Advertising Age, 17
Agnelli, Giovanni, 35
AK Steel, 96
All-China Federation of Trade Unions (ACFTU), 64
alternative-fuel vehicles, 8, 120
diesel, 121
flex-fuel, ethanol, 121
fuel cells, 122
full electric, 121–122
hybrid electric, 121
micro-hybrid, 122
sale in U.S., 122
U.S. Department of Energy forecast sales of, 123
aluminum, for engine blocks, 99
American Bantam Car Company, 37
Arcelor Mittal, 96
Asahi Glass Company, 100
Asia, production distribution within. See also production, of motor vehicles
China, 57–60
in East Asia, 57
India, 57–58
Iran and Thailand, 57
in Japan, 57–58
South Korea, 57
world production percentage in, 56
assembly plant, sets of operations, 14–15
Association of Licensed Automobile Manufacturers (ALAM), 26
auto alley, 6, 52
auto industry. See motor vehicle industry
Automobile Quarterly magazine, 24
Auto Moto, 5
AutoNation, 83
Barreiros, Eduardo, 45
Benz, Karl, 21
Benz Patent Motorwagen, 21
The Big Three, 3, 52
Black, Charles H., 23
BMW, 4
Bouton, Georges, 22
Brayton, George, 26
Bridgestone/Firestone Inc., 99
Buick Motor Company, 40
Cadillac Automobile Company, 31
Cadillac car companies, 29
California Air Resources Board (CARB), 113
California Bureau of Air Sanitation, 113
California, standards for emissions control, 113–114
Canadian Auto Workers Union, in 1985, 62
carbon monoxide, 112–113
carmakers. See also motor vehicle industry
activities of (see also operations, of motor vehicle industry)
assembly operations, 11–15
marketing operations, 12, 17–20
R&D operations, 11, 15–17
expense on advertising, 17–18
Fiat/Chrysler, 6, 35–37
Ford Motor Company, 3, 6, 37–39
General Motors, 3, 6, 39–41
Honda Motor Company, 6, 41–42
Hyundai Motor Group, 6, 42–43
PSA Peugeot Citroën, 6, 44–45
Renault/Nissan, 6, 45–47
Suzuki Motor Corporation, 6, 47–48
ten largest, 34–35
Toyota Motor Company, 6, 48–49
Volkswagen GmbH, 6, 49–51
chaebol, in Korea, 43
Champion, Albert, 105
Changan Automobile Group, 59
Chapin Sr., Roy D., 36
Chery, 59–60
chicken tax, 73–74
China
market share by company in, 2013, 78, 80
as world’s leading vehicle producer, 58–60
Chrysler Group
Acquired American Motors (AMC), 36
Controlled by Fiat, 36–37
Europe, 45
Chung Ju-yung, 43
Citroën, André-Gustave, 44
Clean Air Act, 1970, 113
Columbia car, 24
commodities, suppliers of
aluminum, for engine blocks, 99
glass, for windows and interior parts, 99–100
plastics, 98
rubber, for tires, 99
steel
direct purchase from minimills, 97
hot and cold rolled, 95
from intermediate processors, 97
mills operated in United States, 96
service centers providing, 97
“Compliance car,” 114
confederation Jidosha Soren, 63
Continental AG, 99
Corporate Average Fuel Economy (CAFE) regulations, 116
corporate branding, of vehicles, 76–77
Crapo, Henry Howland, 29
Cugnot, Nicholas-Joseph, 22
Daihatsu Motor Co., 49
Daimler-Benz, 4
Daimler, Gottlieb, 21, 44
dealerships. See also sales (worldwide), of motor vehicles
AutoNation in U.S., 83
company-owned, in countries, 84–85
consolidation of, 83–84
in Europe, 84
franchise laws impact, 84
defined, 81
financing arrangements, sale on credit, 82
Ford’s, direct selling approach, 84
functioning, 81–82
Group 1 Automotive, 83
higher density in Europe, 84
income generating ways, 82–83
in Japan, door-to-door sales system, 85
Penske Automotive Group, 83
sale through internet, 85
Sonic Automotive, 83
de Dion-Bouton et Trépardoux, 22
de Dion, Jules-Albert, 22
Deming, W. Edwards, 64, 106
Department of Transportation and empowered the National Highway Safety Bureau, 111
