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From Wikipedia, the free encyclopedia
Car or Automobile
Karl Benz's "Velo" model (1894) - entered into the first automobile race Automobile Portal
An automobile is a wheeled passenger vehicle that carries its own motor. Different types of automobiles include cars, buses, trucks, and vans. Some include motorcycles in the category, but cars are the most typical automobiles. The term "automobile" is derived from Greek "autos" (self) and Latin "mov�re" (move), referring to the fact that it "moves by itself." Earlier terms for automobile include motorwagen, horseless carriage, and motor car. Although the term "car" is presumed to be derived through the shortening of the term "carriage", the word has its origin before 1300 A.D. in English as, "carr"�derived from similar words in French and much earlier Latin words�for a vehicle that moves, especially on wheels, that was applied to chariots, small carts, and later�to carriages that carried more people and larger loads. As of 2005 there were 600 million cars worldwide (93 cars per 1,000 persons)
The automobile was hailed as an environmental improvement over horses when it was first introduced in the 1880s. Before its introduction, in New York City alone, over 10,000 tons of manure had to be removed from the streets daily. The manure was used as natural fertilizer for crops and to build top soil. Another benefit often overlooked is that horses instinctively avoid running into one another or obstacles in their path, so there were few accidents. Ironically, in 2006, the automobile now is recognized as a primary source of world-wide air pollution and a cause of substantial noise and health effects that far exceeds the adverse effects of using horse-drawn vehicles.
1 History
1.1 Internal combustion engine powered vehicles
1.2 Production of automobiles begins
1.3 Innovation
1.4 Model changeover and design change
2 Alternative fuels and batteries
3 Safety
4 Current Production
5 Economics
6 Future of the car
7 See
8 See also
9 External links
History
Main article: History of the automobile
The automobile powered by the Otto gasoline engine was invented in Germany by Karl Benz in 1885. Benz was granted a patent dated 29 January 1886 in Mannheim for that automobile. Even though Benz is credited with the invention of the modern automobile, several other German engineers worked on building automobiles at the same time. In 1886, Gottlieb Daimler and Wilhelm Maybach in Stuttgart patented the first motor bike, and in 1889 they built a converted horse-drawn stagecoach. In 1870, German-Austrian inventor Siegfried Marcus assembled a motorized handcart, though Marcus's vehicle didn't go beyond the experimental stage.
Automobile history eras
1890s 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s 2000s
Veteran Brass or Edwardian Vintage Pre-War Post-War Modern
Antique
Classic

Internal combustion engine powered vehicles
Animation of a 4-stroke internal combustion engineIn 1806 Fran�ois Isaac de Rivaz, a Swiss, designed the first internal combustion engine (sometimes abbreviated "ICE" today). He subsequently used it to develop the world's first vehicle to run on such an engine that used a mixture of hydrogen and oxygen to generate energy. The design was not very successful, as was the case with the British inventor, Samuel Brown, and the American inventor, Samuel Morey, who produced vehicles powered by clumsy internal combustion engines about 1826.
Etienne Lenoir produced the first successful stationary internal combustion engine in 1860, and within a few years, about four hundred were in operation in Paris. About 1863, Lenoir installed his engine in a vehicle. It seems to have been powered by city lighting-gas in bottles, and was said by Lenoir to have "travelled more slowly than a man could walk, with breakdowns being frequent." Lenoir, in his patent of 1860, included the provision of a carburettor, so liquid fuel could be substituted for gas, particularly for mobile purposes in vehicles. Lenoir is said to have tested liquid fuel, such as alcohol, in his stationary engines; but it doesn't appear that he used them in his own vehicle. If he did, he most certainly didn't use gasoline, as this was not well-known and was considered a waste product.
The next innovation occurred in the late 1860s, with Siegfried Marcus, a German working in Vienna, Austria. He developed the idea of using gasoline as a fuel in a two-stroke internal combustion engine. In 1870, using a simple handcart, he built a crude vehicle with no seats, steering, or brakes, but it was remarkable for one reason: it was the world's first internal-combustion-engine-powered vehicle fueled by gasoline. It was tested in Vienna in September of 1870 and put aside. In 1888 or 1889, he built a second automobile, this one with seats, brakes, and steering, and included a four-stroke engine of his own design. That design may have been tested in 1890. Although he held patents for many inventions, he never applied for patents for either design in this category.
The four-stroke engine already had been documented and a patent was applied for in 1862 by the Frenchman Beau de Rochas in a long-winded and rambling pamphlet. He printed about three hundred copies of his pamphlet and they were distributed in Paris, but nothing came of this, with the patent application expiring soon afterward�and the pamphlet disappearing into total obscurity. In fact, its existence mostly was unknown and Beau de Rochas never built a single engine.
Most historians agree that Nikolaus Otto of Germany built the world's first four-stroke engine although his patent was voided. He knew nothing of Beau de Rochas's patent or idea, and came upon the idea entirely on his own. In fact, he began thinking about the concept in 1861, but abandoned the concept until the mid-1870s.
There is some evidence, although not conclusive, that Christian Reithmann, an Austrian living in Germany, had built a four-stroke engine entirely on his own by 1873. Reithmann had been experimenting with internal combustion engines as early as 1852.
In 1883, Edouard Delamare-Deboutteville and Leon Malandin of France installed an internal combustion engine powered by a tank of city gas on a tricycle. As they tested the vehicle, the tank hose came loose, resulting in an explosion. In 1884, Delamare-Deboutteville and Malandin built and patented a second vehicle. This one consisted of two four-stroke, liquid-fueled engines mounted on an old four-wheeled horse cart. The patent, and presumably the vehicle, contained many innovations, some of which wouldn't be used for decades. However, during the vehicle's first test, the frame broke apart, the vehicle literally "shaking itself to pieces," in Malandin's own words. No more vehicles were built by the two men. Their venture went completely unnoticed and their patent unexploited. Knowledge of the vehicles and their experiments was obscured until years later.
Supposedly in the late 1870s, an Italian named Murnigotti patented the idea of installing an internal combustion engine on a vehicle, although there is no evidence that one was built. In 1884, Enrico Bernardi, another Italian, installed an internal combustion engine on his son's tricycle. Although merely a toy, it is said to have operated somewhat successfully in one source, but another says the engine's power was too feeble to make the vehicle move.

