Nombre: Diana Michelle Díaz de Sandi Almanza Matricula: 3002675

Nombre del curso: Nombre del profesor:

Assignment 2
Module 1 Industrial clusters and technology

Fecha: August 31, 2023

Bibliografía:
 Automotive Industry Value chain Analysis | EDrawMax Online. (s. f.). Edrawsoft. https://edrawmax.com/article/automotive-
industry-value-chain-analysis.html
 Topic: Automotive industry in Latin America. (2023, 31 agosto). Statista. https://www.statista.com/topics/5282/automotive-
industry-in-latin-america/#topicOverview
 Leading car manufacturing countries worldwide | Statista. (2023, 23 junio). Statista.
https://www.statista.com/statistics/584968/leading-car-manufacturing-countries-worldwide/
1. Develop a diagram applying Porter´s Value Chain to the automotive industry in the
Americas.

Infrastructure: It involves managing the organizational structure and culture of the business. To increase earnings, it is
crucial to understand who is in charge of each department and to make sure the business's finances are well-managed.
Human resource management: It is an important part of the business since motivated employees who are well-
managed are essential to the brand's success. This section covers topics like hiring and training new human capital, as
well as performance control.
Technology development: Technology now permeates every aspect of the automobile industry, right down to the earliest
and last steps of the value chain. Technology advancement strives to improve vehicle design, passenger safety, and
emission control, all of which are issues that are becoming more and more of a global and industry concern.
Procurement: The goal of procurement management is to lower the cost of raw materials from suppliers, and it is crucial
to maintain low costs across the company's value chain. Additionally, it increases client trust because they are aware of
the level of quality and performance they may expect from the company's products.
Inbound logistics Operations Outbound logistics Marketing and sales Service
This entails gathering, The company provides
Obtaining raw The previously handling, storing, and Since the product only customer service after
materials from provided raw transporting the product attracts buyers' attention the product is sold and a
vendors, distributing materials are used to to its final location. While during marketing and continuing platform for
them along the create the product the concentrating on sales, these activities are the maintenance of the
production line, and business is designing. reducing production costs crucial to the value chain. product as the final
starting the Many manufacturers and times, it must still Advertising, promotion, activity in the automobile
production process. have operations maintain its commitment client relationship industry value chain.
It's essential to have spread across the to its clients and core management, Additionally, this practice
a good working world to provide values. It is crucial that distribution, and sales increases brand
relationship with the quicker deliveries and structured transportation management are all ways recognition and
supplier in order to more affordable and delivery meet the to do it. The idea is to consumer retention. A
get the materials at shipping to various highest standards in reach the correct company's image to the
the lowest possible regions. order to satisfy the needs audience, educate them public and its customers
price. of the clients because about the product, and is reflected in its
this can be a fantastic increase sales. meticulously managed
approach to creating customer service.
value.
1. Research and highlight the Latin American locations that play an important role in the
industry. It is mandatory to use recent references.
In contrast to the approximately 7.5 million units sold at the peak of the decade, new car
sales in Latin America fell to below 4.3 million units annually in 2020, a decrease of about
40.8 percent. The economic crisis that affected Brazil at the time, the region's largest
market for automobile sales, has at least some bearing on this behavior. The sales of
new cars in Mexico have also been on a similar trajectory. Argentina, though, recorded
what was presumably the most serious example.
The most developed economies in Latin America are those of Mexico and Brazil, which
in 2020 produced slightly under 3.2 million motor vehicles in Mexico and just over two
million in Brazil. The passenger vehicle market saw growth of 11.7% in 2021 with 4.4
million units sold. The Chilean market saw the largest increase in sales in the area,
increasing from 258.8 million units in 2020 to 415.6 million units in one year.
Meanwhile with a forecast growth of 22.9%, Uruguay is predicted to be the most robust
economy, followed by Mexico (12.3%) and Ecuador (9.7%).

2. Find which locations abroad are similar to those here in Mexico and explain why.
After two years of decline caused by the pandemic and then by the decline in
microprocessor shipments, the automotive industry resumed growth in 2022. 85,02
million vehicles were produced globally in the previous year, including both automobiles
and commercial vehicles (light commercial vehicles, heavy commercial trucks, buses,
and microbuses). This figure represents a 6% increase over the amount manufactured
in 2021, although it is still a bit behind the record-breaking year of 2017, when global
vehicle production increased to 97,30 million units.

In 2022, China produced more than 27 million cars and commercial vehicles, dominating
the global motor vehicle market. This was significantly higher than the sum of the output
values of the remaining top five nations. Comparatively, the United States, the second-
ranked nation, produced almost ten million automobiles, the majority of which were
commercial vehicles.
 Leading car manufacturing countries worldwide | Statista. (2023, 23 junio). Statista.
https://www.statista.com/statistics/584968/leading-car-manufacturing-countries-worldwide/

Conclusion.
The second-largest economy in Latin America, Mexico, has one of the region's most
significant manufacturing sectors. Since the industrial sector accounts for more than 17%
of the nation's gross domestic product (GDP), it is extremely important. Thanks to it,
Mexico supplies raw materials and industrial inputs to many international markets,
supplying anything from food and drink to more complex technologically advanced goods
like automobiles. As a matter of fact, one of the pillars of Mexico's manufacturer sector is
the automobile industry. As a result, Mexico is the Latin American country that produces
the most motor vehicles and holds the seventh position among the world's top car
manufacturing nations.

Mexico's automobile sector, which had its beginnings in the early 1900s, has since made
tremendous strides toward becoming a manufacturer that is competitive on a worldwide
scale. The country's passenger car market is expected to have generated over 51.4 billion
dollars in revenue in 2021, a 25% increase from 2020's figures. Market predictions
indicate consistent growth throughout the ensuing four years.

The Latin American region's leader and one of the world's biggest makers of automobiles
in 2020 was the North American nation. Mexico's car industry has since made a steady
comeback, although suffering a sharp decline in the value of automobile production in
April and May 2020 because of lockdown measures to contain the spread of COVID-19.