The Detroit Three, 3, 52–54, 62, 83, 105
The Deutsche Arbeitsfront, 49
diesel vehicles, 121
Dodge, Horace, 29
Dodge, John, 29
Dongfeng Motor, 59
Dort, J. Dallas, 29
Durant-Dort Carriage Co., 29, 39, 105
Durant, William C., 5, 29, 39, 104
Duryea, Charles E., 24
Duryea, J. Frank, 24
Duryea Motor Wagon Company, 24
East Asia, motor vehicle production in, 57–59
Economic Commission for Europe, 109
E. I. du Pont de Nemours and Company (DuPont), 40
electric cars, 28, 121–122
Electric Storage Battery Company, 25
Electric Vehicle Company (EVC), 25
electronics
aspects of performance impacted by, 127
connectivity functions and, 127–128
Elektrowagen, 22
emissions standards, 112–115
energy-efficient vehicles, 3
Energy Policy and Conservation Act, 1975, 116
ethanol, 121
Europe
market share by company in, 2013, 78–79
parts by type of system in, 90
parts suppliers, distribution in, 102
by type of part, 103
production distribution within
Eastern part of, 55
Germany, southern and western, 55
northern Spain, 55
Paris region, 55
Russia, 56
Turkey, 56
West Midlands, 54–55
FAW (First Automobile Works), 59
Federal Air Quality Act of 1967, 113
Fiat, 35
Agnelli family, 36
in Eastern Europe, 37
gained control of U.S.-based Chrysler, 36
Jeep brand, 37
in South America, 37
Flint, Michigan, 29
Flint Road Car Co., 29
Flocken, Andreas, 22
Ford, Henry, 5, 38, 104
Ford, Jr., William C., 38
Ford Motor Company, 3, 37
C-Max, 4–5
in Eastern Europe, 39
Edge, 4
Escape, 4
Focus, 4
Fusion, 4
Ford, Henry role, 38–39
Galaxy, 4–5
innovations of
four-story assembly plant, 12, 14
moving assembly line, body drop, 12, 14–15, 61
lowest-priced car, 37–38
Lincoln, 4
Model T, 5, 38
Mondeo, 4
overseas assembly plants, 39
public stock offering, 38
S-Max, 4–5
survived recession, 39
Whiz Kids, 38
four-stroke engine, 21
France, confederations of unions in, 63
Frazer, Joseph, 37
fuel cell vehicles, 122
fuel efficiency standards, 115–116
Fuji Heavy Industries, 49
gas engines, 29
gasoline-powered engines, 21, 28–29
Geely, 59–60
General Motors Acceptance Corporation (GMAC), 82
General Motors Company (GM), 3, 39
brands, 4, 19, 40
in Flint, 39
government help, 41, 118
ladder of consumption, 19
market share in U.S. dropping, 40–41
overseas facilities, 41
Sloan’s role, 40
taken over by DuPont, 40
Ghosn, Carlos, 46
glass
leading suppliers, 100
for windows, and interior parts, 99–100
Goodyear Tire & Rubber Co., 99
government regulations, of auto industry
emissions mandates, 112
California Air Resources Board (CARB), 113
California’s standards, 113–114
control pollutants discharge, 112
Europe’s standards, adopted by Japan, India, China, 114–115
fuel efficiency mandates, 115
1970s shocks, 115–116
CAFE regulations, 116
China’s and Japan’s fuel efficiency standards, 116
Energy Policy and Conservation Act, 1975, 116
oil embargo, 1973, 115
Organization of Petroleum Exporting Countries (OPEC), 115
government ownership, 117–118
safety mandates
agreement in 1958, 109
bumper standards, 112
Ford’s “Lifeguard Design” advertising campaign, 111
GM-Nader scandal, 110–111
GM’s attitude about safety, 111
lower fatality rates, 112
United Nations World Forum for Harmonization of Vehicle Regulations, 109
vehicles with safety features, 111
greenhouse gases emissions, regulation, 114
Group 1 Automotive, 83
Hashimoto, Masujiro, 46
Haynes, Elwood P., 23
Hindustan Motors, 58
Hino Motors, 49
history, of motor vehicle operations. See also operations, of motor vehicle industry
European pioneers, 21–23
preventing monopolies
