Autonomics refers to the changing landscape of automobile economics. Broadly speaking, autonomics embodies the current zeitgeist of the car manufacturing industry and how it relates to global macroeconomics. Some of the topics it covers are:

• The financial crisis, the credit crunch, and bailouts
• Globalization, outsourcing
• Technology and technomics
• Consumer expectations and needs
• Environmental issues and trends
• The price of oil
• Legislation and lobbying

All of these items are drivers of autonomics. Some are drags on the auto industry, some provide stimulus, and others indicate shifts.

The Financial Crisis, The Credit Crunch, and Bailouts
The financial crisis which began in late 2008 sent most of the world's biggest economies into recessions. When the big banks and financial institutions in the US, the UK and elsewhere were inundated with mortgage-backed securities and other toxic debt, their assets became immediately devalued as the housing bubble burst. And as most banks had such bad assets on their books, none of the others trusted them to pay back any loans. So banks stopped lending to each other, and this had a knock-on effect, hurting the consumers.

Consumers were not able to get bank loans to buy cars, and the automakers immediately suffered. By February of 2009, GM and Chrysler had received bailouts (government loans). They had asked for $25 billion but had received only a portion of that.

At the same time, Toyota reported its first-ever losses, as did Nissan. Additionally, Nissan announced it would slash tens of thousands of jobs.

Globalization and Outsourcing
Globalization represents the economic shifts within autonomics. Globalization is the shifts of commerce from one region, country, or continent to another, in favor of lower costs of production, or the increasing affluence in developing countries brought about by an ever-more connected network of businesses, economies, and industries.

Globalization is playing a role in autonomics in that as emerging economies with large populations such as China and India develop, and their consumer buying power increases, they buy more cars. In fact in February of 2009, more new cars were sold in China that month than in the US. This is the first time Chinese auto sales were more than US auto sales - which emerged due to the credit crisis.

Globalization is instrumental in the supply-side of autonomics as well. GM is trying to dump its ailing brand Saturn with a partner in China. Tata motors of India bought over Jaguar. Part manufactures from overseas are increasingly supplying to US factories - striking fear in the hearts of some protectionist Americans that their cars are indeed not as all-American as they thought.

Technology and Technomics
Technology is making commerce and business more cost-effective, and the automotive industry is no exception. This is universal to all, or almost all industries.

Supply chains are more connected, inventories are better-managed and resource planning is highly efficient.

The idea of technomics is based on the concept of The Long Tail, which was pioneered by "Wired" editor Chris Anderson. The concept hinges on the fact that data or products stored in bits and bytes can be created, reproduced, inventoried, and disseminated much easier than those in the form of atoms (that are physical).

Buying a car is a big commitment to most people and thus consumers often like to do their research first. Now prospective buyers can go online to find out the invoice costs of cars (how much the dealers paid) and can thus drive a much harder bargain.

Technology and technomics have both benefits and drawbacks to the car industry and consumers (economically), but wherever the benefits are found, these emerging forces are driving autonomics.

Consumer Expectations and Needs
Like any industry, consumer expectations and needs will drive it. That is the theory, at least. In autonomics there has been debate about whether or not many of the US auto manufacturers have been listening to what the consumers really want. Some have said that the US car industry presented an attitude of "you buy what we make" to the US market. This is in sharp contrast to most European or Japanese automakers who have played a more active role in tailoring their autos to the public needs and wants.

Often cited are the US manufacturers' propensity to build gas-guzzling V8s and even inefficient smaller cars with not much regard to the environment.

Environmental Issues and Trends
Honda and Toyota have heavily invested in alternative fuels, starting in the 80s. While almost all mainstream car firms have done so, some are only now realizing the importance of environmentally clean fuels and cars. This point ties back to the previous one about consumer expectations and needs: Many consumers expect their chosen car company to manufacture an environmentally-clean or alternative fuel vehicle.

George W. Bush announced his administration's support for E85, or 85% ethanol fuel for GM which had designed vehicles to run on this form of alternative fuel. E85 is derived from corn, and considering the amount of corn that the US produces, this sounded like a viable and wise alternative to fossil fuels and dependence on foreign oil. However, the costs of using corn-derived fuel are considerable: corn is food, and with the rising costs of food worldwide, this exacerbates the already-dire challenge of feeding the world.

Read more about cars and the environment.

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