Automotive industry

Modern assembly line

The automotive industry is a wide range of companies and organizations involved in the design, development, manufacturing, marketing, and selling of motor vehicles,^[1] some of them are called automakers. It is one of the world's most important economic sectors by revenue. The automotive industry does not include industries dedicated to the maintenance of automobiles following delivery to the end-user, such as automobile repair shops and motor fuel filling stations.

The term automotive was created from Greek autos (self), and Latin motivus (of motion) to represent any form of self-powered vehicle. This term was proposed by Elmer Sperry.^[2]

History

Thomas B. Jeffery automobile factory in Kenosha, Wisconsin, c.1916

Citroën assembly line in 1918

The automotive industry began in the 1890s with hundreds of manufacturers that pioneered the horseless carriage. For many decades, the United States led the world in total automobile production. In 1929, before the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons.^[3] After World War II, the U.S. produced about 75 percent of world's auto production. In 1980, the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot with 13.8 million units. With 19.3 million units manufactured in 2012, China almost doubled the U.S. production, with 10.3 million units, while Japan was in third place with 9.9 million units.^[4] From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially.^[5]

Safety

Safety is a state that implies to be 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 autmobiles 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 norms and regulations, whether local or international, in order to be accepted on the market. The standard ISO 26262, is considered as one of the best practice framework for achieving automotive functional safety.^[6]

In case of safety issues, danger, product defect or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall. Product recalls happen in every industry and can be production-related or stem from the raw material.

Product and operation tests and inspections at different stages of the value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls, which cause considerable financial consequences.

Economy

Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 980 billion litres (980,000,000 m³) of gasoline and diesel fuel yearly.^[7] The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Meanwhile, in the developed countries, the automotive industry has slowed down.^[8] It is also expected that this trend will continue, especially as the younger generations of people (in highly urbanized countries) no longer want to own a car anymore, and prefer other modes of transport.^[9] Other potentially powerful automotive markets are Iran and Indonesia.^[10] Emerging auto markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study, performed in 2010 expected this trend to accelerate.^[11][12] However, more recent reports (2012) confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries.^[8] In the United States, vehicle sales peaked in 2000, at 17.8 million units.^[13]

World motor vehicle production

World Motor Vehicle Production^[14]

Production volume (1000 vehicles)

1960s; Post war increase

1970s; Oil crisis and tighter safety and emission regulation.

1990s; production started in NICs

2000s; rise of China as top producer

Automotive industry crisis of 2008–2010

to 1950; USA had produced more than 80% of motor vehicles.^[15]

1950s; UK, Germany and France restarted production.

1960s; Japan started production and increased volume through the 1980s. US, Japan, Germany, France and UK produced about 80% of motor vehicles through the 1980s.

1990s; Korea became a volume producer. In 2004, Korea became No. 5 passing France.

2000s; China increased its production drastically, and 2009 became the world largest producing country.

2013; The share of China (25.4%), Korea, India, Brazil and Mexico rose to 43%, while the share of USA (12.7%), Japan, Germany, France and UK fell to 34%.

By year

^[16]

Car Exports by Country (2014) from Harvard Atlas of Economic Complexity

Global automobile import and export in 2011

By country

The OICA counts over 50 countries which assemble or manufacture automobiles. Of that figure, only 13, boldfaced in the list below, possess the capability to design automobiles from the ground up.^[36]

Top 20 motor vehicle producing countries 2016

Country	Motor vehicle production (units)
China	28,118,794
United States	12,198,137
Japan	9,204,590
Germany	6,062,562
India	4,488,965
South Korea	4,228,509
Mexico	3,597,462
Spain	2,885,922
Canada	2,370,271
Brazil	2,156,356
France	2,082,000
Thailand	1,944,417
United Kingdom	1,816,622
Turkey	1,485,927
Czech Republic	1,349,896
Russia	1,303,989
Indonesia	1,177,389
Iran	1,164,710
Italy	1,103,516
Slovakia	1,040,000
"Production Statistics". OICA.

