Daimler Chrysler

The auto industry is the world's largest manufacturing industry. Overcapacity in this high fixed-cost industry is not distributed equally around the globe. Also, the effect of "lean manufacturing" and heavy concentration was changing the structure of the auto industry - only two suppliers remained for producing fuel injection systems. Marketing and brand image is key as the distribution channel, including marketing expenses, account for up to 30% of a vehicle purchase price. The auto industry has also become knowledge-intensive, and the impact of technology through R&D is a crucial aspect of differentiating cars. …