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The Modern Motor Industry

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  • Garel Rhys

Abstract

The motor industry is experiencing one of its periods of massive change. This involves considerable micro- and macroeconomic effects, reflecting the structure and behaviour of the industry and its scale of operations within an economy. The industry is a highly rivalrous oligopoly, where although there is product differentiation, competition, both price and non-price, is considerable. This impacts upon the nature of vehicle demand, including environmental issues. Supply conditions in the industry generate interesting data on short-run and long-run economies of scale issues. The analysis is on a global basis, where new manufacturing centres are appearing. Continued consolidation has occurred and this affects the UK which is representative of most auto making centres in that enterprises are controlled by foreign owned multinationals.

Suggested Citation

  • Garel Rhys, 2001. "The Modern Motor Industry," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(1), pages 9-29, January.
  • Handle: RePEc:wej:wldecn:44
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    Cited by:

    1. Tuuli Juurikkala & Olga Lazareva, 2006. "Lobbying at the local level: social assets in Russian firms," Working Papers w0061, Center for Economic and Financial Research (CEFIR).
    2. Sumon Bhaumik & Saul Estrin, 2003. "Why Transition Paths Differ: Russian and Chinese Enterprise Performance Compared," William Davidson Institute Working Papers Series 525, William Davidson Institute at the University of Michigan.

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