The Global Competition Of The American Auto Industry

1101 Words Oct 14th, 2015 5 Pages
The American auto industry was the largest industry in the 1890s. This dominance was as a result of the size of the domestic market and the use of the mass-production. However, in the 1980s Japan became the largest auto industry, and then China in 2008. This has now placed the United States second among the largest auto industry globally. Such industry is dominated by three large companies known as the ‘Big Three’. These include, General Motors (GM), Ford and Chrysler (https://en.wikipedia.org/wiki/Automotive_industry_in_the_United_States). From a complete and thorough research, it has shown that though these generated massive income, it has led to various environmental challenges on the nation. To highlight these issues, I will focus on several factors.
First, I’ll look at the global competition in the American auto industry. In the 1970s increased competition and soaring oil prices from foreign auto manufacturers had brutally affected the companies. Today the increase in global trade has led to the growth in world distributions systems and augmented global competition among the auto industries. The United States auto makers, ‘The Big Three’ have joined up with and to an extent form commercial strategic partnerships with other European and Japanese automobile manufacturers. Several of these mergers such as the Chrysler Daimler-Benz merger, was brought about by the European automaker in an attempt to strengthen its status in the American market. The Japanese automakers have…
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