Auto Parts Manufacturing – France and Korea – Analysis 2

In my previous post, I compared raw materials production Mean scores of countries that have companies in the top 10 for Auto Parts Manufacturing. I was looking for data that would confirm my initial assumption that countries with a larger share of raw material production would have a greater number of companies in the top 10 for Auto arts Manufacturing.

The data indicates that this assumption is incorrect.

The USA was the run away winner with a Mean score of 4.29. In second place was Japan with 6.71. If my assumption was correct, the USA would have have the greatest percentage Auto Parts Manufacturers in the top 10; however this was not the case.

Putting the USA data aside, France and Korea had high scores of 9.14 and 10. Those nations had very little raw material production but somehow had 1 company each in the top 10.

This generated the normal set of questions around France and Korea – Why? How?

  • Had France and Korea engineered favorable trade policies and partnerships in order to receive the raw materials their companies needed to produce auto parts?
  • Did the French and Korean governments have progressive business regulations that allowed for their companies to flourish?
    • If this was the case, wouldn’t or should’t there be more companies that pop up in France/Korea that are in the top 10? Perhaps.

I started to think that I should look at top 100 companies and count how many were based in France or Korea. I read somewhere that the initial investment needed to start up an Auto Manufacturing plant was extremely high, perhaps this was also the case for Auto Parts manufacturers, acting as roadblock for new firms to startup in France and Korea.

The Ontario Red Tape Challenge question:

“Ontario is committed to developing modern, outcome-focused and evidence-based regulations. Tell us how you think we can improve regulations to better support business. By reducing the burden to business while protecting consumers, workers and the environment, Ontario is helping to create the right climate to create jobs and grow the economy.”


Next post will be more about France and Korea.





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