Automotive Industry: Crisis and Innovations

317
DOI: 10.20542/0131-2227-2011-3-12-21

V. Kondrat'ev, Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation (v.b.kondr@imemo.ru)

Abstract. Banking and financial collapse of late 2008 extremely heavily hit the automotive industry in most countries. In 2009, the production of cars in the world dropped to 57 million units compared to 68 million in 2007. At the same time, recent statistics show that the industry is rapidly recovering from the worst crisis in its history. In the 1st quarter of 2010 car production in the world increased by 57% compared to the same period of 2009. In China, Canada, Mexico and Great Britain it increased by more than 70%. Volkswagen, Ford Motor Company and FIAT announced major investment plans, particularly in China and Latin America. Accordingly, it is expected that in 2010 the global car production will grow to 70 million units, and to 88 million by 2016, 40% of all sales will be in the Asia-Pacific region. Reduction of the automotive industry in Russia turned out to be deeper than anywhere else – 49% in 2009 against the previous year's level. For comparison: in the United States reduction amounted to 21%, in Spain – to18, in Japan – to10, in the UK – to 6.4, in Italy – to 0.2; while in China the production grew by 44%. Nevertheless, the Russian automotive industry is also showing signs of recovery, primarily because of the governmental program of recycling old cars.

Keywords: automotive industry, global economic crisis, investment, innovation, competitive advantage, cost minimization, outsourcing


Registered in System SCIENCE INDEX

For citation:
Kondratev V. Automotive Industry: Crisis and Innovations. World Eonomy and International Relations, 2011, no. 3, pp. 12-21. https://doi.org/10.20542/0131-2227-2011-3-12-21



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 4
Topical Themes of the Issue:
  • Financial Contagion Propagation in Europe under the Impact of Global Shocks
  • Regional Powers on the African Continent: Trends and Prospects
  • Investment Activity of the PRC in the Kyrgyz Republic
  • “Land Grabbing” Concept: Global and National Aspects
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.