The automotive industry comprises a wide range of companies and organizations involved in the design , development , manufacturing , marketing , selling , repairing , and modification of motor vehicles . It is one of the world's largest industries by revenue (from 16% such as in France up to 40% to countries such as Slovakia).
62-521: Francisco Motors Corporation ( FMC ) is a Filipino automotive manufacturing company headquartered in Camarines Norte , Bicol Region , Philippines . FMC is noted for manufacturing jeepneys . Aside from this, they had the right to assemble Mazda pickups and vans and Hyundai vehicles. Francisco Motors was established by local artist and entrepreneur Anastacio Francisco alongside his brothers Fernando Francisco and Jorge Francisco. The company had
124-474: A Competitive Industrial Performance (CIP) Index, which measures the competitive manufacturing ability of different nations. The CIP Index combines a nation's gross manufacturing output with other factors like high-tech capability and the nation's impact on the world economy. Germany topped the 2020 CIP Index, followed by China, South Korea , the United States, and Japan. In 2023, the manufacturing industry in
186-430: A car, and prefer other modes of transport. Other potentially powerful automotive markets are Iran and Indonesia . Emerging automobile markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study, performed in 2010 expected this trend to accelerate. However, more recent reports (2012) confirmed
248-504: A deal with Mazda , when Ford Motors still had a stake in the company, which gave FMC the right to assemble the B25 pick-up and Ford Econovan models until October 2002. However from 1999, FMC and Mazda became involved in a legal dispute with the latter allegedly allowed Ford to assemble Ford Ranger vehicles in the Philippines competing with the original models FMC is supposed to assemble. This
310-488: A group of major car manufacturers including GM , Ford , Volvo , BYD Auto , Jaguar Land Rover and Mercedes-Benz committed to "work towards all sales of new cars and vans being zero emission globally by 2040, and by no later than 2035 in leading markets". Major car manufacturing nations like the United States, Germany, China, Japan and South Korea, as well as Volkswagen , Toyota , Peugeot , Honda , Nissan and Hyundai , did not pledge. The global automotive industry
372-409: A large scale. Such goods may be sold to other manufacturers for the production of other more complex products (such as aircraft, household appliances , furniture, sports equipment or automobiles ), or distributed via the tertiary industry to end users and consumers (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers). Manufacturing engineering
434-581: A product. Some industries, such as semiconductor and steel manufacturers, use the term fabrication instead. The manufacturing sector is closely connected with the engineering and industrial design industries. The Modern English word manufacture is likely derived from the Middle French manufacture ("process of making") which itself originates from the Classical Latin manū ("hand") and Middle French facture ("making"). Alternatively,
496-567: A result, they make only a reactive contribution. Emerging technologies have offered new growth methods in advanced manufacturing employment opportunities, for example in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and also for national defense . On the other hand, most manufacturing processes may involve significant social and environmental costs. The clean-up costs of hazardous waste , for example, may outweigh
558-466: A starting capital of ₱200 (equivalent to ₱23,212 in 2021) as a small painting shop that expanded into automotive manufacturing by converting leftover United States Army jeeps after World War II into jeepneys . In December 21, 2023, FMC proposed the creation of a "unli-ride" public transport system with it providing the jeepneys . The state's sovereign wealth fund firm Maharlika Investment Corporation has expressed interest to invest. FMC entered
620-493: A top producer 1950s : United Kingdom, Germany, and France restarted production. 1960s : Japan started production and increased volume through the 1980s. United States, Japan, Germany, France, and the United Kingdom produced about 80% of motor vehicles through the 1980s. 1990s : South Korea became a volume producer. In 2004, Korea became No. 5 passing France. 2000s : China increased its production drastically, and became
682-636: A wood, bone, or antler punch could be used to shape a stone very finely was developed during the Upper Paleolithic , beginning approximately 40,000 years ago. During the Neolithic period, polished stone tools were manufactured from a variety of hard rocks such as flint , jade , jadeite , and greenstone . The polished axes were used alongside other stone tools including projectiles , knives, and scrapers, as well as tools manufactured from organic materials such as wood, bone, and antler. Copper smelting
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#1732855187325744-643: Is a major consumer of water. Some estimates surpass 180,000 L (39,000 imp gal) of water per car manufactured, depending on whether tyre production is included. Production processes that use a significant volume of water include surface treatment, painting, coating, washing, cooling, air-conditioning, and boilers, not counting component manufacturing. Paintshop operations consume especially large amounts of water because equipment running on water-based products must also be cleaned with water. In 2022, Tesla's Gigafactory Berlin-Brandenburg ran into legal challenges due to droughts and falling groundwater levels in
