The American Auto Industry : The United States Of America

930 Words Oct 7th, 2016 4 Pages
The American Auto Industry

The American automotive industry provides a unique and very important role in the economy of the United States of America. Not only in the United States but even around the world, the American Auto Industry is a leader in job creation, production, exportation and even in research and development. In the mid-20th century, America’s top auto manufactures have been General Motors, Ford and Chrysler. They were producing two-thirds of all the cars and vehicles sold around the world. There are still other smaller car manufacturers such as Anteras, Avanti, Shelby American, De Lorean, Dragon and several others. As of 2010 the auto industry contributed to about 4% of the United States Gross Domestic Profit and employed about 8 million jobs.
Studies of productivity carried out by MG4 (Mckinseys & Comapany) have shown that the entry of new competition in the automotive industry has caused the overall level of productivity to rise. However global competition in this industry resulted in a lesser market share for manufacturers in the United States. The market share for all three main manufacturers fell, for example the market share of General Motors fell from 28.2 in 2000 to 17.6 % by 2014. The town other large auto manufacturers have also decreased market share. The production of lower per-car costs have allowed foreign car manufacturers to gain a larger market share. American manufacturers are currently struggling to compete against more efficient…
Open Document