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The International Trade Deficit Affects the Automotive Industry

Update:16 Apr 2021
Summary:

The auto parts business consists of a wide array of bus […]

The auto parts business consists of a wide array of businesses and organizations engaged in the manufacture, design, development, production, sales, and service of automobile and related automotive equipment and supplies. Auto parts consist of brake pads, tires, clutches, engine parts and radiators. Automotive equipment is used to replace or repair motor vehicle components. There are two basic types of auto parts - OEMs, or original equipment makers; and aftermarkets, or accessories or replacement parts. OEMs are directly involved in the manufacturing process of their product; however, they have limited distribution channels and must rely on independent agents to provide them with aftermarket products.

The auto parts industry employs millions of workers worldwide. In the United States alone, the automotive supply market is estimated to be worth $25 billion. China, India, and Japan combined, are responsible for about a billion dollars in sales annually. The three emerging economies collectively account for another billion or so.

As the auto parts market continues to expand, more fuel-efficient vehicles will be produced, which will help the economy. Consumers are willing to pay more for fuel-efficient cars, trucks, and vans because they save money on gasoline costs. The auto parts industry is one area where fuel efficiency is being pushed strongly. The United States government and many environmental groups are pushing for increased fuel efficiency across all vehicle classes. This has created a huge demand for oil and gas-efficient automobiles and trucks.

The auto parts manufacturers are adapting to this trend by developing vehicles that are more fuel efficient. Bosch is a company known for its high quality products and Bosch products are especially popular among the automotive industry. Robert Bosch was born in Germany in 1931 and earned a degree in mechanical engineering. After working with the U.S. Air Force, Bosch founded his own company, eventually selling it to General Motors.

Today's cars and trucks came in a variety of styles and sizes. The need for auto parts and aftermarket car parts has never been greater. Many consumers cannot afford new vehicle models, and others cannot find used vehicle models to purchase. For these consumers, used vehicle parts and auto parts from reputable automotive dealers are the answer.

Japan is the largest producer of automobiles in the world, but their products are inferior to those made in the United States and Europe. Recently, the car manufacturers from Japan have joined the global auto part manufacturers' competition. In early 2021, Toyota and Honda announced that they would produce hybrid and plug-in hybrid vehicles in the United States. GM also plans to build a new hybrid version of its popular Corvette.