Automotive industry 2020. Choose a car wisely.

Automotive industry as a machine-building industry originated in the 80s – 90s of the 19th century in France and Germany, and in the late 19th and early 20th centuries in England, Austria-Hungary, Italy, the USA, Belgium, Canada, Switzerland, Sweden and the Russian Empires due to the need for transportation and displacement of the muscular strength of animals and people from this area. The automotive industry became mature with a high degree of monopolization in the middle of 20th century.

In the 1930s, automotive industry of an industrial type was created in the USSR. In the 1930s and 1950s, the use of woodworking products in the bodywork industry stopped. These products were replaced by steel parts.

In the 1950s and 60s, the automotive industry began to develop rapidly in Japan, quite actively in Brazil, Mexico, Argentina, Spain, and limitedly in India, China and several other countries. In the 1950s, Toyota, a Japanese company, applied the Kaizen-based system of flexible production organization and quality improvement, known as the Toyota Method.

Since the mid-1970s, automatic control (CNC) machines and automated production lines (especially in hazardous and critical areas) with industrial robotic manipulators have become widespread. By the 1980s, electronic information technology and logistics had become widespread in the auto industry, which made it possible to increase labor productivity, introduce a “just-in-time (kanban)” component supply system, and also allow expanding individual vehicle configuration options.

In the early 1980s, Japan took the title of world leader in automotive manufacturing from the United States, and in the mid-1980s, the intensive development of auto production in South Korea began. In the 1990s and early 2000s, with the help of leading Western European car manufacturers in some post-socialist European countries (Germany, Czech Republic and Romania), car production was modernized (Skoda, Dacia) as in some countries of the Asian region, primarily in China, which 2009 became the new world leader in automotive and auto consumption. At the same time, since the 1980s, many European countries (except Germany) have significantly weakened their positions in the global automotive industry.

Since the 1980s, the world hegemony of the Big Three of the group of automakers from the United States (General Motors, Ford, Chrysler) has also begun to lose its monopoly position (in the North American market), giving way, first of all, to Japanese concerns, subsequently supplemented by Korean and German. Both the largest and smaller car manufacturers repeatedly united (and also diverged) with other concerns and consortia, and more and more actively placed and place their production in third countries (primarily in China).

At the end of the 20th century, the competitions of cars, and then trucks of the “Car of the Year”, first of the European, and then Japanese and North American markets, as well as world and international cars and trucks, in which different cars won alternately, became widely known classes, manufacturers and countries. A competition “Car of the Century” was also held in which Ford T won (1908-1926).

Since the early 1980s, there has been an increasing use of electronic products – engine control systems, gearboxes and transmissions, passive systems (seat belt pretensioners and tensioners, airbags and curtain airbags, active head restraints, satellite alarm systems) and active safety ( ABS brakes, breakcasters, anti-skid systems, etc.), active lighting systems, radars and sonars, tire pressure sensors, headsets communication “hand-free”, and on-board computers, diagnostic and navigation systems, and more recently, personal computers, and automotive or carputer (onborderov).

Assembly Shops Ford Motor Company

The most important trends in the global automotive industry at the beginning of the 21st century include special attention to improving the environmental and economic indicators of ICEs (catalytic converters and diesel engines of a new generation, new types of fuels, including biofuels), the creation of hybrid systems (ICE + electric motor + battery), and raising the level safety, improvement of driving performance (four-wheel drive, electronic driving assistance systems), “intellectualization” of the car as a whole.

In the second decade of the 21st century, the tendency to create hybrid and fully electric vehicles intensified, especially in the USA (Tesla and the Big Three companies) and China, for example, BYD. In China, the output of hybrids (HEV), rechargeable (from the network) hybrids (PHEV) and electric vehicles (EV) increased in 2014-2016 approximately four times – up to 507 thousand of which 409 thousand electric cars and 98 thousand – hybrids. In 2020, the Chinese government plans to achieve the level of production of alternative energy vehicles at 3 million per year with an increase in total production of 30 million cars. By 2025, China plans to take a leading position in all global automotive markets.

An important global problem today is the disposal and recycling of obsolete cars. Today, a number of states have adopted norms, directives and laws requiring manufacturers to regulate processing processes and to be fully informed about the materials they use. An important step towards the implementation of these laws and regulations was the creation of a single international information system IMDS. Today, over 20 representatives of the global automotive industry are members of IMDS.

