There are approximately 244 million vehicles in operation in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007. By 2020, that number will reach 1 billion. Meanwhile, the Big Three (American automakers GM, Ford and Chrysler) face difficult times at best. The Detroit companies are under intense competitive pressure from foreign-based firms while enduring high labor costs at home. Asian car manufacturers are generally enjoying booming success, with Toyota and Honda at the forefront. European manufacturers have challenges of their own. High costs, tough labor laws, daunting government regulations and a few disappointing model designs have hampered recent results. Keeping up with the global trends causing sweeping changes in this volatile industry can be daunting. According to a recent report by Plunkett Research, Ltd., some of the most interesting of these trends include:

 

1) Car Sales Shift in China and India/Chinese-Made Vehicles Exported for the First Time. Chinese domestic demand levels may be moot, since Chinese-made vehicles are now being exported. In July 2005, the first Chinese cars arrived in Western Europe. The Landwind SUV, made by a unit of Jiangling Motors Corp., is for sale in Brussels, while Chinese-made Honda Jazz compacts are available in several European countries.

 

2) Rethinking SUVs/Sedan Sales Slowly Increase. Sales of large SUVs dropped precipitously in the U.S. during 2005, slipping from 3 million units sold in 2000 to only 2.4 million. In 2006 through 2007, the trend continued. This is part of a trend that had been picking up steam for a couple of years.

 

3) Outsourcing of Component Manufacturing/ Sharing of Parts and Designs. Automotive manufacturers save vast amounts by outsourcing design and engineering to overseas offices along with sharing component designs across a wide range of models. A growing trend in manufacturing is for American carmakers to take engineering and components from foreign plants and manufacture or assemble them domestically.

 

From: plunkettresearch