EVC role, 26
Henry Ford case, 26–27
Selden patent, 25–27
southeastern Michigan, clustering in
availability of venture capital, 30–31
Flint (in 1900), 29
lumber and copper source, 30
mechanics and engineers presence, 27–28
terminology, 20
United States, leadership passed from Europe to, 23–25
Duryea brothers role, 24
homologation, 71
Honda Motor Company
corporate strategy, 41–42
dependence, Accord and Civic, 41
founded by Soichiro Honda, 41, 42
large share of sales, in North America, 42
Honda, Soichiro, 41
The Horseless Age, 20
Hudson, Joseph L., 36
Hudson Motor Car Company, 36
hybrid electric vehicles, 9, 121
hydrocarbons, 112–113
Hyundai Motor Group
chaebol, 43
Hyundai Motors and Kia Motors, 42–43
in South Korea, 58
IG Metall (Industrial Union of Metalworkers), 62
International Steel Group, 96
international trade, in motor vehicles
chicken tax impact, 73–74
export and import, and barriers
homologation, and high tariffs, 71, 73–74
Mexico, role as export center, 74
NAFTA implementation, eliminated barriers
among U.S., Canada, and Mexico, 71–72
net trade of vehicles in regions, 70–71
production distribution, and sales 2012, 71
trade by region, 2012, 72
Italy, national federations of unions, 63
Japan
control over sales, 85
flexible production practices, 63–64, 106
homologation rules in, 75
keiretsu system, 106
market share by company in, 2013, 78–79
vehicle production, 58
vehicles classification, as 1 through 5, 76
JFE, 96
Kaiser, Edgar, 37
Kaiser Motors, 37
keiretsu system, 106
Kia Motors, 42–43
labor relations, in auto industries, 60–61
in Asia, 63–64
in Europe, 62–63
in North America, 61–62
Lambert, John William, 23
Lefaucheux, Pierre, 46
Leland & Faulconer, 29
Leland, Henry M., 29
Levassor, Émile, 22
“Lifeguard Design” advertising campaign, 111
light vehicles
light trucks, 2–3, 7
passenger cars, 2–3, 7
market segments, designated by letters, 7
Lincoln, 4, 29
lithium, electronic devices, 123
Locomobile cars, 24
Locomobile Company of America, 25
machine shop, in Detroit in 1900, 29
Mahindra & Mahindra, 58
Malcomson, Alexander Y., 31
Manufacturers Mutual Association, 26
manufacturer’s suggested retail price (MSRP), 81
market share
held by, in 2013
makes or brands, 80
models or nameplates, 80–81
held by leading companies in 2013
China, 78, 80
Europe, 78–79
Japan, 78–79
United States, 78
Maruti Suzuki, 47–48, 58
Maxwell Motor Company and Chalmers, 36
Maybach, Wilhelm, 21
Maybury, William, 31
Mazda, 58
medium- and heavy-duty vehicles, 2
Michelin Tire & Rubber Co. Goodyear, 99
Michigan
availability of venture capital, 30–31
Early 20th century, 27
Flint, 29
lumber and copper source, 30
mechanics and engineers presence, 27–28
micro-hybrid vehicle, 122
Model T (Ford), 5, 18, 38, 39, 75, 77, 95
Motor Age, 20
motor vehicle industry. See also registration and ownership, of vehicles
advertising expense, 17–18
assembly of vehicles, 5
challenges and opportunities, 8–9
alternative fuel vehicles, sale of, 120–123
demand distribution, 124–126
market variations, 123–124
performance and connectivity role, 126–129
resource depletion issue, 119–120
commodities suppliers and raw materials, importance, 87, 94
electronics role, in safety and performance, 9, 127
importance of, 1
includes corporations, 2
labor relations in, 60–61
Asia’s auto industries, 63–64
Europe’s auto industries, 62–63
North American industry, 61–62
marketing, 5
operations and history, 5
R&D of new and revised models, 5
regulatory framework, 8
emissions mandates, 112–115