Production of automobiles begins
If all of the above experiments hadn't taken place, however, the development of the automobile wouldn't have been retarded by so much as a moment, since they were unknown experiments that never advanced beyond the testing stage. The internal-combustion-engine automobile really can be said to have begun in Germany with Karl Benz in 1885, and Gottlieb Daimler in 1889, for their vehicles were successful, they went into series-production, and they inspired others.
Karl Benz
Replica of the Benz Patent Motorwagen built in 1885Karl Benz began to work on new engine patents in 1878. First, he concentrated all his efforts on creating a reliable two-stroke gas engine, based on Nikolaus Otto's design of the four-stroke engine. A patent on the design by Otto had been declared void. Karl Benz finished his engine on New Year's Eve and was granted a patent for it in 1879. Karl Benz built his first three-wheeled automobile in 1885 and it was granted a patent in Mannheim, dated January of 1886. This was�the first automobile designed and built as such�rather than a converted carriage, boat, or cart. Among other items Karl Benz invented for the automobile are the carburetor, the speed regulation system known also as an accelerator, ignition using sparks from a battery, the spark plug, the clutch, the gear shift, and the water radiator. He built improved versions in 1886 and 1887 and�went into production in 1888�the world's first automobile put into production. His wife, Bertha, made significant suggestions for innovation (see below) that he included in that model. Approximately twenty-five were built before 1893, when his first four-wheeler was introduced. They were powered with four-stroke engines of his own design. Emile Roger of France, already producing Benz engines under license, now added the Benz automobile to his line of products. Because France was more open to the early automobiles, in general, more were built and sold in France through Roger, than Benz sold initially from his own factory in Germany.
Gottlieb Daimler, in 1886, fitted a horse carriage with his four-stroke engine in Stuttgart. In 1889, he built two vehicles from scratch as automobiles, with several innovations. From 1890 to 1895 about thirty vehicles were built by Daimler and his innovative assistant, Wilhelm Maybach, either at the Daimler works or in the Hotel Hermann, where they set up shop after having a falling out with their backers. These two Germans, Benz and Daimler, seem to have been unaware of the early work of each other and worked independently. Daimler died in 1900. During the First World War, Benz suggested a co-operative effort between the companies the two founded, but it was not until 1926 that the companies united under the name of Daimler-Benz with a commitment to remain together under that name until the year 2000.
In 1890, Emile Levassor and Armand Peugeot of France began series-producing vehicles with Daimler engines, and so laid the foundation of the motor industry in France. They were inspired by Daimler's Stahlradwagen of 1889, which was exhibited in Paris in 1889.
The first American automobile with gasoline-powered internal combustion engines supposedly was designed in 1877 by George Baldwin Selden of Rochester, New York, who applied for a patent on an automobile in 1879. Selden didn't build a single automobile until 1905, when he was forced to do so, due to a lawsuit threatening the legality of his patent because the subject had never been built. Construction is required to demonstrate the feasibility of the design and validate the patent, otherwise the patent may be voided. After building the 1877 design in 1905, Selden received his patent and later sued the Ford Motor Company for infringing upon his patent. Henry Ford was notorious for opposing the American patent system and Selden's case against Ford went all the way to the Supreme Court, which ruled that Ford, and anyone else, was free to build automobiles without paying royalties to Selden, since automobile technology had improved so significantly since the design of Selden's patent, that no one was building according to his early designs.
Meanwhile, notable advances in steam power evolved in Birmingham, England by the Lunar Society. It was here that the term horsepower was first used. It also was in Birmingham that the first British four-wheel petrol-driven automobiles were built in 1895 by Frederick William Lanchester. Lanchester also patented the disc brake in that city. Electric vehicles were produced by a small number of manufacturers.

Innovation
Ford Model T, 1927The first automobile patent in the United States was granted to Oliver Evans in 1789 for his "Amphibious Digger". It was a harbor dredge scow designed to be powered by a steam engine and he built wheels to attach to the bow. In 1804 Evans demonstrated his first successful self-propelled vehicle, which not only was the first automobile in the US but was also the first amphibious vehicle, as his steam-powered vehicle was able to travel on wheels on land as he demonstrated once, and via a paddle wheel in the water. It was not successful and eventually was sold as spare parts.
The Benz Motorwagen, built in 1885, was patented on 29 January 1886 by Karl Benz as the first automobile powered by an internal combustion engine. In 1888, a major breakthrough came with the historic drive of Bertha Benz. She drove an automobile that her husband had built for a distance of more than 106 km (i.e. - approximately 65 miles). This event demonstrated the practical usefulness of the automobile and gained wide publicity, which was the promotion she thought was needed to advance the invention. The Benz vehicle was the first automobile put into production and sold commercially. Bertha Benz's historic drive is celebrated as an annual holiday in Germany with rallies of antique automobiles.
In 1892 Rudolf Diesel gets a patent for a �New Rational Combustion Engine� by modifying the Carnot Process. And in 1897 he builds the first Diesel Engine.
On 5 November 1895, George B. Selden was granted a United States patent for a two-stroke automobile engine (U.S. Patent 549160). This patent did more to hinder than encourage development of autos in the USA. Steam, electric, and gasoline powered autos competed for decades, with gasoline internal combustion engines achieving dominance in the 1910s.
Ransom E. Olds, the creator of the first automobile assembly lineThe large-scale, production-line manufacturing of affordable automobiles was debuted by Ransom Eli Olds at his Oldsmobile factory in 1902. This assembly line concept was then greatly expanded by Henry Ford in the 1910s. Development of automotive technology was rapid, due in part to the hundreds of small manufacturers competing to gain the world's attention. Key developments included electric ignition and the electric self-starter (both by Charles Kettering, for the Cadillac Motor Company in 1910-1911), independent suspension, and four-wheel brakes.
Felix Wankel invented the Wankel engine in 1954, which had a very unconventional structure that would reduce the wear the engine effected upon itself as it worked.

Model changeover and design change
Cars are not merely continually perfected mechanical contrivances; since the 1920s nearly all have been mass-produced to meet a market, so marketing plans and manufacture to meet them have often dominated automobile design. It was Alfred P. Sloan who established the idea of different makes of cars produced by one firm, so that buyers could "move up" as their fortunes improved. The makes shared parts with one another so that the larger production volume resulted in lower costs for each price range. For example, in the 1950s, Chevrolet shared hood, doors, roof, and windows with Pontiac; the LaSalle of the 1930s, sold by Cadillac, used the cheaper mechanical parts made by the Oldsmobile division.