World motor vehicle production

In the first decade of the 21st century, the automotive industry in China, Brazil, and Mexico is developing at the fastest pace due to its leading position in terms of bringing foreign capital and special anti-crisis tax with credit support from the state. In 2010, production in China increased by 32.4% compared to 2009 and reached 18.26 million cars, including 11.6 million cars, which allowed to maintain the second consecutive year and strengthen the first place in the world (including in sales of cars), very significantly ahead of the leaders (USA and Japan), succeeding each other in past decades, and also ahead of all EU countries combined. In 2000-2010, car production in Brazil increased from 1.7 million units up to 3.6 million pcs. a year after the start of state custody of automakers. After entering the world market, Mexico made a small leap and climbed up the export of automotive products. It was assumed that in 2011 the Chinese auto industry will grow by another 10-15% and for the first time in the world history of auto production for any country it will be able to exceed the production level of 20 million cars.

The crisis and the global auto industry

With the onset of the global financial crisis in 2008, the global automotive industry, with the exception of China, was among the most depressed sectors of the global economy. Concerns GM and Chrysler were forced in the fall of 2008 to turn to the US government for multi-billion loans, without which their survival became almost impossible. In Europe and Russia Similar credit requests were presented by car manufacturers to their national governments. According to PricewaterhouseCoopers, in 2009 the decline in global auto production could reach 14% (55 million).

In the early 2010s, as a result of the global financial crisis in the global automotive industry, a confident change in the leading countries began, in particular with respect to the previously superior American automobile industry, represented by the Big Three. Moreover, in its own market, the Big Three was first squeezed back in the early 1980s by the Japanese auto industry, represented by Toyota, Nissan, Honda, Mitsubishi, etc., and by the end of the 20th century, European automakers, were actively spread in the world market. Volkswagen Group, Daimler, BMW, Renault, PSA Peugeot Citroën, FIAT, etc.

The total volume of car production in the world in 2009 amounted to 61.7 million (-12.8% compared to 2008). In 2010, the global auto industry began to emerge from the recession, as sales previously increased to 68.5-70 million cars compared to 51.3 million in 2009. In 2017, 73.5 million passenger cars and 23.9 million trucks were produced worldwide.

As a result of the earthquake and the 2011 tsunami that followed, Japan stopped for some time, due to the energy shortage, the assembly lines of car factories. The export of Japanese cars and spare parts was also stopped because of the closure of the main seaports in the country. As a result, this led to the fact that Toyota, the leader of the global automotive industry, fell back to the third position by the end of the year (Volkswagen group and General Motors took first places).

Europe’s auto industry is also suffering from a recession. For the period from 2009 to 2013 8 factories were closed. In 2013, 32% of the capacities of automobile manufacturing plants remained unused.

2010s

In 2019, the world faced a record decline in car sales in 11 years – immediately by 4 percent; most car market declined in China – by 11%.

12 largest car concerns: sales, brands, ratings

It would seem that the choice of car brands is enormously large: their number is in the tens, if not hundreds. But in fact, in the modern world there are only a little more than a dozen large conglomerates that own all these brands and produce about 90% of all cars. And four of them have more than 10% of the market each! Today we will talk about to whom and which brands belong, and what is their share in global sales.
Most of us, car buyers, don’t even think about whose pocket money ultimately falls into when we take it to a dealer of a particular brand. In the end, what difference does it make to whom they will get, because you have already lost them!

But there is another side to this issue. General globalization, the takeover of relatively small companies by large “sharks”, the total desire for associations, alliances, and other alliances in one way or another deprives us of the breadth of choice that we had, for example, not so long ago – in the early 90’s (not to mention about earlier times). Cars become similar to each other, use the same platform for different brands in order to minimize the cost of production and a more pragmatic distribution of costs.

The great American auto industry manager Lee Iacocca, who recently left us, once said that by the beginning of the 21st century, only a few really big players will remain in the global automotive market – corporations and alliances, which will own the vast majority of automotive brands. He turned out to be absolutely right. It was at the turn of the century and a little later that the most active wave of associations began, as well as the closure of a number of companies. Where are you now – Saab, Maybach, Pontiac, Mercury, Isuzu cars, Hummer, Lancia and many others? Forever disappeared from the map of the global automotive industry. Well, who is still left? Who are these “big players”?

