Environmental Challenges Facing The American Auto Industry

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Environmental challenges facing the American auto industry xxxxxx xxxxxx University of the People Word count: ??? words Abstract This paper covers the current environmental challenges the face the American auto industry as a whole and the impact that has. Environmental challenges facing the American auto industry The American Auto industry is well known world wide with many manufacturers carving a path for their business and brand, most becoming household names for millions of people in many countries. Despite the large size of these conglomerates, they too are affected by outside influences from multiple sources. Pressure from the customers, competition, Government and environmental groups…show more content…
As a result, global OEMs and suppliers are being challenged to constantly update their product portfolios to meet numerous regional regulatory requirements, which are expected to add significantly to their manufacturing costs.” These pressures require auto companies to make changes, this creates additional operational costs, costs to consumers as base costs rise and profitability levels need to be made to keep companies at profitable levels. Some customer segments, prefer styles of vehicles that have machine specifications not matching new models to meet emission standards, big engine muscle cares are an example of this, to big capacity personal trucks. These models may be available from overseas competitors resulting in loss of income and profitability as these customers switch to other imported brands. Producing a new model car is an expensive exercise with many resources required over a timer period to produce a prototype. Pressure from external sources to make unplanned changes introduce new costs that were previously unscheduled to meet lower producing emissions. Despite the high costs involved there is no guarantee the final product produced will be a success, as it still relies on customer acceptance and demand as well as competition from local and international competitors. Research is another area of growth in the American auto industry, research has costs and longer
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