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1、ReviewofIndustrialOrganization19:5569,2001.55©2001KluwerAcademicPublishers.PrintedintheNetherlands.Automobiles:TheOldEconomyCollideswiththeNewJOHNE.KWOKA,JR.DepartmentofEconomics,GeorgeWashingtonUniversity,Washington,DC20052,U.S.A.Abstract.TheU.S.automobileindustryisbeginnin
2、gtoconfrontthenextmajortechnologytheinternet.Business-to-businessmanufacturingsystemsandsupplyexchanges,togetherwithbusiness-to-consumerorderingandpurchasesystems,allhavethepotentialtobringgreatefficienciestothistraditionalindustry.Buteachoftheseinnovationsraisesnewcompetitive
3、issues.Internetorderingwillgreatlydiminishtheroleofconventionaldealers,whohavethusfarblunteditsimpact.B2Bexchangesraiseconcernsaboutbuyerpowerandothercompetitiveeffects.Thispaperoutlinesandanalyzestheseinternet-drivenchangesandtheircompetitiveimplicationsfortheindustry,itsdea
4、lers,suppliers,andcustomers.Keywords:Autoindustry,internet.I.OverviewTheadventoftheinternethasspawnedenormousnumbersofnewenterprisesandevenentirenewindustries.Whilethesehaveattractedwell-deservedattention,atleastasimportanttotheproductivityoftheU.S.economywillbehowoldeconomyi
5、ndustriesrespondtotheopportunitiesandchallengespresentedbytheinternet.NowhereisthiscreativetensionmoreclearthanintheU.S.automobileindustry.Thisupdatewillanalyzehowtraditionalmethodsofproducingandsellingpassengervehiclesinthiscountryarebeingtransformedbytheinternetwhatforcesar
6、epushingforchangeandwhichareimpedingit,andwhatpolicyissuesareraisedbysomeofthenewmethodsofdoingbusiness.Formostofthelasthundredyearsautomobilesinthiscountrywereproducedandsoldthesameway.Automanufacturerswouldprojectdemandforvehiclesoverthenextyearormore,andthendesignandbuilde
7、achmodelinnumbersthatsoughttobothreflectdemandandkeepplantsrunningnearcapacity.Majorcom-ponentslikeenginesandtransmissionsweremanufacturedatvariouslocationsandshippedtooften-distantassemblyplants.Otherpartsandcomponentsmightalsobeproducedbythecompany,oralternativelypurchasedfr
8、omanyofthousandsofsupplierswhoperiodicallybidforeachmanufacturersbus
