cugnot, a French engineer who invented a steam engine powered automobile, which had three wheels - two at the rear and one in the front part which was supporting the steam boiler and driving mechanism, being thus rather unstable. Other shortcomings of Cugnot's automobile are its ample starting point, the time of running which was under one hour, the weight and dimensions.

Several other attempts followed within the next few years. Engineers all over the world were struggling to find solutions to create the revolutionary machine that would transport people and would use other types of power other than horses. Among the many inventors at the time, we should mention Robert Anderson and its electric carriage, Thomas Davenport and its small model car driven by an electric motor or Robert Davidson with its electric locomotive which reached the speed of 6 km/h. But the real promoter of the automobile industry can be considered Henry Ford, who, in 1914, launched the automobile bulk production to the masses.

This opening to the wide public practically skyrocketed the automobile industry. At first, the supremacy of American companies was threatened only by the manufacturers belonging to the Western Europe. However, within the last decades, things have dramatically changed and today, the industries belonging to Asia, Eastern Europe or South America are important players on the automobile market. With countries like Brazil, Russia, India or China (BRIC), the automobile industry is experiencing new perspectives and addresses to fresh but powerful markets.

In order to adapt to the new conditions which are governing the economy from a global perspective, the automobile manufacturers are now focusing in reducing the price of the cars and, at the same time, improving the after-sales services. To achieve that, they opened factories in developing countries and started the production with a cheaper work force and effective costs of production which come as an additional advantage to the reduced shipping charges.

The automobile production nowadays has in the leading position the EU. This sector brings important benefits to the EU economy, with a major contribution to EU's GDP (Gross Domestic Product). Companies from the EU benefit from special selling conditions to all the EU countries. At the same time, the number of companies which work in the automobile industry but do not manufacture cars has increased. As such, we have many companies dealing with buying, leasing or renting cars, in other words, offering services in order to facilitate the access of the wide public to using a car.




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