Auto Industry : The United States

The American automotive industry has been under a lot of pressure over recent years due to increased concern for the environment and increased global competition. An environmental scan on the American automotive industry shows that the global competition is a great cause for concern, new technology is providing an edge, emissions and laws regulating them are as tight as ever, and consumer opinion is reflecting concern for this.

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

Most importantly the automobile industry basically makes the economy keep moving in America. During the recent recession in 2008 car industry in Detroit and other places started to dry up. Fortunately the economy and the car industry started to pick up, some say because of the automobile

Automobiles developed greatly throughout the early 20th century, from being clunky awkward things to drive to smooth easy to drive useful machines. The roaring 20’s became time of growth and development for the auto industry. (Miller-Wilson) Cars continued to become safer, cheaper, more reliable, and more practical. Cars saw huge technological advancements throughout the 20’s including better safety, reliability, and therefore became more practical. Development continued until the depression of 1929 hit. (1920’s Automobiles) The crash of the stock market in 1929 led to the Great Depression, which brought social and cultural changes that would have large impacts on the auto industry. (Duchardt) The auto industry, despite the economic difficulties of the 1930’s, continued to thrive on innovation and necessity.

Given the current economic climate, I think the automotive industry is going to be faced with a multitude of economic challenges in the next five years. As an oligopoly market, the auto industry is highly dependent on strategic decision-making, and the demand for dynamic innovation and supply at decreased-cost levels. Competition, possibilities of turning substitutes into compliments, and shifts toward higher demand in services are seemingly leading factors that face the current automotive industry in the immediate future. But first, we should not ignore the political forces at play within the market.

Supporting one of every ten jobs in the United States (not including foreign affairs), the auto industry provided crucial jobs to this economy. “Automobile use revived and invigorated the petroleum industry, and a huge oil strike at Spindletop, near Beaumont, Texas, in 1901 symbolized the beginning of a half-century of domestic energy surpluses and low gasoline prices(Shumsky).” The auto industry not only changed the way people got around, it changed the way we live

Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.

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.

Ford’s F-Series experienced a 46% drop in sales for 2006 compared to 2007, making a once most wanted truck in the United States almost abandoned by the consumers. The second and the current recession that began in 2007 brought a new wave of impact on the auto industry. At the time banks were more flexible with approving loans and the interest rates were low which attracted a lot of consumers into the housing market. Since many of them were not able to afford it, eventually they turned to foreclosure leaving them with debt and no credit worthiness; thus, banks started raising the interest rates on auto loans. But foreign competition, higher oil prices, and higher interest rates were not enough to destabilize the auto industry on such a scale; it was the recession that shocked it the most.

The spread of the automobiles transformed the United States by creating new jobs, changing where people lived, and by changing the assembly-line technique. Automobiles essentially changed the face of the United States. The automobile industry was the largest single manufacturing industry. By 1929, one in four Americans were employed directly or indirectly in the automobile industry (Roark 754). Automobiles created millions of related jobs as the need for tires, glass, steel, highways, oil, and gasoline arose. Small towns started decaying as the automobile enabled rural people to bypass the towns in favor of distant cities and towns. Workers began to move into the suburbs and traveled to work on crowded highways, which led to the disappearance

The Automotive industry is a large group of organizations that are involved in the making, marketing and selling of motor vehicles. It is one of the most important industries in the U.S and plays a huge roll in the economic growth. It has historically contributed

Historically, The United State had invented the steam engine and began using automobile long before 1896 when Henry Ford build the first car. Since then, the country has undergone series of dramatic changes affecting the automobile industry politically, economically, technologically, and socio-culturally, including series of global and environmental challenges. These environmental challenges facing the industries can be acknowledged in the following areas:

bikes, trains, or to carpool to go to work or to school. This is a big threat

challenges, however, are the most difficult ones to face and overcome. Some environmental issues that

Marketing studies show that more than half of Americans who are in the market to buy a new car use the Internet at least once. The Internet has now become part of the process to buying a new car. Most buyers use it to research cars so they save time going lot-to-lot test-driving cars to find that they just don't fit their tastes. Car buyers can research what car publications say about certain cars or just go to the manufacture's web site and compare specification to other models. Once you make your decision you can just go down to the dealership or order it online and have it delivered to your house.