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Presentation on the «Automobile industry»
Performed by: Bychkov A.A.
3. The year 1600.
4. First Fuel Engine in 1876.
5. Birth of Automotive Industry (1890 – 1910).
6. Ford and the assembly line.
7. The era of Mass Production and Variety (1920-1930).
8. The decade of New Market Players (1930-1940).
9. The End of World War II (1940-1950).
10. The era of Technological Innovations (1950-1960).
11. The era of Fuel-Efficient Cars (1970-1980).
12. Start of Globalization (1980 – 1990).
13. Environmental impacts.
14. World motor vehicle production.
15. Company relationships.
16. The era of Financial Troubles (2000 – Present).
17. LIST OF SOURCES.
The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-distance trip in August 1888 (from Mannheim to Pforzheim and back) that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event.
Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle;. Bernardi enlarged the tricycle in 1892 to carry two adults.
Safety is a state that implies being protected from any risk, danger, damage, or cause of injury. In the automotive industry, safety means that users, operators, or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves implies that there is no risk of damage.
Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262, is considered one of the best practice frameworks for achieving automotive functional safety.
The year 1600
Some historians cite examples as early as the year 1600 of sail-mounted carriages as the first vehicles to be propelled by something other than animals or humans. However, it is believed by most historians that the key starting point for the automobile was the development of the engine.
First Fuel Engine in 1876
The engine was developed as a result of discovering new energy-carrying mediums, such as steam in the 1700s, and new fuels, such as gas and gasoline in the 1800s. Shortly after the invention of the 4-stroke internal combustion gasoline-fueled engine in 1876, the development of the first motor vehicles and establishment of the first automotive firms in Europe and America occurred.
Birth of Automotive Industry (1890 – 1910)
During the 1890s and early 1900s, developments of other technologies, such as the steering wheel and floor-mounted accelerator, sped up the development of the automotive industry by making vehicles easier to use. Almost simultaneously, in America, the societal infrastructure that would provide fertile ground for the proliferation of automobiles was being set. Driver’s licenses were issued, service stations were opened, and car sales with loan structures were instituted. Famous vehicle models such as Ford’s Model T were developed during these times and, by 1906, car designs began abandoning the carriage look and taking on a more car-like appearance.
Ford and the assembly line
The mass-produced automobile is generally and correctly attributed to Henry Ford, but he was not alone in seeing the possibilities in a mass market. Ransom E. Olds made the first major bid for the mass market with a famous curved-dash Oldsmobile buggy in 1901. Although the first Oldsmobile was a popular car, it was too lightly built to withstand rough usage. The same defect applied to Olds’s imitators. Ford, more successful in realizing his dream of “a car for the great multitude,” designed his car first and then considered the problem of producing it cheaply. The car was the so-called Model T, the best-known motor vehicle in history. It was built to be durable for service on the rough American country roads of that period, economical to operate, and easy to maintain and repair. It was first put on the market in 1908, and more than 15 million were built before it was discontinued in 1927.
When the design of the Model T proved successful, Ford and his associates turned to the problem of producing the car in large volume and at a low unit cost. The solution was found in the moving assembly line, a method first tested in assembling magnetos. After more experimentation, in 1913 the Ford Motor Company displayed to the world the complete assembly-line mass production of motor vehicles. The technique consisted of two basic elements: a conveyor system and the limitation of each worker to a single repetitive task. Despite its deceptive simplicity, the technique required elaborate planning and synchronization.
The first Ford assembly line permitted only very minor variations in the basic model, a limitation that was compensated for by the low cost. The price of the Model T touring car dropped from $950 in 1909 to $360 in 1916 and still lower to an incredible $290 in 1926. By that time Ford was producing half of all the motor vehicles in the world.
The era of Mass Production and Variety (1920-1930)
In the 1920s, the development of infrastructure, adoption of new manufacturing practices, and the merging of companies continued (e.g., Benz and Daimler, Chrysler and Dodge, Ford and Lincoln). In the U.S., the Bureau of Public Roads and the enactment of the Kahn-Wadsworth Bill helped facilitate road-building projects and develop a national road system. In manufacturing, mass production methods became better established, which led to the availability of a wide range of satisfactory cars to the public. While Ford had focused on a single model, GM adopted a new production strategy for providing greater product variety, which helped the company increase its market share by snatching it from Ford.
The decade of New Market Players (1930-1940)
In the 1930s, several new vehicle brands were developed (e.g., Ford Mercury, Lincoln Continental, Volkswagen) and trends in vehicle consumer preferences were established that differentiated the American and European markets. In the U.S. market, consumers preferred luxurious and powerful cars, whereas in Europe consumers preferred smaller and low-priced cars. Also during this time, GM’s product variety strategy continued to give them a competitive advantage over Ford, allowing GM to continue increasing its market share while Ford kept losing theirs.
The End of World War II (1940-1950)
Many European and Asian-Pacific countries led to the development of new products and business strategies. In the 1940s, during World War II (WWII), automotive factories were used to make military vehicles and weapons, thus halting civilian vehicle production. After WWII, the economies of most European and some Asian-pacific countries, such as Japan, were decimated; this required the development of new products and business strategies such as those of Toyota, which began to develop Just in Time (JIT) manufacturing. Most of the first models produced were similar to the pre-war designs since it took some time for the plants to revamp their operations to make new designs and models. Using this strategy there were able to improve return on investment by reducing in-process inventory and lowering carrying costs.
