Analysis Of The U.s. Auto Industry

Ford entered into the automobile market many years ago and became the oldest car manufacturers. It is the first company which specialized in large scale manufacturing of the cars. The production of Ford cars is done in highly engineered way with the help of moving assembly lines.

Automotive engineering today continues to fascinate consumers across the world. Muscle cars have always had an enormous influence in the United States such as the Chevrolet Corvette and Ford Mustang. In the early 1900s, when Ford ran the motor vehicle game with the Model T, American-made was the only option. However, since technology and innovation have emerged into a race of the auto industry, foreign cars from countries such as Japan and Germany have stolen much of the prestige that American cars used to hold. Consumer reports releases yearly top ten vehicle lists after investigating over 200 vehicles. This year, all top ten are Japanese and German. With the number of American consumers driving Toyota, Nissan, BMW, and Mercedes, the

Global presence. GM was the main vehicle maker as far as deals for a long time until 2007. The business has developed its vicinity on the planet and is presently working in 157 nations, while its Chevrolet brand came to world record deals (4.95 million units).

The US has one of the largest automotive markets in the world. There are currently three major US automobile companies, Ford, General Motors and Chrysler which have bought up many smaller companies. There are also over twenty minor US automakers such as Tesla, Vector Motors, and Detroit Electric. Many foreign vehicles such as Honda, Toyota and Volkswagen, are best sellers in the US (although some of them are made in the US).

In 1994 Toyota was the world’s third largest seller of vehicles (at 4,580,000 units), following GM (at 8,420,000 units) and Ford (at 6,800,000 units) respectively. TMC’s Total Market Share and Total Retail Sales in 1994 are as follow:

Throughout the 20th century, GM, Ford, and Chrysler have held a firm grip on the U.S. car market. GM even was even able to control 50% of the market until about 1980. Ford and Chrysler also did considerable well during that period. However, globalization allowed foreign carmakers to maneuver their way into the U.S. market. Intensified competition then began to threaten the market shares of those leading companies. German companies entered the market with cars like Volkswagen, Daimler, and BMW. They now currently own Porsche and Audi. The Japanese car industry have the luxury of owning cars such as the Honda, Toyota, and Nissan while Koreans have joined the market with

Global competition brought about less market share for U.S. automobile manufacturers and threatened company profits as more foreign car brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. The other two of the Big Three car manufacturers also lost U.S. market share during this same period. Ford fell from 24.1% to 14.7%. Fiat-owned Chrysler now holds only 12.7% after having 15.7% of the market in 2000.

market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. The other two of the Big

Global competition brought about less market share for U.S. automobile manufacturers and threatened company profits as more foreign car brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. The other two of the Big Three car manufacturers also lost U.S. market share during this same period. Ford fell from 24.1% to 14.7%. Fiat-owned Chrysler now holds only 12.7% after having 15.7% of the market in 2000.

Global presence. Volkswagen is conducting its operations in more than 150 countries worldwide and is expected to become the worlds best and biggest auto manufacturer by 2018. Volkswagen manufacturing operations, for its cars, are currently being conducted in more than 100 plants across the globe. Other than General Motors and Toyota, no other automotive company has the resources available to compete with Volkswagen in terms of global presence.

GM has a highly diversified product mix. This strategy proved to be successful for most of the 20th century, as it was the largest car maker in the world from 1931 up until 2008 and with 13 brands, countless car models, plants in 34 countries and sales to 140 countries (“About GM”)(Bensinger).

Along with China, the US market is considered among the largest auto markets in the world. Just in 2015, around 7.7 million cars were sold, and 4.35 were locally produced.

General Motors, while they are the largest automobile maker, are currently going through a decline in sales. Their competition is extremely stiff. With competitors such as Ford, Chrysler, and other Japanese vehicles that have lower production costs and include better styling issues and quality in mind, this makes for a difficult struggle for GM.

USA automobile market was a well-developed mature market during 2001, which had around 24 companies who were competing in the US market with major products dealing in cars, trucks and buses. GM, ford, Chrysler and PACCAR were the major American companies in the automobile industry. GM operated on a global scale and had manufacturing units outside competition from outside players. Its market share declined to 63% in 2001 from 72.4% in 1994.

Today, the automotive industry is one the top profitable industries in U.S. and all around the world. More than 1.5 million people involved in different segments such as engineering, designing, ordering, sell, and marketing. As a result of this statement, automotive industry has huge effects on employees, customer support, jobs vacancies, revenue and finally GDP which is the most important part of the economy for any countries (Statista Portal, 2016).