Brief Summary On The Automobile Industry

General Motors (GM) was one of the premier automakers of the world. Firmly planted as the leader of the big three automakers, GM, Ford, and Chrysler, years of success grounded GM as an economic and cultural icon of American business. As the Japanese auto market grew and became more efficient, turning out improved vehicles that the public wanted, GM was becoming a lumbering behemoth of inefficiency and corporate gluttony. Many circumstances contribute to GM’s road to bankruptcy including high legacy costs in union owned contracts, largely poor design, inferior quality, and low productivity.

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.

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.

Even though GM has been given some advantages, it is experiencing problems in Europe and in South America (Kinicki & Williams, 2013). The home market is proving to be a challenge, also. Toyota and Honda are standing out as stiff competition. One plan to help achieve the profit goal for GM is to reduce auto platforms by

In 1895 there were only four cars officially registered in the U.S. Little more than 20 years later in 1916, 3,376,889 were registered! Because of the automotive industry 's major technological advances the automotive industry has been able to pull ahead of other industries over the years. This industry has also proven that to be successful in the business world, you have to take some risks. which has allowed them to get advancements that other industries who weren 't willing to make such risks fail to take advantage of.

In recent years, the global recession has made a huge impact on the company cash flows and its financial situation. To sustain as a global leader in the highly competitive automobile industry the GM needs to have its own strategic plan to produce the next generation of vehicles and it has got no time to delay. This is a crucial time for automobile industry with many threats, but opportunities as well. The company has to choose the best "opportunities" to overcome the "threats" and "weaknesses" using its "strengths". The next several years will redefine

The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.

The aim of this report is to discuss about how GENERAL MOTORS (GM) failed to perform in the previous year’s even though being one of the oldest automobile manufacturer in the history, and the issues will be clarified with pertinent theories and to conclude my analysis

New vision and strategy. After 2008 bailout, GM has encountered real changes and rearranged the way it works together. New individuals were named to the company 's administration group with Daniel Akerson as the CEO. He shook GM 's bureaucratic authoritative culture and acquainted new methodology and dreams with the business. GM got to be littler yet leaner and is turning out to be more cost focused.

There are many issues that are currently facing the American Automotive industry, especially in terms of environmental factors. The automotive industry has been around for a very long time, and is a relatively stable industry, but there are still areas where automotive companies need to adapt and if they fail to do so, they will be at a disadvantage against their peers, both here in America and also globally. In this essay I will break down a few of the issues that I believe are plaguing the American Automotive Industry.

The American automotive industry is one of the largest parts of the national economy. In 2009 it made up 6.6% of the entire American workforce, employing 880,000 individuals.

The Auto Industry in the United States has flourished ever since it’s revolution in the early 1900s. “Although the blueprint for the modern automobile was perfected in Germany and France in the late 1800s, Americans dominated the industry in the first half of the twentieth century. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerging as the “Big Three” auto companies by the 1920s (Foner & Garraty 1991).” Henry Ford’s focus was to produce an automobile that could be accepted by middle class Americans. The American automobile industry is subject to global competition like any other industry. As stated earlier, the automobile was first perfected in Germany and France. In 1995, the United States and Japan made a trade agreement that provided more dealer outlets and allowed easier replacement part selling in each other’s countries (Nauss 1995). This makes auto parts and auto-replacement parts for Japanese cars easier to access in the United States and vice versa. Not only does this provide for more US jobs, but it also provides for more Japanese jobs in the auto industry (Nauss 1995)! But furthermore, it increases the global competition. “Japanese automotive manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha, and Mitsuoka. Cars designed in Japan have won the European Car of the Year, International Car of the Year, and World Car of the Year awards many

The US Auto industry is facing the reality that new generations are not the same generations on which they built their empires. As information and global awareness are more prevalent than ever before, the consumer only wants to do what feels right to them, not what they have been told to want, and statistic show that the things the new consumer is looking for above all, is the lower cost of owning a car, followed fuel efficiency and how environmentally friendly it is.

The American auto industry has faced several challenges in the recent years. GM was the

As it relates to the competitive structure, or the number and size distribution of companies within an industry, the automobile industry is considered a consolidated industry, where a small number of large companies dominate and are able to set prices. Traditionally, in America, these companies were called “The Big Three,” Chrysler, Ford, and GM, but Toyota, was also a major rival during the recession. “In consolidated industries, companies are interdependent, because one company’s competitive actions or moves (with regard to price, quality, and so on) directly affect the market share of its rivals, and thus their profitability” (Hill & Jones, 2012, p. 62). The relative power of consolidation on the automobile industry was high.