The Automobile Industry Of The United States Essay

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• Abstract The automotive industry is very concentrated; there is over 80% share of top-10 global automakers in worldwide manufacturing and almost 90% share of total vehicles sold in the United States. The American auto industry used to be controlled by the “Big Three” but over the past decade several other automakers have made a move to the U.S. and became successful. This means that the US industry is losing some of its shares and most of its dominance not only in American market but also in the global market. In 2008 the economy took a devastating turn and threw the automotive industry into a tail spin, since then they have been doing everything possible to dig out of the hole and gain more customers to sell a record amount of vehicles. Porter’s five forces will outline exactly what the industry went through and the steps they took to get out of the negative. • Introduction to the Auto Industry The US automobile industry is an enormous part of the overall U.S. economy. It has one of the largest automotive markets in the world and is home to many global vehicles and auto parts manufacturers. It historically has contributed up to 3.5 percent to the overall GDP. The industry directly employs over 1.7 million people on a daily basis and these people are in departments such as designing, engineering, manufacturing, and supplying parts and components to assemble, sell and service new motor vehicles (Hill & Cooper, 2010). The industry itself spends between $16 and $18 billion
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