Essay - Diversity the Automobile Industry is a Very Large Subject of...

Diversity

The automobile industry is a very large subject of discussion, but focusing on managing diversity in foreign locations means to have a closer view at the recent movements that have occurred so far in the automobile *****, considering ***** consolidation ***** this industry through a lot of takeovers, acquisitions and joint ventures among the leaders ***** the industry or ***** extension of the big car producers within the emergent markets in *****der to benefit from low cost of the work force, permissible legal framework, higher rates of profits and increasing of ***** customers.

Being a very profit*****ble industry ***** creates a lot of jobs for its nationals, the car industry benefits from the state support when the competition is very high and ***** national producers give signs ***** slowdown. The American government and European Union have proceeded to impose specific restrains to the imports of ***** Japanese cars, apart from certain requirements ********** to the importers concerning ***** environmental *****sues and antitrust worries. On the contrary, ***** necessity to attract important ***** and Western car companies in the emerging markets, such the Eastern Europe has led to different measures taken by the appropriate governments, consisting in taxes reductions, the possibility ***** expatriate almost all the profit ***** a lot of o*****r economic advantages. The big companies that have entered on these markets (Renault in Romania, Volkswagen in Czech Republic) have benefited not only from the reduced cost of production in ***** part of ***** w*****ld, but they have had the possibility to create new brands for a new type of customer and consequently to increase its sales and profitability. It can be mentioned that the management decision to globalize ***** ***** industry and enter into new markets as sellers and ***** ***** brought a ***** of advantages for the ***** carmakers considering ***** increasing demand, the lower cost of the components, the salaries ***** the employees, the weak representation of ***** workers in unions and the taxes facilities. Of course, the management has also to adjust ***** ***** ***** characteristics ***** ***** regions ***** to produce cars at a lower price, ***** strengthen the coll*****boration with banks in order to be able to sell the ***** in leas*****g or ***** make lob***** to ***** government to improve the credit policy (lower interest rates) that will determine people to ***** more borrowers.

The market in America, Europe and Japan, where over 80% of the world's cars and trucks are sold, ***** *****en running out of growth." In America the arrival of the European, ***** and S*****h Korean makers has *****d overcapacity and also ***** America own car***** has constantly ********** their productivity to be able to compete with the new rivals, which has led to an increase of their capacities. In Germ*****y ***** France, the rigid labor laws have prevented from the closure ***** ***** redundant old factories, although Renault has set a good example in this sense and Ford Europe and General Motors have tried to follow it.

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