American Auto Industry

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Recommended: Core problems affecting the global automobile industry

Four main challenges facing the United States [American] auto industry are; competing globally, staying on top of technological innovations, controlling environmental waste products and emissions, and building and maintaining consumer confidence. All of these challenges require control over one’s own business to maintain agility, and flexibility. A business’ agility and flexibility can only be qualified in terms of the decisions makers that are involved in guiding the company’s missions, goals, and structure. Finally, control is of course the final part of the P-O-L-C formula. (Carpenter, Taylor & Endrogen 2009)
Competing globally seems to mean focusing a company’s “competitive and comparative advantages.” In highly competitive markets, such as the American market, the advantage comes in deeply analyzing and managing costs. (Kogut 1985) The global market for automobiles opens the doors to any manufacturer that can meet or exceed the National Highway Traffic Safety Administration, or NHTSA’s definition of “safe.” (safercar.gov) This increases the differentiation of the basic product, personal transportation, and the nation ends up SmartCars, to Hummers, and everything in between. As with many things, structure is key, even when some of the innovation comes from the volatility and instability inherent to this type of industry. (Utterback & Suarez 1991)
For the automobile industry to really innovate in the United States of America, supply chains evolved into industry links, or as Dussuage, Garrette and Mitchell referenced it in their 2004 work, “link alliances.” They actually suggest forming strategic alliances with competitors in order to, in a way; randomize the outcome of the various ventures between firms. The greatest range o...

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...ntverde&Teece.pdf
Klepper, S. (2002). The capabilities of new firms and the evolution of the US automobile industry. Industrial and corporate change, 11(4), 645-666. Retrieved from https://faculty.fuqua.duke.edu/~charlesw/LongStrat2010/papers/class%203/Klepp er2002_ICC.pdf
United States Environmental Protection Agency (2014) Emissions Standards Reference Guide. Retrieved from http://www.epa.gov/otaq/standards/
California Environmental Protection Agency. (2014) Air Resources Board. Retrieved from http://www.arb.ca.gov/
Levy, D. L., & Rothenberg, S. (2002). Heterogeneity and change in environmental strategy: technological and political responses to climate change in the global automobile industry. Organizations, policy and the natural environment: institutional and strategic perspectives, 173-93. Retrieved from http://www.faculty.umb.edu/david_levy/autos02.pdf

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