The World’s Automobile Industry

The world’s automobile industry made over sixty-six million cars, vans, trucks and
buses in 2005. These vehicles are essential to the working of
the global economy and to the wellbeing of the world’s citizens.
This level of output is equivalent to a global turnover of €1.9 trillion. If vehicle
manufacturing was a country it would be the sixth largest economy
in the world.
Building sixty-six million vehicles requires the employment of more than
eight million people directly in making the vehicles and the parts that go into them.
This is over five per cent of the world’s total manufacturing employment. In
addition to these direct employees, about five times more are employed indirectly
in related manufacturing and service provision, such that an estimated more than
50 million people earn their living from cars, trucks, buses and coaches. The
automobile industry is also a major innovator, investing almost €85 billion in
research, development and production. The auto industry plays a key role in the
technology level of other industries and of society and is one of the largest
investors in Research and Development, with several manufacturers leading the
Top 10. Vehicle manufacture and use are also major contributors to government
revenues around the world, contributing over €430 billion in twenty-six countries
alone.
Automakers have invested hugely in reaching these air quality
improvements and in developing diverse automobiles that run on alternative fuels
including those from sustainable sources or that use hybrid technology using both
gasoline or diesel engines and electric power. Because consumers, as well as
different regions of the world, favour different technologies, automakers are
developing a range of automobiles that run on different fuels.
Indian Automobile Market

The growth of the Indian middle class along with the growth of the economy
over the past few years has attracted global auto majors to the Indian
market. India provides trained manpower at competitive costs making India
a favored global manufacturing hub.

Propped by the increase in its car sales after the launch of General Motors’
(GM) new model Beat, along with the robust growth in the Indian
automobile sector, Kevin E Wale, President and Managing Director,
General Motors China Group stated that India should be among the top ten
markets for the company globally by 2011.

Latest developments of automobile industry in Indian market :

In recent times, India has emerged as one of the favorite investment

destinations for automotive manufacturers.

 Nissan Motor India has announced its 'Made-in-India' compact car

(hatchback) Nissan Micra at its manufacturing plant at Oragadam,
near Chennai. Toshiyuki Shiga, Chief Operating Officer, Nissan Motor
Company stated that the India-made Micra will supply to strategic
markets such as Europe, Middle East and Africa
 The German luxury car major, BMW has launched four new variants
of its new-generation 5-Series sedan in India
 In a bid to capture a bigger share of the ever-expanding consumer
base of luxury segment automobiles in India. Volkswagen has
launched its luxury sedan model Phaeton, its latest luxury model
 Hyundai plans to bring forth an upgraded version of i30, latest C
segment five-door hatchback which is designed by Hyundai
European team in Germany and is based on the Hyundai i-flow HED-
7 hybrid concept. As per the manufacturer, i30U has entered mass
production in March 2010 after debuting at the Geneva Motor Show
 Y V S Vijay Kumar, Executive-Vice President, Hindustan Motors India
stated that the company’s Thiruvallur plant has a capacity of 12,000
units and in two years, the company plans to double its
manufacturing capacity to reach 24,000 units.
 India's second largest heavy commercial vehicle maker Ashok
Leyland Ltd and Japanese car maker Nissan Motor Co. Ltd
announced the launch of three light commercial vehicles (LCVs) from
2011 through 2013
 According to Andrew Palmer, senior vice-president, Nissan, the
company will start marketing a light commercial vehicle (LCV) under
its brand name, from its Oragadam plant near Chennai, in the second
half of 2011
 Honda Motorcycle and Scooters India (HMSI), the Indian subsidiary
of Japanese auto giant Honda Motor Corporation, will launch its
superbike 2010 VFR 1200F in India by December 2010, according to
a HMSI executive
 According to the Society of Indian Automobile Manufacturers (SIAM),
overall vehicle sales grew 30 per cent in May 2010 to 1,208,851
units, and 8 per cent over the previous month of April 2010. Two
wheeler sales rose 29 per cent, with motorcycle sales increasing 26
per cent to 725,311 units, and scooter sales rising 45 per cent to
157,509 units in May 2010. Commercial vehicle sales rose 58 per
cent in May 2010.
 According to SIAM, the medium and heavy commercial vehicle
(M&HCV) segment registered a growth of 33.5 per cent at 245,058
units and total commercial vehicle (CV) sales went up by 38.3 per
cent to 531,395 units in 2009-10. At an estimated 25 per cent growth,
while the M&HCV segment would be about 306,000 units, total CV
sales would be about 664,000 units in 2010-11.
 Passenger vehicles sales alone grew by 33.93 per cent in the month
of April 2010 as per SIAM report. The growth within this segment was
largely driven by a 39.48 per cent growth witnessed in passenger car
sales whereas exports continue to grow stronger for the industry as
overall exports posted a growth of 87.61 per cent as reported by
SIAM.
 Furthermore, the three wheelers segment witnessed a sales increase
of 20.41 per cent in April 2010 over April 2009. Two wheeler segment
also continued the growth trend registering an upswing of 22.07 per
cent at 8,55,670 in April 2010 compared with 7,00,987 in the
corresponding period of last year.
 Mahindra and Mahindra (M&M) became the world's number one
tractor company by selling a record of 1.59 lakh tractors in 2009
surpassing John Deere of the US.