Alternative fuels and batteries
Main article: Alternative fuel cars
With heavy taxes on fuel, particularly in Europe and tightening environmental laws, particularly in California, and the possibility of further restrictions on greenhouse gas emissions, work on alternative power systems for vehicles continues.
Diesel-powered cars can run with little or no modification on 100% pure biodiesel, a fuel that can be made from vegetable oils but require modifications if you drive in cold weather countries. The main plus of Diesel combustion engines is its 50% fuel burn advantage over 23% in the best gasoline engines. This makes Diesel engines capable of achieving an average of 6 L/100km fuel efficiency. Many cars that currently use gasoline can run on ethanol, a fuel made from plant sugars. Most cars that are designed to run on gasoline are capable of running with up to 15% ethanol mixed in. With a small amount of redesign, gasoline-powered vehicles can run on ethanol concentrations as high as 85%. All petrol fuelled cars can run on LPG. There has been some concern that the ethanol-gasoline mixtures prematurely wear down seals and gaskets. Theoretically, the lower energy content of alcohol should lead to considerably reduced efficiency and range when compared with gasoline. However, EPA testing has actually shown only a 20-30% reduction in range. Therefore, if your vehicle is capable of doing 750 kilometers on a 50 liter tank (15 kilometers per liter), its range would be reduced to approximately 600 kilometers (12 kilometers per liter). Of course, certain measures are available to increase this efficiency, such as different camshaft configurations, altering the timing/spark output of the ignition, increasing compression, or simply using a larger fuel tank.
In the United States, alcohol fuel was produced in corn-alcohol stills until Prohibition criminalized the production of alcohol in 1919. Interest in alcohol as an automotive fuel lapsed until the oil price shocks of the 1970s. Reacting to the high price of oil and its growing dependence on imports, in 1975 Brazil launched a huge government-subsidized effort to manufacture ethanol fuel (from its sugar cane crop) and ethanol-powered automobiles. These ethanol-only vehicles were very popular in the 1980's, but became economically impractical when oil prices fell - and sugar prices rose - late in that decade. In recent years Brazil has encouraged the development of flex-fuel automobiles, where the owner can use any mixture of ethanol and gasoline based on their individual cost and performance goals. In 2005, 70% of the cars sold in Brazil were flex-fuel.
Attempts at building viable battery-powered electric vehicles continued throughout the 1990s (notably General Motors with the EV1), but cost, speed and inadequate driving range made them uneconomical. Battery powered cars have primarily used lead-acid batteries and NiMH batteries. Lead-acid batteries' recharge capacity is considerably reduced if they're discharged beyond 75% on a regular basis, making them a less-than-ideal solution. NiMH batteries are a better choice, but are considerably more expensive than lead-acid.
Toyota Prius, a hybrid vehicle. Museum of Toyota of Aichi Prefecture, JapanCurrent research and development is centered on "hybrid" vehicles that use both electric power and internal combustion. The first hybrid vehicle available for sale in the USA was the Honda Insight. As of 2006, the car is still in production and achieves around 3.92 L/100km.
Other R&D efforts in alternative forms of power focus on developing fuel cells, alternative forms of combustion such as GDI and HCCI, and even the stored energy of compressed air (see water Engine).

Safety
Automobile accidents are almost as old as automobiles themselves. Joseph Cugnot crashed his steam-powered "Fardier" against a wall in 1771. One of the earliest recorded automobile fatalities was Mary Ward, on 1869-08-31 in Parsonstown, Ireland, an early victim in the United States was Henry Bliss on 1899-09-13 in New York City, NY.
Cars have two basic safety problems: They have human drivers who make mistakes, and the wheels lose traction near a half gravity of deceleration. Automated control has been seriously proposed and successfully prototyped. Shoulder-belted passengers could tolerate a 32G emergency stop (reducing the safe intervehicle gap 64-fold) if high-speed roads incorporated a steel rail for emergency braking. Both safety modifications of the roadway are thought to be too expensive by most funding authorities, although these modifications could dramatically increase the number of vehicles that could safely use a high-speed highway.
Early safety research focused on increasing the reliability of brakes and reducing the flammability of fuel systems. For example, modern engine compartments are open at the bottom so that fuel vapors, which are heavier than air, vent to the open air. Brakes are hydraulic so that failures are slow leaks, rather than abrupt cable breaks. Systematic research on crash safety started in 1958 at Ford Motor Company. Since then, most research has focused on absorbing external crash energy with crushable panels and reducing the motion of human bodies in the passenger compartment.
There are standard tests for safety in new automobiles, like the EuroNCAP and the US NCAP tests. There are also tests run by organizations such as IIHS and backed by the insurance industry.
Despite technological advances, there is still significant loss of life from car accidents: About 40,000 people die every year in the U.S., with similar figures in Europe. This figure increases annually in step with rising population and increasing travel if no measures are taken, but the rate per capita and per mile travelled decreases steadily. The death toll is expected to nearly double worldwide by 2020. A much higher number of accidents result in injury or permanent disability. The highest accident figures are reported in China and India. The European Union has a rigid program to cut the death toll in the EU in half by 2010 and member states have started implementing measures.

Current Production
A 1993 Ford Escort station wagon, a modern automobile.In 2005 63 million cars and light trucks were produced worldwide. The world's biggest car producer (including light trucks) is the European Union with 29% of the world's production. In non-EU Eastern Europe another 4% are produced. The second largest manufacturer is NAFTA with 25.8%, followed by Japan with 16.7%, China with 8.1%, MERCOSUR with 3.9%, India with 2.4% and the rest of the world with 10.1%. (vda-link)
Large free trade areas like EU, NAFTA and MERCOSUR attract manufacturers worldwide to produce their products within them and without currency risks or customs, additionally to being close to customers. Thus the production figures do not show the technological ability or business skill of the areas. In fact much if not most of the Third World car production is used western technology and car models (and sometimes even complete obsolete western factories shipped to the country), which is reflected in the patent statistic as well as the locations of the r&d centers.
The automobile industry is dominated by relatively few large corporations (not to be confused with the much more numerous brands), the biggest of which (by numbers of produced cars) are currently General Motors, Toyota and Ford Motor Company. It is expected, that Toyota will reach the No.1 position in 2006. The most profitable per-unit car-maker of recent years has been Porsche due to its premium price tag.
The automotive industry at large still suffers from high under-utilization of its manufacturing potential.
A typical family car costs about 25� in raw materials in production. Higher line cars tend to cost 100� up.

