The American Automotive Industry : The Big Kid On The Block

860 WordsOct 9, 20144 Pages
The American automotive industry is one of the largest parts of the national economy. In 2009 it made up 6.6% of the entire American workforce, employing 880,000 individuals. 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. Global Competition While the American auto industry is solidly “the big kid on the block”, the rise of affluence in other regions of the world such as China and India have created an entire new market for automobiles. The native auto makers in those countries such as the Chinese “Chery” obviously have the upper hand in targeting customers in those regions. The American Company Chevy had first hand experience with the pitfalls of trying to compete in foreign countries when it introduced the Chevy “Nova” to South America. The urban legend is that the marketing team failed to realize is that the cars name “Nova” translates loosely into Spanish as “No Go” which is an unfortunate name for a model of car. It sold poorly. New Technology Effects on the Automobile Industry Technology is a major influence on the automotive industry today and will be into the future in many ways.

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