The Global Competition Of The Auto Industry

Ever since their invention, cars have been powered by gasoline. Over the years as gas prices fluctuated and supplies continue to dwindle, motorists have started looking for a more reliable and cost effective alternative. As a result car companies have begun producing a new type of car to meet the demands of consumers; the electric car. In recent years the electric car has been a source of great controversy, some seeing it as the future of personal transportation, while others see it as the inefficient and unreliable dream of environmentalists. Currently, the United States has been supporting this growth and development of electric cars. The U.S is showing this support by providing tax benefits to consumers who purchase electric vehicles, along with providing government subsidies to companies such as Tesla who are fueling the growth of these electric cars. The United States should continue to promote the use and development of electric cars because they are beneficial to consumers, the economy, and the environment. The promotion of these electric cars will also lead to the continuing developments of technology. These improvements to technology will only further benefit society in the United States.

Problem Statement: Disruptors of domestic and international competitors are expanding upon the alternative fuel vehicle market and can offer a wider variety of products ranging from hybrid, plug-in hybrid, and fully electric vehicles due to the access to more resources available to them.

American cars versus foreign cars need to be analyzed before purchasing. When the automotive industry began, Ford was at its prime and american manufactures were the only way to go when looking for a motor vehicle. However the innovation and technology have drastically changed. It now has turned the automotive industry into a competition. Foreign manufactures like Japan and Germany are getting recognized by their quality and are making big competition for American cars.

Technology, by nature, is constantly changing and evolving. Now more than ever, we are seeing the need for technologies that were once considered permanent to be adapted or even replaced in an ever-changing world landscape. Political, social, economic, or environmental issues are all the driving force behind this rapid pace of modern society. This brings us to one of the largest issues the world as a whole faces for the near future: automobiles. For nearly a century, automobiles have been an integral part of not only the lives of Americans, but for people worldwide. So many aspects of daily life as it’s known today revolve around and depend upon the use and or ownership of an automobile. It’s easy to see why the automobile has become so deeply

effect the American auto industry are; global competition in the industry, new technology for powering

Although almost all automobiles today are primarily fueled by gasoline, the market for electric cars is rapidly developing. Analysts from Bloomberg project that “electric vehicles [will account for] 35% of global new car sales by 2040.” (Electric Vehicles To Be, 2016). Two companies at the forefront of this push to create electric vehicles are Tesla and GM.  Tesla joined the electric automotive industry just a few years ago with its luxurious, fully electric vehicles, and has been the leader in the field ever since. GM, on the other hand, has traditionally produced affordable gasoline-run cars for the middle class, and is now infiltrating the electric vehicle market.

As car manufacturers continue to innovate at a rapid rate, many attempts to produce practical electric cars have occurred and continue to occur.

However, global competition to the American auto industry isn 't just because of the economic slump. Companies such as Nissan (another one of the Japanese Big Three) began manufacturing cars to appeal to environmentally friendly millennials, and help cut down on fuel reliance and toxic emissions. These cars are called electric vehicles and have been around for several years, but are not at all commonplace. Nissan, along with other companies, hoped to change this and began developing electric cars for its Sunderland plant in the United Kingdom in 2013 (Bomford, 2013). Nissan also manufactures hybrid electric vehicles, fuel cell vehicles, and cars that run on natural gas ("NISSAN | Environmentally Friendly Vehicles", 2016). This has spurred American car companies into action to keep up with competition, as Ford and GM both have produced more fuel conscious cars as well as hybrids and electrics. Although the Japanese car companies lead in their environmentally friendly cars, American companies are selling more of these vehicles than previously and are catching up to their competitors. Interestingly enough, it is Volkswagen and BMW, German auto manufacturers known for luxury vehicles, who are really giving the Japanese a run for their money. The BMW i3 is the best electric or hybrid car on the market and gets 81 miles on one electric charge (Zhang, 2015).

Global competition is an important factor for many industries including the auto industry because a breakdown to it 's simplest form, personal accomplishment and group camaraderie is achieved in the process. What is something if it doesn 't mean something to someone else? To illustrate this, I look at the most innosent form of competition between my two dogs. One was whining because the other had the ball. I threw out two balls and they fought over the newest one. The essential point is the same with people. We find value in what other people want, especially if it is popular or new. It makes it seem more valuable. We also find value in knowing that we have others wanting to beat us at what we do. Look at American football for instance. Everyone wants their team to be the top team and we pay a lot of money, and spend a lot of energy to watch the fight and engage in the rivalry. Competition is good because it creates something to out-perform. It creates a sense of worth that what we are doing is making a difference even for a short time. "Americans dominated the industry in the first half of the twentieth century" (Bland, n.d.) However, " By 2000 Japan became the largest car producing nation in the world." (Bland, n.d.) When a country finds a product that they can manufacture well, we find global customers that will pay for exports. This helps our economy flourish because it creates jobs. When that same company has global pressure to

While many people simply want to get from A to B, transportation options (and especially automobiles) have to meet a variety of consumer demands: They must be clean, affordable, safe, and increasingly intelligent. Here is an overview of the choices and challenges for carmakers and consumers over the next 10 to 15 years.

Large Number of Competitors- There are many competitors in the automotive industry and many of them are ranked higher than Ford, in recent polls, due to the growing global reach and recognition by consumers.

Daimler's Mercedes-Benz Faces Stiff Competition From BMW And Lexus In The U.S. Daimler AG's Mercedes-Benz lost the global luxury sales crown to BMW in 2005, and now ranks third behind both its compatriots BMW and Volkswagen

Historically, automobiles have been powered by steam, gasoline, and electric current, but with the advent of the 20th century, gasoline has emerged as the dominant source of energy for these vehicles.

To secure and maintain the long term future of the automotive industry in terms of growing the share of the value chain and by getting ahead in the field of research and development (R&D) on ultra-low emission vehicles. This strategy sets out the drivers for the automotive manufacturing industry.

in line to get $62 billion in investments from the U.S. Treasury. GM and Chrysler have cut their