Essay on The American Automotive Industry

The automobile has had a profound impact on the United States. It has brought us

Like every other industry, the automobile industry in the United States is susceptible to competition. The biggest global contender to the US Automobile Industry is the Japanese Automobile Industry. Trade agreements have been in place since 1995, that make replacement parts for Japanese

The emergence of foreign competitors can partly be attributed to the US government and the $33 Billion Highway Act of 1956. By greatly enhancing both regional and interstate roads, there was a greater reason than ever before for the typical

Around the year of 1893, the first gasoline American car with an internal combustion engine was built and since that year until the late 18th century electric vehicles were introduced in the United States. Moreover, the Hybrid Lohner-Porsche became the first car that runs on gasoline and electricity. Hybrid combined two, the electric and the internal combustion engine propulsion systems, or more power sources to drive the vehicle. The new hybrid vehicles are more efficient and powerful in the term of technology and economy; it provides an improved car that is environmental friendly. Ford Company is a leading automaker in hybrid vehicles; the company started to produce this kind of automobiles back in 2000. One of their economic cars is the

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.

As cited by the Bureau of Labour Statistics, ‘the automotive industry includes industries associated with the production, wholesaling, retailing & maintenance of motor vehicles’. This industry has had an immense impact on the domestic industry. Nevertheless, with the 2007- 2008 recession, new car sales decreased rapidly reflecting the overall decrease in consumer spending. Thereafter with the aid of government, in early February, 2012 the American Automotive Industry made a brisk recovery, making American automotive companies reign as the biggest & most profitable & it incrementally grew year after year.

The international automakers invested more than $72 billion to capitalize 425 facilities and offices. This created jobs for 123 thousand Americans with $9.3 billion and products purchased from US suppliers for $104 billion to produce 5.3 million vehicles in which 46% of all US vehicle production. There are nearly 10 thousand dealership franchises sold that employ more than 500 thousand American gaining $29 billion. Further, nearly 900 thousand US-built vehicles were exported. These figures clearly shows that there has been a domino effect of success in the US auto industry and it means that it is a great contributor to the US economy.

In 2013, Detroit shined again, and combined came in higher than its global competitors. Research showed U.S. car companies held 46% of auto sales and this surpassed the competition in Japan, Germany and Korea (Wood, 2014). Detroit automakers were nearly destroyed in 2009 when hit by a crippling recession. The American tax payers bailed the companies out, and they have recently started to show the growth it takes to succeed and be number one. The recession has also forced the American auto industry to become more efficient and competitive. It has overall decreased the number of employees and reduced costs in other ways to protect the company’s well-being and the taxpayer’s investment.

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

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.

Since it’s inception in the 1900’s, the auto industry has become a global economic powerhouse and juggernaut of cultural influence. In recent decades, the industry has faced various crises and yet has remained one of the most powerful drivers of global economic activity. In the U.S. alone, 1 in every 22 jobs derives from the auto industry (Cutcher-Gershenfeld, J., 2015, para 1). Generally speaking, industry analysts are optimistic about the U.S. market and less so in other markets (Strategy&, 2015, para. 3).

1 BACKGROUND 1.1 Ford Motor Company Ford was the pioneer of the motor vehicle, just over 100 years ago. Today, Ford Motor Company is a family of automotive brands consisting of: Ford, Lincoln, Mercury, Mazda, Jaguar, Land Rover, Aston Martin, and Volvo, employing 350,321 (Yahoo Finance) workers in more than 200 countries. 1.2 Motor Industry The American oligopoly in the motor industry, consisting of Ford, General Motors and Chrysler, has suffered from poor financial results recently. As reported by www.guardian.co.uk (16/06/03), “the big three US car-makers are wrestling with the combined effects of over-capacity, growing competition from Europe and Japan, huge pension and health care costs, and a damaging increase in

When the “Sub-Prime Mortgage Crisis” began in 2008, it triggered a global recession. Demand decreased across all industries, but the auto industry was hit especially hard due to vehicles being big ticket items. Even prior to the recession, the high prices of raw materials and fuels, as well as increased pressure from the government and consumers for automakers to build “greener” cars meant trouble for automakers. Within the industry, Canadian and the American auto makers were hurt the most. The strong presence of unions meant that they had a much higher labour cost than their competitors. Also General Motors, Ford and Chrysler, known as the “Big Three” primarily focused on manufacturing pickup trucks and SUVs because of

The automotive industry in India is one of the largest automotive markets in the world, previously one of the fastest growing markets globally. It started out as a small venture in the 1940s but witnessed a rapid growth with the entry of some big manufacturers like Mahindra & Mahindra and Maruti in mid and late 1900s. In 2000, this industry became an important sector of the Indian economy and a major foreign exchange earner for the country.

Vehicles have always been a sign of high-class and pleasure and they have experienced a rich history. Companies related to cars have always experienced the attention of the people because of new styles, advancement and technology. Their icon or signs has always been desired for creativeness and originality. They have always lured the rate devils using shiny, strong shades, print styles and pictures. To add elegance, the organizations have limited themselves in using their titles in the signs.