Economics
Compared to other popular modes of passenger transportation, especially buses, the automobile is relatively uneconomic. There are a number of reasons for this:
The typical private car spends most of its lifetime idling and depreciation is a significant proportion of the total cost.
Compared to bulk-carrying vehicles such as airplanes, buses and trains, individual vehicles have worse economies of scale.
Capacity utilisation is low. The average occupancy of automobiles is below 1.5 passengers in most parts of the world. Measures such as HOV lanes try to address this issue.
According to the RAC the average cost of running a new car in the UK is GBP 5,000 (US$ 9,000) per year, or roughly 1/3 of the average net wage, a situation reflected in most other Western nations. Nevertheless demand for automobiles remains high and inelasic, suggesting that its advantages, such as on-demand and door-to-door travel, are highly prized and not easily susbtituted by cheaper alternative modes of transport.
The costs of running a car can be broken down as follows (in approximate order of cost):
Depreciation
Fuel (including fuel tax)
Repairs
Maintainance
Insurance
Parking
Tyre replacement
Vehicle tax
Financing
Roadworthiness Tests
Registration
Accessories
Despite rising oil prices the real cost of car travel has dropped steadily over the past 5 decades, in part due to cheaper manufacturing technologies, and in part due to engines becoming more fuel-efficient.
As opposed to public transport, the automobile is characterised by high fixed costs and low variable costs, making it most attractive for frequent travellers such as commuters, and least attractive for infrequent and/or flexible travellers, such as people who use their car for weekend trips only. This is the main reason why public transport companies try to increase competitiveness in the commuter market by raising fixed costs/ reducing variable costs to the consumer in the form of season tickets. Carsharing significantly lowers fixed costs, hence it tends to be more popular with light users than commuters.
Since automobiles demand a high land use, they become increasingly uneconomic with higher population densities. This can either manifest itself in higher costs of driving in densely populated areas (Parking fees and road pricing), or in the absence of a price mechanism, in an shortage in the form of traffic jams. Public transport, by comparison, becomes increasingly uneconomic with lower population densities. Hence cars tend to dominate in rural and suburban environments, while only fulfilling a secondary role in city center transport.

Future of the car
In order to limit deaths, there has been a push for self-driving automobiles. There have been many notable efforts funded by the NHTSA, including the many efforts by the NavLab group at Carnegie Mellon University. Recent efforts include the highly publicized DARPA Grand Challenge race.
Toyota FCHV (Fuel Cell Hybrid Vehicle). A fuel cell hybrid car which runs from the hydrogen which Toyota Motor developed,. 2005A current invention is ESP by Bosch that is claimed to reduce deaths by about 30% and is recommended by many lawmakers and carmakers to be a standard feature in all cars sold in the EU. ESP recognizes dangerous situations and corrects the drivers input for a short moment to stabilize the car.
The biggest threat to automobiles is the declining supply of oil, which does not completely stop car usage but makes it significantly more expensive. In the beginning of 2006, 1 liter of gas costs approximately $1.60 USD in Germany and other European countries, and one US gallon of gas costs nearly $3.00 USD. If no cheap solution can be found in the relatively near future individual mobility might suffer a major setback. Nevertheless, individual mobility is highly prized in modern societies so the demand for automobiles is inelastic. Alternative individual modes of transport, such as Personal rapid transit, could make the automobile obsolete if they prove to be cheaper and more energy efficient.
Hydrogen cars, driven either by a combination of fuel cells and an electric motor, or alternatively, a conventional combustion engine, are thought to replace fossil fuel powered cars in a few decades. The biggest obstacle for a mass market of hydrogen cars is the cost of hydrogen production by electrolysis, which is inefficient and requires a comparatively expensive source of electrical energy. Hydrogen has a much higher energy density than gasoline or diesel. It is thought to become cheaper with mass production, but because its production is overall energy inefficient and requires other sources of energy, including fossil, it is unlikely to be a cheaper fuel than gasoline or diesel today. Also, its combustion produces only steam and virtually no local pollutants such as NOx, SOx, benzene and soot. BMW's engineering team promises a high horsepower hydrogen fuel engine in it's 7-series sedan before the next generation of the car makes its debut.
Lexus LF-A concept car at the 2006 Greater Los Angeles Auto ShowThe electric car in general appears to be a way forward in principle; electric motors are far more efficient than internal combustion engines and have a much greater power to weight ratio. They also operate efficiently across the full speed range of the vehicle and develop a lot of torque at zero speed, so are ideal for cars. A complex drivetrain and transmission would not be needed. However, despite this the electric car is held back by battery technology - so far a cell with comparable energy density to a tank of liquid fuel is a long way off, and there is no infrastructure in place to support it. A more practical approach may be to use a smaller internal combustion engine to drive a generator- this approach can be much more efficient since the IC engine can be run at a single speed, use cheaper fuel such as diesel, and drop the heavy, power wasting drivetrain. Such an approach has worked very well for railway locomotives, but so far has not been scaled down for car use.
Recently the automobile industry has determined that the biggest potential growth market (in terms of both revenue and profit), is software. Cars are now equipped with a stunning array of software; from voice recognition and vehicle navigation systems, vehicle tracking system like ESITrack to in-vehicle distributed entertainment systems (DVD/Games), to telematics systems such as GMs Onstar not to mention the control subsystems. Software now accounts for 35% of a cars value, and this percentage is only going to get larger. The theory behind this is that the mechanical systems of automobiles are now essentially a commodity, and the real product differentiation occurs in the software systems. Many cars are equipped with full blown 32bit real-time memory protected operating systems such as QNX.
A new invention by Carmelo Scuderi has the potential to permanently change the combustion engine. The engine is still in the process of patenting, raising capital, and developing a prototype. The invention has the ability to improve the efficiency of an engine from 33% to 40%, an unheardof improvement. In addition, toxic emissions will be reduced by as much as 80%. The new invention calls for dividing the four strokes of a normal engine over a combination of one compression cycle and one power cycle. The development will also create more power and will cost manufacturers less to produce.

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From Wikipedia, the free encyclopedia
Truck

The driver of this DAF tractor with an auto-transport semi-trailer prepares to offload Skoda Octavia cars in Cardiff, WalesFor other meanings, see Truck (disambiguation).
A truck (lorry in British English) is a motor vehicle for transporting goods. The word "truck" comes from the Greek "trochos", meaning "wheel". In America, the big wheels of wagons were called trucks. When the petrol engine driven trucks came into fashion, these were called "motortrucks". Slowly the word motor in front of truck disappeared.
Unlike automobiles, which usually have a unibody construction, most trucks (with the exception of the car-like minivan) are built around a strong frame called a chassis. They come in all sizes, from the automobile-sized pickup truck to towering off-road mining trucks or heavy highway semi-trailers.
The term "truck" is most commonly used in American English and Australian English to refer to what earlier was called a motor truck, while the equivalent term in British English is lorry (although the official term is Heavy Goods Vehicle (HGV)). The British term is, however, only used for the medium and heavy types (see below), i.e. a van, a pickup or a SUV would never be regarded a "lorry" . Other languages have loanwords based on these terms, such as the Malay lori.
In Australia and New Zealand a small vehicle with an open back is called a ute (short for "utility vehicle") and the word "truck" is reserved for larger vehicles.
A road train in Australia.
A British Sentinel steam lorry.Contents [hide]
1 History
1.1 Steam trucks
1.2 Internal combustion
1.3 Diesel engines
1.4 Legal issues
2 Types of trucks by size
2.1 Light trucks
2.2 Medium trucks
2.3 Heavy trucks
2.4 Off-road trucks
3 Anatomy of a truck
3.1 Chassis
3.2 Cab
3.3 Engine
3.4 Drivetrain
4 Quality and sales
4.1 Heavy trucks market worldwide
4.1.1 United States
4.1.2 Europe
4.1.3 Asia
4.1.4 South America
5 References
6 See also
7 External links

