What Was Bad for General Motors Was Bad for America: The Automobile Industry and the 1937/38 Recession

2016 ◽  
Vol 76 (2) ◽  
pp. 427-477 ◽  
Author(s):  
Joshua K. Hausman
Keyword(s):  
Automobile Industry ◽  
Auto Industry ◽  
Raw Material ◽  
General Motors ◽  
Gdp Growth ◽  
Aggregate Shocks ◽  
Price Increases ◽  
Material Costs ◽  
Supply Shock ◽  
Wage Increases

This article shows that there were timing, geographic, and sectoral anomalies in the 1937/38 recession, none of which are easily explained by aggregate shocks. I argue that an auto industry supply shock contributed both to the recession's anomalies and to its severity. Labor-strife-induced wage increases and an increase in raw material costs led auto manufacturers to raise prices in fall 1937. Expectations of these price increases brought auto sales forward. When auto prices finally rose, sales plummeted. This shock likely reduced 1938 auto sales by roughly 600,000 units and 1938 GDP growth by 0.5–1 percentage point.

SELISIH BIAYA PRODUKSI SEBAGAI ALAT PENGENDALIAN MANAJEMEN PT INDO PUSAKA BERAU

2019 ◽  
Vol 3 (02) ◽  
pp. 397
Author(s):  
SAFITRI NURHIDAYATI ◽  
RIZKI AMELYA SYAM
Keyword(s):  
Raw Materials ◽  
Field Research ◽  
Analytical Tool ◽  
Production Costs ◽  
Raw Material ◽  
Labor Costs ◽  
Material Costs ◽  
Library Research ◽  
The Difference ◽  
The Cost

This study aims to analyze whether the difference that occurs in the cost of raw materials, direct labor, and factory overhead costs between the standard costs and the actual costs in PLTU LATI is a difference that is favorable or unfavorable. Data collection techniques with field research and library research. The analytical tool used is the analysis of the difference in raw material costs, the difference in direct labor costs and the difference in factory overhead costs. The hypothesis in this study is that the difference allegedly occurs in the cost of raw materials, direct labor costs, and factory overhead costs at PT Indo Pusaka Berau Tanjung Redeb is a favorable difference. The results showed that the difference in the cost of producing MWh electricity at PT Indo Pusaka Berau Tanjung Redeb in 2018, namely the difference in the price of raw material costs Rp. 548,029.80, - is favorable, the difference in quantity of raw materials is Rp. 957,216,602, - is (favorable) , the difference in direct labor costs Rp 2,602,642,084, - is (unfavorable), and the difference in factory overhead costs Rp 8,807,051,422, - is (favorable) This shows that the difference in the overall production cost budget is favorable or profitable. This beneficial difference shows that the company is really able to reduce production costs optimally in 2018.  

Merging Traffic

2018 ◽  
Author(s):  
Mark Slobin
Keyword(s):  
African American ◽  
Auto Industry ◽  
General Motors ◽  
Musical Life ◽  
United Auto Workers ◽  
Folk Revival ◽  
Auto Workers ◽  
The Media ◽  
The 1950S ◽  
Special Case

This chapter surveys the institutions and movements that brought together the city’s musical life with the aim of merging disparate styles, trends, and personnel. First comes the auto industry, based on archival sources from Ford and General Motors that show how the companies deployed music for worker morale and company promotion. The complementary work of labor follows, through the United Auto Workers’ songs. Next comes the counterculture’s musical moment in the age of the folk revival and the artist collectives of the 1950s–1960s. Motown offers a special case of African American entrepreneurial merging of musical talent and style. The chapter closes with a look at the media—radio and newspapers—with their influential role in bringing audiences together, through music, in a city known for segregation, oppressive policing, and occasional outbursts of violence.

