The Global Automobile Industry

1064 Words5 Pages
Sharon Garcia
International Business management
4/13/11
The Global Automobile Industry in 2009

1To have a thriving and growing economy you have to have a strong manufacturing base that is outputting quality goods in large quantities. In the case of the United States much of the economy in the past has been built on housing sales and the automotive industry. America 's modern automotive industry is being hurt by two things: Unionized labor and cheaper imports from Asia. Why build cars in North America where unionized automotive wages are $20+/hour when you can build them in Asia for less than $4/hour and still get the same quality? And in some cases more quality, if you want to consider the amazing durability and reliability of cars
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manufacturing model, as well as adapting and utilizing technology to enhance production and increase product competition. Establishment of Global Alliances - U.S. automakers, "The Big Three" (GM, Ford and Chrysler) have merged with, and in some cases established commercial strategic partnerships with other European and Japanese automobile manufacturers. Some mergers, such as the Chrysler Daimler-Benz merger, was initiated by the European automaker in a strategy to strengthen its position in the U.S. market. Overall, there has been a trend by the world automakers to expand in overseas markets.

4.Although we 've long known that domestic automakers were losing ground to foreign companies, the Plain Dealer found that the decline was quicker and more widespread than many people think. The Big Three 's market share dropped from 74 percent in 1997 to 57 percent just 10 years later.
The slump has many causes, industry experts say.
• Cars from Ford, Chrysler and GM weren 't as good as their competitors '.
• New rivals like Kia entered the market.
• Import-friendly areas added population, and sales grew faster than in domestic strongholds.
• The market for sport utility vehicles collapsed, hammering a profitable market the U.S. companies had counted on.
Analysts say the companies need to do two major things to win back customers - build great cars and patiently wait for customers to notice. The falling value of the dollar makes exporting cars to the United
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