Global Industry : The American Auto 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

What is business ethics? It is formally defined as the critical, structured examination of how people & institutions should behave in the world of commerce. Specifically, it examines self-interest and profits, versus moral values and ethics. The Ford Pinto was a new stylish car, which gave Ford an ultimatum.

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”,

In the contemporary China’s economy, it is no doubt that Auto parts Industry has become one of the fastest growing industries which plays a major role in the development of the domestic manufacture as well as the GDP Growth.

Globalization brought upon many changes to the American Automotive Industry in 1975. Increasing demand for import automobiles and the Energy Policy and Conservation Act served to be a real threat to the Ford Motor Company, American Motors, Chrysler Corporation, and General Motors. Out of these four manufacturers Chrysler was affected the worst by the industrial change, as they required a federal aid and required brand /management changes to revive themselves. Globalization formed a more competitive market in the United States during the 1970’s due to the changing emissions standards. The American Automotive Industry had to adjust to the new emissions standards from the Clean Air Act of 1970, and the fuel economy requirements of the Energy Policy and Conservation Act, all while building cars that attracted to American consumers.

The American Auto Industry, in the form of vehicles it produces, account for almost one-fifth of emissions in the United States. Subtracting emissions created from production,

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 business environment is also changing so that many of the businesses are becoming innovative with time. The world economy is concerned about the rise in global warming which occurs as a result of the carbon IV oxide emission from the fossil fuel. So, it is right to say that Mary T. Barra’s effort to ensure that General Motors produce or manufacture motor vehicles that are environment friendly and especially the solar vehicles is good for the overall growth of the economy and is in line with the PESTEL strategic concept of a good business environment. The strategic concept of providing a pollution free product is in line with the needs of the modern economies where most of the innovations are going towards clean and renewable energy. There are many reasons why the motor vehicle industry in the United States of America is going to continue growing under the President Trump’s administration. The first reason is that his political statement supports local industries as he states clearly that it is an “America First” where the interests of the United States companies and employees will be given first priority. Accordingly, this would end up in creating a good working business environment that can be relied on in the long run. The political and environmental concerns as raised on the PESTLE analysis are very important as they make

Although all the major automakers in the U.S still have factories in Detroit, we have seen a large amount of production shipped to countries like china, Russia and Brazil. For the auto car makers it make sense to move factories to countries like china and Russia, because the assembling of parts is still very labor intensive and requires a number of workers. In the Untied States the minimum wage is sometimes six times that of countries like Russia and china, so when auto companies move their factories oversees, the profit is still huge even after you incorporate the cost of logistics. The world has changed a lot since the 1950’s when Detroit was the industrial capital of the world, now because of globalization “the global nature of the auto industry probably means that factories are more likely to be located in the [southeastern U.S.] or Mexico to serve the markets of the U.S. and Canada,” Mr. Whalen said, while the burgeoning consumer appetite for cars in China, Russia and other rapidly developing nations is being satisfied for the most part by factories within those

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

challenges, however, are the most difficult ones to face and overcome. Some environmental issues that

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

Through globalization, the auto industry has a significant effect on economies around the world. Automakers are constantly in a battle between one another, either with a foreign country or in the same region in the global market to produce and sell a better car to earn a profit. Manufacturers compete in various categories from vehicle performance to price and everything in between. The profit earned through the sales of various car models can be invested towards increasing employment ranging from engineers and designers to the workers assembling the vehicles. On the other hand, the boom of the auto industry through globalization has caused a negative effect on the environment. With automobile production increases to

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