By manufacturer

This is a list of the 15 largest manufacturers by production in 2015^[16]

Rank	Group	Country	Vehicles
1	Toyota	Japan	10,083,831
2	Volkswagen Group	Germany	9,872,424
3	Hyundai / Kia	South Korea	7,988,479
4	General Motors (with SAIC-GM)	United States	7,485,587 (9,490,835)[lower-alpha 1]
5	Ford	United States	6,396,369
6	Nissan	Japan	5,170,074
7	Fiat Chrysler Automobiles	Italy	4,865,233
8	Honda	Japan	4,543,838
9	Suzuki	Japan	3,034,081
10	Renault	France	3,032,652
11	PSA	France	2,982,035
12	BMW	Germany	2,279,503
13	SAIC	China	2,260,579
14	Daimler	Germany	2,134,645
15	Mazda	Japan	1,540,576

Company relationships

Stake holding

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.
• Daimler AG holds a 10.0% stake in KAMAZ.
• Daimler AG holds an 89.29% stake in Mitsubishi Fuso Truck and Bus Corporation.
• Daimler AG holds a 6.75% stake in Tata Motors.
• Daimler AG holds a 3.1% in the Renault-Nissan Alliance.
• Daimler AG holds a 12% stake in Beijing Automotive Group,
• Daimler AG holds an 85% stake in Master Motors.
• FAW Group owns 49% of Haima Automobile.
• FCA holds a 90% stake in Ferrari.
• FCA holds a 67% stake in Fiat Automobili Srbija.
• FCA holds 37.8% of Tofaş with another 37.8% owned by Koç Holding.
• Fiat Automobili Srbija owns a 54% stake in Zastava Trucks.
• Fiat Industrial owns a 46% stake in Zastava Trucks.
• Fujian Motors Group holds a 15% stake in King Long. FMG, China Motor, and Daimler has a joint venture called Fujian Benz. FMG, China Motor, and Mitsubishi Motors has a joint venture called Soueast, FMG holds a 50% stake, and both China Motor and Mitsubishi Motors holds an equal 25% stake.
• Geely Automobile holds a 23% stake in The London Taxi Company.
• Geely Automobile holds a 49.9% stake in PROTON Holdings and a 51% stake in Lotus Cars.^[38]
• General Motors holds a 94% stake in GM Korea and SAIC Group holds a 6% stake.
• General Motors holds a 20% stake in Industries Mécaniques Maghrébines.
• Isuzu owns 10% of Industries Mécaniques Maghrébines.
• MAN SE holds a 17.01% voting stake in Scania.
• Marcopolo owns 19% of New Flyer Industries.
• Mitsubishi Group holds 20% of Mitsubishi Motors.
• Nissan owns 34% of Mitsubishi Motors and had the since October 2016,^[39] thus having the right to nominate the chairman of Mitsubishi Motors’s board and a third of its directors.^[40]
• Nissan owns 43% of Nissan Shatai.
• Porsche Automobil Holding SE has a 50.74% voting stake in Volkswagen Group. The Porsche automotive business is fully owned by the Volkswagen Group.
• Renault and Nissan Motors have an alliance (Renault-Nissan Alliance) involving two global companies linked by cross-shareholding, with Renault holding 43.4% of Nissan shares, and Nissan holding 15% of (non-voting) Renault shares.
• Renault-Nissan Alliance holds a 3.1% share in Daimler AG.
• Renault holds a 25% stake in AvtoVAZ
• Renault holds an 80.1% stake in Renault Samsung.
• SAIPA holds a 51% stake in Pars Khodro.
• Toyota holds a 100% stake in Daihatsu.
• Toyota holds a 50.1% stake in Hino.
• Toyota holds a 16.7% stake in Fuji Heavy Industries, parent company of Subaru.
• Volkswagen Group holds a 99.55% stake in the Audi Group.
• Volkswagen Group holds a 37.73% stake in Scania (68.6% voting rights), a 53.7% stake in MAN SE (55.9% voting rights), Volkswagen is integrating Scania, MAN and its own truck division into one division.
• Paccar inc. has a 19% stake in Tatra.

