Challenges Facing The American Auto Industry

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

Numerous Americans know that many foreign cars are made in America. Looking at charts from Kogod college shows the reader the most American made cars and the least American cars in order. The top 50 list shows Toyota, a foreign car company, makes more cars in America than Ford. This is rather surprising since Ford started

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

EXECUTIVE SUMMARY ........................................................................................................................ 1 1. INTRODUCTION................................................................................................................................... 3 2. STRUCTURAL INTEGRITY OF THE AUTO SECTOR ................................................................ 4 3. AN INTEGRATED MARKET ............................................................................................................ 12 4. LONG TERM OUTLOOK

These foreign options surprisingly were from countries were at war with a few decades prior. This competition from once enemy nations brought controversy to the older generations of consumers. “The first danger sign came with the growing success the Volkswagen Beetle enjoyed in the American automobile market.” (Lifson) With foreign automakers making a debut on the American car market, the American manufactures lost their previous advantage of controlling the market. The foreign auto makers now offered another advantage the American manufactures were struggling with, fuel efficient

While the American auto industry is solidly “the big kid on the block”, the rise of affluence in other regions of the world such as China and India have created an entire new market for automobiles. The native auto makers in those countries such as the Chinese “Chery” obviously have the upper hand in targeting customers in those regions. The American Company Chevy had first hand experience with the pitfalls of trying to compete in foreign countries when it introduced the Chevy “Nova” to South America. The urban legend is that the marketing team failed to realize is that the cars name “Nova” translates loosely into Spanish as “No Go” which is an unfortunate name for a model of car. It sold poorly.

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

After a self-satisfied period, American auto manufacturers encountered formidable competition from the Japanese (the most intense competitor, holding a combined U.S market share of approximately 25%) & German manufacturers. American market share was lost to these foreign brands as a result of better gas mileage, attractive design features & affordability provided by these foreign entities. Consequently, U.S car sales struggled in the European market while these foreign auto makers established production facilities & or expanded their already existing facilities (the Japanese manufacturers) in the U.S. Japanese manufacturers have instituted innovative productions by modifying U.S. manufacturing models, adapting & utilizing technology. Even so, the U.S. have merged with & established strategic commercial partnerships with other

The United States Auto industry leads an innovation and the resounding success was inevitable. According to the American of Global Automakers and the American International Automobile Dealers Association, US auto industry continues creating a positive contribution in the economy. America was known to begin their auto industry production in 1890s. With the help of other automakers such as Japan, Europe and Korea, the auto industry in America boost the gross domestic product of the country.

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

The American auto industry is one of the largest in the world, with fourteen major auto manufacturers (that produce a combined 55 brands) making the US home, including the big three; General Motors, Ford Motor Company and Chrysler. In 2010, the automotive industry was America’s top exporter, generating over $100 billion in exports and producing nearly 8 million automobiles. Auto manufacturing is leading in innovation and technology with auto companies, occupying 8 positions of the world’s top 25 spenders list for research and development. We now have driverless cars, Connected and Smart Cars that offer internet connectivity, can alert you if there are any problems with your vehicle, and speak to other cars. With the advancement of technology in the automotive industry, scholars have noted that carmakers are now heading the military and space industries in technological innovations. Congress’ aim was for a third of the military’s combat fleet to consist of autonomous vehicles by 2015, The New York Times reports the U.S. armed forces is lagging behind today’s auto manufacturers. Even with all of the successes and advancements of the automotive industry, there are still very real environmental challenges that plague them; such as 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 and consumer opinions about the product the

Today, automobiles have gained a reputation of refined high-tech product rather than just a means of transport. It has become a moving living quarters, defining the social status of what people aspire to have when it comes to the type of life those people want. In today's automobile business operations, companies should pay more attention to developing the customer’s experience. The experience is an important part of customer value; great customer service is the advantage needed to measure the worth of goods or services. Therefore, only those great idea and marketing strategies can destroy the competition. This means, it is very important for companies to target the right market, set up compelling marketing strategies and make

The American Auto Industry has flourished since the early 1900s; it is one of the industries that represents one of the largest segments within the U.S economy and forms the core of the nation’s industrial strength. Americans dominated the industry in the first half of the century. By the 1960s the car market was flooded by the big three (Chrysler, Ford and General Motors) whose manufacturing relied heavily on promotions and model changes to boost their sales (Foner & Gratty, 1991) However the blue print for the modern automobile was perfected by Germany and France in the 1800s.

The research will explore on the performance of the automobile industry from the year 2003 to present. This will be especially on how the industry behaved during the 2008 recession in United States, how it fare with evidence of the annual gross output. The paper will look also to establish where does the automobile industry in terms of nature of the market with enough justification. Major competitors in the industry will also be discussed. Issues surrounding the industry will be analyzed, concerns and the threats facing the industry in general. Lastly, the paper will cover the predicted future of the industry, which will be personal opinion

However, Wells, P. & Nieuwenhuis, P. (2012) narrated that the automobile industry within the UK has entered in a new phase where the customers are well informed and well educated about the vehicles and their quality. Thus, this phase is a step towards success because customers are willing to spend more on buying cars and other vehicles. The automobile industry of the UK is one