G M Corps.
It's the largest auto manufacturer in the world, and the fifth largest company of any
kind. What company is it? If you guessed General Motors Corporation, better known
as GM, you'd be correct, but did you know that GM is comprised of twelve different
brands, employs over 250,000 world-wide, and makes and sells cars and trucks in
thirty-five different countries? That's pretty impressive, even for a company with
celebrating its centennial this year.

GM came into being on September 16, 1908, in Flint Michigan. It was originally a
holding company for Buick which was under the control of William C. Durant, but it
acquired Oldsmobile later that year. In 1909, Durant brought in five more car
companies, including Cadillac and Oakland, the latter of which would eventually
become Pontiac, and two commercial truck companies (Reliance Motor Truck and
Rapid Motor Vehicle) which would be the predecessors of GMC Truck. These
companies were already building impressive histories of their own. For example, it
was a Rapid truck that first conquered Colorado's famous Pike's Peak.

In 1910, two more companies (Ranier and Welch) were added to the impressive list of
GM brands but the company was in debt to the tune of roughly $1 million, and Mr.
Durant lost control of the company to a bankers trust. He subsequently left the
company and helped Gaston and Louis Chevrolet establish the Chevrolet Motor
Company. A brilliant stock buy-back campaign enabled Durant to retake the reins of
GM in 1916, this time with the backing of Pierre S. DuPont, but while Chevrolet
became part of the GM family in 1917 (producing the first GM car the next year - the
Chevrolet 490), Durant was eventually removed from management. For the next thirty
years (from 1920 – 1950), DuPont companies held large (and often controlling) shares
of GM.

With or without Durant at the helm, GM continued to grow. In 1918, the Ontario-
based McLaughlin Motor Car Company, manufacturer of the McLaughlin-Buick car,
was acquired, and renamed General Motors Canada, Ltd., though R. S. "Colonel Sam"
McLaughlin was retained as its first president. In 1925 the English company Vauxhall
Motors joined the fold, and four years after that GM bought an 80% stake in
Germany's Adam Opel AG. This was increased to a 100% stake in 1931 (the same
year the Australian Holden company was acquired), and Opel remains the core
company of GM Europe today.

During the same time period (the late 1920's), GM, then under the leadership of
Alfred Sloan, surpassed Ford Motor Company's sales figures, largely by paying
attention to new management techniques and to listening to customer demands and
offering power, prestige, and style, instead of the cheapest model, and they also
created a finance plan which help consumers in buying a new car with affordable
monthly payments.
While other companies were desperately trying to stay afloat during the Great
Depressions, GM continued to expand, adding the Yellow Coach bus company during
the 1930's, which led to the creation of Greyhound Bus lines, as well as the general
replacement of intercity trains with buses, doing the same with streetcars. As if buses
weren't big enough, the thirties also saw GM's first foray into the world of aircraft
design, buying both Fokker Aircraft Corp of America and Berliner-Joyce Aircraft, and
marrying them together to form General Aviation Manufacturing Corporation,
eventually merging North American Aviation into the company as well, though NAA
would be divested in 1948, ending the GM's major interest in aircraft for good.

Also in the 1930's, GM bought the Electro-Motive Corporation, builder of the internal
combustion engine railcar, and the engine supplier Winston Engine as well,
combining them into the General Motors Electro-Motive Division. For the next
twenty years GM build the majority of America's diesel powered locomotives, and
also used the same engines for the war effort, in American destroyer escorts and
submarine, finally selling off the unit in 2005.

