20.7.1.5. Read the text “The European Car Industry” and determine the volume of exported/

Imported cars by the eu to/from the rest of Europe, Japan, and North America (Table 13). Compare

your answers with a partner.

The European Car Industry

The European car industry has undergone significant changes throughout the 1980s and 1990s:

• national governments have transferred ownership of most car manufacturing firms to the private

sector;

• as a result of falling demand and over-capacity in the early 1990s there has been a number of

plant closures, mergers, a reduction in the range of models produced and measures taken to

raise efficiency;

• national quotas on imports of Japanese cars have been gradually reduced and will be removed in

2000-2010 To create a fully open eu market;

• there has been significant investment by Japanese producers in car manufacturing plant in the EU.

Despite these changes the European car industry remains a market which is segmented along

national lines. It is argued that the benefits of the EU’s Single Market programme have not, therefore,

materialised in the car market.

The data below provide an insight into aspects of the characteristics of this market (Table 20.2—

20.3).

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Table 20.2. New cars registration in West Europe in 2003

Country 2003 2002 Change, 2003/2002, %

Germany 3 235 960 3 252 898 -0,5

Britain 2 579 050 2 563 631 0,6

Italy 2 251 307 2 279 612 -1,2

France 2 009 254 2 145 071 -6,3

Spain 1 383 017 1 331 877 3,8

Netherlands 488 944 510 702 -4,3

Belgium 458 796 467 569 -1,9

Austria 300 714 279 493 7,6

Switzerland 270 359 295 065 -8,4

Sweden 261 206 254 589 2,6

Greece 257 293 268 489 -4,2

Portugal 189 829 226 092 -16

Finland 147 405 117 034 26

Ireland 145 331 156 112 -6,9

Denmark 96 016 111 598 -14

Norway 89 921 88 721 1,4

Luxemburg 43 624 43 403 0,5

Iceland 9 886 6 943 42,4

Total 14 217 912 14 398 899 -1,3

Table 20.3. New cars registration in Western Europe in December 2003 (by manufacturers)

Company 2003 2002 Change, 2003/2002, %

Volkswagen 2 586 178 2 651 521 -2,5

PSA 2 106 261 2 163 836 -2,7

Ford 1 564 788 1 637 153 -4,4

Renault 1 504 454 1 541 077 -2,4

GM 1 391 699 1 431 113 -2,8

Fiat 1 058 767 1 178 474 -10,2

DaimlerChrysler 922 867 948 844 -2,7

Toyota 674 656 629 971 7,1

BMW 627 552 618 864 1,4

Nissan 398 435 353 424 12,7

Hyundai 246 900 224 571 9,9

Mazda 206 568 158 445 30,4

Honda 192 401 180 111 6,8

Suzuki 145 196 150 259 -3,4

MG Rover 138 055 141 852 -2,7

Mitsubishi 117 144 118 828 -1,4

Kia 107 631 72 529 48,4

Другие 228 360 198 027 15,3

Всего 14 217 912 14 398 899 -1,3

Source: www.autostat.ru

20.7.2. Match the following terms with the correct definition

Work with a partner.

1. La scotrsnae .Iltfse5uvym ltrsce4nopreg ..Ifacpltrae .6mre23bour a) Intangible, non-transferable economic goods as distinct from

physical commodities. Services are difficult to define unam-

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biguously. The output of some services from, for example, a

bank may take a physical form (a cheque or bank statement);

while, although many services are consumed at the point of

sale and are not, therefore, transferable (for example a concert

or a haircut), a service in which knowledge is imparted

(for example a medical consultation or tax advice) may be

freely transferable from one consumer to another.

b) The fusion of two or more separate companies into one. In

current usage merger is a special case of combination, where

both the merging companies wish to join together and do so

on roughly equal terms, as distinct from a take-over, which

occurs against the wishes of one company.

c) The total opportunity costs of moving goods or materials from

one place to another including loading/unloading costs and

administrative costs, as well as transport costs.

d) Assets which are capable of generating income and which have

themselves been produced. Capital is one of the four factors

of production, and consists of the machines, plant and buildings

that make production possible, but excludes raw materials,

land, and labour.

e) A factor of production. The term not only includes the numbers

of people available for or engaged in the production of goods or

services but also their physical and intellectual skills and effort.

f ) A situation in which everyone in the labour force who is willing

to work at the market rate for his type of labour has a job,

except for those who are switching from one job to another,