[Takeovers and mergers in automobile industry: Profits and consequences]

by

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

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Table of Contents

CHAPTER # 1: INTRODUCTION2

Background of Study2

Purpose of Study2

Significance of Study2

CHAPTER # 2: LITERATURE REVIEW4

The technological regime of the modern automobile4

The all-steel car body5

Powertrains founded on interior combustion engines8

Multi-purpose automobiles11

Strategies of rivalry in the automobile industry14

CHAPTER # 3: METHODOLOGY16

Research Design16

Literature Search16

CHAPTER # 4: FINDINGS17

Economies of scale, reduced profitability, and market saturation17

Rationalisation of schemes of production22

Platform consolidation22

Modular assembly24

Industry consolidation: mergers and acquisitions25

Environmental matters in the automobile industry27

Interdependencies and trade-offs in the life-cycle of cars30

Materials and the environment: iron alloy, aluminium, artificial, and other materials31

The 'ecological maturity' of automobiles34

CHAPTER # 5: DISCUSSION37

The socio-technical context of the car industry37

The ' automobile field'38

Core competences in the automobile field40

Conclusion42

REFERENCES45

Chapter # 1: Introduction

Background of Study

The economic implication of the automobile industry is remarkable. The financial worth of new vehicles traded is approximated at round €1.1 trillion1 a year . Car constructing is the engine of the industrialization principles and schemes of those nations (particularly Korea, Japan, Germany, USA, Italy, and France) that have a multitude of associated economic parts exactly or obscurely reliant on this developed activity. Automotive expertise as a scheme engages not only the developed output of cars but furthermore the infrastructure and super-structure affiliated with their use, upkeep, and partial recycling. Its economic significance is most exactly sensed in the capability of the part to develop riches through the creation of jobs. In political periods, job creation comprises the differential power that the industry has when bargaining concessions for new manufacturers to be established. Since 2000, many vegetation closures have appeared in Japan, North America, and Western Europe: by compare most vegetation openings have been elsewhere.

Purpose of Study

Discuss mergers and acquisitions in the automotive industry

To analyze the profitability of the automotive companies in the UK

Significance of Study

The marvellous economic significance of the industry generates environmental impacts. Significant ecological influences are affiliated with all stages of the life-cycle of cars, as well as with associated schemes, for Example Street and provide infrastructures. Vehicle manufacturers have progressively been under force to advance their general ecological performance. Undeniably, advancement has been made. Since the early 1990s there is a better utilisation of components throughout output circuits through in-process reuse and recycling, and the general productivity of constructing schemes has expanded considerably . Emissions of particulates and harmful gases throughout car use have declined considerably since the 1970s, and designs for considering with the non-ferrous content of end-of-life vehicles have been evolved in Europe. Fiat Auto, Ford, General Motors (GM), Nissan (now in a cross-shareholding with Renault), Toyota, and Volkswagen, all endorse the values ...