12448292731Anthony_Black

12448292731Anthony_Black - The economic crisis, competition...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
The economic crisis, competition and the auto industry: a view from the south Pre- ICN Competition and Development Forum Zurich, June 2009 Anthony Black School of Economics University of Cape Town
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
outline Introduction International developments: The depression in the auto industry The response of governments: Growing subsidies and protection Impacts in developing countries Response in South Africa Consolidation and competition in the auto industry Conclusions - what forms of support are appropriate?
Background image of page 2
“By the time we finish with this in the next 24 months, as far as mass producers are concerned, we’re going to end up with one American house; one German of size; one French–Japanese, maybe with an extension in the US; one in Japan (Toyota), one in China and one potential European player”. Sergio Marchionne, Chief Executive, Fiat “What the US is doing right now is highly problematic in terms of competition. One day we in Europe will wake up with a big headache because of it…….Under normal circumstances we would heavily attack what they are doing as competitive distortions. If Daimler for instance had received anywhere near the amount of money General Motors is getting we would have a car war in Europe and overseas” Hans-Peter Keitel, head of Germany’s BDI industry federation
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
International developments: the depression on the auto industry Sharp fall in output, profitability and employment But this is not new In the US, employment in automotive manufacturing has fallen by 30% to 857,000 in September 2008 from 1.2 million in 2001 Fall in trade in automotive products has been particularly severe In South Africa domestic sales in 4 th quarter 2008 were 30% down on 2007 Vehicle exports set to decline by 36% this year from last years record Component sector employment fell by over 20% from Oct 2007 to Feb 2008
Background image of page 4
Global light vehicle production: 51.6 54.2 56.2 54.1 55.6 57.9 61.0 63.0 65.5 69.2 66.2 59.3 64.8 71.7 77.0 80.2 81.5 82.7 50 60 70 80 90 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Year Units (Million) OICA (1998-2007) PwC (2008-2015)
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/05/2011 for the course ECO 103 taught by Professor Mary during the Spring '11 term at FH Joanneum.

Page1 / 19

12448292731Anthony_Black - The economic crisis, competition...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online