fuel efficiency mandates, 115–116
government ownership, carmakers, 117–118
safety mandates, 109–112
role of parts manufacturers of vehicles, 87
and role of unionization, 6
vertically integrated sector, 8, 104
Motor Vehicle Information and Cost Saving Act, 1972, 112
Motor Vehicle Pollution Control Board, 113
motor vehicles
classification
corporate branding, 76–77
government regulations influence on, 76
market segmentation, 75–76
companies, market share in 2013
China, 78, 80
Europe, 78–79
Japan, 78–79
United States, 78
international trade in, 70–74
key components, 5
makes or brands, market share, 80
models or nameplates, market share, 80–81
organized by platform, 4
principal elements in production and sale of, 1
production regions
Asia, Europe, and North America, 6
registration and ownership of, 65–67
role in modern society, 1–2
sales volume, 68–70
and steel industries association, 97–98
Mott, Charles Stewart, 105
Murphy, William H., 31
Musée des Arts et Métiers, Paris, 22
Nader, Ralph, 110
Nadig, Henry, 23
Nash, Charles P., 36
National Highway Traffic Safety Administration (NHTSA), 111
National Traffic and Motor Vehicle Safety Act, 111
Nippon Steel, 96
Nippon Sangyo, 46
Nissan Motor, 46, 58
nitrogen oxides, 112–113
North America
parts by type of system in, 90
parts suppliers, distribution in, 102
by type of part, 103
production distribution within, 52
clustered in auto alley, 52–54
Mexico and Canada, 54
North of US 30, 54
in southeastern Michigan, 52–53
trade restrictions, 54
North American carmakers, 3
North American Free Trade Agreement (NAFTA), 54, 71
North American Industrial Classification System (NAICS), 3
north-south corridor. See auto alley
NSG/Pilkington, 100
Olds Motor Works Co., 30
Olds, Ransom E., 5, 29
operations, of motor vehicle industry, 11
history
European pioneers, 21–23
preventing monopolies, 25–27
Southeastern Michigan, clustering in, 27–31
terminology, 20
United States, leadership passed from Europe to, 23–25
marketing, and advertising role, 17–20
GM’s “ladder of consumption,” 18–19
R&D, for new and revised models, 15–16
computer-assisted design and testing, 17
keyplayers in development, 16–17
vehicles assembly, 12
body build-up, 14–15
coating operations, 15
final assembly, 15
plants with annual production above 100,000, 13
Organization of Petroleum Exporting Countries (OPEC), 115
original equipment, classification into
parts types, 87
chassis systems, 88–89
electronics system, 90
exterior systems, 89
interior systems, 89
powertrain systems, 87–88
original equipment manufacturers (OEMs), 87
organized into hierarchy, tiers, 88
parts-making companies, leading, 90–91
suppliers (among ten largest) in few regions, not worldwide in 2012, 93–94
suppliers (among ten largest), worldwide in 2012, 91–92
original equipment tires, supplying companies, 99
Otto, Nikolaus, 21
Panhard et Levassor, 22
Panhard, René, 22
parts suppliers, distribution. See also commodities, suppliers of
changed during first decade, 21st century, 100–101
clustered in car-producing regions, 100
Europe, (Stuttgart, Germany), 101–103
Mexico, 101, 103
Michigan, 101
in North America (Detroit, Michigan), 101, 102
by type of
in Europe, 103
in North America, 103
Penske Automotive Group, 83
Peugeot, Armand, 44
Peugeot, Eugène, 44
photochemical smog, 112
plastics, 98
platforms, 4–5, 77
platinum, for catalytic converters and fuel cells, 123
pollutants, 112–113
Pope, Albert A., 24
Pope Manufacturing Company, 24
Posco Steel, 96
power sources, 9
Premier Automobiles, 58
