Environmental Challenges Facing The American Auto Industry Essay

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.

the world. " The Big Three" hold nearly 75% of the market and produce over 8

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

In the hyper competitive world of today’s mega corporations controlled by the sway of the stock market, giant old industrial era companies rule over the automobile market in the United States as well as large parts of the global automobile market. Companies such as General Motors, Chrysler, and Ford were at the center of it until the economic crisis now known as the Great Recession of the late 2000s. The whole market was declining in sales with General Motors and Chrysler taking the biggest hits while Ford only suffered decline comparable to foreign automakers’, Honda and Toyota, levels due to restructuring in prior years. However, the tipping point was edging closer to bankruptcy with General Motors and Chrysler that ultimately

These new requirements caused many Americans to lose their curb appeal for larger, higher output vehicles. The Japanese and European imports were lighter and more fuel efficient, so naturally they were better suited to meet new emission requirements. As a result imports took up 18% of cars sold in America, a share almost 20% higher than previous years, but none were actually made in America. In fact imports were so successful that Japan had to limit their import control to protect the U.S. Automotive industry while it recuperated. However the production of transplants vehicles rose from 1.4 percent of the market to 16 percent. The Japanese,

Another large car manufacture that is located in the United States is General Motors (GM). General Motors would benefit more in this competitive

Ever since the 2008 recession US automobile companies have been on a steady downhill slide, but actually you can trace this downward trend even further back than 2008. US car companies have been feeling the heat since as early as the late 1980s when Japanese car companies laid claim to American manufacturing plants . Despite a shot in the arm in sales over the past five years, American firms are still on the decline. This case analysis aims to diagnosis the problem, provide analysis of the problem, and propose a viable solution to the problem from the perspective of the US automobile market share leader, General Motors.

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 American Auto industry has matured over several decades and is one of the best auto industries in the world. However, like any other industry, it is fraught with many environmental challenges that include Political and Regulatory challenges, fierce global competition from other auto manufacturers, rapid advancement of technologies for powering the products in this industry, as well as challenges from stemming from consumer opinions about their products.

The auto industry adopted new globalization trends that could steer the restructuring of global manufacturing in order to meet the challenges of global economies. There was the need to improve on efficiency and maintain a competitive level in the automobile industry. Automotive manufacturers from Asia, Europe, and the US adopted global trends such as integrating low- income countries into the global division of labor. The aim of the automobile industry in adopting globalization was to enable it shift from the economies of scale to the economies of scope. The industry started focusing more on manufacturing capabilities that could enable it meet the increasing marketing demands. The rapid changes in technology-forced automakers

Investopedia, the American auto industry has struggled to keep U.S market shares higher than they were

Over the years, the U. S. auto industry's market has been experiencing fluctuations due to many reasons including: price, quality and foreign competition. General Motors Corporation (GM) which had been the leading car and truck manufacturer had been experiencing declining market share and facing stiff competition from both U.S manufacturers and foreign imports such as the Asian auto producers that included Toyota, Honda and Nissan. The main reason for increased foreign competition was that foreign cars were more fuel efficient, smaller, less expensive, and often more reliable than their American counterparts.

The financial crisis starting in 2008 and the following recession hit hard the US auto sector. Traditional car makers had to realise that substantial changes were needed in order to maintain their strong position in the

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