History
Steam trucks
Trucks and cars have a common ancestor: the steam-powered "fardier" Nicolas-Joseph Cugnot built in 1769. However, steam trucks were not common until the mid-1800s. The roads of the time, built for horse and carriages, limited these vehicles to very short hauls, usually from a factory to the nearest railway station. The first semi-trailer appeared in 1881, towed by a De Dion steam tractor. Steam-powered trucks were sold in France and the United States until the eve of World War I, and the beginning of World War II in the United Kingdom.

Internal combustion
a Benz truck modified by Netphener company (1895) as the first busIn 1895 Karl Benz designed the first truck in history using the internal combustion engine, with some of the units later modified by the first bus company: the Netphener. Another internal combustion engine truck was built in 1898 by Gottlieb Daimler. Others, such as Peugeot, and Renault also built theirs. Trucks of the era mostly used two-cylinder engines and could have a carrying capacity 1500 to 2000 kg. In 1904, 700 heavy trucks were built in the United States, 1000 in 1907, 6000 in 1910 and 25000 in 1914.
After World War I, several advances were made: pneumatic tyres replaced full rubber, electric starters, power brakes, 4, 6 and 8 cylinder engines, closed cabs, electric lighting. The first modern semi-trailers also appeared. Touring car builders such as Ford and Renault entered the heavy truck market.

Diesel engines
Although it had been invented in 1890, the diesel engine was not common in trucks in Europe until the 1920s. In the United States, it took much longer for diesel engines be accepted: gasoline engines were still in use on heavy trucks in the 1970s, while in Europe they had been completely replaced 20 years earlier.

Legal issues
Trucks must often pay higher taxes than other road vehicles, and are subject to extensive regulation. Amongst factors affecting this: trucks are bigger and heavier than most other vehicles, and cause more wear and tear per hour on roadways; and trucks and their drivers are on the road for more hours per day. UPS vehicles are called 'package cars' in the US, because that exempted them from certain tax-rates. Rules on use taxes differ among jurisdictions.
Most jurisdictions have rules for commercial vehicles, regulating how many hours a driver may be on the clock, how much rest and sleep time is required (e.g., 11hrs on/10hrs off, and 60hrs off over every 7 days), and many other rules. Violations are often subject to significant penalties. Instruments to track each driver's hours must often be fitted.
Trucks are subject to noise emission requirements (emanating from the U.S. Noise Control Act) in order to protect the public from noise health effects, since trucks contribute disproportionately to roadway noise due to elevated stacks and intense tire and aerodynamic noise characteristics.
The Bridge Law deals with the relation between the gross weight of the truck and the amount of axles and the spacing between axles wheel base the truck has. Each State determines the minimum and maximum permissible weight per axle.

Types of trucks by size
A logging truck]
Light trucks
Light trucks are car-sized (in the US, no more than 6,300 kg (13,000 lb)) and are used by individuals and commercial entities alike. They are comprised of:
Pickup trucks
Full-size vans
Minivans
SUVs
Medium trucks
Medium (or medium-duty) trucks are bigger than light but smaller than heavy trucks. In the US, they are defined as weighing between 6,300 kg (13,000 lb) and 15,000 kg (33,000 lb). For the UK the cut-off is 7.5 tonnes. Local delivery and public service (dump trucks, garbage trucks) are normally around this size.

Heavy trucks
Three Road Trains, Western AustraliaHeavy trucks are the largest trucks allowed on the road. They are mostly used for long-haul purposes, often in semi-trailer configuration.
Road damage and wear increase very rapidly with the axle weight (truck weight divided by the number of axles). In many countries with good roads a 6-axle truck may have a maximum weight over 50 tonnes (50,000 kg).
In Australia many trailers are linked to make what are called road trains.

Off-road trucks
Highway-legal trucks are sometimes outfitted with off-road features such as a front driving axle and special tires for applications such as logging and construction. Trucks that never use public roads, such as the biggest ever truck, the Liebherr T 282B off-road mining truck, are not constrained by weight limits.

Anatomy of a truck
Almost all trucks share a common contruction: they are made of a chassis, a cab, axles, suspension and wheels, an engine and a drivetrain. Pneumatic, hydraulic, water, and electrical systems may also be identified.

Chassis
The chassis or frame of a truck is commonly constructed mainly of two beams, and several crossmembers and fishplates. A truck chassis consists of two parallel straight U-shaped beams, or in some cases stepped or tapered beams, these held together by crossmembers. In most instances, fishplates help attach the crossmembers to the beams. The term fishplate was derived from the old railroad. The "U-shape" of the beams has a middle vertical and longer side, and a short horizontal flange at each end; the length of the beams is variable. The chassis is usually made of steel, but can be made (whole or in part) of aluminium for a lighter weight. The integrity of the chemical composition (carbon, molybdenum, etc.) and structure of the beams is of uttermost importance to its strength, and to help prevent cracking or breaking of beams, and to help maintain rigidity and flexibility of the frame, welding, drilling and other types of modifications must not be unnecessarily practiced on these. The chassis is the main structure of the truck, and the other parts attach to it. A tow bar may be found attached at one or both ends.