The Schumpeterian shock at General Motors in the 1920’s

2018 ◽  
Vol 7 (4) ◽  
pp. 320-335
Author(s):  
Seth W. Norton
Keyword(s):  
Automobile Industry ◽  
Information Economics ◽  
Marketing Channel ◽  
General Motors ◽  
Human Welfare ◽  
Content Type ◽  
Schumpeterian Economics ◽  
Role Of Information ◽  
Practical Implications

Purpose The purpose of this paper is to examine the link between Joseph Schumpeter’s economics and the rise of General Motors (GM). Design/methodology/approach The paper uses regression analysis and time series analysis of market synchronization. Findings There is a strong link between GM rise to dominance of the domestic automobile industry and nuanced features of Schumpeterian economics. Research limitations/implications The paper furthers the examination of the role of information economics on marketing channel performance. Practical implications Information helps in production decisions by synchronizing production with consumer demand. Social implications Economic efficiency enhances the human welfare for better forecasting, lower inventories and greater profits. Originality/value This topic has been explored before but methodology used in this paper is innovative. The paper uses Granger causality.

scholarly journals THE EMERGENCE OF THE AUTOMOTIVE INDUSTRY IN CHINA

2021 ◽  
Author(s):  
Olga Krause ◽  
◽  
Nadiya Golda ◽  
Iryna Pinyak ◽  
◽  
...  
Keyword(s):  
Automotive Industry ◽  
Automobile Industry ◽  
Economies Of Scale ◽  
Joint Venture ◽  
Developed Countries ◽  
Engineering Industry ◽  
General Motors ◽  
Small Range ◽  
Foreign Companies ◽  
Car Market

The engineering industry, including the automotive industry, belongs to the strategic branches of the country’s economy and to a large extent determines the level of development. The Chinese automobile industry dates back to 1953, and the first automobile factory, the First Automobile Works (FAW), was started in Beijing. Over the next few years, several more car factories were established in Nanjing, Khanhai, Jinan and Beijing. The requirements of funds, technologies and automotive modernization stimulated the attraction of external investment. A number of restrictive measures have been adopted to curb external competition, reduce car imports and attract innovative technologies, including high tariff and non-tariff barriers, screening, and restrictions on foreign capital, Limiting market share to foreign companies. When signing the joint-venture agreement, the Chinese side insisted on technology transfer and subordination to the Chinese leadership. Volkswagen first built a car factory in China. Today almost every progressive car company is represented in the Chinese car market, such as Mercedes-Bens, Ford, General Motors, Suzuki, Daihatsu, Honda, Subaru, Citreon, Toyota. Most of them have partnerships with one of China’s top three car manufacturers. American, European, and Japanese automakers see China as a promising market as demand for vehicles in the US and Europe shrinks. To the Chinese automobile market, the cars are made according to the requirements of the local consumer – conservative, with high-quality design, low and middle price segment. Since 2009, foreign automobile companies have accounted for 85% of the Chinese car market. About 60% of the cars sold in China are locally produced. However, China’s automobile industry is highly fragmented and mostly consists of small companies that produce a small range of components. Such production is labour-intensive with relatively low use of advanced technologies compared to car manufacturers in developed countries, often lacking economies of scale. Research expenditure accounts for a large part of the expenditure structure. Most companies produce low-tech parts with significant import presence.

scholarly journals CALCULATION OF PRODUCTION COST IN UD. USAHA BARU WITH FULL COSTING METHOD

2019 ◽  
Vol 4 (1) ◽  
pp. 28-42
Author(s):  
Suprianto Suprianto ◽  
Bina Andari ◽  
Yely Sulistyawati
Keyword(s):  
Production Cost ◽  
Raw Materials ◽  
Analysis Data ◽  
Production Costs ◽  
Raw Material ◽  
Labor Costs ◽  
Material Costs ◽  
Other Information ◽  
Cost Of Production ◽  
The Cost

