Western European Car Industries & Economies of Scale :: Business Economics Car Industry

horse opera atomic number 63an Car Industries & Economies of Scale There ar a readiness of factors that determines whether or not a company testament be successful. These factors be usually derived from economics. One factor that I plan to focus on is scale economies or better known as economies of scale. Firms that have spread out their scale of operations to obtain economies of mass production have survived and flourished. Whereas littler firms who have not been able to expand have usually finish up as high-cost producers. The topic discussed will be the Italian self-propelled manufacturing and how it is affected by economies of scale. As the economic integration of Europe continues, it is likely that increasing international competition will affect firms in European industries. As otherwise countries expand and have more employment worldwide, the more the European economy will be affected. The economy will tend to buy from outside of Europe due to taste and dismantle prices. There would be more firms to choose from decreasing Economies of scale are significant because motor vehicle manufacturing is an perseverance based on growth. Since the self-propelled industry being discussed is in Italy, it is based primarily around adept company, rescript. The majority of sales of automobiles in Italy are acquired by Fiat. The automotive industry constitutes a substantial part in the European economy because this industry makes up 10 percent of total manufacturing output. An economy of scale is an pregnant factor within the Italian automobile industry. This is due to continuing European integration and that the Italian automobile industry is dominated by a company known as Fiat. Fiat was founded in July 1899. Fiat started with a plant in New York that manufactured then established relationships with other countries pourboireing to exports to France, Austria, Great Britain and Australia. Since Fiat was called on for a lot of equipment during WWI, Fia t became well known throughout Europe. As years passed Fiat began to in like manner acquire other automobile companies such as Lancia, Autobianchi, Abarth, Alfa Romeo, Maserati and Ferrari. In 1988, 59.9% of the vehicles sell and approximately 99.2% of the automobiles produced in Italy were made by Fiat. The company continued to visualize numerous international agreements for the manufacturer of Fiat products and to expand its investments. This also lead to new factories that were built outside of Italy, which were South Africa, Yugoslavia, Argentina, Turkey and Mexico.