Joint ventures

• AB Volvo and Eicher Motors has a 50-50% joint venture called VE Commercial Vehicles.
• Beijing Automotive Group has a joint venture with Daimler called Beijing Benz, both companies hold a 50-50% stake. both companies also have a joint venture called Beijing Foton Daimler Automobile. BAG also has a joint venture with Hyundai called Beijing Hyundai, both companies hold a 50-50% stake.
• BMW and Brilliance have a joint venture called BMW Brilliance. BMW owns a 50% stake, Brilliance owns a 40.5% stake, and the Shenyang municipal government owns a 9.5% stake.
• Chang'an Automobile Group has joint venture with Groupe PSA (CAPSA), both hold a 50-50% stake,
• Chang'an Automobile Group has joint venture with Suzuki (Changan Suzuki), both hold a 50-50% stake,
• Chang'an Automobile Group has joint venture with Ford and Mazda (Changan Ford Mazda), CAG holds a 50% stake, Ford holds a 35% stake, and Mazda holds a 15% stake.
• Chang'an and Ford have a joint venture called Chang'an Ford Nanjing. Jiangling and Chang'an have a joint venture called Jiangxi Jiangling.
• Chery has a joint venture with Tata Motors called Chery Jaguar Land Rover, both companies hold a 50-50% stake.
• Chery and Israel Corporation has a joint venture called Qoros, both companies hold a 50-50% stake.
• Daimler AG and BYD Auto have a joint venture called Denza, both companies hold a 50-50% stake.
• Dongfeng Motor and Nissan have a 50-50% joint venture called Dongfeng Motor Company.
• Dongfeng Motor and PSA Group have a 50-50% joint venture called Dongfeng Peugeot-Citroen,
• Dongfeng Motor has a 50-50% joint venture with Honda called Dongfeng Honda,
• Dongfeng Motor has a joint venture with AB Volvo called Dongfeng Nissan-Diesel,
• Dongfeng Motor has a 50-50% joint venture with Renault named Dongfeng Renault in Wuhan, which was founded in the end of 2013
• Ford Motor Company and Navistar International have a 50-50 joint venture called Blue Diamond Truck.
• Ford and Sollers JSC have a 50-50 joint venture called Ford Sollers.
• Both Ford and Koç Holding own a 41% stake in Ford Otosan.
• Ford and Lio Ho Group have a joint venture called Ford Lio Ho, Ford owns 70% and Lio Ho Group owns 30%.
• FAW Group and GM has a 50-50 joint venture called FAW-GM,
• FAW Group has a 50-50 joint venture with Volkswagen Group called FAW-Volkswagen,
• FAW Group has a 50-50 joint venture with Toyota called Sichuan FAW Toyota Motor and both companies also have another joint venture called Ranz.
• General Motors and Shanghai Automotive Industry Corporation (SAIC), both have two joint ventures in Shanghai General Motors and SAIC-GM-Wuling Automobile. Both also hold an equal 50% stake in General Motors India Private Limited.
• General Motors and UzAvtosanoat have a joint venture called GM Uzbekistan, UzAvtosanoat owns 75% and General Motors owns 25%. General Motors and UzAvtosanoat also have a joint venture called UzDaewooAvto both each hold a 50-50 stake.
• General Motors, AvtoVAZ, and EBRD have a joint venture called GM-AvtoVAZ, Both GM and AvtoVAZ owns 41.61% and EBRD owns 16.76%.
• Hyundai Motor Company and Kibar Holding has a joint venture called Hyundai Assan Otomotiv, Hyundai Motor Group owns 70% and Kibar Holding owns 30%.
• Isuzu and Anadolu Group have a 50-50% joint venture called Anadolu Isuzu.
• Isuzu and General Motors has a 50-50% joint venture called Isuzu Truck South Africa.
• Isuzu, Sollers JSC, and Imperial Sojitz have a joint venture called Sollers-Isuzu, Sollers JSC owns 66%, Isuzu owns 29%, and Imperial Sojitz owns 5%.
• Mahindra & Mahindra and Navistar International has a joint venture called Mahindra Trucks and Buses Limited. Mahindra & Mahindra owns 51% and Navistar International owns 49%.
• MAN SE and UzAvtosanoat have a joint venture called MAN Auto-Uzbekistan, UzAvtosanoat owns 51% and MAN owns 49%.
• Navistar International and JAC has a joint venture called Anhui Jianghuai Navistar.
• PSA Groupe and Toyota have a 50-50% joint venture called Toyota Peugeot Citroen Automobile Czech, and another joint venture with Chang'an called Chang'an PSA automobile.
• Sollers JSC is involved in Joint ventures with Ford (Ford Sollers) and Mazda to produce cars.
• Tata Motors also formed a joint venture in India with Fiat and gained access to Fiat's diesel engine technology.
• Tata Motors and Marcopolo have a Tata Marcopolo, Tata owns 51% and Marcopolo owns 49%.
• ZAP owns 51% of Zhejiang Jonway.

