Essay on Industry Driving Force : Automotive Industry
Automotive industry is facing tough challenges in the future. There are some challenges that carmakers need to address to sustain their profitability. Some industry driving forces that will shape the future of the automobile industry are as follow:
1. Shift in consumer demand. Greater numbers of customers are utilizing online technology. Consumers want more connectivity and expect a seamless service across the buying process decision .
2. New manufacturing technology : The very famous of manufacturing technology in automotive industry is assembly line, which had been initiated by Ford motor company many years ago. The current manufacturing technology relies on the labor capacity. However, as the emerging of new technology, manufacturing technology shift to the new method using robotic. This shifting in technology is driven by the new paradigm of beyond lean manufacture to win the competition. The new trend in 3-D printing will also force the industry to change it manufacturing techniques and technology. AT Kearney projected that the global market for 3-D printing is estimated to reach $50 billion by 2025 . The emerging of robotics technology and 3-D printing will enforce the carmakers to transform or replace the conventional manufacturing.
3. Increasing regulatory requirement : Another challenge that automotive industry should focus on is the regulations. US CAFÉ (Corporate Average Fuel Economy) standard mandated that the average fuel economy for…