Cab
The cab is an enclosed space where the driver is seated. A sleeper is a compartment attached to the cab where the driver can rest while not driving. They can range from a simple 2 to 4 foot (0.6 to 1.2 m) bunk to a 12 foot (3.7 m) apartment-on-wheels. Modern cabs feature air conditioning, a good sound system, and ergonomic seats (often air suspended). There are a few possible cab configurations:
cab over engine (COE) or flat nose, where the driver is seated on top of the front axle and the engine. This design is almost ubiquitous in Europe, where overall truck lengths are strictly regulated. They were common in the United States, but lost prominence when permitted length was extended in the early 1980s. To access the engine, the whole cab tilts forward, earning this design the name of tilt-cab.
A concrete transport truck.conventional cabs are the most common in North America. The driver is seated behind the engine, as in most passenger cars or pickup trucks. Conventionals are further divided into large car and aerodynamic designs. A large car or long nose is a conventional truck with a long�6 to 8 foot (1.8 to 2.4 m) or more�hood. With their very square shapes, these trucks offer a lot of wind resistance and can consume more fuel. They also offer poorer visibility than their aerodynamic or COE counterparts. By constrast, Aerodynamic cabs are very streamlined, with a sloped hood and other features to lower drag. Most owner-operators prefer the square-hooded conventionals, it has something to do with "Take pride in your ride".
cab beside engine designs also exist, but are rather rare.
Slang terms
"Tiltin' Hilton" :Cab-over with a sleeper berth.
"Anteater" : Specifically refers to the Kenworth T600, an aerodynamically-designed tractor whose nose resembles the anteater.
"Large car" : A conventional cab with a large square hood, such as the Peterbilt 379 or the Kenworth W900.
[edit]
Engine
Trucks can use all sorts of engines. Small trucks such as SUVs or pickups, and even light medium-duty trucks in North America will use gasoline engines. Most heavier trucks use four stroke turbo intercooler diesel engines, although there are alternatives. Huge off-highway trucks use locomotive-type engines such as a V12 Detroit Diesel two stroke engine.
In the United States, highway trucks almost always use an engine built by a third party, such as CAT, Cummins, or Detroit Diesel. The only exceptions to this are Volvo Trucks and Mack Trucks, which are available with Volvo and Mack diesel engines, respectively, and Freightliner, which is a subsidiary of DaimlerChrysler and are available with Mercedes-Benz and Detroit Diesel engines.

Drivetrain
Small trucks use the same type of transmissions as almost all cars which have either an automatic transmission or a manual transmission with synchronisers. Bigger trucks often use manual transmissions without synchronisors which are lighter weight although some synchronised transmissions have been used in larger trucks. Transmissions without synchronisors require double clutching for each shift which can lead to repetitive motion injuries. Common North American setups include 10, 13 and 18 speeds. Automatic and semi-automatic transmissions for heavy trucks are becoming more and more common, due to advances both in transmission and engine power.
The trend in Europe is that more new trucks are being bought with automatic transmissions. This may be due in part to lawsuits from drivers claiming that driving a manual transmission is damaging to their knees.

Quality and sales
Quality among all heavy truck manufacturers in general is improving, however industry insiders will testify that the industry has a long way to go before they achieve the quality levels reached by automobile manufacturers. Part of the reason for this is that 75% of all trucks are custom specified. This works against efforts to streamline and automate the assembly line.

Heavy trucks market worldwide
Production of trucks over 16 tonnes GVW in 2003 by the ten largest manufacturers [1] Pos. Make Units Main makes
1 DaimlerChrysler 147,200 Mercedes-Benz, Unimog, Freightliner, Western Star, Sterling
2 Volvo 123,800 Volvo, Renault, Mack
3 PACCAR 81,900 Kenworth, Peterbilt, DAF, Foden, Leyland
4 Scania 46,000 Scania
5 MAN 42,100 MAN
6 Iveco 32,700 Iveco, Astra, Seddon Atkinson
7 Navistar 27,400 International
8 Hino Motors 21,400 Hino
9 Isuzu 20,900 Isuzu
10 Mitsubishi-Fuso 16,300 Fuso
DaimlerChrysler didn't hold majority in Mitsubishi Fuso in 1923, which is why the two companies are listed separately.

United States
Smaller fleet operators, specialized carriers, and owner operators tend to prefer Mack or Peterbilt and Kenworth products. Larger fleet operators and public agencies tend to prefer the lower cost Freightliners, Navistar, and Ford products. There are also regional preferences with truck drivers within the United States.
On the East Coast, where routes were traditionally shorter, and because the trucks were made there, many drivers preferred Mack Trucks. While on the West Coast, the drivers preferred Peterbilt, Kenworth, and Freightliner. White built a new factory in California in the early 1960s, with long-haul trucking company Consolidated Freightways. The entity, which became White-Freightliner, then just Freightliner, catered directly to western fleets that wanted a lighter-aluminium cab and frame, and traveled longer-straighter distances without stopping. Drivers more concerned with safety than with fuel-economy preferred the heavier Peterbilts and Kenworths. Kenworth and Peterbilt, which had started out as heavy-duty trucks for hauling logs, forest products, and steel for shipyards on the West Coast, anticipated the need for these lighter long-distance trucks.

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From Wikipedia, the free encyclopedia
Loan
A loan is a type of debt. All material things can be lent but this article focuses exclusively on monetary loans. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt.
Acting as a provider of loans is one of the principal task for financial institutions. For other institutions issuing of debt contracts, such as bonds is a typical source of funding. Bank loans and credit are one way to increase the money supply.
Other types of debt include mortgages, credit card debt, bonds, and lines of credit. A mortgage is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The bank, however, is given the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank can repossess the house and sell it, to get their money back.
Abuse in the granting of loans is known as predatory lending. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her.

