“The US auto industry directly employs 1.55 million Americans and impacting a total of 7.25 million US jobs, generates $500 billion in annual compensation.” (1) With such a large industry looming in the economy, it is inevitable that it will face environmental challenges. Environmental challenges can be hard to control and are essential to the success of a company. The challenges that the auto industry must contend with are many and complex, such as; global competition, consumer opinions, and new technology, a difficult fight lies ahead.
Since the twentieth century, America has dominated the car industry business. Automobiles have made a major influence in the society and the economy of America ever since. Especially when Henry Ford, founder of Ford Motor Company, developed two of his inventions, Model T and Model A, flourished into a big success around the 1900’s. Nonetheless, the culture we live in today is influenced tremendously by the advanced technology we created, and it grants industries new opportunities that may evolve the automobile business as we know it.
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 auto industry has been around long before I was born. Automobiles have become a necessity in American culture. “With the invention of the automobile and the mass production techniques of Henry Ford, which made the machine affordable, the American economy has been transformed by this key element in its prosperity.” (Davis, 2014) Being able to transport quickly from one destination to another is a great convenience. Almost every working family living in the United States owns at least one vehicle.
The automobile dates back to the later part of the 19th century when Henry Ford made the first car for the common man. The middle class could go wherever they wanted to go, whenever they wanted to go at a reasonable cost (Automobiles). An era of speed and travel, the demand for transportation boomed. An affordable and faster way to get around, owning an automobile became a reality for most citizens living in the middle class. The “Big Three” automobile producers of the time were General Motors, Chrysler, and Ford. The automobile “allowed new production methods, charting new territory in mass, and creating and supplying burgeoning domestic and international markets” (Coopey). Motor vehicles in the 1920’s had a positive effect on the world in the 20th century as it does in the current day.
The last several years were also tumultuous for the U.S. auto industry. After dominating the market for decades, American automakers had grown complacent about product development. At the same time, rising gas prices and uncertainty about the economy caused consumer preferences to shift from SUVs to more fuel efficient vehicles. Foreign competitors entered the U.S. market offering more reliable, higher quality and more fuel efficient vehicles at a lower price and began to steal market share away from American automakers. In order to remain competitive, U.S. automakers need to focus on increasing production efficiencies and developing innovative product offerings. Firm Analysis
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
In the early era of automakers, simply making an automobile was an act of genius. The acuity of automotive foresight was impossible due to a lack of (eventual) evidence and objective assurity. Furthermore, this Era led to automaker proliferation; which in turn accelerated automotive evolution, and expedited progress via profuse
The Automobile industry volume of growth has tremendously escalated in the United States. Years ago there were about 700 million vehicles registered in the world back in 1999, within the USA it contributed over 200 million passenger cars and trucks. In the 1990s, the number of vehicles in the United States had tripled six times faster than the human population back from 1969 to a global perspective on the environmental challenges. This is unbelievable, how industry multiplied and monopolized from years ago. All these issues point to the importance environmental concerns as they relate to the automotive industry. Recently the auto industry and its suppliers were addressed the
American’s are in love with the automobile in all its shapes, sizes, and utility. With a network of roads exceeding 4 million miles, cars are a way of life for more than 91 percent of U.S. households in 2009, according to U.S. Department of Transportation, Bureau of Transportation Statistics . In 2014, Americans purchased over seven and a half million passenger cars , reports Statista on the automotive industry. So with all those roads and all those households needing cars, and all the cars being sold, the automobile industry is massive.
Despite the high concentration ratios seen in the U.S. market, which typically signify that a lesser degree of competition is seen in the industry, rivalry in the U.S. and the global automotive industry is intense. Clearly, the
A particularly vigorous debate within the topic of sustainability involves the automobile and its future. Compared to other sources of environmental degradation, the automobile is relatively young. That said, automobiles powered by internal combustion engines (ICEs) are one of the largest emitters of greenhouse gasses. The automobile’s proliferation, while not complete across all levels of income, is extremely thorough in geographic terms.
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