Persuasive Speech : Foreign Auto Industry

Global competition in recent years has had a great effect on the American automotive industry. More efficient cars being developed overseas posed a threat to local companies’ market shares (Investopedia, 2015). Market shares of largely well-known companies such as General Motors, Ford, and Chrysler all suffered losing between three and ten percent of their previously held market shares between 2000-2014 to foreign competitors (Investopedia, 2015). For decades, the United States had the best technological advances in the industry and it was very difficult for competition to survive. In response to this, companies overseas invested significant amounts of money into researching new innovations and ways to produce better automobiles than the United States (Investopedia, 2015). Also, because of the difference between currency values, the cost of labor in other countries is lower than here. This allows foreign companies to be able to sell their products at lower costs and attract customers through undercutting their competitors’

If you ever question whether American made matters, consider the way that the U.S. automotive industry has devolved. At one time, American auto makers led the world in their sector. Today, jobs that were formerly held by Americans have been outsourced to workers in other countries. In order to inject new life to the Middle Class and level the playing field once again, we must insist on the availability of American made products. Our buying decisions could make all the difference for Americans now and in the future.

The automobile industry in the United States is staying competitive. The United States automobile market has done its best to compete with their foreign competitors. However, the foreign automobiles are loved by the US people. On the streets, many foreign automobiles are out there and many people enjoy these foreign vehicles. I personally love Toyota and have owned more foreign vehicles in my life time than I have owned US vehicles. According to the article, “More Americans Buy Foreign Cars”, General Motors stays competitive by offering incentives and competing with foreign automobile incentive. However, despite GM offering incentives, their GM sales were down. Chrysler has also remained competitive by offering zero-percent financing

The Big Three in their endless attempts to out do the competition, focused on outsourcing work to automotive supplier companies. This was not a new concept, but in the past there wasn’t as large a disparity in wages between workers so there was little or no cost savings and foreign competition was not a factor. This tactic saved the Big Three billions of

With the increase of global competition, the manufacturers of vehicles in the US had been negatively

The Auto Industry in the United States has flourished ever since it’s revolution in the early 1900s. “Although the blueprint for the modern automobile was perfected in Germany and France in the late 1800s, Americans dominated the industry in the first half of the twentieth century. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerging as the “Big Three” auto companies by the 1920s (Foner & Garraty 1991).” Henry Ford’s focus was to produce an automobile that could be accepted by middle class Americans. The American automobile industry is subject to global competition like any other industry. As stated earlier, the automobile was first perfected in Germany and France. In 1995, the United States and Japan made a trade agreement that provided more dealer outlets and allowed easier replacement part selling in each other’s countries (Nauss 1995). This makes auto parts and auto-replacement parts for Japanese cars easier to access in the United States and vice versa. Not only does this provide for more US jobs, but it also provides for more Japanese jobs in the auto industry (Nauss 1995)! But furthermore, it increases the global competition. “Japanese automotive manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha, and Mitsuoka. Cars designed in Japan have won the European Car of the Year, International Car of the Year, and World Car of the Year awards many

Asian and European car manufacturers became major threats to the US market shares. The economic

Koenigsegg Agera R, McLaren F1, Bugatti Veyron SS and Lamborghini Veneno. These are some of the best, most flashiest super cars out there, and cars that are the subject of envy among many. And who can blame these guys? These supercars that have defined a generation are known for their shocking sticker prices, thus making them status symbols, they move from 0 to 60 mph in a zip, and they get attention and any time, anywhere especially for local Casanovas. Because these trimmings and promises, many people dream about owning and driving a McLaren, a Koegnisegg or Lamborghini and enjoy the magical ride. But is it worth the hype, the attention and your time?

After a self-satisfied period, American auto manufacturers encountered formidable competition from the Japanese (the most intense competitor, holding a combined U.S market share of approximately 25%) & German manufacturers. American market share was lost to these foreign brands as a result of better gas mileage, attractive design features & affordability provided by these foreign entities. Consequently, U.S car sales struggled in the European market while these foreign auto makers established production facilities & or expanded their already existing facilities (the Japanese manufacturers) in the U.S. Japanese manufacturers have instituted innovative productions by modifying U.S. manufacturing models, adapting & utilizing technology. Even so, the U.S. have merged with & established strategic commercial partnerships with other

“Although the blueprint for the modern automobile was perfected in Germany and France in the late 1800s Americans dominated the industry in the first half of the twentieth century. Henry Ford innovated mass-production techniques that became standards with Ford, General Motors and Chrysler emergingas the “Big Three” auto companies by the 1920s, Foner - Garraty 1991.” Even growing up with the fast speed but this industry also comes with the worst environment issues not only in the United States but also in the world. There are many environment problem come with American Auto Industry such as global competition in the industry, new technology for powering the product that this industry produces, the effect of emissions on the environment and government reactions to this, consumer opinions about the product your industry produces.

Today, the modern global automotive industry encompasses the principal manufacturers, General Motors, Ford, Toyota, Honda, Volkswagen, and Daimler Chrylser, all of which operate in a global competitive marketplace. The Automotive Industry. Global competition resulted in less market share for U.S. car manufacturers and threatened company profits as more foreign brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. Ford fell from 24.1% to 14.7%. Chrysler now holds only 12.7% after having 15.7% of the market in 2000. High labor costs, product lines that emphasized large vehicles with significant gasoline use and a looming global recession caused a crash in U.S. automaker profitability in 2008. American car manufacturers were struggling to compete against better, more efficiently manufactured products from overseas companies. As of 2015, Toyota earns more than GM, Ford and Chevrolet combined.

The U.S. automotive industry is facing a difficult if not unprecedented period of competition and capital spending in its efforts to compete with Japanese automakers and to meet pending government regulations on emissions control and safety. These burdens are falling on an industry trying to cope with massive losses due to the 1990-1991. Despite worldwide capital spending of $90 billion between 1983 and 1989, the domestic manufacturers lost ground in terms of market share to the Japanese automakers. It is estimated that by 1995 Japan 's North American transplant capacity for cars and light trucks could reach 2.8 million units, compared with just over 2 million units in 1991. The combination of Japanese vehicles (imported and locally assembled), imports

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

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