The Global Auto Industry is an Oligopoly

The global automobile industry is not a highly competitive industry with thousands of players. Instead just like in other major industries, the auto industry is an oligopoly where a handful of firms dominate the market. Small companies trying to enter and compete against the giants is mostly impossible. For example, in the US the market is concentrated with just three companies – Ford(F), General Motors(GM) and Chrysler, which is now Fiat Chrysler Automobiles N.V.(FCAU) after the merger of Fiat and Chrysler in 2014.

Globally 14 firms control 62 brands as shown in the chart below. Most consumers may not be aware the same company owns multiple brands.

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Source: Why Hitting the Gas on Car Tariffs Could Stall Everyone, Startfor

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