806-463: Is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicted that, by 2014, one-third of world demand would be in the four BRIC markets (Brazil, Russia, India, and China). Meanwhile, in developed countries, the automotive industry has slowed. It is also expected that this trend will continue, especially as the younger generations of people (in highly urbanized countries) no longer want to own
868-502: Is believed to have originated when the technology of pottery kiln allowed sufficiently high temperatures. The concentration of various elements such as arsenic increase with depth in copper ore deposits and smelting of these ores yields arsenical bronze , which can be sufficiently work-hardened to be suitable for manufacturing tools. Bronze is an alloy of copper with tin; the latter of which being found in relatively few deposits globally delayed true tin bronze becoming widespread. During
930-484: Is conventionally defined by the widespread manufacturing of weapons and tools using iron and steel rather than bronze. Iron smelting is more difficult than tin and copper smelting because smelted iron requires hot-working and can be melted only in specially designed furnaces. The place and time for the discovery of iron smelting is not known, partly because of the difficulty of distinguishing metal extracted from nickel-containing ores from hot-worked meteoritic iron. During
992-455: Is the creation or production of goods with the help of equipment, labor , machines , tools , and chemical or biological processing or formulation . It is the essence of the secondary sector of the economy . The term may refer to a range of human activity , from handicraft to high-tech , but it is most commonly applied to industrial design , in which raw materials from the primary sector are transformed into finished goods on
1054-459: Is the field of engineering that designs and optimizes the manufacturing process , or the steps through which raw materials are transformed into a final product . The manufacturing process begins with the product design , and materials specification . These materials are then modified through manufacturing to become the desired product. Contemporary manufacturing encompasses all intermediary stages involved in producing and integrating components of
1116-493: The Bronze Age , bronze was a major improvement over stone as a material for making tools, both because of its mechanical properties like strength and ductility and because it could be cast in molds to make intricately shaped objects. Bronze significantly advanced shipbuilding technology with better tools and bronze nails, which replaced the old method of attaching boards of the hull with cord woven through drilled holes. The Iron Age
1178-594: The Oldowan " industry ", date back to at least 2.3 million years ago, with the earliest direct evidence of tool usage found in Ethiopia within the Great Rift Valley , dating back to 2.5 million years ago. To manufacture a stone tool, a " core " of hard stone with specific flaking properties (such as flint ) was struck with a hammerstone . This flaking produced sharp edges that could be used as tools, primarily in
1240-462: The PSA Group had been in the top 8 1999 to 2012, and 2007 to 2012 one of the eight largest along with the seven largest as of 2017) and the five largest in the top 5 positions since 2007, according to OICA, which, however, stopped publishing statistics of motor vehicle production by manufacturer after 2017. All ten remained as the ten largest automakers by sales until the merger between Fiat-Chrysler and
1302-551: The United States led the world in total automobile production, with the U.S. Big Three General Motors , Ford Motor Company , and Chrysler being the world's three largest auto manufacturers for a time, and G.M. and Ford remaining the two largest until the mid-2000s. In 1929, before the Great Depression , the world had 32,028,500 automobiles in use, of which the U.S. automobile enterprises produced more than 90%. At that time,
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#17328551873251364-485: The value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls, which cause considerable financial consequences. In 2007, there were about 806 million cars and light trucks on the road, consuming over 980 billion litres (980,000,000 m ) of gasoline and diesel fuel yearly. The automobile
1426-422: The 1830s. This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, the increasing use of steam power and water power , the development of machine tools and the rise of the mechanized factory system . The Industrial Revolution also led to an unprecedented rise in the rate of population growth. Textiles were the dominant industry of
1488-469: The 1860s with hundreds of manufacturers pioneering the horseless carriage . Early car manufacturing involved manual assembly by a human worker. The process evolved from engineers working on a stationary car, to a conveyor belt system where the car passed through multiple stations of more specialized engineers. Starting in the 1960s, robotic equipment was introduced to the process, and most cars are now mainly assembled by automated machinery. For many decades,
1550-475: The 1890s after the introduction of the practical DC motor and the AC motor , was fastest between 1900 and 1930. This was aided by the establishment of electric utilities with central stations and the lowering of electricity prices from 1914 to 1917. Electric motors allowed more flexibility in manufacturing and required less maintenance than line shafts and belts. Many factories witnessed a 30% increase in output owing to
