Challenges Facing The American Auto Industry Essay

1216 Words5 Pages
There are a myriad of challenges facing the American auto industry. Environmental challenges, however, are the most difficult ones to face and overcome. Some environmental issues that effect the American auto industry are; global competition in the industry, new technology for powering the product that this industry produces, the effect of emissions on the environment and government reactions to this, and consumer opinions about the product. “An analysis of the external environment is a part of the exercise of strategy development. Some parts of the external environment that are usually considered are: the state of the economy, the competition, technology issues, cultural values, government regulation, cost and availability of raw materials, and cost of labor. A business may have the best idea for a strategy, but one of the external factors could negate its best efforts to implement the strategy.” The auto industry alone is a very fast-paced and demanding industry. For the American auto industry, they face the same global competition as other countries (if not more.) According to Investopedia, the American auto industry has struggled to keep U.S market shares higher than they were in 2000. Actually, they have been struggling to bring them back up to those same numbers. “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 manufactures also lost U.S market share during this same period. Ford fell from 24.1% to
Open Document