The paper "The Global Automobile Manufacturing Industry in 2007" is a perfect example of a business assignment. According to Ellis and Williams (1995: 107), an industry will reach a stage of globalization when the developments at the level of the industry are moving towards convergence on a worldwide basis or the world as a single market. In contrast, an industry reaches localisation when the world’ s industry was made up of integration of national industries. The competition can be observed at the national level and not at the world level. With the definitions of globalization and localization of Ellis and Williams, the automobile industry can be said to be global with the localization of national industries.
In other words, in the globalization level, the national industries, such as Japanese carmakers such as Toyota, Honda, Mitsubishi, etc. , American carmakers such as GM, Ford, and son, German carmakers such as Mercedes, BMW, and so on are seen in an integrated level in the world market. Competition exists in each of the national levels which can be said ‘ localization’ . For example, in Japan, local carmakers face the competition of foreign carmakers who sell their cars in the market. Figure 1a.
Top 15 motor vehicle producing countries 2006 Motor vehicle production (1000 units) Source: World Motor Vehicle Production by Country: 2005 - 2006. OICA Table 1a. World ranking of automobile manufactures Source: World motor vehicle production by manufacturer: World ranking 2006. OICA (July 2007) Referring to the automotive industry in America, there are 14 car manufactures namely (1) General Motors, (2) Ford, (3) Daimler-Chrysler, (4) BMW, (5) Navistar, (6) Paccar-DAF, (7) Volvo, (8) Toyota, (9) Nissan, (10) Honda, (11) Fuji-Subaru, (12) Mazda, (13) Mitsubishi, and (14) Isuzu.
The products of the car industry are becoming more ‘ local’ and less ‘ global’ . For example, General Motors of the United States of America has its products marketed in other countries. The products are specifically designed to meet the needs and tastes of the local customers (Table 2a).
(1) Skoda Automotive Company.
(2) Royal Brewery of Krušovice Company. http://www.krusovice.cz/en/
(3) Porter, M.E. (1990). The Competitive Advantage Of Nations. Harvard BusinessReview, March-April, pp. 73-91.
(4) Ellics and Williams. Assessing the internationalisation of industries: globalisation v localisation
(5) Carrillo, Jorge. 2004. Transnational strategies and regional development: The case of GM and Delphi in Mexico.
Industry and Innovation, Volume 11, Numbers 1/2, 127–153, March/June 2004
(7) World Bank. 2007. www.worldbank.org
(8) World Development Indicator. 2006.
(9) World ranking 2006. OICA (July 2007)
(10) G.S. Yip, and G.A. Coundouriotis. 1991. Industry Study: Diagnosing Global Strategy Potential: The World Chocolate Confectionery Industry. Planning Review, January-February, pp. 4-14.
(11) Bordenave, G. and Lung, Y. 2002. The Twin Internationalization Strategies of US Carmakers GM and Ford, IFREDE-E3i, Universite´ Montesquieu Bordeaux IV, Bordeaux (Working Paper 2002–1).
(12) Gonza´lez, S. 1996: Estrategia corporativa y operacio´n local en las principales empresas automotrices instaladas en la zona de Toluca, Research Report. Toluca: Universidad Auto´noma del Estado de Me´xico, January.
(13) Delphi Automotive Systems 1996: Documento interno, Juarez, Me´xico.
(14) Carrillo, J. 1995. Flexible production in the auto sector: industrial reorganization at Ford-Mexico, World Development, 23(1): 87–101.
(15) Lara, A. and Carrillo, J. 2003: Technological globalization and intra-company coordination in the automotive sector: the case of Delphi-Mexico, International Journal of Automotive Technology and Management, 3(1/2): 101–121.