IntroductionThe evolution of the automotive industry has been influenced by various innovations in fuels, vehicle components, societal infrastructure, and manufacturing practices, as well as changes in markets , suppliers and commercial structures. Currently, the main competitors in the sector are Ford, DaimlerChrylser, General Motors GM, Honda, Toyota and Nissan. The best-known pioneer of automobile manufacturing was Henry Ford, who built his first car in 1896 and founded the Ford Motor Company in 1903. Ford became famous for setting competitive prices for Model Ts and perfecting production at the automobile industry chain, which revolutionized the automobile industry and widespread ownership in the United States. During this period, there were originally 500 automobile manufacturers. In 1908, there were only 200 left; and by 1917, only 23 remained. This considerable reduction was due to numerous consolidations within the industry. In the future, the global automobile market is full of potential. This growth is not expected to occur in the United States, but rather in countries such as China, India, the Pacific Rim, South Africa, and South America. Other future plans include low-emission cars, which are expected to lead to increased sales. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into electricity, in hopes of making future vehicles more environmentally friendly. As we move forward, the automotive industry will experience more changes in the next 10 years than in the last 100 years. We will now examine the automotive industry through Michael Porters' five forces analysis model. There are five different areas that influence an industry: (1) the threat of substitutes; (2) barriers to entry, (3) supplier power, (4) buyer power; and (5) the degree of rivalry. By examining each of these areas, we will discover what influences and drives the automotive industry in today's society. Threat of substitute products There are not many substitute products for automobiles. The most common substitutes are plane, train, bus, walking or cycling. All of 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 as necessary. In such cities, the metro, bus, bicycle or walking are the most efficient means of transportation..