1612-527: The 8th century. Papermaking technology was spread to Europe by the Umayyad conquest of Hispania . A paper mill was established in Sicily in the 12th century. In Europe the fiber to make pulp for making paper was obtained from linen and cotton rags. Lynn Townsend White Jr. credited the spinning wheel with increasing the supply of rags, which led to cheap paper, which was a factor in the development of printing. Due to
1674-635: The CEO of General Electric , called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand. Further, while U.S. manufacturing performs well compared to the rest of the U.S. economy, research shows that it performs poorly compared to manufacturing in other high-wage countries. A total of 3.2 million – one in six U.S. manufacturing jobs – have disappeared between 2000 and 2007. In
1736-500: The English word may have been independently formed from the earlier English manufacture ("made by human hands") and fracture . Its earliest usage in the English language was recorded in the mid-16th century to refer to the making of products by hand. Human ancestors manufactured objects using stone and other tools long before the emergence of Homo sapiens about 200,000 years ago. The earliest methods of stone tool making, known as
1798-545: The Industrial Revolution in terms of employment, value of output and capital invested. The textile industry was also the first to use modern production methods. Rapid industrialization first began in Britain, starting with mechanized spinning in the 1780s, with high rates of growth in steam power and iron production occurring after 1800. Mechanized textile production spread from Great Britain to continental Europe and
1860-600: The Mediterranean basin. Early construction techniques used by the Ancient Egyptians made use of bricks composed mainly of clay, sand, silt, and other minerals. The Middle Ages witnessed new inventions, innovations in the ways of managing traditional means of production, and economic growth. Papermaking , a 2nd-century Chinese technology, was carried to the Middle East when a group of Chinese papermakers were captured in
1922-645: The PSA Group in early 2021 ; only Renault was degraded to 11th place, in 2022, when being surpassed by both BMW (which became the 10th largest in 2021) and Chang'an . These were the twenty largest manufacturers by production volume in 2012 and 2013, or the 21 largest in 2011 (before the Fiat-Chrysler merger ), of which the fourteen largest as of 2011 were in the top 14 in 2010, 2008 and 2007 (but not 2009, when Changan and Mazda temporarily degraded Chrysler to 16th place). The eighteen largest as of 2013 have remained in
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1984-428: The U.S. had one car per 4.87 persons. After 1945, the U.S. produced around three-quarters of the world's auto production. In 1980, the U.S. was overtaken by Japan and then became a world leader again in 1994. Japan narrowly passed the U.S. in production during 2006 and 2007, and in 2008 also China , which in 2009 took the top spot (from Japan) with 13.8 million units, although the U.S. surpassed Japan in 2011, to become
2046-616: The UK, EEF the manufacturers organisation has led calls for the UK economy to be rebalanced to rely less on financial services and has actively promoted the manufacturing agenda. According to the United Nations Industrial Development Organization (UNIDO), China is the top manufacturer worldwide by 2023 output, producing 28.7% of the total global manufacturing output, followed by the United States of America , Germany , Japan , and India . UNIDO also publishes
2108-518: The United States in the early 19th century, with important centres of textiles, iron and coal emerging in Belgium and the United States and later textiles in France. An economic recession occurred from the late 1830s to the early 1840s when the adoption of the Industrial Revolution's early innovations, such as mechanized spinning and weaving, slowed down and their markets matured. Innovations developed late in
2170-486: The automotive industry, safety means that users, operators, or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves implies that there is no risk of damage. Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of regulations, whether local or international, in order to be accepted on
2232-445: The benefits of a product that creates it. Hazardous materials may expose workers to health risks. These costs are now well known and there is effort to address them by improving efficiency , reducing waste, using industrial symbiosis , and eliminating harmful chemicals. The negative costs of manufacturing can also be addressed legally. Developed countries regulate manufacturing activity with labor laws and environmental laws. Across
2294-512: The casting of cannon, the blast furnace came into widespread use in France in the mid 15th century. The blast furnace had been used in China since the 4th century BC. The stocking frame , which was invented in 1598, increased a knitter's number of knots per minute from 100 to 1000. The Industrial Revolution was the transition to new manufacturing processes in Europe and the United States from 1760 to
