|
|
Change Your Life! |
Globalization has had big impact on transport makers |
|
News |
May
6, 2000 GENEVA, MAY 5 (AP) - Vehicle makers may end up as simply marketers of a brand name who provide credit and insurance for customers, while the Internet could soon make car dealerships a thing of the past, according to a U.N. report issued Friday.
The International Labor Organization report on transport manufacturing said globalization has changed the industry and outside component makers are becoming more and more important.
"With improved, speedier transportation, freer trade, lower tariffs and new pricing structures, globalization has become the most profound development in transport equipment manufacturing since Henry Ford's assembly line," said Paul Bailey, the report's author.
The 191-page report said the construction of automobiles, trains, aircraft and ships accounts for up to 13 percent of industrialized countries' manufacturing jobs and up to 40 percent of their manufacturing exports.
But a car billed as "Made in the USA" may now be the result of German design, Singaporean parts, Japanese electronics, South Korean subassembly, British marketing and Irish data processing.
Automotive companies may ultimately become simply marketing firms, built around a recognized logo and providing the customer with credit, insurance and financing, the report says.
Auto manufacturers also are increasingly using the Internet, and some companies already offer customers the possibility to configure and order their own cars online. "Car dealerships may become a thing of the past," the report adds.
These changes are significant for governments, workers and employers, especially in the automobile industry, which "is so paramount in many countries that it is often considered by governments to be barometers of their economies," the report adds.
Other transport industries also face significant impacts from globalization. Shipbuilding has declined in Europe and North America as it has moved to cheaper Asian labor markets.
Ship breaking has become a "race to the bottom" as strict environmental laws lead the industry to move to poor countries where health and safety standards are not enforced.
|