After analyzing the statistics for 2018, calculated that 90% of the total annual sales of 86 million cars were distributed among themselves only … 12 companies! More than half of all cars sold are the share of the five largest alliances that are in the top of this list – VAG, Toyota, Renault – Nissan – Mitsubishi, General Motors and Hyundai – Kia. Below you will find more information about these giant companies.

12. BMW

• Country: Germany
• Car Brands – BMW, Mini, Rolls-Royce
• The number of cars sold in 2019 – 2.49 million
• Share in world sales – about 2.9%

The BMW Group AG (Bayerische Motoren Werke AG) produces cars, motorcycles and engines for them. The headquarters is located in Munich (Germany). Since 1998, the British company Rolls-Royce Motor Ltd has been a structural unit of the German company BMW AG. The Germans then bought Rolls-Royce for 430 million euros. In 2000, due to regular losses, BMW sold the Land Rover division to the American company Ford (which in turn sold the LR to the Indian Tata in 2008), and Mini transferred the production facilities to a separate, newly formed subsidiary, which has produced until now revived MINI BMW assembly plants are in Germany, Russia, the USA, South Africa, Mexico, Hungary, Egypt, India and China.

11. Daimler

• Country: Germany
• Car Brands – Mercedes-Benz, smart
• The number of cars sold in 2019 – 2.74 million
• Share in world sales – about 3.2%

The headquarters of the transnational automobile concern Daimler-Benz AG is located in Stuttgart. From 1998 to 2007, the DaimlerChrysler AG alliance appeared on the global automotive scene, but in October 2007, 80% of the shares of Chrysler LLC were sold. After the liquidation of the recently revived Maybach luxury brand in 2012, only two brands remained in the Daimler portfolio – the premium Mercedes-Benz and city smart. In 2009, the joint venture Daimler and KAMAZ (50/50) were established. Production of Mercedes-Benz cars has been launched in Germany, Austria, Egypt, Hungary, Indonesia, Malaysia, Mexico, Russia, Spain, South Africa, Thailand, the USA and Vietnam.

10. Suzuki

• Country – Japan
• Car Brands – Suzuki
• The number of cars sold in 2019 – 3.21 million
• Share in world sales – about 3.7%

The only independent car manufacturer in this review that entered this dozen in terms of the number of cars sold was the Japanese company Suzuki, headquartered in Hamamatsu. She, by the way, is the third in terms of sales in Japan. But the main “box office” Suzuki makes at the expense of the Indian market, where it sells a huge number of its cars under the brand name Maruti Suzuki. The company’s production facilities are located in Japan, but clones of Japanese models are assembled and sold worldwide. For example, the SX4 in Europe is the Fiat Sedici, Alto is the Nissan Pixo, and Vitara is the Chevrolet Tracker in America, and the list goes on and on.

9. Groupe PSA

• Country – France
• Car brands – Peugeot, Citroen, DS, Opel
• The number of cars sold in 2019 – 4.13 million
• Share in world sales – about 4.8%

Groupe PSA (formerly called PSA Peugeot – Citroen) is Europe’s second-largest carmaker headquartered in French Ruelle-Malmaison. Since the end of the last century, PSA has collaborated with many car manufacturers: with BMW – on gasoline engines, with Fiat – on commercial vans, with Ford – on diesels, with Mitsubishi – on electric cars, with Renault – on motors and gearboxes, with Toyota – on production cars of a class “supermini”. In 2017, PSA bought Opel and Vauxhall brands from General Motors, which, by the way, in the first 2018 year showed profit under the French wing! In Argentina, the PSA operates (jointly with Fiat) through Sevel S.p.A., in China it has a joint venture with Dongfeng Motor Corporation and another with Changan, in the Czech Republic with Toyota and in Iran with Iran Khodro.