The era of Technological Innovations (1950-1960)
In the 1950s and 1960s, more technological innovations brought many changes in the automotive industry. Some new concepts were, new look and feel of the automobiles, fiberglass bodies, higher compression ratio fuels, vehicle comfort, look and feel, emerging safety and environmental regulations, vehicle speed limits, front seat belts, and, heating and ventilation equipment.
The era of Fuel-Efficient Cars (1970-1980)
The 1970s were marked by stricter environmental regulations and the oil crisis of the early 70s, which led to the development of low emission vehicle technologies, such as catalytic converters. Foreign cars like the Japanese Honda Civic started appearing in the U.S. market. Consumer interest in fuel-efficient vehicles was increasing due to high oil and fuel prices. Vehicles made in Asia that were highly fuel-efficient began increasing their market share in developed markets. This decade also marked the beginning of Lean production by Japanese automakers.
Start of Globalization (1980 – 1990)
In this decade affordable, fuel-efficient vehicles continued to increase their market share. The U.S. automotive industry began losing market share to the higher quality, affordable, and fuel-efficient cars from Japanese automakers. Due to this, vehicle manufacturing became more globalized as auto manufacturers started assembling vehicles from around the world. This trend was accelerated in the 1990s with the construction of overseas facilities and mergers between multinational automakers. This global expansion gave automakers a greater capacity to infiltrate new markets quickly and at lower costs.
The global automotive industry is a major consumer of water. Some estimates surpass 180,000 L (39,000 imp gal) of water per car manufactured, depending on whether tyre production is included. Production processes that use a significant volume of water include surface treatment, painting, coating, washing, cooling, air-conditioning, and boilers, not counting component manufacturing. Paintshop operations consume especially large amounts of water because equipment running on water-based products must also be cleaned with water.
In 2022, Tesla's Gigafactory Berlin-Brandenburg ran into legal challenges due to droughts and falling groundwater levels in the region. Brandenburg's Economy Minister Joerg Steinbach said that while water supply was sufficient during the first stage, more would be needed once Tesla expands the site. The factory would nearly double the water consumption in the Gruenheide area, with 1.4 million cubic meters being contracted from local authorities per year — enough for a city of around 40,000 people. Steinbach said that the authorities would like to drill for more water there and outsource any additional supply if necessary.
World motor vehicle production
It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies.
Notable current relationships include:
Daimler AG holds a 20% stake in Eicher Motors, a 10.0% stake in KAMAZ, a 10% stake in Tesla Motors, a 6.75% stake in Tata Motors and a 3.1% in the Renault-Nissan Motors alliance. They are in the process of selling back their 40% stake in McLaren Group. This process will be finalized in 2011.
Dongfeng Motor Corporation is involved in joint ventures with several companies around the world, including: Honda (Japan), Hyundai (South Korea), Nissan (Japan), Nissan Diesel (Sweden), and PSA Peugeot Citroen (France).
Fiat holds a 90% stake in Ferrari and a 30% stake in Chrysler, that can be increased to 51%; with the option of increasing its stake further.
Ford Motor Company holds a 3% stake in Mazda and an 8.3% share in Aston Martin.
Geely Automobile holds a 23% stake in Manganese Bronze Holdings.
General Motors and Shanghai Automotive Industry Corporation (SAIC) have two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile.
Hyundai Kia Automotive Group holds a 38.67% stake in Kia Motors, down from the 51% that it acquired in 1998.
Renault Pars is a joint venture, 51 percent of which belongs to Renault of France. Forty-nine percent of Renault Pars' shares is jointly held by Iran's Industrial Development and Renovation Organization, IKCO and Saipa. The company was established in 2003.
MAN SE holds a 17.01% voting stake in Scania.
Porsche Automobil Holding SE has a 50.74% stake in Volkswagen Group. Due to liquidity problems, Volkswagen Group is now in the process of acquiring Porsche. (Deal due to be completed mid 2011)
Renault-Nissan Motors have an alliance involving two global companies linked by cross-shareholding, with Renault holding 44.3% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares. The alliance holds a 3.1% share in Daimler AG.
Renault holds a 25% stake in AvtoVAZ and 20.5% of the voting stakes in Volvo Group.
Toyota holds a 51% stake in Daihatsu, and 16.5% in Fuji Heavy Industries, parent company of Subaru.
Volkswagen Group and FAW have a joint venture.
Volkswagen Group and Shanghai Automotive Industry Corporation (SAIC) have a joint venture in Shanghai Volkswagen Automotive.
Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), and a 29% stake in MAN SE.
Volkswagen Group has a 49.9% stake in Porsche AG. Volkswagen is in the process of acquiring Porsche, which is due to be completed in mid-2011.
Volkswagen Group has a 19.9% stake in Suzuki, and Suzuki has a 5% stake in Volkswagen.
The era of Financial Troubles (2000 – Present)
This decade has been tumultuous for automobile and light-duty motor vehicle manufacturers. Industry revenue growth was very low compared to past and skyrocketing fuel prices and growing environmental concerns shifted consumers' preferences away from fuel-guzzling pickup trucks to smaller, more fuel-efficient cars. The global economic crisis that began in 2007, led to financial troubles for many of the world's largest automakers and rippled through other countries around the globe, causing unemployment to rise and wealth to dive. General Motors was hit particularly hard, filing for Chapter 11 bankruptcy in June 2009. Due to lower disposable income and growing pessimism about the future, demand for cars dropped. Motor vehicle sales crashed in 2008 and 2009, although they have recovered strongly since.
LIST OF SOURCES