The Auto Industry : A Competitive Advantage Based On The Warranty

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The auto industry has always been something Americans have been proud about. The industry employs tens of thousands of workers across the country with a good wage and great benefits. Ford, GM and Chrysler, or the Big 3 as they are sometimes known, are brands that can be recognized around the world. But with increased competition from foreign automakers and the constant battle to stay profitable, there have been some challenges that have plagued the industry. Global competition from automakers such as Toyota and Hyundai. Hyundai creates a competitive advantage based on the warranty they provide their vehicles. They cover their powertrain for 10 years or 100,000 miles and a 5 year, 60,000 mile warranty on new vehicles that covers any component originally installed by the manufacturer that fails under normal wear and tear. The American automakers typically offer a 3 year, 36,000 mile warranty on their new vehicles while some match Hyundai’s 5 year warranty. Foreign made cars also typically receive higher quality rating awards from industry analysts such as Edmunds or Consumer Reports. Overseas automakers have also touted their fuel efficient vehicles and have been able to offer vehicles with exceptional quality at competitive price points. Even segments like SUV’s and trucks that were once dominated by the Big 3 have seen increased competition from overseas competitors who are gaining ground. When the gas prices were hitting all-time highs all across the United States just a few years ago, many consumers started trading in their trucks and sport utility vehicles for more fuel efficient sedans and cross over vehicles. New technology has allowed vehicles to achieve the same amounts of horsepower as a larger, high performance engine no... ... middle of paper ... ...or electric vehicles are not what the consumer wants. The Big 3 automakers are still facing increased competition, with the market share among the top automakers almost the same. Sources:{creative}&utm_source=bing&utm_medium=cpc&utm_campaign=SEARCH_BRANDED_LFT_hyundai&utm_term=hyundai%20warranty&utm_content=exact_lft_hyundai_warranty&dclid=CJbEoM6Hus8CFdAFgQoduGgFrQ

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