High-speed collision: Production has slowed in response to depressed vehicle sales

Over the five years to 2017, revenue for the Car and Automobile Manufacturing industry is anticipated to experience volatility, which will ultimately contribute to an overall revenue decline. As the economy rebounded, consumer confidence has improved and financing options have become more widely available. This has released pent-up consumer demand for new vehicle purchases in the first half of the five-year period. In addition, interest rates remained low, which reduced the cost to finance a vehicle purchase, and sales across the automotive sector recovered healthily. However, in the latter half of the past five years, production slowed in response to depressed vehicle sales. Despite declining revenue, the industry has continued increasing product innovation...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Despite falling revenue, the industry has further increased its product innovation
  • Many industry operators have taken steps to reduce costs and streamline processes
  • A declining Consumer Confidence Index is projected to hamper demand for vehicles
  • Industry Report - Industry Locations Chapter

    The largest proportion of industry establishments are located in the Great Lakes area, with 29.3% of total facilities: General Motors in Detroit; Ford in Dearborn, MI; and Chrysler in Auburn Hills, MI. These three companies are often referred to as the Big Three, or the Detroit Three. The recession wreaked havoc on The Big Three, forcing GM and Chrysler into bankruptcy and Ford to make drastic cutbacks. Consequently, these companies closed several plants as these companies restructured themselves out of loss-making performances. The number of companies in the Great Lakes region has been falling as a result of the restructuring and the Big Three's financial woes.The second automotive hub in the United Stated is found in the West Region, which holds 21.4% o...purchase to read more.

    Additional Insights for the Car & Automobile Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Car & Automobile Manufacturing Industry are

  • Strong supply chain links
  • Establishment of export markets
  • Use of most efficient work practices
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer Confidence Index in the Car & Automobile Manufacturing industry impact industry performance..

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    What's in this report

    What is the Car & Automobile Manufacturing Industry?

    Companies in this industry manufacture cars and automobile chassis. These operators, which are referred to as automakers, typically produce cars, including electric cars, in assembly plants. The manufacturing of light trucks (e.g. vans, pickups and SUVs), heavy trucks and motorcycles is excluded from this industry.

    Industry Products
  • Compact and subcompact cars
  • Midsize sedans
  • Large cars
  • Luxury cars
  • Industry Activities
  • Automobile assembling
  • Automobile chassis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer Confidence Index
  • Demand from new car dealers
  • World price of crude oil
  • Yield on 10-year Treasury note
  • Trade-weighted index

  • Current Performance
  • Resurgence of early demand
  • Greater efficiency
  • Global landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Continued demand struggles
  • Costs and capacity
  • Trade growth
  • Table: Car & Automobile Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Car & Automobile Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Automobile Wholesaling
  • New Car Dealers
  • Car Rental

  • Key Selling Industries
  • Automobile Brakes Manufacturing
  • Automobile Electronics Manufacturing
  • Automobile Engine & Parts Manufacturing
  • Automobile Interior Manufacturing
  • Automobile Metal Stamping
  • Automobile Steering & Suspension Manufacturing
  • Automobile Transmission Manufacturing
  • Battery Manufacturing
  • Iron & Steel Manufacturing
  • Paint Manufacturing

  • Products & Services
  • Compact and subcompact cars
  • Midsize sedans
  • Large cars
  • Luxury cars
  • Chart: Car & Automobile Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Dealers
  • Rental companies
  • Wholesalers
  • Government
  • Chart: Major Market Segmentation for the Car & Automobile Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Car & Automobile Manufacturing

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Car & Automobile Manufacturing Industry

  • Industry Globalization
    General Motors Company, Ford Motor Company, Toyota Motor Corporation, Honda Motor Co. Ltd., Nissan Motor Co. Ltd.,
  • Table: General Motors Company - financial performance
  • Table: Ford Motor Company - financial performance
  • Table: Toyota Motor Corporation - financial performance
  • Table: Honda Motor Co. Ltd. - financial performance
  • Table: Nissan Motor Co. Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Car & Automobile Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Car & Automobile Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • New car sales (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Domestic Internationals
  • The Japan-based automakers operating in the United States: Toyota, Nissan and Honda.
  • Hybrid
  • A car that runs on an electric battery combined with a gasoline engine to be more fuel efficient than a standard car.
  • Sport-Utility Vehicle (Suv)
  • A rugged automotive vehicle similar to a station wagon but built on a light-truck chassis.
  • The Big Three
  • The three biggest domestic automakers: General Motors, Ford and Chrysler.
  • What Our Customers Say

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    This report on Car & Automobile Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Car & Automobile Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Car & Automobile Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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