Corporate Overview Of The Automotive Industry

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

The automotive industry has continued to evolve alongside changes in lifestyle, and the demand for ease of transportation has allowed the industry to far surpass its competitors.

Since the twentieth century, America has dominated the car industry business. Automobiles have made a major influence in the society and the economy of America ever since. Especially when Henry Ford, founder of Ford Motor Company, developed two of his inventions, Model T and Model A, flourished into a big success around the 1900’s. Nonetheless, the culture we live in today is influenced tremendously by the advanced technology we created, and it grants industries new opportunities that may evolve the automobile business as we know it.

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.

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.

To research the automobile’s future, I began research with CQ Researcher, a source with articles discussing almost any number of topics. The regular articles always have over 12,000 words and contain a detailed bibliography.

The automotive industry designs, develops, manufactures, markets and sells motor vehicles, and is one of the world’s most important economic divisions by profits. This analysis focuses on the industry, specifically, manufacturers of automobiles. There are five competitors in the StratSim environment: Firm A, B, C, D, and E. Industry sales in the most recent year were 4.3 million units, with expected growth in the next year. Within this industry, there are seven-vehicle classes: Economy, Family, Luxury, Sports, Minivan, Truck, and Utility. There are two new classes with potential – if properly marketed.

When people are unemployed they do not think of making a big purchase like this one. Unemployed people can't afford a new car. Those people that do have a job and are at risk of being unemployed can't make big purchases when they are worried about other things deemed more important. As an example, the unemployment rate was between 8 and 10% in 2009 but in March 2015 it was 5.5%. The difference in car sales in those years was huge. In 2009 the sales were 9 million, wherein 2015 they were 16 million.

In 2013, Detroit shined again, and combined came in higher than its global competitors. Research showed U.S. car companies held 46% of auto sales and this surpassed the competition in Japan, Germany and Korea (Wood, 2014). Detroit automakers were nearly destroyed in 2009 when hit by a crippling recession. The American tax payers bailed the companies out, and they have recently started to show the growth it takes to succeed and be number one. The recession has also forced the American auto industry to become more efficient and competitive. It has overall decreased the number of employees and reduced costs in other ways to protect the company’s well-being and the taxpayer’s investment.

The American automotive industry faces several environmental challenges. It has to stand up to foreign competition in the global market. Laws that regulate things such as emissions are always a concern. Automobiles produced by the industry may not be many consumers’ first choice based on the consumers’ geographic whereabouts or that a certain foreign automobile brand almost has a monopoly on a geographic area. The global automotive industry is constantly evolving, so the American automotive industry must evolve alongside it. The American automotive industry must come up with creative ways in order to overcome these environmental challenges.

The auto industry has many challenges within the United States. As the market minimizes it becomes increasingly difficult for auto manufacturers to circumvent the economic downfall of the market. Newer technologies threaten the industry as consumers demand better fuel efficiency and are becoming more environmentally conscientious. With the ever involving consumer auto makers must drive sales in a creative manner than benefits all.

The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.

Automotive industry is also incorporating new technologies. The launch of hybrid engine cars in the recent past is one of the major technological advancement. Many companies are working to produce electric vehicles and looking for another means of fuel for the cars. The automobile industry is constantly changing. Due to the recent global recession, there has been a slowdown in the demand of vehicles and people are moving towards small compact cars which are normally low priced. Many companies which earlier normally catered to luxury segment are also entering this new attractive segment. Global expansion has been the foray of automobile industry since long. Companies started expanding themselves since early 1900¶s. Nissan is also one of the major automobile companies which started its global expansion around 50 years back.

The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging