IntroductionThe evolution of the automotive industry has been influenced by various innovations in fuels, vehicle components, social infrastructure, and manufacturing practices, as well as changes in markets, suppliers, and structures corporate. Currently, the main competitors in the industry are Ford, DaimlerChrylser, General Motors GM, Honda, Toyota and Nissan. The best-known pioneer of automobile manufacturing was Henry Ford, who built his first automobile in 1896 and founded the Ford Motor Company in 1903. Ford became famous for pricing the Model T competitively and perfecting line production automotive assembly company that revolutionized the automotive manufacturing industry and integrated ownership in the United States. During this period there were originally 500 automobile manufacturers. In 1908 there were only 200; and by 1917 only 23 remained. This vast reduction was due to large-scale consolidation within the industry. In the future, the global automotive market is full of potential. Such growth is expected not to occur in the United States, but rather in countries such as China, India, the Pacific Rim, South Africa and South America. Other future commitments include low-emission cars, which should enable sales expansion. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into electricity, hoping to make future vehicles more environmentally friendly. As we move forward, the automotive industry will see more changes in the next 10 years than in the last 100. Now we will take a look at the automotive industry through Michael Porter's five forces analysis model. There are five different areas that affect an industry: (1) threat of substitutes; (2) barriers to entry, (3) supplier power, (4) buyer power; and (5) degree of rivalry. By analyzing each of these areas we will learn what influences and drives the automotive industry in today's society. Threat of Substitute Products There are not many substitute products for cars. The most common substitutes are planes, trains, buses, walking or cycling. All these different forms of transportation depend on geographic location, availability and the resulting cost to the consumer. In some cities like New York or Chicago a car is not necessary. In cities like these, the subway, bus, bicycle or walking are the most effective means of transportation.