European Car Industry – Business Dissertations

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What are the environmental issues facing the future of the European car industry

Abstract

This paper looks at the issues facing the European car industry with regard to environmental issues. This is done by looking at past and present published material that revolves around the subject matter under specified themes. Theoretical perspectives within the European business environment such as pestle, models of market structure, profit maximisation, sources of finance, market segmentation, branding strategy, European business and its effects on the environment are all explained in relation to their relevance of environmental issues. These theoretical themes are used because they all act as a catalyst to the subject matter of the problems caused by cars which are not fuel efficient or less pollutant within Europe.

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In addition, a recently published paper on the directive for labelling on cars with regard to CO2 emissions, awareness of consumers, and fuel efficiency types in the European Union is used as empirical evidence to support ones findings as there was a shortage of time to carry out one. Finally a critical review of matches and miss-matches is used to compare and contrast similarities between the theoretical perspectives identified to prove the latter mentioned and the empirical evidence gathered for this paper, so as to forge a way forward for the European Car Industry.

Chapter 1: A Brief History of The Car Industry

Introduction

The European Car Industry is one that has come of age. From its early beginnings over 100 years ago, it is beginning to show signs of struggling in today’s modern society. This has come about due to the new challenges that the industry is facing in the new millennium. Issues such as air pollution, congestion, traffic jams etc., are all factors that have made the car industry rethink its goals, objectives, its marketing, and the consequences that are not foreseen. As a whole the car industry makes nearly 60 million cars and trucks every year, and employs millions of people around the world. Average profit margins have declined from 20 present or more in its hey days of the1920’s to around 10 present in the 1960’s and less than 5 present in this present day, infect some volume car makers such as Fiat, Ford, and Vauxhall, have actually been losing money.

It can be stated that over century ago the car industry feasibly invented modern industrial capitalism. In the Economist (2004) the car started life in Germany and early development of the industry began in France (hence the word automobile, a French word) in the 1900’s, but it was in America that the car industry came of age with the Henry Ford T-Model of mass production which started in Chicago round about the same period(1900’s).

In the 1920’s Alfred Sloan’s ideas of running General Motors provided the model for the great corporations that grew up to dominate the second half of the 20th century.

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