You are the CEO of a European auto maker group (Audi) that is planning to launch

Question

You are the CEO of a European auto maker group (Audi) that is planning to launch a subsidiary in Detroit Michigan (USA). The size of the European company is the equivalent of a fortune 500 company in the USA. You are asked to research the market and international management issues, including finding detailed data. You should consider the broad auto industry in the USA but you will also be asked to find detailed information about the major companies that operate in that industry.

History of the industry?

History of Audi in couple paragraphs

Explanation / Answer

Automobile industry in USA:

The US automobile industry contributes 3-3.5% to the national GDP and is one of the largest markets in the world. All major international car-makers have a presence in the US market. In addition, many indegenous manufacturers also provide tough competition to the foreign carmakers. In 2016 total production in the US reached almost 12 million passenger vehicles. As per official records, "international automakers have invested over $75 billion in 32 U.S.-based production facilities in 14 states, as well as additional research and development facilities in 16 states. They directly employ more than 130,000 Americans." Major players in the US market are: Honda, General Motors and Ford. In addition, automotive-parts also constitute a booming industry in the US. According to a study conducted by IHS Markit and released by the Motor & Equipment Manufacturers Association, " the total employment impact of the auto parts industry was estimated at over 4.26 million jobs directly and indirectly nationwide in 2015." Foreign players started entering the US market since early 1980s and most of them are success stories like Honda.

Ans 2) History of Audi:

Initially established as Wanderer, the name Audi is actually a latin translation of its founder, August Horsch's name.Horsch means 'to listen' which becomes Audi in Latin. According to wikipedia, " Audi started with a 2,612 cc inline-four engine model Type A, followed by a 3,564 cc model, as well as 4,680 cc and 5,720 cc models. These cars were successful even in sporting events. The first six-cylinder model Type M, 4,655 cc appeared in 1924." The first breakthrough value proposition by Audi was in 1921: left handed driving. It won so much popularity that the company never had to look back.

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