Environmental Challenges Facing The Automobile Industry Case Study

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ENVIRONMENTAL CHALLENGES FACING THE AMERICAN AUTO INDUSTRY
According to our reading materials this week, the automotive industry in the United States of America is dominated by General Motors, Daimler Chrysler, Toyota, Ford and Honda. These are all international brands and huge multinational organizations with many years of experience in the motor industry. There are currently 250,851,833 registered passenger vehicles in use in the US, and about 10 to 11 million which reached the end of their useful lives and are taken out of service annually. Retrieved from www.yosemite.epa.gov/r10/owcm.nsf/Product+Stewardship/autos-impacts Global
Competition in the Industry
According to a research by the consultancy arm of the IBM Corporation, the global …show more content…

The consultants pick out the keys to success for the manufacturers, as being focused, responsive, variable and resilient. They further highlight the seven strategic levers which can be used to make car manufacturers competitive include: first, brand management to build on product differentiation; second, customer relationship management to help focus on customer requirements and preferences and responsive to changes in aggregate patterns of customer behaviour; third, core competency management geared towards focusing on internal strengths and becoming more variable and resilient through strategic partnerships with suppliers with competencies in new technologies and niche operations; fourth, software management by focusing on software standardization and strategic partnerships leading to higher variability and resiliency; fifth, quality management as a result of the manufacturer adopting it as a cross- functional and cross-company concept over the whole value-add chain; sixth, product development management, where the focus is on broadening competencies in new technologies through optimization of collaborative engineering to be more variable and the standardised processes together with extended use of virtual testing will …show more content…

New Technology for Powering the American Auto Industry
In order to be keep pace with the dynamic consumer demand for sophisticated new technologies the American automakers spend more than US$ 100 billion annually on research and development. http://www.autoalliance.org/auto-innovation/2014-innovation-report
This week’s reading material highlights the increased use of internet by customers as they deal in the automobile industry. The readings take the example of a study conducted by J.D. Power and Associates in 2002 which involved 27,000new vehicles buyers where 60% referred to the internet before making their purchases, and 88% of the same survey sample, going the auto website before taking a test drive. On the scale of the business-to – business level the same source also point out the innovative approach to quotation requests from suppliers by General Motors, where they use their new technology the “Quote

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