The American Auto Industry

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.

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 at the forefront of technological innovation. Automobiles have advanced from basic transportation devices into fully integrated machines. Advancements in hybrid, alternative fuel, and electric

The American Auto Industry has flourished ever since it’s uprising 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).” But this industry has always been one of the leading industries for environmental issues and hazards around the world, especially in the United States. Many of the issues in this industry include: global competition, new technology for powering the product, the effects of emission on the environment and the government’s response, as well as consumer opinions about the product.

The U.S. automotive market has had its fair share of challenges in the last ten years. In 2005, gas prices started to surge wildly out of control peaking at their highest levels in mid-2008 that directly impacted sales of less-efficient vehicles. ("Historical Price Charts", 2015) Since the bulk of the profit margins the “Big 3” automakers generate is in the SUV and full-size product categories, the consumer shift to more economical vehicles directly impacted the automaker 's profitability. As the U.S. continued a slide into a full recession, auto manufacturers were faced with a financial crisis of epic proportions. On the verge of bankruptcy, two of the largest auto manufacturers accepted a $2 Billion Government bailout to continue to

The United States automobile industry is one characterized by incumbent behemoth corporations whose distribution channels span the world. Companies like Toyota, General Motors, and Volkswagen form entire segments of their respective countries’ economies and have dominated the auto industry for generations.

Global COMPETITION in the industry: Global competition has expended in the auto industry because of an increase in global trade. This has resulted in the decline of sales in the American auto industry whilst sales in the Asian industry especially China has increased. In 2009 sales in the U.S. hit their lowest point meanwhile, it doubled in Asia generally, especially in China. (loc.gov. 2014). One of the reason for this decline in the American Auto sales is because the Japanese automakers have altered the U.S. manufacturing models and are selling it in the global market at a less expensive rate. The price and innovation is attracting a lot of customers’ to this part of the world leaving the American industry to suffer.

At the beginning of twenty centuries until now the American auto industry has been growing and in demand. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerges as the “Big Three” auto companies by the 1920s. Manufacturers funneled their resources to the military during World War II, and afterward automobile production in Europe and Japan soared to meet demand. Once vital to the expansion of American urban centers, the industry had become a shared global enterprise with the rise of Japan as the leading automaker by 1980. And Americans dominated the industry in the first half of the twentieth century. Hence, from the

Contributing 3 percent to 3.5 percent to the overall Gross Domestic Product, the automotive industry is essential to the United States’ economy.1 The automotive industry would critically affect our national economy if it ceased to exist. In 2008 through 2010, the automotive industry suffered a crisis. Many things lead up to the crisis, putting the economy into an unstable condition and putting distress into the minds of the American people. This forced some of the country’s automakers to go into bankruptcy, causing a fall in the workforce. Eventually, the crisis was solved, and the economy returned to its stable state. This whole disaster started through one event. Fueled by the 2008 recession, the automotive industry suffered a crisis that hurt the United States’ national economy.

The USA has an active automobile industry, and this is attributed to the availability of a market for the cars. “In 2015, the auto sales record were broken in the USA, a new record of 1,641,913 vehicles were sold up from 1,507,229 in 2014. Ford Motor Co. was among the top sellers with their sales standing at 237, 606” (Automotive News, 2016). The quality of automobiles in the USA has been improving thanks to the policies adopted by the government and the competition between players to produce quality vehicles.

In this essay, I complete an environmental scan of the auto industry looking for threats related to demographics, competition, government regulation, cost and availability of material and labor, consumer opinion, and the condition of the global economy. All sources cited are less than one year old.

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 Automobile Industry, aside from the World Wide Web has spurred more economic growth in the past century than any other invention in our history. From coal fueled steam driven power plants to internal combustion engines, modern transportation methods have closed the distance gap globally, allowing for rapid movement of goods throughout all economies. While the aviation industry has increased the overall scale and speed of transportation, the automotive industry

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