Research Paper (undergraduate) from the year 2016 in the subject
Business economics - Industrial Management, grade: 3,7 (93%), California
State University, Fullerton, language: English, abstract: The paper
analysis the automotive industry in general as well as the relative
position of the Volkswagen AG. Furthermore, VW's competitors are
assessed and recommendations for actions are formulated. In the
beginning the creation of the automobile seemed less of a need and more
of a luxury, as the cars could only be afforded by the well off. The
very first steam car took to the road in France in 1768 - but Cugnot's
novel idea did not trigger the beginning of the car industry. After
Henry Ford's model made its debut, owning a car was a symbol of status,
because it could only be afforded by the wealthy. Once the process of
Henry Ford's mass production was introduced, cars could be afforded by a
wider dynamic of people, and ownership became an affordable growing
trend. The production of automobiles was a great help to the economy. It
provided jobs across industries including positions in steel and machine
tool makers for the different metal parts of the car. The increase in
the need of supplies and other parts of the car including the battery,
head lights, paint, and interior upholstery, were the driving forces for
new businesses to thrive. Cars being a part of the everyday norm meant
they would need routine car maintenance which became a major source of
business. This also led to the increase of petroleum sales as the
demanded use of cars increased. When WWII came the US was able to use
the jeep for military use, additionally Chrysler reworked the jeep
design to create tanks. Moreover, car production in Europe turned its
focus from "the people's car" to cars designed for the military.