8. FCA

• Country – Italy / USA
• Car Brands – Alfa Romeo, Chrysler, Dodge, Jeep, Maserati, Ferrari, Lancia, RAM
• The number of cars sold in 2019 – 4.84 million
• Share in world sales – about 5.6%

In eighth place on this list is the very curious Italian-American association Fiat Chrysler Automobiles N.V. The group was formed in 2014 through a merger. The company is registered in the Netherlands, and the new headquarters is in London. In Europe, the concern operates through Fiat Italy S.p.A., and across the Ocean through the FCA US (formerly Chrysler LLC). The FCA company has 162 factories and 87 scientific and technical centers, representative offices in 40 countries, cars are sold in 150 countries, and the dealer network in the USA alone has about 2,600 salons. Nevertheless, the concern is put up for sale. A merger of both General Motors and Volkswagen was previously proposed. Negotiations are underway with Chinese investors, including Great Wall, DFM, Geely and GAC.

7. Honda Motor

• Country – Japan
• Car Brands – Honda, Acura
• The number of cars sold in 2019 – 5.27 million
• Share in world sales – about 6.1%

Honda could be another solo producer on this list if it weren’t for the Acura luxury sub-brand, which was registered in 1986. In 2016, Honda ranked 74th in the Forbes Global 2000 list of largest public companies in the world, including 36th in terms of turnover, 132nd in net profit, 175th in assets and 176th in market capitalization. Well, last year, the Japanese climbed to seventh line in the world ranking for the production of cars and motorcycles. Honda has production facilities in Japan, the USA, Canada, Mexico, Britain, China, Turkey, Thailand, Indonesia, Malaysia, Vietnam, Argentina and Brazil.

6. Ford Motor

• Country – USA
• Car Brands – Ford, Lincoln
• The number of cars sold in 2019 – 5.73 million
• Share in world sales – about 6.7%

The first company from America, headquartered, of course, in Dearborn, near Detroit, and immediately in sixth place in this ranking, is the Ford Motor Company, which, however, has gone through far from good times in recent years. Last year’s record drop was minus 11%. Not so long ago, Ford had its influence in brands such as Land Rover, Mazda and Volvo, but now the Americans have only one sub-brand – Lincoln, which produces luxury cars, mainly for the United States. But Ford’s geography is still very broad – North and South America, Europe, Australia and New Zealand.

5. Hyundai – Kia

• Country – South Korea
• Car Brands – Hyundai, Kia, Genesis
• The number of cars sold in 2019 – 7.51 million
• Share in world sales – about 8.7%

Now Koreans own more than 20% of the market in that country. But all over the world their positions are very strong – the fifth place in the sales rating! The history of this giant (namely, the combined company) began only in 1998, when Hyundai Motors took over the oldest Korean company Kia. In 2015, the Genesis luxury sub-brand also appeared. The conglomerate is headquartered in Seoul, and factories in South Korea, Russia, Turkey, America, China, the Czech Republic, India and Brazil.

4. General Motors

• Country – USA
• Car Brands – Buick, Cadillac, Chevrolet, GMC
• The number of cars sold in 2019 – 8.79 million
• Share in world sales – about 10.2%

Still the leading American automobile manufacturer and the first “monster” of this list with a market share of more than 10%. But on the way to this, of course, the honorable fourth place General Motors lost a huge number of its brands: Opel, Saab, Hummer, Saturn, Pontiac, Oldsmobile, Plymouth, Holden … How many original cars they lost! Buick is very popular in China, and the lion’s share of Chevrolet and GMC are sold in the domestic American market. GM’s headquarters, of course, is located in Detroit, and there are absolutely production facilities on all continents.

3. Renault – Nissan – Mitsubishi

• Country – France / Japan
• Car brands – Dacia, Datsun, Infiniti, Lada, Nissan, Mitsubishi, Renault, Samsung Motors
• The number of cars sold in 2019 – 10.36 million
• Share in world sales – about 12%

The largest and “freshest” association in recent years. In October 2016, Mitsubishi Motors Corporation announced that Nissan Motor Co., Ltd. completed a deal to purchase 34% of MMC for 237 billion Japanese yen and became the largest shareholder of Mitsu. In 2017, the alliance even became the leader in sales for the first half of the year, but in 2018 it occupies the bronze step of the pedestal with a very weighty share of 12% of the market! The concern has production facilities in France, Russia, Japan, India and Brazil. The activities of the Renault – Nissan – Mitsubishi alliance are controlled by a special new body, the governing council, which includes the leaders of all three companies: Hiroto Saikawa (Nissan), Osamu Masuko (Mitsubishi) and Thierry Bollore (Renault). Jean-Dominique Senard, Chairman of the Board of Directors of Renault, headed the newly-created structure.