Presidential Task Force on the Auto Industry, 41
producer-supplier relations, changing. See also parts suppliers, distribution
flexible production practices, in Japan, 105–106
main changes, 106–107
Southeastern Michigan key role, 104
vertical integration practice, 104–105
production, of motor vehicles. See also operations, of motor vehicle industry
carmakers, major, 34–35
Fiat/Chrysler, 35–37
Ford Motor Company, 37–39
General Motors, 39–41
Honda Motor Company, 41–42
Hyundai Motor Group, 42–43
PSA Peugeot Citroën, 44–45
Renault/Nissan, 45–47
Suzuki Motor Corporation, 47–48
Toyota Motor Company, 48–49
Volkswagen GmbH, 49–51
by company, 2012, 34
deskilling of process, and unions, 61
distribution , by world region, 1950-2012, 51–52
distribution within
Asia, 56–59
Europe, 54–56
North America, 52–54
South America, 60
global production, 1950–2012, 33
worldwide increase in, 33, 34
PSA Peugeot Citroën
acquired Chrysler Europe, 44–45
formed by Peugeot S.A., 44
registration and ownership, of vehicles, 65
with government agency
issuing license plates, 67
low ownership rates in Asian countries, 67
vehicles per 1,000 persons, 2012, 66–67
vehicles per capita, in countries, 67
regulations. See government regulations, of auto industry
Renault, Louis, 45–46
Renault/Nissan, 45
acquired controlling interest in Nissan, 46
AvtoVAZ, 47
Dacia, 46–47
Oyak, 47
Samsung Motors, 47
Republic Motors, 40
resource depletion, 119–120
Rice, Isaac L., 25
Rootes, William, 45
rubber, for tires, 99
safer standards, on road design, 111
safety mandates, for vehicles, 109–112
SAIC Motor, 59
Saint-Gobain Group, 100
sales (worldwide), of motor vehicles. See also production, of motor vehicles
China, largest market, 68, 70
by country , 2012, 68–69
demand for new vehicles
changing markets, 123–124
distribution of demand, for
in developing and developed countries, 124–125
increasing age of buyers, in N. America and Europe, 126
performance and connectivity role in, 127–129
and production distribution, 68–69, 71
by region, 2000–2012, 68–70
Schloemer, Gottfried, 23
Selden, George B., 26
Selden patent, 25–27
Severstal, 96–97
Shanghai Baosteel, 96
Shiloh Industries, 97
Sloan, Alfred P., 18, 40
Smith, Samuel L., 30
Society of Automotive Engineers (SAE), 27
Sonic Automotive, 83
South America, production distribution within
Brazil and Argentina, 60
steam-powered cars, 22
steel, for motor vehicles, 95–98
Suzuki, Michio, 47
Suzuki Motor Corporation, 47–48, 58
Systeme Panhard, 22
Tata Steel, 96
Tata Motors, 58
Taylor, Frederick W., 61
Toyoda, Kiichiro, 48
Toyoda, Sakichi, 48
Toyota Motor Company, 48
Daihatsu Motor Co. and Hino Motors, 49
Lexus, make, 4
Toyoda family role, 48
Toyota make, 4
Trépardoux, Charles, 22
trim level, 5
Trouvé, Gustave, 22
trucks, 2, 7, 15, 47–49, 58, 73, 74–76
Uniroyal Goodrich, 99
United Auto Workers (UAW) union, in 1937, 61
United Motors, 40
United Nations World Forum for Harmonization of Vehicle Regulations, 109
United States
demand distribution in, 124–126
market share by company in, 2013, 78
motor vehicle sales in, 68–69
restrictions and tariffs in, 71, 73
steelmakers in, 96
U.S.-based Firestone, 99
U.S. Environmental Protection Agency (EPA), 113
U.S. Steel, 96
vertical integration approach, 104
Volkswagen GmbH, 49–50
Audi, 50–51
Auto Union, 50
DKW, 50
Horch and Wandered, 50
Porsche, 50–51
SEAT, 50–51
Sˆkoda, 50–51
vulcanization process, 99
Whitney, William C., 25
Widener, Peter A. B., 25
Willys, John, 37
Willys-Overland Motor Company, 37
zaibatsu, 105