External Environment Of The Automobile 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

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.

This analysis is essential as it provides a broad picture of the external components of the business that hinder the growth of the company and what measures needs to be taken to overcome these issues:

First, on the market of semi and fully autonomous car adopters; in the short term, we expect auto manufacturers who produce premium semi-autonomous features to enjoy increased sales and brand recognition. Software makers, such as IBM, that process large volumes of sensor data and wirelessly connect cars will be a significant part of the value chain as well. Many technical, regulatory and governmental support uncertainties remain for fully autonomous cars. Second, for components suppliers and sensor manufacturers; the number of sensors and electronic devices in cars is increasing quickly, resulting in more revenue for sensor and component suppliers. For example, both Google and IBM are working with supplier continental to develop parts for autonomous cars. Third, rental, taxi and ride sharing businesses will converge with the robo-taxi model. The market size will grow substantially as more people move from car-owners to ride-sharers. The younger generation and older adults will be early adopters of the new

Driverless technology has already proven to be an incredibly disruptive innovation, that will change the economic landscape of the world, and provide us with a safer, cheaper, easier and more efficient mode of transportation. There are some risk factors involved in pursuing the Google Car, because of the powerful interest groups that stand to be lose revenue because of this technology. Despite this, Google has an incredible opportunity to pioneer a technology/product that is sure to develop mass appeal, and change the world. Considering, the high barriers of entry, little competition, non-existent substitutes, and the low power of buyers, analysis of the external environment suggests the Google Car will be very

The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.

The US automobile manufacturing industry includes about 200 companies with combined annual revenue of about $250 billion. Major companies are GM, Ford, and Chrysler (which is controlled by Italy 's Fiat). The industry is highly concentrated: the top three companies account for more than 90 percent of revenue.

The automotive industry is inherently interesting: it is massive, it is competitive, and it is expected to

There are many issues that are currently facing the American Automotive industry, especially in terms of environmental factors. The automotive industry has been around for a very long time, and is a relatively stable industry, but there are still areas where automotive companies need to adapt and if they fail to do so, they will be at a disadvantage against their peers, both here in America and also globally. In this essay I will break down a few of the issues that I believe are plaguing the American Automotive Industry.

The American automotive industry is one of the largest parts of the national economy. In 2009 it made up 6.6% of the entire American workforce, employing 880,000 individuals.

The US Auto industry is facing the reality that new generations are not the same generations on which they built their empires. As information and global awareness are more prevalent than ever before, the consumer only wants to do what feels right to them, not what they have been told to want, and statistic show that the things the new consumer is looking for above all, is the lower cost of owning a car, followed fuel efficiency and how environmentally friendly it is.

As cited by the Bureau of Labour Statistics, ‘the automotive industry includes industries associated with the production, wholesaling, retailing & maintenance of motor vehicles’. This industry has had an immense impact on the domestic industry. Nevertheless, with the 2007- 2008 recession, new car sales decreased rapidly reflecting the overall decrease in consumer spending. Thereafter with the aid of government, in early February, 2012 the American Automotive Industry made a brisk recovery, making American automotive companies reign as the biggest & most profitable & it incrementally grew year after year.

The United States Auto industry leads an innovation and the resounding success was inevitable. According to the American of Global Automakers and the American International Automobile Dealers Association, US auto industry continues creating a positive contribution in the economy. America was known to begin their auto industry production in 1890s. With the help of other automakers such as Japan, Europe and Korea, the auto industry in America boost the gross domestic product of the country.

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there