This study aims to evaluate the calculation of cost of production. The accuracy of the calculation of cost of production is influenced by the suitability in the accumulation and calculation of production costs which includes the cost of raw materials, direct labor costs and other costs (factory overhead costs). This research was conducted at UKM UD. Usaha Baru which aims to determine the calculation of cost of production at UD. Usaha Baru and to find out whether the calculation of cost of production is in accordance with the full costing method. The technique (method) of data analysis used in this study is quantitative analysis. Data collection techniques use interview techniques directly to obtain information from the number of units of monthly production, raw material costs, direct labor costs, and factory overhead costs, as well as other information relating to the calculation of cost of production. Based on the evaluation results for the calculation of raw material costs and labor costs are in accordance with the full costing method. However, the calculation of factory overhead costs is not in accordance with the full costing method because there are costs that have not been included in the calculation of production costs.

scholarly journals PRICE DETERMINATION OF CHICKEN PORRIDGE MSMEs IN FACING RAW MATERIAL COST FLUCTUATION

2019 ◽  
Vol 3 (1) ◽  
pp. 273
Author(s):  
Faizal Haris Eko Prabowo
Keyword(s):  
Raw Material ◽  
Survey Method ◽  
Selling Price ◽  
Price Determination ◽  
Material Costs ◽  
Economic Census ◽  
Revenue Streams ◽  
The Impact ◽  
The City

The culinary industry is currently one of the best industries that are developing, this has become one of the economic supports in several regions. Based on the results of the economic census report of the Tasikmalaya City in 2016 the culinary industry in percentage and number of positions was in the third position followed by the large trade industry which occupied the first position and the processing industry in the second position. This study aims to determine the impact of changes in raw material costs lucratively on the selling price determination of chicken porridge in MSMEs at the City of Tasikmalaya. The population in this study were all MSMEs chicken porridge entrepreneurs totaling 261 units, while the method used in this study was a survey method with a quantitative approach presented descriptively. The result of this study is that changes in raw material costs have an impact of 89.2% on the determination of the selling price of chicken porridge. In fact, this is clearly illustrated by the chicken porridge activists who prefer to set the selling price using a mixed method based on market costs and demand. This is because there is a concern from chicken porridge activists for the risks that they will get such as decreasing sales and automatically reducing their revenue streams.

scholarly journals A Retrospective Look at Rescuing and Restructuring General Motors and Chrysler

2015 ◽  
Vol 29 (2) ◽  
pp. 3-24 ◽  
Author(s):  
Austan D. Goolsbee ◽  
Alan B. Krueger
Keyword(s):  
Automobile Industry ◽  
Decision Process ◽  
General Motors ◽  
Difficult Decision ◽  
Industrial Companies ◽  
Us Economy ◽  
The Us ◽  
Look Back ◽  
The World ◽  
Us Government

The rescue of the US automobile industry amid the 2008–2009 recession and financial crisis was a consequential, controversial, and difficult decision made at a fraught moment for the US economy. Both of us were involved in the decision process at the time, but since have moved back to academia. More than five years have passed since the bailout began, and it is timely to look back at this unusual episode of economic policymaking to consider what we got right, what we got wrong, and why. In this article, we describe the events that brought two of the largest industrial companies in the world to seek a bailout from the US government, the analysis that was used to evaluate the decision (including what the alternatives were and whether a rescue would even work), the steps that were taken to rescue and restructure General Motors and Chrysler, and the performance of the US auto industry since the bailout. We close with general lessons to be learned from the episode.

What Determines Profitability in the Indian Automobile Industry?

