Penetration Of The Automotive Industry

Even with the worst economic recessions of all times, you can witness that the automotive sector expanding quite rapidly. From car dealer marketing to car dealer websites, all the areas of this sector are charged up and that is why we often come to see some new models coming up with some “tin tan” shiny tags up on front. Well, what is the story behind it? Let us talk about the automotive sector and see how it has emerged over the years.

Infiltration of the Automotive Industry:

An automotive industry involves a qualitative and quantitative work cycle. The production line is the phase and the organization is concerned with designing, developing, manufacturing, advertising and selling the vehicle produced. For such reason and couple of some other reasons, many social scientists claim that automotive is fast revenue generating industry and which is why such companies do not require much time to populate them in world business.

Consumption Populace:

According to the survey carried out in 2007, the statistics tells that there are about 260 million cars in United States which are in consumption. In other parts of the world, the statistic is much bigger, which tells that there are about 800 million vehicles with some light trucks on the roads. And just imagine how much gasoline and fuel is required to run such a gigantic consumption figure? The statistics of the survey tells that it requires 270 billion gallons of gasoline per year with an addition of diesel fuel to run such a huge number. You can imagine what would be the rise in the figure in 2011, four years ahead from the statistics made.

The Rise of Production Volumes:

Starting from 1997, the production volumes of total vehicles of the world were 52,987000, which rose in the year 1998 to 60,120000. From 2000 to 2004, the fluctuation was not much to be recorded as the volumes were still under the control but at the end of 2004 the rate of production volumes again began to rise. In 2004 the production volumes were recorded as 64,496,220, which again got bigger in 2007 which was recorded as 73,266,061. The volume was lowered in 2009 and was reduced to 60,986,985. This is how the production volumes changed and influenced the world in some negative and with some positive aspects to cover.

Controlling the Production Volumes:

In the past decades, large companies like General Motors, Mitsubishi, Nissan or Hyundai produced more than the demand. On exceeding the production volumes, they received some big time losses as they had stored their big time products in the back log inventories.

The products were stocked and got futile as they got deteriorated in the stocks and which is why the companies started to control their production volumes. “Just in time”, a Japanese quality control concept was developed only for such reason. The idea was to minimize the inventories and the backlogs in order to minimize the expense and the cost on the same time. This concept got more importance and the companies started to adapt this technique and applied it in their production houses. This brought much improvement in the automotive side and today almost every industry is working on this quality control concept.


Related Articles

Back to top button