The Automotive Sector of Industries in Eu
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THE AUTOMOTIVE SECTOR
Introduction
The automotive industry is a key industry in the European economy characterised by having few vehicle manufacturing firms and a substantial number of independent suppliers to which about 2/3 of the production is outsourced. The output includes cars, light trucks and vans, buses and coaches, medium and heavy trucks, motorcycles and agricultural and forestry tractors.

The automotive industry has for a long time seen mergers and acquisitions. Currently the main EU car industry is composed of DaimlerChrysler, Volkswagen (VW), BMW, Ford Europe, General Motors (GM) Europe, Renault, PSA (Peugeot-Citroлn), Fiat and Porsche. In addition there are a number of small manufacturers. Some Japanese manufacturers also have significant production facilities in the EU.

The EU truck industry buses and coaches sector has seen a similar consolidation. Europe now sees Volvo, Scania, Iveco, DaimlerChrysler, MAN and Daf.
European market
The EU is the largest automotive production region (34%) in the world and the industry comprises 7,5 % of the manufacturing sector in the Union. Direct employment by the automotive industry stands at about 2 million employees, while the total employment effect (direct and indirect) is estimated to be about 10 million.

Since the year 2001, the motor vehicle production has decreased in the European Union: from 17.2 million units in 2001 to 16.9 million units in 2002. The decline continued into 2003, with 70 000 motor vehicles less being produced, compared to 2002. The market for trucks and buses saw a more severe decline than the one for passenger cars over the period 2001-2003.

The decline since the year 2000 is basically due to the worsening of the macro-economic situation where consumer demand has been decreasing.
Trade
In 2002 the EU imported motor vehicles from the rest of the world with a value of more than Ђ 30.4 billion. Exports during the same time period were roughly double that amount: Ђ 66.2 billion.

Europe benefits from a trade surplus in this sector mainly due to its exports to the US and the Central and Eastern European countries. A very different situation appears when we consider import and export of motor vehicles with Japan and South Korea. Import from these countries is not offset by an adequate level of exports. As a result the European Union holds a trade deficit in this sector towards

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Automotive Sector Of Industries And Light Trucks. (June 21, 2021). Retrieved from https://www.freeessays.education/automotive-sector-of-industries-and-light-trucks-essay/