Automotive Industry – The Fascinating History

It is always fascinating to take a look at the creation of products that we rely on so unconsciously in our daily lives. None is more exciting than the history of the automotive industry. History credits a French engineer by the name of Nicolas-Joseph Cugnot for building the first automobile in 1769. This vehicle was more like a military tractor with three wheels than what we know of as a car. The engine ran on steam and could only run for fifteen minutes at a time. The steam engine evolved as various inventors were able to obtain patents and in 1806 the trend started with cars operating with internal combustion engines which ran on gasoline.

The history of the automotive industry truly came of age in 1903 when Henry Ford started an automobile empire in a converted factory. His company became one of the few to survive the Great Depression. In 1914 Ford started producing cars in bulk by creating what we know as assembly lines. This was the point where the automobile began its popularity. The U.S. dominated the industry around the world until the end of World War II in 1945. At that time nations that were technologically advanced such as Germany and Japan were able to gain momentum and become serious competition within the automobile industry.

The success seen in the history of the automotive industry is due to three basic factors; price, quality and depreciation. Cars have always continued to get more expensive. A car such as a Cadillac Seville, as an example, retailed for around $20,000 in 1989. That same car in a model produced just five years later retailed at $36,000. The quality of cars continues to evolve as well. They are truly built to last. The depreciation of new cars continues to remain consistent. You can expect a car to lose about 28% of its value the moment it is driven off the dealership lot.

The history of the automotive industry would not be complete without a look into the future. With the trend of manufacturers to produce “green” vehicles we are seeing a surge of hybrid and hydrogen cars with many new and innovative ideas waiting for production. The goal is to produce a vehicle that is environmentally safe while still cost effective and affordable. Cars that we only dream about today are destined to become a reality tomorrow.

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Getting Excited About Automotive Industry News

People involved with the cars need to stay current with the automotive industry news. Doing so ensures a cutting edge understanding of the new technologies, designs, and trends that bring about a greater success for the industry and a better value for the customer.

The first line of defense when something goes wrong with your car is your trusted mechanic. Your mechanic probably keeps up with the latest news regarding the automotive industry, not just because it is his livelihood, but because he knows that doing so will bring him greater success. A mechanic must be well informed in order to perform maintenance on the latest models and new technologies found in them.

The new technologies often come from prototypes or concept cars. These prototypes are to the automotive industry what the bikini edition is to Sports Illustrated. It’s the sexiest and most anticipated event of the year. Manufacturers get to show off their new designs and ideas for the future of the industry. Often times you’ll find both designer and general car enthusiasts that line the walls of the annual Detroit Auto Show or similar ones throughout the world. Sometimes these cars set the stage for upcoming cars such as the Chevrolet Volt, which has new “green” technologies that have been implemented in new and upcoming cars.

In addition to designer and enthusiasts being at these trade shows, you’ll find inventors and entrepreneurs. These are the folks that often times find ways to implement new technologies in a way that can be delivered to the general public. Such is the case with Tesla Motors, an entrepreneurial company that has found a way to make high performance cars that rival world renowned sports cars, all the while using electricity to power the car.

These people’s experience and jobs culminate in serving a very critical person, the consumer. It is after all you and I that drive the industry based on not only how many, but more importantly, what cars we buy. Before we begin our shopping, we should update ourselves based on the industry news and trends. This way we can be sure to get the most bang for our buck.

Clearly, where there is a consumer, there is a dealer. The dealerships must maintain a pulse on the industry trends in order to stock his lots with the cars that we want to buy. Otherwise he won’t be in the industry for long.

No matter what role we play in the industry we need to always be sure and keep up with the auto industry news, otherwise how will we be effective at what our role is? It is absolutely critical that we all stay informed. To do so we can: keep magazine subscriptions, attend trade shows, and read blogs and other information about the industry.

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5 Automotive Industry Trends Which Will Put Pedal to Metal

A new technological decade has unfolded, and businesses are gearing up to keep pace with the emerging trends and evolving user requisites of this era. Industry giants are claiming to have their strategies in place, in order to mitigate any risks which the year 2013 may pose. But are all industries indeed ready?

As of March 2013, the US automotive industry has recorded a sale of 3,689,089, but will the pace be maintained throughout? Are mobility firms prepared for the next decade? In order to determine this, automakers will need to keep an eye in the emerging trends of the industry and adopt them into their business models. Here are 5 key trends which every mobility firm must be mindful about as it strategizes for the upcoming financial year.

    1. Governments will regulate the need for safer and cleaner transportation. As far as secure individual mobility is concerned, governments are currently focusing on three core areas- environmental compatibility, preservation of resources and safety. This will prompt original equipment manufacturers (OEMs) to render a diversified range of safer and cleaner vehicles, especially zero-emission transportation. While, consumers will weigh their vehicle-buying decisions based on penalties and incentives at their disposal.
    1. New players will set foot in the automotive sector. The evolving consumer needs, introduction of Automotive IT solutions and advancing technology have paved way for new entrants to set foot in the mobility market. Even non-automotive firms are rendering services like mobility integration, car-sharing and ‘black box insurance’ based on usage, which decides the premium limit based on electric vehicle integration, real-time evaluation of driving performance and advanced car entertainment systems. The evolution of these new business models will allow the new players to become an integrated part of the traditional automotive value chain.
    1. Automotive marketing will get an edge with social media initiatives. The marketing trends in the automotive industry have witnessed a major shift. From showcasing a gleaming car in a 30-second slot, the means of marketing have become more social. Lately, consumers have been doing a thorough research before deciding upon which vehicle to invest in. Social media platforms have facilitated the access to a plethora of information, including perceptions and opinions of other consumers. Buyers are resting their decisions on reviews which they acquire from influential blogs and websites, other consumers and news features- sources on which the mobility firms can’t exercise any control. At the same time, OEMs are harnessing social platforms to develop closer bonds with consumers. They are adapting to the paradigm shift and utilizing it to market their products to a wider audience base.
    1. OEMs will look forward to rationalizing their portfolios. Post surviving the recession blues, most OEMs will shift their focus from volume to sustainability and profits. Emerging OEMs will look forward to climbing up the scale as soon as possible, by either acquiring in their home market or eyeing the developed nations, in order to build a global presence.
  1. Globalization of the sector will result into emergence of new risks. Globalization is paving way for new risks and OEMs are continuously devising radical operational strategies in order to mitigate these risks. Whether it’s the volatile prices of raw materials and misalignment of demand and supply, or it’s the shortage of qualified workers and changing regulatory prices, automotive firms are facing a reality check pertaining to their globalization efforts. In the wake of these challenges, industry must gear up to implement mitigation strategies in order to simplify the adaption of the value chain. And implementation of automotive software solutions is being viewed as one of the prime solutions to these challenges.

Planning is the key to success in the times to come. The automotive industry needs to study the evolving trends circumspectly and prepare their business strategies accordingly.

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