Criticism of banks and bank loans
The neutrality of this section is disputed.
Please see discussion on the talk page.
Most people believe that bank loans are generally funded by deposits -- or other people's money. This is true for Islamic banks, but not for Western banks. The source for the majority of the money supply in western economies is through the loans issued by banks much like the one down your street. However, regardless of the size of the loan, according to a former Chairman of the Federal Reserve Board, western bank loans are actually based on fraud. Why? Because bank loans are funded not by deposits on hand, but by the borrower's own future credit or "promise to pay". Robert Hemphill, former Credit Manager of the Federal Reserve Bank in Atlanta said "If all the bank loans were paid, no one could have a bank deposit, since there would not be a dollar of coin or currency in circulation... If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless situation is almost incredible -- but there it is" [1]. Mr. Hemphill is saying that the act of issuing the loan itself is the process of creating "synthetic money", meaning the bank is actually creating money when a loan is issued. The loan itself is all credit or "debt" and is created out of thin air with a few keystrokes on the keyboard. [2] Hemphill also admits that if all the bank loans were paid, then there would be no money in circulation. The corollary to that is that because there is always money in circulation, it is evidence that there are always loans outstanding -- debts which will never be paid without entirely extinguishing the money supply
Few people realize that at the moment any loan is requested, there is no money in existence to cover the loan. This is substantiated by G. Edward Griffin (President of American Media) who says "When banks place credits into your checking account, they are merely pretending to lend you money. In reality, they have nothing to lend".[3] This is by definition a pure fiat[4] money supply. Herein lies the fraud, and it is virtually the same thing as check kiting, except this is loan kiting on the grandest scale. When the borrower signs the promissory note as part of the loan application process, the borrower rarely understands that after leaving the bank, the bank uses that promissory note as the very asset by which the loan is funded. The asset used is the signature of the borrower, where they commit to pay the bank over time the legal tender the bank has just created in exchange for their signature. Modern bank loans are no different to the money changing that has been going on for thousands of years where one asset is exchanged for another, liquidated, and returned to the original asset bearer (encumbered with a charge in the form of compound interest).
The problem with generating loans by this method is that the bank always generates the principal, but it never generates the interest. It is like a dog chasing it's tail -- it can never catch it. In order for the economy of the nation to continue to prosper, ever larger sums (loans) must be continually created and debt must ever increase (in nearly exponential fashion) in order for those who have loans to be able to pay them, and for there to be enough money in existence to carry on day to day commerce across the nation and the world. "The only way new money (which is not true money, but rather credit representing a debt), goes into circulation in America is when it is borrowed from the bankers. When the State and people borrow large sums, we seem to prosper. However, the bankers "create" only the amount of the principal of each loan, never the extra amount needed to pay the interest. Therefore, the new money never equals the new debt added. The amounts needed to pay the interest on loans is not "created," and therefore does not exist! Under this system, where new debt always exceeds new money no matter how much or how little is borrowed, the total debt increasingly outstrips the amount of money available to pay the debt. The people can never, ever get out of debt!" [5]
However, a thinking person will now realize that if all the loans were called in at once, the system would collapse because not enough money has been created to pay the debts as only the principal was created by the bank, but not the interest. Herein lies the fraud as well, since it is readily apparent that since the banks involved in this system do not have enough assets to cover their liabilities, they must be insolvent. Currently, laws in the US and Canada forbid banks from conducting business in a state of insolvency, but they continue to do so anyway because there appears to be no other choice available.
There has been considerable effort in the past to hide the fraudulent way in which loans are generated, but that is changing with the advent of the internet. Books have been written and websites are available offering documentaries that have been recommended and validated by famous individuals such as Milton Friedman (Nobel Laureate in Economics), Arun Gandhi (M.K. Gandhi Institute for Nonviolence), famous scholar Cleon Skousen (author of the Naked Capitalist and the Naked Communist), and G. Edward Griffin (author of the Creature from Jekyl Island).

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From Wikipedia, the free encyclopedia
Bank
A bank is an institution that provides financial service, particularly taking deposits and extending credit.
Currently the term bank is generally understood as an institution that holds a banking license. Banking licenses are granted by bank regulatory authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company.
Banks have a long history, and have influenced economies and politics for centuries.
The word bank is derived from the Italian banca, which is derived from German language and means bench. The terms bankrupt and "broke" are similarly derived from banca rotta, which refers to an out-of-business bank, having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table.
Traditionally, a bank generates profits from transaction fees on financial services and from the interest it charges for lending. In recent history, with historically low interest rates limiting banks' ability to earn money by lending deposited funds, much of a bank's income is provided by overdraft fees and riskier investments.
Contents
1 Services typically offered by banks
2 Types of Bank
2.1 Types of retail banks
2.2 Types of investment banks
2.3 Both combined
2.4 Other types of banks
3 Banks in the economy
3.1 Role in the money supply
3.2 Size of global banking industry
3.3 Bank crises
4 Regulation
5 Public perceptions of banks
6 Profitability
7 Bank Size Information
7.1 Top ten banking groups in the world ranked by tier 1 capital in 2004 (in U.S. dollars)
7.2 Top ten banking groups in the world ranked by assets in 2003 (in U.S. dollars)
7.3 Top ten bank holding companies in the world ranked by profit in 2003 (in U.S. dollars)
7.4 Top ten bank holding companies in the U.S. ranked by deposits (in U.S. dollars)
8 History of banking

Services typically offered by banks
Although the type of services offered by a bank depends upon the type of bank and the country, services provided usually include:
Taking deposits from the general public and issuing checking and savings accounts
Making loans to individuals and businesses
Cashing cheques
Facilitating money transactions such as wire transfers and cashiers checks
Issuing credit cards, ATM, and debit cards
Storing valuables, particularly in a safe deposit box

Types of Bank
Banks' activities can be characterised as retail banking, dealing direct with individuals and small businesses, and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profit making.
In some jurisdictions retail and investment activities are, or have been, separated by law.
Central banks are non-commercial bodies or government agencies often charged with controlling interest rates and money supply across the whole economy. They act as Lender of last resort in event of a crisis.

Types of retail banks
Commercial bank, is the term used for a normal bank to distinguish it from an investment bank. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with corporations or large businesses.
Community development bank are regulated banks that provide financial services and credit to underserved markets or populations.
Postal savings banks are savings banks associated with national postal systems.
Private banks manage the assets of high net worth individuals.
Offshore banks are banks located in jurisdictions with low taxation and regulation, . Many offshore banks are essentially private banks.
Savings banks traditionally accepted savings deposits and issued mortgages. Today, some countries have broadened the permitted activities of savings banks.
Building societies and Landesbanks both conduct retail banking.
Ethical banks are banks that prioritize the transparency of all operations and make only social-responsible investments.

Types of investment banks
Investment banks "underwrite" (guarantee the sale of) stock and bond issues and advise on mergers.
Merchant banks were traditionally banks which engaged in trade financing. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike Venture capital firms, they tend not to invest in new companies.

Both combined
Universal banks, more commonly known as a financial services company, engage in several of these activities. For example, First Bank, is a very large bank, is involved in commercial and retail lending; finally, its subsidiaries in tax-havens offer offshore banking services to customers in other countries. Almost all large financial institutions are diversified and engage in multiple activities. In Europe and Asia, big banks are very diversified groups that, among other services, also distribute insurance, hence the term bancassurance.

Other types of banks
Islamic banks adhere to the concepts of Islamic law. Islamic banking revolves around several well established concepts which are based on Islamic canons. Since the concept of Interest is forbidden in Islam, all banking activities must avoid interest. Instead of interest, the Bank earns profit (mark-up) and fees on financing facilities that it extends to the customers. Also, deposit makers earn a share of the Bank�s profit as opposed to a predetermined interest.

Banks in the economy

Role in the money supply
A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a capital market. The bank then lends out most of these funds to borrowers.
However, it would not be prudent for a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a deposit with a central bank. This behaviour is called fractional-reserve banking and it is a central issue of monetary policy. Some governments (or their central banks) restrict the proportion of a bank's balance sheet that can be lent out, and use this as a tool for controlling the money supply. Even where the reserve ratio is not controlled by the government, a minimum figure will still be set by regulatory authorities as part of bank regulation.