Top vehicle manufacturing groups by volume

The table below shows the world's 10 largest motor vehicle manufacturing groups, along with the marques produced by each one. The table is ranked by 2015 production figures from the International Organization of Motor Vehicle Manufacturers (OICA) for the parent group, and then alphabetically by marque. Joint ventures are not reflected in this table. Production figures of joint ventures are typically included in OICA rankings, which can become a source of controversy.^[41][42]

Marque	Country of origin	Ownership	Markets
1. Toyota ( Japan)
Daihatsu		Subsidiary	Europe, Asia (except South Korea), Africa, South America
Hino		Subsidiary	South East Asia, Japan, North America, Central America, South America, Caribbean
Lexus		Business Unit	South East Asia, China, Japan, South Korea, Middle East, United States, Canada, Europe, Brazil, Costa Rica, Panama, Chile, Peru, Bolivia, Australia, New Zealand, South Africa, India
Toyota		Division	Global, except Iran
2. Volkswagen AG ( Germany)
Audi		Subsidiary	Global, except Iran
Bentley		Subsidiary	Global
Bugatti		Subsidiary	Global, except Australia
Ducati		Subsidiary	Global
Lamborghini		Subsidiary	Global
MAN		Subsidiary	Global, except North America
Navistar International		Subsidiary	North America, South America, Russia, UK, Greece, Eastern Europe, India, Middle East, China, Singapore, South Korea
Porsche		Subsidiary	Global, except Iran, North Korea, Syria, Cuba
Scania		Subsidiary	Global, except North America
SEAT		Subsidiary	Europe, China, Singapore, Mexico, Central America, South America, Middle East, Northern Africa
Škoda		Subsidiary	Europe, Asia (Except Indonesia, The Philippines, Iran, Japan, South Korea, North Korea), Central America, South America, Dominican Republic, Northern Africa, Western Africa, Australia, New Zealand
Volkswagen		Division	Global
Volkswagen Commercial Vehicles		Subsidiary	Global
VTB		Business Unit	Brazil, Mexico, Nigeria, South Africa
3. General Motors ( United States)
Buick		Business Unit	North America, China, Israel
Cadillac		Business Unit	North America, Middle East, China, Japan, South Korea
Chevrolet		Business Unit	Global, except Australia, New Zealand
GMC		Business Unit	North America, Middle East (except Israel)
Holden		Subsidiary	Australia, New Zealand
JieFang		Business Unit	China
Opel[lower-alpha 2]		Business Unit	Europe (except United Kingdom), North Africa, South Africa, Middle East, China, Singapore, Chile
SAIC-GM		Business Unit	China
Vauxhall[lower-alpha 2]		Business Unit	United Kingdom
UzDaewoo		Business Unit	Central Asia, Russia
4. Hyundai / Kia ( South Korea)
Genesis		Business Unit	South Korea, Russia, United States, Canada, Middle East
Hyundai		Division	Global
Kia		Subsidiary	Global, except Japan
5. Ford ( United States)
Ford		Division	Global
Lincoln		Business Unit	North America, Middle East, Japan, South Korea, China
Troller Veículos Especiais		Subsidiary	South America, Africa, Australia, Europe
6. Nissan ( Japan)
Datsun		Division	Indonesia, India, Russia, South Africa
Infiniti		Subsidiary	Global, except Japan, South America (excluding Chile), Africa (excluding South Africa)
Nissan		Division	Global
7. Fiat Chrysler Automobiles ( Italy)
Abarth		Subsidiary	Global, except Iran
Alfa Romeo		Subsidiary	Global, except Iran, China, Taiwan, the Philippines
Chrysler		Division	Global, except Europe (excluding United Kingdom, Ireland), Africa (excluding South Africa, Egypt), South Asia, South East Asia
Dodge		Division	Global, except Europe, Africa (excluding South Africa, Egypt), South Asia, South East Asia
Fiat		Subsidiary	Global, except Africa (excluding South Africa), Iran, South East Asia
Fiat Professional		Business Unit	Global, except Africa (excluding South Africa), Iran, South East Asia, United States, Canada
Jeep		Division	Global, except Africa (excluding South Africa, Egypt), South Asia, South East Asia
Lancia		Division	Europe (excluding United Kingdom, Ireland)
Maserati		Subsidiary	Global
Ram		Division	North America, Brazil, Middle East, Peru
8. Honda ( Japan)
Acura		Division	China, Kuwait, North America, Russia
Honda		Division	Global
9. Suzuki ( Japan)
Suzuki		Division	Global, except United States, Canada, North Korea, South Korea
Maruti Suzuki		Subsidiary	India, Middle East, South America
10. Renault ( France)
Alpine		Subsidiary
AvtoVAZ		Joint venture ownership
Dacia		Subsidiary
Renault		Subsidiary
Renault Samsung Motors		Subsidiary
Renault Sport		Subsidiary

