For the last two years, the car industry has experienced constant changes in the world political conditions, economic climate, socio-cultural transformation and technological advancement. Today’s carmakers have been astonished by the increasingly growing demand in the developing world, and also struggled to meet all the demanding environmental regulations in most countries in the world. In addition, the new development of mega cities, and the emergence of new technologies have urged automakers to continuously innovate their products to better cater to the diversity of consumers’ tastes. Moreover, the recent awakening of a new urban middle class in emerging economies represents the largest single defining factor in shaping the future of the automobile industry thanks to its demand for convenient and modern means of transport. Therefore, in order to sustain profits and grow in this global economy, car manufacturers need to adopt mitigation strategies, seek avenues from different approaches, and form a partnership or alliance with other stakeholders in the economy.
The automotive industry refers to companies that are specialized in designing, manufacturing, marketing, selling and offering services for motor vehicles. They are then categorized into three types comprising of light duty, medium duty, and heavy duty. Since the light vehicles, including cars, SUVs, vans, and light trucks under six tons gross vehicle weight, contribute the most to the whole industry, this report focuses on the manufacturing sector of this vehicle segment. The industry, without doubts, is highly dependent on the economic conditions, government regulations, social factors and technological advance. All of these macro-environments have substantial influence ...
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In a capitalistic country with a free market, foreign competition is expected. This is no exception for the automobile industry where America competes with its various rivals. Competition from elsewhere encompasses that from Italy, Germany, and of course, the renowned Japan. The Japanese vehicle industry is especially competitive; according to the Automotive News Data Center, five out of the ten best selling vehicles of the year are Japanese vehicles. This data applies to the U.S. market over the first 9 months of the year. Expectedly, the automobile industry is an important and significant market. Motor vehicles are a major form of transportation as many people in the U.S. own at least one car.
1)The way of life of owning an auto in late time has changed a great deal in correlation to the twentieth century. The interest for auto in individual design is not restricted to the rich class just. The division has extend so as the situating by the car producers. The business sector of auto is separated into 3 class. So the automakers has changed themselves. The business of auto is not constrained to the U.S., Europe, Japan and South Korea. In late patterns it has been seen that the BRICS nation and North America have indicated potential development in buying auto. Organizations are making techniques by keeping the region and practices saw over the globe.
This paper will focus on the future of the U.S. Automobile industry as the United States recovers from the worst recession we have experienced in the past 75 years. I will provide information on the following topics pertaining to the U.S. automobile industry:
The automotive industry is without a doubt an industry that has massive implications relating to the United States economy as well as affecting every American household. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain necessities. Because most households have a budget, the amount spent on transportation it limited. While most industries have an effect on the economy, the automotive industry has far-reaching implications for most Americans. Not only are the workers affected but the many spin-off jobs created as well as the consumers that must purchase the automobiles manufactured.
The automotive industry is dominated by a few key players. Kallstrom explains, “The top five players have a significant 49% share of the global automobile market. This share decreased by 5.1% in the 15-year period from 1998 to 2013. Smaller companies slowly took the major automotive companies’ share away. In terms of vehicles produced, General Motors (GM), Ford (F), Volkswagen, and Toyota (TM) are still featured on the top five list.” It is important to note that Hyundai comes in at number five.
Thurlow, R. 2013, Auto Makers Struggle in Australia; Industry Battles Cheaper Imports, Rise in Australian Dollar, New York, N.Y.
It is no surprise that globalization of the auto industry would result in less market share for those operating in
Kennedy, Scott. Foreign-based Companies Investing in the U.S. Auto Industry. U.S.: Office of Aerospace and Automotive Industries, International Trade Administration, & U.S. Department of Commerce. 2007. Print.
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
People all around the world use cars and trucks to transport themselves and their goods from place to place, so analyzing the auto industry gives insight into hundreds of millions consumers worldwide. Since there are cars in nearly every country, the supply and demand of automobiles greatly increases each year, as people want a faster, more convenient way of travelling. At the same time, emissions from automobiles add to the growing pollution in the environment, which also affects people around the world. Since environmental change and automobile use are directly linked, the environment and climate change, as well as ideas to pursue new regulations, have a strong impact on the auto industry.
The automobile industry is a pillar of global economy. Globally automotive contributes roughly 3 % of all GDP output. It historically has contributed 3.0 – 3.5 % to the overall GDP in the US. The share is even higher in the emerging markets, with the rates in china and India at 7 % and rising. China produces the highest number of automobiles followed by US and Japan (oica.net, 2015). The industry supports direct employment of 9 million people to build 60 million vehicles and parts that go into them (oica.net, 2015). Many other industries such as steel, iron, glass, aluminium, textiles etc. are associated with the automotive industry and resulting in more than 50 million jobs owed to the auto
All people around the world have made automobile as one of their most basic needs in their lives and automobile proves to be the most effective medium of transportation. In recent decades, either personal or public transportation have become more prevalent and more important for people to go to from one place to another which directly facilitate people to live in easy and convenient life. In addition, the fast development of the economy and the high obtaining power of its populace have made Malaysia the biggest traveler car market in South-East Asian Nations (Malaysian Industrial Development Authority, 2010). For that reason, the automotive industry has become one of the major industrial and economic
Almost all car makers around the world are responding to this issue and have begin their research to reduce the risk of climate change. The steps that the car manufacturers have to take to deal with this situation are to reduce the amount of CO2 emissions and waste produced by both of their manufacturing factories and vehicle by implementing new measures in their factories and by looking at using renewable fuels that produce cleaner emission.
The company is laying emphasis on developing the car for tomorrow while at the same time ensuring the protection of environment (Karriere, 2014).