Size of global banking industry
Worldwide assets of the largest 1,000 banks grew 15.5% in 2005 to reach a record $60.5 trillion. This follows a 19.3% increase in the previous year. EU banks held the largest share, 50% at the end of 2005, up from 38% a decade earlier. The growth in Europe�s share was mostly at the expense of Japanese banks whose share more than halved during this period from 33% to 13%. The share of US banks also rose, from 10% to 14%. Most of the remainder was from other Asian and European countries.
The US had by far the most banks (7,540 at end-2005) and branches (75,000) in the world. The large number of banks in the US is an indicator of its geographical dispersity and regulatory structure resulting in a large number of small to medium sized institutions in its banking system. Japan had 129 banks and 12,000 branches. In Western Europe, Germany, France and Italy had more than 30,000 branches each. This was twice the number of branches in the UK. [1]

Bank crises
Banks are susceptible to many forms of risk which have triggered occasional systemic crises. Risks include liquidity risk (the risk that many depositors will request withdrawals beyond available funds), credit risk (the risk that those that owe money to the bank will not repay), and interest rate risk (the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans), among others.
Banking crises have developed many times throughout history when one or more risks materialize for a banking sector as a whole. Prominent examples include the U.S. Savings and Loan crisis in 1980s and early 1990s, the Japanese banking crisis during the 1990s, and the bank run that occurred during the Great Depression, and the recent liquidation by the central Bank of Nigeria, where about 25 banks were liquidated.

Regulation
Main article: Bank regulation
The combination of the instability of banks as well as their important facilitating role in the economy led to banking being thoroughly regulated. The amount of capital a bank is required to hold is a function of the amount and quality of its assets. Major banks are subject to the Basel Capital Accord promulgated by the Bank for International Settlements. In addition, banks are usually required to purchase deposit insurance to make sure smaller investors are not wiped out in the event of a bank failure.
Another reason banks are thoroughly regulated is that ultimately, no government can allow the banking system to fail. There is almost always a lender of last resort�in the event of a liquidity crisis (where short term obligations exceed short term assets) some element of government will step in to lend banks enough money to avoid bankruptcy.

Public perceptions of banks
In United States history, the National Bank was a major political issue during the presidency of Andrew Jackson. Jackson fought against the bank as a symbol of greed and profit-mongering, antithetical to the democratic ideals of the United States.
Currently, many people are outraged due to various banking policies that take advantage of customers. Specific concerns are policies that permit banks to hold deposited funds for several days, policies that permit banks to apply withdrawals before deposits, policies that permit applying withdrawals from greatest to least, which is most likely to cause the greatest overdraft, policies that allow backdating funds transfers and fee assessments, and policies that authorize electronic funds transfers despite an overdraft.
In response to the perceived greed and socially-irresponsible all-for-the-profit attitude of banks, in the last few decades a new type of banks called ethical banks have emerged, which only make social-responsible investments (for instance, no investment in the arms industry) and are transparent in all its operations.

Profitability
Large banks in the United States are some of the most profitable corporations, especially relative to the small market shares they have. This amount is even higher if one counts the credit divisions of companies like Ford, which are responsible for a large proportion of those company's profits. For example, the largest bank, Citigroup, which for the past 3 years has made more profit than any other company in the world, has only a 5% market share. Now if Citigroup were to be as dominant in its industry as a Home Depot, Starbucks, or Wal Mart in their respective industries, with a 30% market share, it would make more money than the top ten non-banking U.S. industries combined.
In the past 10 years in the United States, banks have taken many measures to ensure that they remain profitable while responding to ever-changing market conditions. First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with investment and insurance houses. Merging banking, investment, and insurance functions allows traditional banks to respond to increasing consumer demands for "one stop shopping" by enabling cross-selling of products (which, the banks hope, will also increase profitability). Second, they have moved toward risk based pricing on loans, which means charging higher interest rates for those people who they deem more risky to default on loans. This dramatically helps to offset the losses from bad loans, lowers the price of loans to those who have better credit histories, and extends credit products to high risk customers who would have been denied credit under the previous system. Third, they have sought to increase the methods of payment processing available to the general public and business clients. These products include debit cards, pre-paid cards, smart-cards, and credit cards. These products make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with under-developed financial systems, it is still common to deal strictly in cash, including carrying suitcases filled with cash to purchase a home). However, with convenience there is also increased risk that consumers will mis-manage their financial resources and accumulate excessive debt. Banks make money from card products through interest payments and fees charged to consumers and companies that accept the cards.
The banks' main obstacles to increasing profits are existing regulatory burdens, new government regulation, and increasing competition from non-traditional financial institutions.

Bank Size Information
Top ten banking groups in the world ranked by tier 1 capital in 2004 (in U.S. dollars)
Citigroup � 73 billion
HSBC � 71 billion
JP Morgan Chase � 69 billion
Royal Bank of Canada � 68 billion
Credit Agricole Group � 63 billion
Royal Bank of Scotland � 43 billion
Mitsubishi Tokyo Financial Group � 40 billion
Mizuho Financial Group � 39 billion
HBOS � 36 billion
BNP Paribas � 35 billion

Top ten banking groups in the world ranked by assets in 2003 (in U.S. dollars)
Mizuho Financial Group � 1,265 billion
Citigroup � 1,097 billion
Allianz � 1,002 billion
UBS � 907 billion
Sumitomo Mitsui Financial Group � 903 billion
Deutsche Bank � 892 billion
Fannie Mae � 888 billion
ING Group � 843 billion
BNP Paribas � 835 billion
Mitsubishi Tokyo Financial Group � 832 billion

Top ten bank holding companies in the world ranked by profit in 2003 (in U.S. dollars)
Citigroup � 21 billion
Bank of America � 15 billion
HSBC � 10 billion
Royal Bank of Scotland � 8 billion
Wells Fargo � 7 billion
JP Morgan Chase � 7 billion
UBS AG � 6 billion
Wachovia � 5 billion
Morgan Stanley � 5 billion
Merrill Lynch � 4 billion

Top ten bank holding companies in the U.S. ranked by deposits (in U.S. dollars)
As of June 30, 2004. These are U.S. deposits only. This is not a ranking of the largest U.S. based global banks.
Bank of America Corp. � 526 billion
Wells Fargo & Co. � 256 billion
Wachovia Corp. � 238 billion
J.P. Morgan Chase & Co. � 227 billion (1)
Citigroup Inc. � 193 billion
Bank One Corp. � 150 billion (1)
U.S. Bancorp � 112 billion
SunTrust Banks, Inc. � 78 billion
BB&T Corporation � 67 billion
National City Corp. � 64 billion
(1) Since this report, J.P. Morgan Chase & Co. has acquired Bank One Corp., making the combined 6/30/04 deposit total for the merged company $377 billion, vaulting it to second place on the list.

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