A Brief Insight About The Automobile Industry And Its Functioning

Automotive industry involves cars and other automobiles and is an industry that is worth over 250 billion dollars worldwide. This is a huge industry that has seen a lot changes since it started way back in the 1800s, through the two World Wars till today. It was a utility vehicle back then and slowly evolved to become the infotainment vehicle of today. It is all due to the technological advancement and its incorporation in the production trends that focused more on its efficiency and sustainability.

Car culture as it is incredible all over the world and this $257 billion automobile industry caters to this specific culture in the most brilliant fashion possible. This industry now is not only about selling cars and other automobiles but the work of it has diversified into several other channels that include:

  • Vehicle designing
  • Manufacturing and
  • Servicing and repairs as well.

The industry as such is a wide umbrella that has also other allied services to provide to make sure that their customers are satisfied and happy. These specialized services include:

  • Selling of different accessories and automobile parts and even
  • Auto financing.

Now you do not even have to contact a bank or other private money lenders or even from other online lending sources such as libertylending.com to arrange for the money first and then visit the dealers or the manufacturers to buy a car. Now you can simply visit a dealer showroom, choose a car and they will do the rest to finance you provided you have the proper documents and eligibility.

All major car manufacture companies provide such varied services nowadays making these cars and other automobiles more accessible to the people.

The history

The history of the automotive industries is very old and is also very interesting.

  • It all began with the invention of the combustion engine in the 1800’s. Fuel was then burned in a confined space.
  • Later on American manufacturers put in sustained efforts and paved the path for production of cars in a mass scale through the assembly line manufacturing process.

Then it was the time for the World Wars.

After the horrors of the two World Wars, especially the World War II, there was a significant growth in the auto industry all over the world. Experts say that this was the result of different factors such as:

  • The revival in economic growth
  • More use of technology resulting in further production
  • An increase in the number of advertising channels through the latest technology called television and
  • The remarkable expansion of the highway systems all over the world.

In the 1900s, these were just a novelty item and it took almost a hundred years to become an essential item for the consumers. Literally, by the early 2000s, automobiles were seen at almost every nook and corner of the globe!

This rise in liking and demand of cars resulted in the rise of automobile manufacturing companies with an intention to cater to the expectations and demands of the ever increasing consumer base.

This rise was in spite of the strict regulations imposed on the automobile manufacturer or the high fuel prices. However, the industry survived facing all hurdles and difficulties to reach this modern day when you get a large variety of cars such as:

  • Utility vehicles
  • Green cars
  • Smart cars and much more.

All these cars offer higher levels of safety, comfort, convenience, and sustainability as compared to the cars manufactured before.

The location

There is no limit to the automotive industry and currently you will find one such factory almost spanning to the entirety of this planet. However, there is a stark difference in the manufacturing prowess. It differs according to the geographic location of the manufacturing company and the unit. As of now, the automotive industry of the US enjoys the top rank and has one of the largest industries in the entire world.

However, there are several assembly plants across the borders of USA and globally due to the rapidly growing consumer base such as in China and India.

The process

As for the process followed for making a car, it depends on the type of the car, its features, model as well as the company itself. Apart from these differences there are a few rudimentary commonalities in the car manufacturing process.

  • Henry Ford was the pioneer in the automotive industry to use their hallmark assembly line method of production which is still used today by almost all automobile manufacturing companies.
  • All these vehicles are built in large factories wherein there is a mix of human processing as well as machine automated processes. This blend reduces the time of production by a considerable extent.
  • Each segment of the car such as the doors, the body, the seats, the engines and others are built separately and everything is assembled together into the main chassis which slowly passes down the production line.

The primary objective of following such a combination of human and machine processing is to reduce the time as well as increase the efficiency in production. However, all depends on the specific and features of the car as well as the balance of machine and human labor employed.

The regulations

There are a lot of governmental regulations imposed on the automobile industry just like any other industry. Most of these rules and regulations are regarding specific aspects such as:

  • Vehicle safety
  • Fuel efficiency
  • Emission levels
  • Vehicle imports and most importantly
  • Consumer protection.

In addition to that there are also a set of trade barriers set apart from tax regulations, specific standards to follow in the manufacturing process, import duties and tariffs that may affect the international automobile transactions.

A few specific types of regulations include the Corporate Average Fuel Economy regulations and the Federal Motor Vehicle Safety Standards or FMVSS. These regulations however raise the initial costs for the car owners but are essential to maintain the safety standards and the effects of greenhouse gases.

This is the reason that most automobile manufacturers have started producing clean diesel, hybrid and electric cars to increase their sales and meet the demands of the environmentally conscious consumers.

This post was written by: Kate Westall


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About Kate Westall

I am Kate Westall, a freelance writer and a professional blogger, who enjoys enlightening others about unknown and little-known facts. I love to write on all general and professional topics on Automotive.

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