While General Motors continued to succeed through the 1970's, the 1980's saw the
company under the controversial leadership of Roger B. Smith, who was full of good
intentions that never seemed to work out. For the first time since the 1920's the
company was losing money – mainly to foreign companies with better quality and
production practices. Smith tried to incorporate the Japanese methods into GM's
corporate culture by forming joint ventures with Toyota (NUMMI) in California and
with Suzuki (CAMI) in Canada, but corporate politics and bureaucracy prevented any
success. He also launched the Saturn Corporation as a corporate experiment using
Japanese methods in a strictly GM environment. While NUMMI, CAMI, and Saturn
remain successful, neither effort was enough to turn the company around.

The 1990's gave GM another leader, Jack Smith (no relation to Roger) who took over
just as GM was rallying from almost filing bankruptcy. Like his predecessor, he
recognized the need for drastic change, though his method was to dismantle the Sloan
legacy, cutting costs, improving designs, and, in a move which took a whole decade to
complete, engineering the demise of Oldsmobile. By the end of the decade GM had
ridden itself of the old Oldsmobile complex in Lansing, and Buick City in Flint (both
cities in Michigan), which in turn led to a reduction in the work force.

In 1998, GM's Massive layoffs triggered a seven-week auto workers strike, which
made the national news because of GM's long history and position within the
American economy. By the year 2000, however, the company’s stock had risen to
more than $80/share, only to fall after a pension and benefit fund crises after the
market dropped following the events of September 11, 2001. GM managed to fully
fund its pension fund, but other benefits suffered, and the company began offering
buyouts which were accepted by more than 35,000 hourly workers.

By 2006 GM's stock was rising once again, though it began the year at $19 a share,
and despite conjecture that the company was headed for bankruptcy court, and another
strike by the UAW in 2007, the company is still afloat, though it did fall to 2nd place
(behind Toyota) in the list of world's largest automakers for a few months.

Today, GM remains the largest automaker in the world, with many of its original
brands still being marketed, as well as some newer ones. The current list includes
Buick, Cadillac, Chevrolet GM-Daewoo, GMC, Holden, Hummer, Opel, Pontiac,
Saab, Saturn, and Vauxhall, and retains its position as fifth-largest company on the
planet, after Wal-Mart, Exxon Mobil, Royal Dutch Shell, and BP, as ranked by the
Fortune Global 500 list.

Major Miletones:

From a loose collection of start-ups to perhaps the most

influential car company in the world came ten decades - 100
years - of history-making events. Here we recount the key
markers on GM's century-long ride. Below is our list of more than
100 GM milestones.

1908 William Durant filed organization papers in New Jersey on

September 16. Buick, Olds, and GMC forerunner Reliance are
added later this year.

1909 Cadillac and Oakland were purchased.

1910 Cadillac introduced closed bodies and Buick built its first

truck.

1911 GM was the first car company listed on the New York Stock
Exchange.
1912 Electric starter replaced hand cranks on all Cadillacs.

1915 The first mass-produced V-8 engine introduced by Cadillac.

1916 GM's incorporation papers were filed October 13 in

Delaware.

1918 Chevrolet, DELCO, and other car related enterprises were

added to the fold.

1919 The 1-millionth GM vehicle was sold and GMAC credit was

established.

1920 William Durant's reign terminated by losses attributable to

recession.

1921 Construction of GM Building in Detroit was completed.

1922 Cadillac introduced the first thermostatic mixture-control

carburetor.

1923 Alfred Sloan was appointed president and CEO. Two fruits

of GM research were fast-drying lacquer paint and leaded
gasoline.

1924 The auto industry's first proving grounds was established in

Milford, Michigan.

1925 GM's reach was extended to England (Vauxhall), New

Zealand, South Africa, and Brazil.

1926 Purchase of Fisher Body was completed.

1927 Harley Earl was recruited to create and head the auto

industry's first in-house design department.

1928 Partial interest in Bendix and Fokker aviation firms were

acquired.
1929 The 10 millionth GM vehicle was sold. Cadillac introduced
the world's first V-16 engine 60 days after the Wall Street stock
market crashed.

