Infrastructure of the automotive industry

The automotive industry has traditionally been highly important to the global economy both in terms of the goods that it provides and the jobs that it allows for. It directly contributed 3.6 percent to the GDP of the United States at the time of the financial bailout and, according to the United States Bureau of Labor Statistics, currently employs around  3,470,000 people nationwide.

The primary focus of the auto industry is the production, development, sale, and distribution of motor vehicles, and this task is accomplished using a vast infrastructure that encompasses three main layers and has a large variety of different functions.

The bottom layer consists of all of the parts of the automotive companies relating to the production and development of motor vehicles. The primary purpose of this layer is to ensure that motor vehicles are consistently being produced and that they possess the right qualities to be sold in the market. This layer includes the factories used to build motor vehicles, and the labratories used for research and development of them.

The top layer of the industry is the consumer, who is eventually the recipient of the vehicles produced at the bottom layer. The purpose of this layer is to provide funding back to the top layer so that it can perform its job with more effectiveness. This layer is very broad and could inculde anyone who directly purchases a vehicle from an automotive company.

The final layer consists of all the parts of the automotive companies relating to the sales and distribution of motor vehicles. The primary function of this layer is to serve as middleware and connect the top and bottom layers in order to ensure that the fully produced motor vehicles are distributed amongst the consumers and that the money from the consumers is distributed amongst the company. This layer has a few different components including salesmen, marketers, and dealers.

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2 Responses to Infrastructure of the automotive industry

  1. lzaima says:

    Nice post!
    Couple points of interest. Does this sentence, “The purpose of this layer is to provide funding back to the top layer so that it can perform its job with more effectiveness.” intend to use “funding back to the bottom layer” rather than the top layer or is it correct in its current iteration?

    Even though it would take a dissertation’s worth of pages to explain the entire middleware of the automotive industry, it’s worth noting that middleware processes are changing rapidly within the industry. One that comes to mind is how the popular types of vehicles are shifting from powerful SUVs and trucks to smaller sedans with better fuel mileage, including the growing popularity of hybrid and electric cars.

  2. mattpuls says:

    I feel this simplified model of the automotive industry leaves out very important elements from both the list of components and middleware as well as the purpose of the layers. You said that the purpose of the top layer was to finance the producers, which I would argue is false. I feel that the purpose of this layer is to use the product, and the secondary purpose is the purchase of the product. I feel you did not name much of the middleware, not including things like regulations and standards from the government. Parts suppliers could also be named as middleware, supplying the manufacturers.

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