Car makes and parent companies

The table below lists most car makes and their parent companies.

Parent (Owner)	Parent Country	Make	Make Country
Fiat Chrysler Automobiles	Italy	Abarth	Italy
Honda	Japan	Acura	Japan
Polaris Industries	United States	Aixam	France
Fiat Chrysler Automobiles	Italy	Alfa Romeo	Italy
Renault	France	Alpine	France
Aston Martin	United Kingdom	Aston Martin	United Kingdom
Volkswagen Group	Germany	Audi	Germany
SAIC-GM-Wuling	China/ United States	Baojun	China
Volkswagen Group	Germany	Bentley	United Kingdom
BMW	Germany	BMW	Germany
Brilliance	China	Brilliance	China
Volkswagen Group	Germany	Bugatti	France
General Motors	United States	Buick	United States
BYD	China	BYD	China
General Motors	United States	Cadillac	United States
Caterham	United Kingdom	Caterham	United Kingdom
Chang'an	China	Chang'an	China
General Motors	United States	Chevrolet	United States
Fiat Chrysler Automobiles	Italy	Chrysler	United States
Groupe PSA	France	Citroën	France
Renault	France	Dacia	Romania
Toyota	Japan	Daihatsu	Japan
Nissan	Japan	Datsun	Japan
Fiat Chrysler Automobiles	Italy	Dodge	United States
Dongfeng Motor Corporation	China	Dongfeng	China
Groupe PSA	France	DS	France
Dongfeng Motor Corporation	China	Dongfeng Fengshen	China
Fiat Chrysler Automobiles	Italy	Fiat	Italy
Wanxiang	China	Karma	United States
Ford	United States	Ford	United States
Ferrari	Italy	Ferrari	Italy
Geely	China	Geely	China
Hyundai Motor Group	South Korea	Genesis	South Korea
General Motors	United States	GMC	United States
Toyota	Japan	Hino Motors	Japan
General Motors	United States	Holden (HSV)	Australia
Honda	Japan	Honda	Japan
Hyundai Motor Group	South Korea	Hyundai	South Korea
Nissan	Japan	Infiniti	Japan
Isuzu Motors	Japan	Isuzu	Japan
Tata Motors	India	Jaguar	United Kingdom
Fiat Chrysler Automobiles	Italy	Jeep	United States
FAW Group / FAW-GM	China/ United States	Jie Fang	China
Kantanka Group Conglomerate	Ghana	Kantanka	Ghana
Koenigsegg	Sweden	Koenigsegg	Sweden
Hyundai Motor Group	South Korea	Kia	South Korea
Renault	France	Lada	Russia
Volkswagen Group	Germany	Lamborghini	Italy
Fiat Chrysler Automobiles	Italy	Lancia	Italy
Tata Motors	India	Land Rover	United Kingdom
Toyota	Japan	Lexus	Japan
Ligier	France	Ligier	France
Ford	United States	Lincoln	United States