1930 Winton (diesel) Engine Manufacturing and Electro-Motive -

key parts of what became GM's locomotive business - were
acquired.

1931 Portions of Holden's in Australia and Opel in Germany were

acquired.

1932 The Oakland brand was renamed Pontiac.

1933 Independent front suspension was introduced by Buick,

Cadillac, and Oldsmobile.

1934 GM began front-impact and rollover crash testing.

America's first streamlined passenger train was powered by a GM
2-stroke diesel.

1935 The Electro-Motive division was established to manufacture

locomotives with diesel-electric series-hybrid drive.

1937 GM's Allison division developed the first 1000-hp aircraft

engine.

1939 Buick added turn signals.

1940 Oldsmobile introduced Hydra-Matic, the viable automatic

transmission.

1942-45 After car and truck production ceased, GM

manufactured aircraft, tanks, trucks, engines, and weapons worth
$12-billion.

1946 Charles Wilson became president with Sloan retaining CEO

title.

1947 Buick's Dynaflow was the first automatic transmission to

use a torque converter.
1948 Cadillac models incorporated the first tail fins.

1949 Cadillac and Oldsmobile introduced high-compression

overhead-valve V-8 engines.

1950 The first Motorama Dream Car exhibition opened in New

York.

1951 The first automatic transmissions for trucks were offered

by GMC.

1952 Power steering was introduced on Buick Roadmasters.

1953 Air conditioning became available in Buicks, Cadillacs, and

Oldsmobiles.

1954 The 50-millionth GM vehicle was a gold Chevrolet Bel Air.

Mesa, Arizona, proving grounds opened. The GMC Scenicruiser
bus was introduced.

1955 Chevrolet introduced its small-block V-8.

1956 GM became the first corporation to report an annual net

profit over $1-billion.

1957 Importation of Opels from Germany and Vauxhalls from

England began.

1958 Major management shake-up moved Frederic Donner to

chairman and CEO. John Gordon became president.

1959 All GM cars displayed radical styling in response

to Chrysler's 1957 Forward Look.

1960 The Corvair compact was introduced by Chevrolet. GMC

trucks offered the first US-built V-6 engines.

1961 The last Motorama visited New York, San Francisco, and

Los Angeles. The first emission controls were introduced on GM
cars.
1962 GM' market share of US cars and light trucks peaked at 51-
percent.

1963 The first AM/FM radios arrived on Cadillacs.

1964 Pontiac's GTO option for the Tempest LeMans kicked off the
muscle car era.

1965 GM was the first corporation to earn more than $2-billion in

one year.

1966 The Oldsmobile Toronado was the first modern American

car with front-wheel drive. Pontiac introduced an overhead-cam
six.

1967 One of the first safety devices, an energy-absorbing

steering column developed by Saginaw Steering, was provided on
all GM cars. GM's 100-millionth vehicle was built.

1968 The 50-story GM Building opened in New York City.

1969 Fisher Body introduced one of the first child safety seats

called Love Seat.

1970 GM purchased a portion of Isuzu Motors.

1971 All GM cars were engineered to run on unleaded gasoline.

1972 The Chevrolet LUV truck manufactured by Isuzu was GM's

first Japanese import.

1974 Air bags for all front seat occupants were introduced for
large Buick, Oldsmobile, and Cadillac sedans.

1975 GM was the first manufacturer to fit catalytic converters to

its entire car lineup.

1977 Large Buick, Chevrolet, Oldsmobile, and Pontiac sedans

were downsized in response to the first energy crisis.
1978 Class-action suits erupted over the use of Chevrolet
engines in Buicks, Oldsmobiles, and Pontiacs.

1979 GM manufacturing plants were added in Spain and Austria.

1980 Buick, Chevrolet, Oldsmobile, and Pontiac introduced the

first US compacts with front-wheel drive. Suffering from an 18-
percent drop in the US car and truck market, GM reported its first
net loss in 59 years.

1981 Roger Smith became chairman and CEO.

1982 Buick Skylark, Cadillac Cimarron, Chevy Cavalier,

Oldsmobile Firenza, and Pontiac J-2000 J cars were introduced to
stem rising imports. GM's World of Motion exhibit opened at
Florida's EPCOT Center. GM purchased a 10-percent stake
in Suzuki and announced plans for that manufacturer to supply
Chevrolet with small cars and SUVs.