2356-568: The concept of "focus", with an implication that a business cannot perform at the highest level along all five dimensions and must therefore select one or two competitive priorities. This view led to the theory of "trade offs" in manufacturing strategy. Similarly, Elizabeth Haas wrote in 1987 about the delivery of value in manufacturing for customers in terms of "lower prices, greater service responsiveness or higher quality". The theory of "trade offs" has subsequently being debated and questioned, but Skinner wrote in 1992 that at that time "enthusiasm for
2418-451: The concepts of 'manufacturing strategy' [had] been higher", noting that in academic papers , executive courses and case studies , levels of interest were "bursting out all over". Manufacturing writer Terry Hill has commented that manufacturing is often seen as a less "strategic" business activity than functions such as marketing and finance , and that manufacturing managers have "come late" to business strategy-making discussions, where, as
2480-402: The form of choppers or scrapers . These tools greatly aided the early humans in their hunter-gatherer lifestyle to form other tools out of softer materials such as bone and wood. The Middle Paleolithic , approximately 300,000 years ago, saw the introduction of the prepared-core technique , where multiple blades could be rapidly formed from a single core stone. Pressure flaking , in which
2542-481: The globe, manufacturers can be subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities . Labor unions and craft guilds have played a historic role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world . Tort law and product liability impose additional costs on manufacturing. These are significant dynamics in
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2604-601: The growth of the ancient civilizations, many ancient technologies resulted from advances in manufacturing. Several of the six classic simple machines were invented in Mesopotamia. Mesopotamians have been credited with the invention of the wheel. The wheel and axle mechanism first appeared with the potter's wheel , invented in Mesopotamia (modern Iraq) during the 5th millennium BC. Egyptian paper made from papyrus , as well as pottery , were mass-produced and exported throughout
2666-582: The increasing shift to electric motors. Electrification enabled modern mass production, and the biggest impact of early mass production was in the manufacturing of everyday items, such as at the Ball Brothers Glass Manufacturing Company , which electrified its mason jar plant in Muncie, Indiana , U.S. around 1900. The new automated process used glass blowing machines to replace 210 craftsman glass blowers and helpers. A small electric truck
2728-407: The industry in the United States and other countries. According to a "traditional" view of manufacturing strategy, there are five key dimensions along which the performance of manufacturing can be assessed: cost, quality , dependability , flexibility and innovation . In regard to manufacturing performance, Wickham Skinner , who has been called "the father of manufacturing strategy ", adopted
2790-405: The large-scale manufacture of machine tools and the use of increasingly advanced machinery in steam-powered factories. Building on improvements in vacuum pumps and materials research, incandescent light bulbs became practical for general use in the late 1870s. This invention had a profound effect on the workplace because factories could now have second and third shift workers. Shoe production
2852-479: The list below) currently possess the capability to design original production automobiles from the ground up, and 17 countries (listed below) have at least one million produced vehicles a year (as of 2023). These were the ten largest manufacturers by production volume as of 2017, of which the eight largest were in the top 8 positions since Fiat's 2013 acquisition of the Chrysler Corporation (although
2914-704: The market towards end customers . This relative cost reduction towards the market, is how manufacturing firms secure their profit margins . Manufacturing has unique health and safety challenges and has been recognized by the National Institute for Occupational Safety and Health (NIOSH) as a priority industry sector in the National Occupational Research Agenda (NORA) to identify and provide intervention strategies regarding occupational health and safety issues. Surveys and analyses of trends and issues in manufacturing and investment around
2976-545: The market. The standard ISO 26262 , is considered one of the best practice frameworks for achieving automotive functional safety . In case of safety issues, danger, product defect , or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall . Product recalls happen in every industry and can be production-related or stem from raw materials. Product and operation tests and inspections at different stages of
3038-423: The ongoing process, occurring over the last few decades, of manufacture-based industries relocating operations to "developing-world" economies where the costs of production are significantly lower than in "developed-world" economies. From a financial perspective, the goal of the manufacturing industry is mainly to achieve cost benefits per unit produced, which in turn leads to cost reductions in product prices for
3100-625: The opposite; namely that the automotive industry was slowing down even in BRIC countries. In the United States, vehicle sales peaked in 2000, at 17.8 million units. In July 2021, the European Commission released its " Fit for 55 " legislation package, which contains important guidelines for the future of the automotive industry; all new cars on the European market must be zero-emission vehicles from 2035. The governments of 24 developed countries and
