Industry Analysis & Industry Trends
Hitting the gas
Demand for hybrid and electric vehicles has remained strong during the five years to 2011, as consumers became more environmentally conscious and fuel costs rose. The industry will continue to perform well over the next five years, driven by high oil prices and perceived environmental benefits. Nevertheless, the expiration of tax credits may dampen revenue growth.... purchase to read more
Industry Report - Industry Investment Chapter
Assembly plants are highly automated production lines that are fitted with high-tech machinery and equipment. Industry firms must spend large sums on their plants and equipment, with periodic reinvestment in the case of equipment failure. Industry players have higher capital costs than other types of automakers (that do not produce hybrids and electric vehicles) because of the equipment necessary to integrate hybrid and electric engines. These machines are typically more expensive than traditional assembly plants.
Industry operators spend about $1.50 on labor expenses for every $1 spent on capital. This ratio is skewed toward labor because of the generosity of union compensation agreements. For... purchase to read more