The American Auto Industry Essay

Global competition in recent years has had a great effect on the American automotive industry. More efficient cars being developed overseas posed a threat to local companies’ market shares (Investopedia, 2015). Market shares of largely well-known companies such as General Motors, Ford, and Chrysler all suffered losing between three and ten percent of their previously held market shares between 2000-2014 to foreign competitors (Investopedia, 2015). For decades, the United States had the best technological advances in the industry and it was very difficult for competition to survive. In response to this, companies overseas invested significant amounts of money into researching new innovations and ways to produce better automobiles than the United States (Investopedia, 2015). Also, because of the difference between currency values, the cost of labor in other countries is lower than here. This allows foreign companies to be able to sell their products at lower costs and attract customers through undercutting their competitors’

The automobile has had a profound impact on the United States. It has brought us

Introduction Automobile usage has increased in America and elsewhere in the world. In a research done by Sutherland, J., et al. (2004) “The US has a contributed to 200 million passengers in cars and light truck over the past few years. Further in 1990, studies showed that US cars increased six times faster than human population. The leaders in the automotive industry must adopt some key elements to ensure success in this fast-moving environment. They must invest in knowing their markets, building brands, adapting product strategies and taking long-term view on their goals and objectives. This paper outlines some of the key factors which should be considered. Environmental factors automotive designers and engineers have always said the main threats in the American Automotive industry are the environmental factors such as fuel economy and the clean air regulations. Automotive Emission posed different problems than manufacturing discharges such as coal smoke. Increased fossil-fuel emission has resulted from the million car increase. Irritation smog, which is comprised of carbon monoxide, hydrocarbons, sulfur oxide and other various chemical mixtures are cited in major cities such as Los Angeles. These auto emissions are also said to cause headaches, visual pollutions, contribute to lung cancers and other respiratory disease. In the end, the engineers have designed cars that are better environmental performers, cost effective and fuel efficient to reduce the environmental

The first way the automobile has changed American society is by creating more jobs. The automobile created jobs in fast food, city/highway construction, state patrol/police, convenience stores, gas stations and auto shops.1 Mechanics were beginning to earn a living fixing the inevitable problems.2 Also oil and steel were two well-established industries that received a serious boost by the demand for automobiles, which created tens of thousands of jobs.3 The steel industry and machine tool makers flourished as the automotive industry required ever increasing supplies and components for the engines, chassis and other metal fixtures of the cars.4 Other than the basics, every car needed a battery, head lights, interior upholstery and paint, which created new side businesses.5 The trucking industry sustained a period of growth as more good were shipped via truck.6 Experts estimate that by about 1980, two

America had a global competition as it was not the only country who had the industry. China, South Korea, Japan and India were also procuring automobiles. In 1995 America and Japan made an agreement on having more outlets in each countries, to be able to sell their products. This agreement created job opportunity and made their cars and parts available in both countries. This agreement also invented computation. Japan was producing good quality and affordable automobile such as Toyota, Nissan, Mitsubishi and more. Japan’s automobile became well known all over the world.

maintenance and service. I can associate with this personally. I worked for Honda as a

Globalization brought upon many changes to the American Automotive Industry in 1975. Increasing demand for import automobiles and the Energy Policy and Conservation Act served to be a real threat to the Ford Motor Company, American Motors, Chrysler Corporation, and General Motors. Out of these four manufacturers Chrysler was affected the worst by the industrial change, as they required a federal aid and required brand /management changes to revive themselves. Globalization formed a more competitive market in the United States during the 1970’s due to the changing emissions standards. The American Automotive Industry had to adjust to the new emissions standards from the Clean Air Act of 1970, and the fuel economy requirements of the Energy Policy and Conservation Act, all while building cars that attracted to American consumers.

The automobile industry has brought the United States economic growth due to the impact that automobiles have made on society. There has been a plethora of jobs associated with the auto industry, including manufacturing, auto repairs, insurance, and the development of roads, sales, and auto parts to enhance vehicles. Cars, trucks, and SUVs’ have become a way of life for people and have made an additional economic impact by becoming the primary means of transportation for consumers to commute to and from work, vacations, and travel between destinations. Most family households live on a budget and they must make the decision of how much of their budget they can allocate to transportation costs.

Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.

As many issues are going on the agricultural and auto industry, we look at the agricultural industry first. Since the daily farming market is limited to produced and sold in the market due to relatively less demand and regulations. There will be a lot more competitions in the agriculture market after TPP ratified. If TPP is ratified, approximately 13.25 percent share of imported daily foods will come to Canada that will affect directly to Canadian farmers (Department of Foreign Affairs, Trade and Development Canada, 2015). According to government of Canada, they are expecting more competition advantages in the market but they cannot really guarantee due to competition market with foreign market (Department of Foreign Affairs, Trade and Development

A vehicle is one of the biggest purchases a person will ever make. Over the years, the prices of an automobile have increased due to the rise of inflation. Due to a price index, the price of an automobile changes over a certain period of time. Economists compare averages of automobiles to calculate the cost of each vehicle that presents itself on a car lot. When all of the above is calculated within the purchase of an automobile, it affects every area of making the automobile to selling the automobile. All of these factors are impacted together for the automobile industry as a whole.

Global competition from Chinese auto manufacturers has adversely affected the American auto industry. Chinese manufacturers like Toyota have advanced rapidly and are now able to mass produce and sell cars at a cheaper price than some of the American auto manufacturer. Besides, Toyota has

The Automobile industry volume of growth has tremendously escalated in the United States. Years ago there were about 700 million vehicles registered in the world back in 1999, within the USA it contributed over 200 million passenger cars and trucks. In the 1990s, the number of vehicles in the United States had tripled six times faster than the human population back from 1969 to a global perspective on the environmental challenges. This is unbelievable, how industry multiplied and monopolized from years ago. All these issues point to the importance environmental concerns as they relate to the automotive industry. Recently the auto industry and its suppliers were addressed the

Eagle Motors Ltd is a well-established Swedish Car Manufacturing Company trying to set up their firm in Australia. In order to compete successfully in the car industry in Australia, Eagle Motors Ltd needs to conduct an analysis of the industry context in which they would like to operate. Using the porters five forces model, this provides a detailed analysis of the competitive nature of the Australian car industry and also it suggests an appropriate competitive strategy for Eagle Motors to gain a sustainable competitive advantage. Eagle Motors Ltd is planning to employ a mixture of Swedish and Australian managers and employees to run there operations in Australia. However, the senior management at Eagle Motors does

effect the American auto industry are; global competition in the industry, new technology for powering