Environmental Challenges Facing The American Auto Industry Essay

Global competition in recent years has had a great effect on the American automotive industry. More efficient cars being developed overseas posed a threat to local companies’ market shares (Investopedia, 2015). Market shares of largely well-known companies such as General Motors, Ford, and Chrysler all suffered losing between three and ten percent of their previously held market shares between 2000-2014 to foreign competitors (Investopedia, 2015). For decades, the United States had the best technological advances in the industry and it was very difficult for competition to survive. In response to this, companies overseas invested significant amounts of money into researching new innovations and ways to produce better automobiles than the United States (Investopedia, 2015). Also, because of the difference between currency values, the cost of labor in other countries is lower than here. This allows foreign companies to be able to sell their products at lower costs and attract customers through undercutting their competitors’

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

Every day, millions of Americans turn on the engines of their cars and drive to school or work. What these people do not realize is that the vehicles they operate greatly pollute the planet. According to the Environmental Protection Agency’s recent website post, “Environmental Impacts from Automobiles”,

With the upcoming Presidential election, there is a very real possibility of big political challenges; as well as, major changes to international trade policies facing the American Automotive Companies. Political changes, locally and abroad, are having an effect on the automotive industry. Britain recently voted to exit the European Union; this event, which is being called Brexit, is having a ripple effect across the world. The full result of Brexit won’t be known for two years or more, but with the automotive industry having such a large presence in the U.K, an anticipated change is in full effect. In general, for the next two years, global automakers will need to pay attention to the market; be prepared for unanticipated changes; and ready for the possible need of contingency plans. This is especially crucial as negotiations take place between Britain and the EU. Ian

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.

Akio Toyoda, the founder of the car company Toyota Incorporated, once said “Automobiles are the pinnacle of human transportation. The percentage of families across the world who own cars have reached new heights in the past decade. Multiple families now have an easier form of transportation than walking or taking an overcrowded bus. For that reason, I am happy with what I do.” Akio Toyoda is right for saying so. The usage of automobiles increases by 150% since the past decade as more consumers look towards faster and cheaper methods of transportation. The increase in usage brings many concerns to well-minded citizens, specifically concerns regarding the environment and the conservation of energy. In order to tackle the problem locally, multiple

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.

Environmental concerns have been raised from time to time because of the dependency on the gasoline-fueled engine as the chief auto powertrain technology. This has resulted in exposing many automobile users to unpredictable prices of fuel. These issues were, however, the reason for

The American automotive industry began in the 1890’s. It evolved into the largest industry in the world as a result of the size of its domestic market and mass production.the American auto industry began with hundreds of manufacturers, but by the end of the 1920’s it was dominated by three large companies, General Motors, ford and Chrysler. By the end of the Great Depression and world war 2 these companies prospered making the U.S the country which provided three quarters of the worlds vehicle . They however did not remain number one, Japan overtook the market in the 1980s and China in 2008., making the U.S second in the world. The impact of the global market caused the American auto industry to suffer considerably. Japan and China were producing more vehicles at cheaper prices. Labor cost were cheaper therefore companies took their factories to these countries. In 2008 the American auto industry was on the brink of collapse . Access to credit for loans decreased and sales plunged by 40 percent. Chrysler and GM both sort

The focus of this paper to describe how the automotive industry has evolved throughout these past years, and its impact on the U.S. economy. The domestic market has gone from being dominated by the “Big Three” which are General Motors, Chrysler, and Ford to now including other major manufacturers from foreign countries. The industry has become an important economic indicator used to predict fluctuations in the U.S. economy. It currently makes up approximately 3.5 percent of the U.S. GDP. The Foreign manufacturers however are slowly increasing market shares now that the Big Three aren’t so big

The Automobile industry volume of growth has tremendously escalated in the United States. Years ago there were about 700 million vehicles registered in the world back in 1999, within the USA it contributed over 200 million passenger cars and trucks. In the 1990s, the number of vehicles in the United States had tripled six times faster than the human population back from 1969 to a global perspective on the environmental challenges. This is unbelievable, how industry multiplied and monopolized from years ago. All these issues point to the importance environmental concerns as they relate to the automotive industry. Recently the auto industry and its suppliers were addressed the

American’s are in love with the automobile in all its shapes, sizes, and utility. With a network of roads exceeding 4 million miles, cars are a way of life for more than 91 percent of U.S. households in 2009, according to U.S. Department of Transportation, Bureau of Transportation Statistics [1]. In 2014, Americans purchased over seven and a half million passenger cars [2], reports Statista on the automotive industry. So with all those roads and all those households needing cars, and all the cars being sold, the automobile industry is massive.

effect the American auto industry are; global competition in the industry, new technology for powering

The United States Automotive industry has been dominated by five major auto manufacturers: GM, Toyota, Ford, Chrysler, and Honda. As globalization increases the domestic automotive market (GM, Ford, Chrysler) suffers from foreign competitors. Although with high entrance barriers the market suffers little to none from new entries. There are several reasons for this the largest being capital. It takes a lot of capital to obtain manufacturing plants, raw materials, as well as to hire and train employees. PASTEL Analysis

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