Environmental Challenges Facing the American Auto Industry Essay example

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The American auto industry began in the late 1880’s, evolving from the horse powered wagon, steam powered cars, gasoline powered then to the hybrids and hydrogen fuel celled technology today. Henry Ford and the Ford Motor Company were the first to mass produce cars. American automobile manufacturers dominated as the largest volume producers in the world until the 1980’s when the Japanese became the largest producers. The Chinese with 14.8 percent have become the number one volume producer in the world OICA (2014). The United States at 6.9 percent has dropped in position to the second highest volume auto producer in the world. The focus of this paper will be about the environmental challenges facing the American auto industry. In this…show more content…
The American auto industry will face major competition in the next five years from Europe, China, Japan and other emerging markets. In order to remain viable U.S. auto manufacturers must continue to seek out new markets, mergers and invest in new technology. The American auto makers have already invested billions of dollars in new technology. Every year at the major automobiles shows new concept cars are unveiled as each auto maker seeks to drum up consumer interest along with domestic and international investment. The U.S. government with a stated goal of reducing the dependence on oil has called for companies to put one million electric vehicles on the road by 2015 (D.O.E 2011). General Motors and Ford have already invested in hybrids and GM’s Chevy volt is already a top selling electric car. GM has invested a lot of money in hydrogen fuel cell technology and according to CEPGI (2014) General Motors has the all-time lead in fuel patents between 2002 and 2012. According to GM News (2013) “GM’s fuel cell test fleet has accumulated nearly 3 million miles, more than any other automaker”. General Motors has also entered into deal with Honda Motor to produce newer generations of fuel cells. GM is targeting 2020 as a launch date and is happy to allow Toyota to take the lead in launching hydrogen fuel cell cars. GM’s rationale is that Toyota will spend money to advertise and debut the
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