When the first automobile was introduced, the technology was quite advanced. An external combustion engine made it possible to manufacture cars that were very powerful, safe, and affordable. In 1904, the Oldsmobile came on the scene and revolutionized the automobile industry. This car sold for $650 and surpassed the output of any other automobile in the world.
In order to survive in the present, the Automobile industry needs to reinvent itself to adapt to the changing consumer demands. In the past, the Automobile industry was a product-out type of business, focusing on manufacturing and selling cars. Today, however, the Automobile industry is turning its focus from manufacturing to service. To remain competitive, companies must plan their future products and services ahead of time. They must ensure that their products are as good as their competitors’, and they must be able to forecast demand.
The Automobile industry is an important part of the U.S. economy, supporting more than 10 million American jobs and eight percent of private sector employment. These jobs generate $650 billion in national payrolls each year and support 11 other industries. This strong economy has contributed to a steady increase in sales. The growth of the light truck industry is one reason for the continued growth of the Automobile industry.
Development of external combustion engines
External combustion engines in automobiles have many advantages over internal combustion engines. They offer lower emission levels and a higher air-to-fuel ratio, and they don’t require any additional heat-neutralizing devices. In addition, the combustion products from an external combustion engine are typically cooler than those of an internal combustion engine.
To meet the stricter emission standards set by the European Union, many cars are now equipped with exhaust gas after-treatment systems. These systems reduce exhaust gases and have become mandatory for all new vehicles sold in the EU. Further improvements in this technology will continue to be needed in order to meet the new EURO norms. The use of gasoline particulate filters is expected to reduce Particulate Matter emissions, while Lean NOx traps will help reduce Nitrogen Oxide emissions.
Safety standards for automobiles
Safety standards for automobiles were developed to protect people from injuries caused by automobile crashes. In the year 1966, the Safety Act was passed in response to the growing number of traffic accidents and injuries. It mandated minimum safety standards for automobiles in the United States. Today, there are many safety features that are standard on new cars.
A third brake light is mandated by the United States and Chrysler becomes the first automaker to include air bags. Passive restraints like air bags protect occupants during an accident, but do not protect the driver in a head-on collision. In addition, the Side Impact Protection System is introduced by Volvo, which incorporates a crumple zone to absorb energy during a side-impact collision.
Cost of automobiles
The cost of automobiles can vary greatly, depending on many factors. The most prominent cost driver is raw materials, which make up approximately 34% of the total cost of automobile production. Another large driver is research and development, which accounts for 16% of manufacturing costs. In addition, carmakers must factor in direct labor costs and advertising charges. They also must include sales tax, which helps determine the price of the car on the market. Other factors include depreciation, dealership markups, and logistics.
The cost of owning a motor vehicle is important for both personal and business decisions. This cost is usually calculated on a per-mile basis. The cost of fuel, tires, and maintenance are some of the variable expenses. If the vehicle is used for business purposes, the cost may also include operator labor.