2. Toyota

• Country – Japan
• Car brands – Daihatsu, Hino, Lexus, Scion (closed in 2016), Toyota
• The number of cars sold in 2019 – 10.52 million
• Share in world sales – about 12.2%

Only two automobile brands owned by the corporation are widely known: Toyota and Lexus. Well, also know the Hino light trucks. Recall that after Toyota bought in 2005 – by the way, everything is from the same GM! – part of the shares of Fuji Heavy Industries, it became a shareholder of Subaru (16.48 percent). But the brands Scion (closed in 2016) and Daihatsu are almost unknown, however, their share in the corporation’s sales is quite small: 8.1 million vehicles out of 10.5 million were sold under the Toyota brand. The headquarters of the company is located in Aichi Prefecture, and there are production facilities around the world.

1. VAG

• Country – Germany
• Car brands – Audi, Bentley, Bugatti, Lamborghini, MAN, Porsche, SEAT, Scania, Skoda, Volkswagen
• The number of cars sold in 2019 – 10.83 million
• Share in world sales – about 12.6%

Attention – a shout for the winner! The world champion in car sales is the German concern Volkswagen AG with headquarters in Wolfsburg. True, it is worth mentioning here: in its statistics, VW also includes, unlike other concerns, the full-size Scania and Man trucks. Thanks to this “trick” VAG is in the first place. Without trucks, Toyota would have outstripped it. VW began actively buying brands back in the 80s of the last century. The first was the Spanish SEAT in 1986, and in 1991 the Germans bought the Czech Skoda. In 1998, Bentley, Lamborghini (acquired by a subsidiary of Audi) and Bugatti were added to the portfolio, and in 2009 the hunt for Porsche began, and by 2012 VW became the parent company. In 2009, the Germans bought back a controlling stake in Scania, and in 2011 – MAN. Also in 2011, Audi acquired the motorcycle company Ducati Motor Holding S.p.A. Volkswagen and Skoda cars, as well as MAN and Scania trucks are produced in Russia.

Frankfurt and Hanover International Auto Show (IAA)

Until 1992, car shows for passenger cars and trucks were held exclusively in Frankfurt. But then the car dealership was divided into two specialized exhibitions: in odd years, it was decided to organize shows of cars and motorcycles in Frankfurt am Main, in even ones – to build exhibition halls named after trucks exclusively in Hanover. Moreover, in both locations, car dealerships are called the same – IAA, that is, Internationale Automobil-Ausstellung (International Automobile Exhibition).

The organization of exhibitions is still entirely on the shoulders of the famous German VDA Automobile Industry Union: the emphasis is on German news. Expositions of Mercedes Benz, Audi and BMW, as a rule, are many times larger than the stands of other brands.

Paris International Auto Show

The world’s first auto show, last annual. It began in 1898 in the quiet gardens of the Tuileries, in the very center of the French metropolis, and all thanks to the initiative of a passionate motorist, the pious Marquis of Albert de Dion.

Today, the Paris Salon is one of the most prestigious and massive events in the automotive world. At the moment, the salon is held in Paris in the center of Paris Expo Porte de Versailles, in a place incredibly large-scale and at the same time relatively centrally located.

The Paris Car Vanity Fair eventually began to copy the Frankfurt show in the manner of a German car dealership. Since 1976, France decided to hold the Paris Motor Show only once every two years, namely, in even years, in early October.

Today, French car makers Peugeot, Renault and Citroën are trying to rule the ball at the Paris Motor Show, but competition from other European brands, as well as companies from Japan and the USA, has been stronger than ever in recent years. It is logical, therefore, that the leading automakers come to Paris to measure their strength and the largest number of world auto premieres takes place here.

