The automotive vehicle manufactures are also faced with the continuous threat of becoming obsolete in terms of the technology that is being employed by them. In the short term the changes in the technological environment do not tend to impact the vehicle production process or the supply chain of the vehicle. Whoever in the medium and long terms the influence of the technological advancements and the changes taking place in the eternal environments is much more profound and impacts the company in a negative manner.
The aspects of production pertaining to the designing of the vehicle, the assembly of the vehicle as well as the use of the materials and the equipment used to assemble and manufacture the vehicle is all effected resulting in a large impact being generated on the automatable industry as a whole. Amongst the manufactures and the suppliers, the suppliers are usually more vulnerable to the risks and disadvantages associated with technological obsolescence
The automobile industry is also characterized by the high level of disputes that occur in the industry amongst the different parties involved with the supply chain and the supply and delivery of the raw materials, the resources, the inventory as well as the finished goods. On a regional scale automobile industry associations have been formed like the one in the EU and the one in theUS. However aside from that majority of the global operations exposed to the disputes causes by non regulating of the different business which contribute towards the manufacture of an automotive vehicle and work on the supply chain and the value chain of the automobile manufacturing companies. Specifically in for the Australian automotive industry, the adoption of lean operation and Toyota Production System reduces the parties involved to the risk of enhanced disputes.
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