The main focus of this report is the automobile manufacturing industry. The NAICS code for this industry is 33611 and is referred to as the automobile and light-duty motor vehicle manufacturing industry. The SIC code that is assigned to this industry is 3711 and is referred to as the manufactures motor vehicles, and passenger car bodies industry. It includes products such as cars, pickup trucks, s[...]DOWNLOAD REFERAT
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Appendix A shows the breakup of the eight major competitors in the automotive manufacturing industry in Canada. The industry is becoming increasingly competitive with the amount of new manufacturers entering the lucrative automotive industry. The eight major companies account for ninety-two percent of the industry market share and every small amount that can be gained or lost, is a battle for these companies to sustain market share.
The automotive industry surprisingly flourished during the past year. In 2001, the automotive industry recorded its second largest sales records in history, with unit sales of 17.2 million. There are several reasons why the automotive industry is increasing its sales. First off, the average age in Canada is getting higher. With the increase in age, there is an increase in discretionary income, and therefore more Canadians are buying luxury items such as cars. Second of all, interest rates are very low and now is an ideal time to buy vehicles in Canada, with low and zero percent financing, it is easier for Canadians to finance cars and make lower monthly payments.
Another reason that there was an increase in sales is that the prices of vehicles is getting lower (taking into account inflation) due to the fact that there is fierce competition in the industry. With many new companies coming into play, competition is increasing and firms are becoming price takers as oppose to the price setters they once were during the production auto sales eras. « mai multe referate din Economie