US Automobile Industry Analysis Essay Example | Topics and Well Written Essays - 750 words

US Automobile Industry outline - Essay ExampleOf the everywhere 60,000 employees, 56,447 work in production, for an total of about 114 one thousand million hours every year. The employees working in the automobile fabrication in the US cost the pains a combined 5.1 billion US dollars. For the production workers in that respect are high levels of unreleased employees wages which were almost 4.5 billion dollars at the time of the 2007 census. Despite the consuming focus on production, the export market remained vibrant and was able to ship over 84 billion worth of automobiles and automobile parts, against capital expenditures of less than 2 billion US dollars. The US automobile industry is a big industry, engaging in vicious competition in the highly dynamic automobile market. For instance, the industry spent a staggering $9,961,000 in advertising for the year 2007. From another perspective, the industry contributed fifty-fifty more to government coffers, spending $111,334,00 0 in taxes and license fees. The study of the US automobile industry reveals several(prenominal) clear segmentation according to size of the industries. The eight largest companies report elevator card for 91.3% of all shipments in an industry that has over 50 car-manufacturing companies. Of the top eight companies, the four biggest accounts for over half of the shipment revenue, scooping a significant 67.6%. The largest 20 companies take a 99.2% share of the export market, meaning that 12 companies following the top 8 companies account for just 7.9%. Thirty of the automobile manufacturers in the US account for just 0.6% of the shipments to overseas markets. Under the Herfindahl-Hirschman index, the 50 biggest car-manufacturers have an index of 1,448.8 (US Census Bureau, 1). The index is used to establish how a group of firms fare with cypher to size for the industry. According to the index, a value of below 1,500, as given in our case, usually indicates overleap of concentrati on, with significant amounts of competition within the corporations (Investopedia, 1). For the five-year period ranging from 2007 to 2002, the US car-market experienced considerable growth in revenues from shipments, with a small 3,386 million US dollars. over the same time period, the weigh of shipments per employee fell from 1,295,000 to 1,094,000 (US Census Bureau, 1). In addition, the annual average pay per employee fell from over 78 thousand USD to about 63 US dollars. From a geographical view of the US car market, it is apparent that most manufacturing interests are located on the eastern side of the US, off the noticeably off the coastal states. Also, the number of establishments per million residents remained constant at 0.6. With regard to states, Michigan is the source of most shipments out of the US, with a 25.17% contribution to the shipment incomes. Only Illinois comes near(a) with a 10.14% value of the shipments, while the others account for the remaining 64.69%. Mic higan also boasts of 22 establishments for automobile manufacturing. However, the leading state in this regard is California with 32 automobile manufacturing establishments. Noticeably, the industry has had considerable give the axes in the number of shipments, value of shipments, and annual payroll amounts. Shipments dropped by 7.6%, which closely matched the fall in establishments, which stood at 7.8% (US Census Bureau, 1). The drop in annual payroll was more steep at almost 20%. Company Analysis Honda Motor Company Background to Honda Motor Company Honda Motor Company is a multinational car manufacturing company incorporated in