I am completely satisfied to see that my interest in consolidation in China’s auto industry is shared by others. While the country has the capability and resources to accommodate three major carmakers – Škoda Auto (Volkswagen Group), TPCA (Toyota/PSA joint venture) and Hyundai Motor Manufacturing Czech – and holds glorious business opportunities for suppliers, the Czech Republic is poised to consolidate its position as one of the main European centres for automotive-related design and R&D exercise.

As well as, the degree of rivalry in the automotive industry is further heightened by excessive fixed prices related to manufacturing cars and vehicles and the low switching costs for shoppers when shopping for completely different makes and fashions” (, 2006).

The American automotive industry confronted a big challenge in 1973 when the primarily Arab Group of Petroleum Exporting Nations (OPEC) banned petroleum exports to the United States in response to its help of …