The Global Automobile Case

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The Global Automobile Industry Case Group 4 |

Embry-Riddle Aeronautical University |

International Business |

Project members – Ben Pickering, Cathy Hausenfluck, Michael Morgan, Paul Stankiewicz, |

2/8/2012 |

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The Global Automobile Industry Case

1. The steep sales decline that hit automobile companies worldwide in 2008 and 2009 started with problems in the United States housing market. What does this tell you about the nature of the global economy in the first decade of the 21st century?

2. Despite a global recession in 2008 and 2009, demand for automobiles continued to grow in countries like China and India. What are the implications of this for the future of the global automobile industry?

They will have to react wisely, but quickly and be ready to accommodate the customer and forecast the new countries they will be doing business with along with their competitors.

How should established automobile companies respond to this development?

Project what the customer wants -recognize the needs of those countries, within budget and understand where their next customer is coming from. 

What should their strategies be? 

Streamline their processes.  Be creative with the budget, leaving room for new design or tailoring to an individual, use frames on multiple design, have lean manufacturing enforced, suppliers close by and understand who their competition is!

3. Would you characterize the automobile industry as a truly global industry where the same products can be sold worldwide, or is there still some need for local customization? What are the implications of this for the strategy and cost structure of automobile companies?

The automobile industry is mostly a global industry however; there is need for local customization. Americans are, in general, more able to purchase higher priced vehicles than many less developed nations, plus the safety and emissions standards required by the U.S. are more stringent than...