How to choose a car: what you need to pay attention when choosing a transport

Engine capacity

By engine capacity, cars can be divided into 5 types:

• Particularly small – up to 1.2 liters
• Small – from 1.3 to 1.8 liters
• Medium – from 1.9 to 3.5 litres
• Large – over 3.5 litres
• Higher – the working volume is not regulated

Subcompacts (engine volume from 1.2 to 1.8 liters) feel good in an urban environment, as they often have small body dimensions. It provides maneuverability in a dense stream of city roads and easy parking. In addition, this is a very economical type of car, because fuel prices are constantly rising, and saving has not hurt anyone. Here are a few brands of the most popular small cars: Daewoo Matiz, Ford Fiesta, Kia Picanto, Citroen DS3, Volkswagen Polo, Fiat 500, Nissan Micra.

Mileage

Not every motorist can afford a new car straight from the passenger compartment. Most opt ​​for a used car, that is, a used one. They are an order of magnitude cheaper than their new counterparts and sometimes do not differ too much from them. The main difference is the distance traveled. It is determined on the odometer.

Car mileage is not determined by the speedometer, but by the odometer. It is usually located directly next to the speedometer needle and credits kilometers.

There is no standard for a “normal” car mileage; this is a vague and individual concept for each brand. Take the indicator on the odometer and divide by the age of the car to determine the mileage. On average, the optimal mileage for a used car should be 20-30 thousand km per year, provided that the car was used regularly. Sometimes this figure is only 5 thousand km per year. But the value of the mileage does not mean that the car is in good or, conversely, in poor condition. It is necessary to take into account how and in what conditions the car was operated.

Body

Body types are different: sedan, hatchback, station wagon, liftback, coupe, convertible, roadster, targa, limousine, stretch, SUV, crossover, pickup, van, minivan, minibus, bus. Each has its own advantages. And the choice of bodywork is directly related to the future operation of the car. If you plan to transport goods, then a pickup truck or a van will suit you. If you have a large family, many relatives, or you plan to engage in passenger transportation, then a minivan or a minibus would be the best option.

Status

Luxury cars are far from uncommon on roads. Sometimes people get into debt and credit, only to acquire an expensive iron horse and show the world their superiority. Executive cars are at the top of the line of every prestigious brand.

They are issued for those who wish to demonstrate to others their status, high income and privileged position in society.The price of such cars can reach several hundred thousand euros. Here are some of the most expensive car brands for 2019: Ferrari Pininfarina Sergio – $ 3 million, Bugatti Vivere by Mansory – $ 3.3 million, Aston Martin Valkyrie – $ 4.5 million, Mercedes-Benz Maybach Exelero – $ 8 million.

Brand car dealership

There are four ways to buy a car: a company car dealership, a car market, by announcing a sale on special Internet sites and buying abroad. Auto shows feature both new cars and used cars. Here you can either buy an iron horse for cash or apply for a loan. Various banks provide their own loan conditions. But everywhere there will be an overpayment, it cannot be avoided.

The main advantage of the car dealership, of course, is that here you can choose a brand new, beautiful, yet unbroken car.

Car dealership as well provides booking online sessions, for example to those who use Bookly. With Bookly customers can make their event scheduling round-the-clock. Booking an appointment by phone communication usually demands that your clients call during open hours, and not all clients find this mode of booking convenient, majorly because they are always too busy during those hours. When clients book appointments on a car dealership website, they will receive confirmation of their appointment letting them know that their booking was successful. Before the date of the appointment, they will receive messages in the form of an email or text reminding them of their appointment. These reminder messages are another fantastic way to reduce no-shows. Some clients may forget that they have an appointment with the car dealership manager. So when a reminder message is sent, it helps them to clear up their schedule and make out time to be there. If they cannot make it, they are allowed to cancel before the scheduled date, so that other interested clients can take up the spot.

Test Drive

In the car you should be comfortable. Therefore, before buying, be sure to make a test drive. It’s enough to drive a couple of kilometers, try different speeds and sit in the driver’s seat to understand whether this car is suitable for you or not. In some car dealerships there is an extreme test drive service with passage through bridges and various obstacles. This allows you to evaluate all the features of the car.

There are still a lot of factors and nuances on which the choice of a car is based – automatic or mechanical gearbox, rear, front or four-wheel drive, gasoline or diesel engine, and much more. The choice of a machine for each individual, because the tastes, preferences, capabilities and requirements are different for everyone. Therefore, if you decide to become a driver of personal vehicles, make your choice slowly, consider buying and look at reviews of your favorite model on the Internet. Mark all the pros and cons. After all, not only comfort of movement, but also safety on the road will depend on your choice.