Pros And Cons 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

Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.

Akio Toyoda, the founder of the car company Toyota Incorporated, once said “Automobiles are the pinnacle of human transportation. The percentage of families across the world who own cars have reached new heights in the past decade. Multiple families now have an easier form of transportation than walking or taking an overcrowded bus. For that reason, I am happy with what I do.” Akio Toyoda is right for saying so. The usage of automobiles increases by 150% since the past decade as more consumers look towards faster and cheaper methods of transportation. The increase in usage brings many concerns to well-minded citizens, specifically concerns regarding the environment and the conservation of energy. In order to tackle the problem locally, multiple

With the recovery of economy, the world’s automobile industry has been growing steadily over the past few years. According to Bloomberg, the US automobile sales climbed from its depth 10.4 million in 2009 to over 15.6 million in 2013. Furthermore, industry analysts predict that the sales will

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 grown ever since it 's upgraded in the early 1900s. “Although the design for the modern car was produced in Germany and France in the late 1800s, Americans controlled the industry in the first half of the twentieth century. Henry Ford innovated mass production systems that enhanced model, with Ford, General Motors and Chrysler beginning as "the Big Three auto firms by the 1920s ,(Foner - Garrity 1991)" But this manufacturing has continually been one of the best manufacturing for environmental concerns and risks around the world, particularly in the United States. Many of the concerns in this industry include; global race, modern technology for controlling the product, the impacts of emission on the environment and the government’s answer, as well as customer sentiments about the outcome.

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 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”.

Since the 1960’s there have been many government acts passed that aim to increase the safety of vehicles, and decrease the environmental effect that they have on the world (Automotive Industry Analysis, pg 1). It is no secret that car’s emissions cause serious environmental issues with their pollution, and as this information has come out, there have been more and more Acts that place limits on automobile companies or force them to research ways to create more environmentally green cars.

The industry is a major force in the US Economy. During the recession which began in 2008, the auto industry began to struggle so much that the federal government in effect bought a substantial share of General Motors stock for millions. All told, the government ended up giving the American automotive industry $85 million in loans. Since 2012, all debts had been paid and the federal government no longer holds shares in GM.

The use of automobiles has since increased in the US and other parts of the world. By 1999, the US alone had over 200 million passenger cars and light trucks. The number of cars worldwide grew thrice faster than the human population. The increase in the number of automobiles has become a matter of great concern as it leads to serious air pollution. For instance, European Environment Agency reported that transportation emission presents a huge threat to the environment.

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.

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