The Automobile Industry

  • Ashoka Mody
  • David Wheeler


In broad outline, the emerging dynamics in the world automotive industry look similar to those in electronics. Three features of the current competitive environment are particularly noteworthy. First, microelectronics are having a powerful impact on production technologies in the industrial countries. Possibilities for labor-saving mass production or flexible custom assembly are expanding rapidly. Secondly, product innovation continues at a rapid pace. Microelectronics and new materials are beginning to have a pronounced impact on automotive products. Some current models incorporate high-strength plastic body components and radically new transmission and steering systems. The next few years will witness replacement of metal by ceramics in major engine components; replacement of traditional wiring by single-cable communications systems linking smart power chips; and the advent of computer mapping and first-generation vehicle guidance systems.


Unit Cost Automobile Industry Japanese Firm Auto Industry Toyota Production System 
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Copyright information

© Ashoka Mody and David Wheeler 1990

Authors and Affiliations

  • Ashoka Mody
    • 1
  • David Wheeler
    • 2
  1. 1.The World BankWashington, D.C.USA
  2. 2.Boston UniversityUSA

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