Geely	China	Lotus	United Kingdom
Geely	China	LTI	United Kingdom
Yulon Motor	Taiwan	Luxgen	Taiwan
Mahindra & Mahindra	India	Mahindra	India
Suzuki	Japan	Maruti Suzuki	India
Fiat Chrysler Automobiles	Italy	Maserati	Italy
Mastretta	Mexico	Mastretta	Mexico
Daimler AG	Germany	Maybach	Germany
Mazda	Japan	Mazda	Japan
McLaren Automotive	United Kingdom	McLaren	United Kingdom
Daimler AG	Germany	Mercedes-Benz	Germany
SAIC Motor	China	MG	United Kingdom
Ligier	France	Microcar	France
BMW	Germany	Mini	United Kingdom
Nissan / Mitsubishi Group	Japan	Mitsubishi	Japan
Morgan Motor Company	United Kingdom	Morgan	United Kingdom
National Electric Vehicle Sweden (NEVS)	Sweden	NEVS	Sweden
Nissan	Japan	Nissan	Japan
Peter Dyson	United Kingdom	Noble	United Kingdom
Groupe PSA	France	Opel	Germany
Pagani Automobili	Italy	Pagani	Italy
Perodua	Malaysia	Perodua	Malaysia
Groupe PSA	France	Peugeot	France
PGO	France	PGO	France
Volkswagen Group	Germany	Porsche	Germany
Geely / DRB-HICOM	China /  Malaysia	PROTON	Malaysia
Fiat Chrysler Automobiles	Italy	Ram	United States
GM Uzbekistan	Uzbekistan	Ravon	Uzbekistan
Renault	France	Renault	France
SAIC Motor	China	Roewe	China
BMW	Germany	Rolls Royce	United Kingdom
Saleen	United States	Saleen	United States
Iran Khodro (IKCO)	Iran	Samand	Iran
Renault	France	Renault Samsung Motors	South Korea
Volkswagen Group	Germany	SEAT	Spain
BAIC Motor	China	Senova	China
Volkswagen Group	Germany	Škoda	Czech Republic
Daimler AG	Germany	Smart	Germany
Mahindra & Mahindra	India	SsangYong	South Korea
Subaru Corporation	Japan	Subaru	Japan
Suzuki	Japan	Suzuki	Japan
Tata Motors	India	Tata	India
Tesla	United States	Tesla	United States
Saipa	Iran	Tiba/Miniator	Iran
Toyota	Japan	Toyota	Japan
Uniti Sweden AB	Sweden	Uniti	Sweden
Groupe PSA	France	Vauxhall	United Kingdom
Dongfeng Motor Co., Ltd. (Dongfeng-Nissan)	China/ Japan	Venucia	China
Volkswagen Group	Germany	Volkswagen	Germany
Geely	China	Volvo Cars	Sweden
Vuhl	Mexico	Vuhl	Mexico
SAIC-GM-Wuling	China/ United States	Wuling	China

See also

Notes

References

External links

Look up automotive industry in Wiktionary, the free dictionary.

Wikimedia Commons has media related to Automotive industry.

• Alliance of Automobile Manufacturers
• Automotive IT Solutions