1983 A liaison was established with Korea's Daewoo Motor

Company. The $200-million Buick City amalgamation of several
Flint, Michigan, plants was announced. GM celebrated its 75th
anniversary.

1984 Electronic Data Systems was purchased for $2.5-billion.

Founder H. Ross Perot joined GM's board of directors.

1985 GM and Toyota began manufacturing the Chevrolet Nova

and Toyota Corolla at a Fremont, California, joint-venture plant
called New United Motor Manufacturing
(NUMMI). Saturn Corporation was formed to combat imports.

1986 Group Lotus was purchased. H. Ross Perot resigned and

sold his GM stock.

1987 Cadillac and Pininfarina began manufacturing the Allante

two-seat convertible.
1988 Front-drive Buick Regal, Oldsmobile Cutlass Supreme,
and Pontiac Grand Prix coupes were introduced as consumer
demand shifted towards sedans. GM's invested over $4-billion in
the changeover.

1989 Chevrolet launched the Geo nameplate for small vehicles

manufactured by Isuzu, Suzuki, and Toyota. GM purchased a 50-
percent interest in Saab.

1990 Robert Stempel replaced Roger Smith as Chairman and

CEO. The Impact electric-powered concept car was displayed at
Los Angeles auto show and production intent was announced.
Third- and fourth-quarter losses totaled $3.7-billion.

1991 Saturn coupes and sedans went on sale. GM stock fell to

$27, a four-year low, the result of continued losses, while its US
market share held steady at 35-percent.

1992 A top management shakeup resulted in John Smale, a

Procter & Gamble retiree, replacing Stempel as chairman. GM
losses for the year were a staggering $23.5-billion.

1993 A $2.5-billion profit was reported.

1994 Daytime running lights were voluntarily added to 600,000

GM vehicles following studies that credited them with reducing
accidents.

1995 GM and the Shanghai Automotive Industry Group agreed to

cooperate on car and powertrain manufacturing in China.
President and CEO John Smith became GM's board chairman.

1996 Large rear-wheel drive Chevrolet, Buick,

and Cadillac models were discontinued. EV1 electric vehicles were
leased by 26 Saturn dealers in Arizona and California. This $1-
billion program yielded approximately 800 cars in four years,
most of which were destroyed following completion of their three-
year leases. GM headquarters moved to a Renaissance Center
location on the Detroit River.
1997 GM's Delphi Automotive Systems became the world's
largest automotive supplier.

1998 GM's US market share dropped below 30-percent for the

first time since 1926. Chevy's Geo brand was dropped. Rick
Wagoner became GM's president and chief operating officer.

1999 Buick Regal and Century manufacturing began in China.

Delphi Automotive Systems was spun off and became an
independent enterprise. A 20-percent stake in Fuji Heavy
Industries (Subaru) was purchased. Cadillac's general manager
John Smith sent a letter of apology to Lincoln executive Mark
Hutchins for fudging sales figures and claiming luxury car
leadership for 1998.

2000 GM took over full ownership of Saab. Honda and GM agreed

to swap Honda V6s for Isuzu-built diesels. Rick Wagoner became
CEO. GM and Fiat exchanged ownership stakes.

2001 Following September 11 attacks, GM launched a successful

'Keep America Rolling' sales campaign. Former Chrysler president
Bob Lutz became GM's vice chairman of global product
development.

2002 Large Chevy and GMC pickups offered 4-wheel steering.

2004 Development resources were redirected from cars to

pickups and SUVs scheduled for a 2007 model year introduction.
Cadillac began exports to China. The final Oldsmobile left a
Lansing, Michigan, assembly line, ending 107 years of
manufacturing that yielded over 35-million cars and trucks.

2005 Chevrolet sales commenced in China. GM paid Fiat $2-

billion to nullify the agreement established in 2000.

2006 Pontiac's Solstice sports car was the first volume use of

hydroformed-steel body panels.
2007 The Fortune Global 500 list ranked GM as the world's fifth
largest publicly traded firm behind Wal-Mart, Exxon Mobil, Royal
Dutch Shell, and BP.

2008 Still the world's largest auto maker in terms of sales, GM

employs more than a quarter-million people around the world to
manufacture and sell cars and trucks in 35 countries. During the
first half of this year, GM's share of the US market was 20.6
percent.