The United States, China, Japan, Germany, and South Korea are the great leaders in automobile industry. The United States is considered as the world’s largest manufacturer and consumer of automobiles. It provides employment for about 6.6 million people alone in the automobile industry. The auto manufacturing industry includes high capital and labor.

The automobile and automotive parts and components manufacturers include the major portion of the automotive industry. The automobile manufacturing segment includes manufacturers of trucks, motor vehicle body, and motor vehicle parts. It is engaged in the manufacturing of personal utility transport vehicles and chassis, buses, military small and heavy vehicles, trucks and main parts of motor vehicle engines.

The auto market is by default considered to be consisting of automakers. However, auto parts also make a lucrative sector of the market. The major areas of the auto parts manufacturing include original equipment manufacturers, replacement parts production and distribution, and rubber fabrication.

Large proportion of revenues for auto industry are from sale of automobiles. Apart from the labor and material costs, some developments have to be considered when an analysis of an automobile company is being done. The most important factor affecting the auto industry is globalization. It is the tendency of the world investment and businesses to move from local or domestic markets to international markets. The other factor is competition.

The dominant organizations in the automobile industry in North America includes General Motors, Ford Motor Co, and Chrysler. Some of the vehicles General Motor produces are Chevrolet, Pontiac, Buick and Cadillac. Ford Motor Co produces Ford, Lincoln and Volvo. Chrysler produces Chrysler, Jeep and Dodge. Honda Motor Co and Toyota Motor Co include some of the largest foreign car manufacturers.


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