2021 ◽  
pp. 001946622110635
Author(s):  
Shilpi Tyagi ◽  
Varun Mahajan
Keyword(s):  
Market Power ◽  
Automobile Industry ◽  
Positive Impact ◽  
Growth Strategy ◽  
Raw Material ◽  
Investment Strategies ◽  
Firm Level ◽  
Global Competitiveness ◽  
Advertising Intensity ◽  
Jel Code

This study tends to examine the firm-level profitability determinants of Indian automobile and ancillary industry which is recognised for its global competitiveness. The study uses recent dataset to investigate the firm-level profitability determinants in the Indian automobile and ancillary industry and records the effect of shifts in profitability due to change in economic environment. This study intends at using real financial balanced panel data for a period 1999–2019 and applies the two-step system generalised method of moments regression model with robust standard errors. The study has found that lagged profitability, marketing and advertising intensity, firm’s market power and operational efficiency have exercised positive impact on firm-level profitability. Negative and statistically significant impact of raw material import intensity and export intensity highlights the need of planning and implementation of appropriate investment strategies. The findings of this study suggest that firms should pay more attention to optimise their operating expenditures, marketing and advertisement expenditures and expand their market power as a part of their survival and growth strategy. JEL Code: L25

scholarly journals Malmquist Productivity Analysis of Top Global Automobile Manufacturers

Mathematics ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 580
Author(s):  
Chia-Nan Wang ◽  
Hector Tibo ◽  
Hong Anh Nguyen
Keyword(s):  
Organizational Performance ◽  
Automobile Industry ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
General Motors ◽  
Net Income ◽  
Productivity Analysis ◽  
Continuous Growth ◽  
Equity Cost ◽  
The Many

The automobile industry is one of the largest economies in the world, by revenue. Being one of the industries with higher employment output, this has become a major determinant of economic growth. In view of the declining automobile production after a period of continuous growth in the 2008 global auto crisis, the re-evaluation of automobile manufacturing is necessary. This study applies the Malmquist productivity index (MPI), one of the many models in the Data Envelopment Analysis (DEA), to analyze the performance of the world’s top 20 automakers over the period of 2015–2018. The researchers assessed the technical efficiency, technological progress, and the total factor productivity of global automobile manufacturers, using a variety of input and output variables which are considered to be essential financial indicators, such as total assets, shareholder’s equity, cost of revenue, operating expenses, revenue, and net income. The results show that the most productive automaker on average is Volkswagen, followed by Honda, BAIC, General Motors, and Suzuki. On the contrary, Mitsubishi and Tata Motors were the worst-performing automakers during the studied period. This study provides a general overview of the global automobile industry. This paper can be a valuable reference for car managers, policymakers, and investors, to aid their decision-making on automobile management, investment, and development. This research is also a contribution to organizational performance measurement, using the DEA Malmquist model.

A Conceptual Model for Measuring Reverse Logistics Performance in Automobile Industry

2014 ◽  
Vol 5 (2) ◽  
pp. 21-29 ◽  
Author(s):  
Kaveh Khalili-Damghani ◽  
Maryam Najmodin
Keyword(s):  
Conceptual Model ◽  
Automobile Industry ◽  
Reverse Logistics ◽  
Structural Equation ◽  
Auto Industry ◽  
Business Environment ◽  
The Body ◽  
Equation Modeling ◽  
Fit Statistics ◽  
Term Relation

Nowadays, organizations are facing two major challenges. First, huge amount of consumed products is considerably destructing the environment and on the other hand, because of increasing competition in business environment, creating long-lasting competitive advantage and long-term relation with customers has become a necessity for organizations to survive and thrive. In this competitive condition, increasing emphasis on protecting environment has made manufacturers to look at reverse logistics as an important competitive factor. So in recent years, many researchers' and practitioners' attention has been focused on reverse logistics and related topics. Regarding the lack of knowledge in the literature of reverse logistics in Iran industry, this research aims to contribute to the body of knowledge in this field of supply chain and specifically talks about reverse logistics performance measurement in auto industry. This paper introduces a conceptual model which measures reverse logistics performance in auto industry and identifies the most important reverse logistics factors and classifies them. The offered model has been verified by structural equation modeling method and fit statistics have been assessed in auto-industry of Iran. The results of this research will exhibit a proper classification of factors which influence reverse logistics performance and their significance in auto-industry.

Sign in / Sign up

Export Citation Format

Share Document