The Impact Of American Auto Industry On The Domestic Industry

America had a global competition as it was not the only country who had the industry. China, South Korea, Japan and India were also procuring automobiles. In 1995 America and Japan made an agreement on having more outlets in each countries, to be able to sell their products. This agreement created job opportunity and made their cars and parts available in both countries. This agreement also invented computation. Japan was producing good quality and affordable automobile such as Toyota, Nissan, Mitsubishi and more. Japan’s automobile became well known all over the world.

In 1769, the first automobile, a steam-powered carriage that would carry up to four people at two miles per hour, was created. Years pass as gasoline engines, wheels, and a steering device were added to the automobile, which began to make it useful but expensive (“The Invention of Automobiles”). They were hand-crafted at this time, therefore making it unaffordable. Until Henry Ford introduced the assembly line in 1913, automobiles remained expensive. His discovery of the assembly line turned the hand-crafted machines to mass-produced automobiles. Since automobiles were being mass-produced, the cost for assembling a single car dropped low enough for it to be affordable to many families (“The Invention of Automobiles”).

Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.

Like every other industry, the automobile industry in the United States is susceptible to competition. The biggest global contender to the US Automobile Industry is the Japanese Automobile Industry. Trade agreements have been in place since 1995, that make replacement parts for Japanese

There are many issues that are currently facing the American Automotive industry, especially in terms of environmental factors. The automotive industry has been around for a very long time, and is a relatively stable industry, but there are still areas where automotive companies need to adapt and if they fail to do so, they will be at a disadvantage against their peers, both here in America and also globally. In this essay I will break down a few of the issues that I believe are plaguing the American Automotive Industry.

The American automotive industry is one of the largest parts of the national economy. In 2009 it made up 6.6% of the entire American workforce, employing 880,000 individuals.

With the increase of global competition, the manufacturers of vehicles in the US had been negatively

The Auto Industry in the United States has flourished ever since it’s revolution in the early 1900s. “Although the blueprint for the modern automobile was perfected in Germany and France in the late 1800s, Americans dominated the industry in the first half of the twentieth century. Henry Ford innovated mass-production techniques that became standard, with Ford, General Motors and Chrysler emerging as the “Big Three” auto companies by the 1920s (Foner & Garraty 1991).” Henry Ford’s focus was to produce an automobile that could be accepted by middle class Americans. The American automobile industry is subject to global competition like any other industry. As stated earlier, the automobile was first perfected in Germany and France. In 1995, the United States and Japan made a trade agreement that provided more dealer outlets and allowed easier replacement part selling in each other’s countries (Nauss 1995). This makes auto parts and auto-replacement parts for Japanese cars easier to access in the United States and vice versa. Not only does this provide for more US jobs, but it also provides for more Japanese jobs in the auto industry (Nauss 1995)! But furthermore, it increases the global competition. “Japanese automotive manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha, and Mitsuoka. Cars designed in Japan have won the European Car of the Year, International Car of the Year, and World Car of the Year awards many

Asian and European car manufacturers became major threats to the US market shares. The economic

the world. " The Big Three" hold nearly 75% of the market and produce over 8

The great times are proceeding for the US automobile industry, now nearing the end of its fifth year of recuperation from 2009 's depressively low deals numbers. Most automakers guaranteed sound increments for November 2014, headed by the Chrysler Group 's 20 percent expansion over a year prior. Deals for Chrysler, Ford and GM additionally expanded while Nissan and Ford enrolled slight decreases for the month.

In 2013, Detroit shined again, and combined came in higher than its global competitors. Research showed U.S. car companies held 46% of auto sales and this surpassed all the competition in Japan, Germany and Korea (Wood, 2014). Detroit automakers were nearly destroyed in 2009 when hit by a crippling recession. The American tax payers bailed the companies out and they have recently started to show the growth it takes to succeed and be number one. The recession has also forced the American auto industry to become more efficient and competitive. It has overall decreased the number of employees and reduced costs in other ways to protect the company’s wellbeing and the taxpayer’s investment.

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

The automobile industry is one of the most prosperous industries in the United States. For years, it had a big impact on the American economy. But with the recession of 2007-2008, consumer spending decreased and new car sales plunged (Davis, 2012). Big automobile firms like General Motors and Chrysler were on the verge of bankruptcy (Davis, 2012). Luckily, the American government intervened to rescue these firms through bailout money (Davis, 2012).

Today, the automotive industry is one the top profitable industries in U.S. and all around the world. More than 1.5 million people involved in different segments such as engineering, designing, ordering, sell, and marketing. As a result of this statement, automotive industry has huge effects on employees, customer support, jobs vacancies, revenue and finally GDP which is the most important part of the economy for any countries (Statista Portal, 2016).