3162-615: The period, such as the increasing adoption of locomotives, steamboats and steamships, hot blast iron smelting and new technologies, such as the electrical telegraph , were widely introduced in the 1840s and 1850s, were not powerful enough to drive high rates of growth. Rapid economic growth began to occur after 1870, springing from a new group of innovations in what has been called the Second Industrial Revolution . These innovations included new steel making processes , mass-production , assembly lines , electrical grid systems,
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#17328551873253224-517: The production flow and some had special carriages for rolling heavy items into machining positions. Production of the Ford Model T used 32,000 machine tools. Lean manufacturing , also known as just-in-time manufacturing, was developed in Japan in the 1930s. It is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It
3286-770: The region. Brandenburg's Economy Minister Joerg Steinbach said that while water supply was sufficient during the first stage, more would be needed once Tesla expands the site. The factory would nearly double the water consumption in the Gruenheide area, with 1.4 million cubic meters being contracted from local authorities per year — enough for a city of around 40,000 people. Steinbach said that the authorities would like to drill for more water there and outsource any additional supply if necessary. 1960s : Post-war increase 1970s : Oil crisis and tighter safety and emission regulation 1990s : Production started in NICs . 2000s : Rise of China as
3348-461: The second-largest automobile industry. In 2023, China had for the first time in history more than 30 million produced vehicles a year, after reaching 29 million for the first time in 2017 and 28 million the year before. From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of automobile models in the U.S. has grown exponentially. Safety is a state that implies being protected from any risk, danger, damage, or cause of injury. In
3410-437: The then-well-known technique of chain or sequential production. Ford also bought or designed and built special purpose machine tools and fixtures such as multiple spindle drill presses that could drill every hole on one side of an engine block in one operation and a multiple head milling machine that could simultaneously machine 15 engine blocks held on a single fixture. All of these machine tools were arranged systematically in
3472-416: The top 20 as of 2017, except Mitsubishi which fell out of top 20 in 2016, while Geely fell out of the top 20 in 2014 and 2015 but re-entered it in 2016. It is common for automobile manufacturers to hold stakes in other automobile manufacturers. These ownerships can be explored under the detail for the individual companies. Notable current relationships include: Manufacturers Manufacturing
3534-431: The world focus on such things as: In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development. They have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors. On June 26, 2009, Jeff Immelt ,
3596-457: The world's largest-producing country in 2009. 2010s : India overtakes Korea, Canada, Spain to become 5th largest automobile producer. 2013 : The share of China (25.4%), India, Korea, Brazil, and Mexico rose to 43%, while the share of United States (12.7%), Japan, Germany, France, and United Kingdom fell to 34%. The OICA counts over 50 countries that assemble, manufacture, or disseminate automobiles. Of those, only 15 countries ( boldfaced in
3658-833: Was introduced in Australia in the 1950s by the British Motor Corporation (Australia) at its Victoria Park plant in Sydney, from where the idea later migrated to Toyota. News spread to western countries from Japan in 1977 in two English-language articles: one referred to the methodology as the "Ohno system", after Taiichi Ohno , who was instrumental in its development within Toyota. The other article, by Toyota authors in an international journal, provided additional details. Finally, those and other publicity were translated into implementations, beginning in 1980 and then quickly multiplying throughout
3720-476: Was mechanized during the mid 19th century. Mass production of sewing machines and agricultural machinery such as reapers occurred in the mid to late 19th century. The mass production of bicycles started in the 1880s. Steam-powered factories became widespread, although the conversion from water power to steam occurred in England earlier than in the U.S. Electrification of factories, which had begun gradually in
3782-483: Was now used to handle 150 dozen bottles at a time whereas previously used hand trucks could only carry 6 dozen bottles at a time. Electric mixers replaced men with shovels handling sand and other ingredients that were fed into the glass furnace. An electric overhead crane replaced 36 day laborers for moving heavy loads across the factory. Mass production was popularized in the late 1910s and 1920s by Henry Ford 's Ford Motor Company , which introduced electric motors to
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#17328551873253844-484: Was seen as detrimental to FMC. This Philippines -related article is a stub . You can help Misplaced Pages by expanding it . Automotive The word automotive comes from the Greek autos (self), and Latin motivus (of motion ), referring to any form of self-powered vehicle. This term, as proposed by Elmer Sperry (1860–1930), first came into use to describe automobiles in 1898. The automotive industry began in
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