American Auto Industry
analytical Essay
801 words
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
In this essay, the author
- Explains the four main challenges facing the american auto industry: competing globally, staying on top of technological innovations, controlling environmental waste products and emissions, and building and maintaining consumer confidence.
- Explains that in highly competitive markets, such as the american market, the advantage comes in deeply analyzing and managing costs.
- Explains how supply chains evolved into industry links for the automobile industry to innovate in the united states of america.
- Explains that efficiency plays an important role in the realm of global competition, especially considering the disparity in productivity standards across international borders.
- Explains that redesigning processes, after careful and meticulous analysis, is a great way to achieve greater levels of efficiency.
- Analyzes how levy and rothenberg analyzed the response of companies to the threat of global warming.
- Explains that marketability and building a consumer base is something that any nationalist could relate to politically. in the american auto industry, fierce consumer loyalty is not the default though fierce loyalty still marks the majority of customers.
- Explains that the face of an automobile manufacturer is not its ceo, or even the staff that sells the vehicle, but the car or truck itself.
- Cites carpenter, taylor, erdogan, and kogut. principles of management. nyack, ny: flat world knowledge.
- Analyzes dussauge, garrette, and mitchell's research on asymmetric performance: the marketshare impact of scale and link alliances in the global auto industry.
- Cites the brookings papers on economic activity. microeconomics, 307-358.
- Cites the bell journal of economics, 206-213, and klepper, s. the capabilities of new firms and the evolution of the us automobile industry.
- Cites the united states environmental protection agency's emissions standards referenceguide and the air resources board. heterogeneity and change in environmental strategy in the global.
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- The U.S. Automobile Industryanalytical essayThe United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”.
In this essay, the author
- Describes factors creating value in the industry and factors that will most likely input demand.
- Explains that the average cost of a car today is approximately $30,000, an increase from an average of $27,958 in 2009. average vehicle costs historically have not influenced vehicle sales.
- Opines that high unemployment rates, high oil and gasoline prices and changing demographics of the american consumer are the three factors that will most likely affect the u.s. automobile industry over the next five years.
- Explains the porter five forces framework with feedback effects as related to the u.s. automotive industry.
- Explains that the threat of new entrants into the u.s. automotive industry is low. government restraints such as safety and epa emission requirements coupled with high up-front capital requirements (sunk costs), brand equity or reputation required of a new firm make entry in the industry difficult.
- Explains that automobile manufacturers have offered consumers huge incentives such as low finance rates, and huge discounts as incentives for buyers to purchase new cars.
- Explains that consumers can easily switch between automobile dealerships and automobile manufacturers, so price pressure from substitute or complementary products is high in the u.s. auto industry.
- Analyzes how competitive pricing within the industry erodes automotive manufacturer’s profits by reducing their price-cost margins, while competition using consumer incentives drives up the fixed cost of new car development and increases the marginal costs of adding new features to automobiles.
- Explains that u.s. auto manufacturers require inputs such as labor, parts, tires, electronics and components. the united auto workers (uaw) exerts leverage over the benefits and wages provided by the big three.
- Explains that the united states recession began in 1997 and significantly impacted the automobile industry during the recession period.
- Analyzes the recent events that have affected the u.s. auto industry during the recession and the strides made by automakers to recover from near devastation.
- Opines that the supply and demand curve for u.s. automobiles should continue to rise as long as economic recovery continues.
- Analyzes the decline of passenger car production in the united states from over 4 million units in 2004 to just over two hundred thousand units. the sharp decline in sales in 2009 reflects the effects of the recession that began in 2007.
- Explains that the u.s. automotive industry is driven by the need to provide vehicles that are economical to operate. since the 1970's, the horsepower of small cars has increased dramatically.
- Explains that the market structure of the u.s. automobile market is considered to be an oligopoly which helps to minimize the effects of price-based competition.
- Argues that gm should use a cooperative game theory approach to sustain its corporate recovery.
2538 wordsRead More - Ford Motor Company Case Studyexplanatory essayThe Ford Motor Company has been in business since the nineteenth century, and it has enjoyed a rather successful run as one of the top automobile-making industries in the United States. Ford Motor Company is a prosperous business because of strategic planning and changes that it was willing to take a risk on developing and implementing. Successful corporations have to adapt to the constantly changing environment or the company will be doomed to failure. In other words, customer shopping habits change as new products are introduced to the market or when other factors beyond Ford Motor Company’s control affect which vehicles are sold. For example, there is an increased demand for fuel efficient cars when the average price per gallon
In this essay, the author
- Explains that ford motor company has enjoyed a successful run as one of the top automobile-making industries in the us. successful corporations have to adapt to the constantly changing environment or the company will be doomed to failure.
- Explains that henry ford began the ford motor company in dearborn, michigan by using a newly-designed variation of the assembly line that was originally perfected in meat packing plants to complete the first car.
- Explains that the exploding gas tanks of the ford pinto generated the kind of headlines that most companies try to avoid in the newspapers.
- Argues that the ford pinto and ringwood, new jersey incidents coupled with the firestone tire recall in the recent decade may have impacted ford motor company’s daily operation.
- Explains that value-chain is a set of connected doings that starts with raw materials coming from suppliers and ends with wholesalers getting the finished products to the customers.
- Explains that ford motor company utilized the value-chain more effectively than any other company. they explain how ford revolutionized the industrial era with its concept of the assembly line.
- Explains how ford motor company's success can be attributed to their effectual use and modification of the assembly line. the company endorses its vision by inviting guests to tour its plants while creating spectacular world fair exhibits.
- Explains that henry ford's plan would emphasize the other integral part of the value-chain and ensure that there were enough people to manufacture its products.
- Explains how ford motor company was vertically integrated since the moment it was founded, because it controlled everything from the iron mines to the dealerships.
1348 wordsRead More - The U.S. Automobile Industryexplanatory essayThe American Automotive Industry, popularly known as the U.S. Automotive Industry is one of the most rapidly evolving industries in North America. It is generally oligopolistic with a few players who in the past have been known to avoid price competition among themselves. The industry consists of industries manufacturing vehicles, car parts, replaceable parts and those engaged in assembling parts into complete models. However, the most dominant players in this industry are the vehicle manufacturers. The players design various models, produce the various parts that each model needs and assemble them into a finished product before availing them to the market. General Motors, Chlysler and Ford motors, dominate the U.S. Automotive mobile. They are popularly referred to as “The Big Three”.
In this essay, the author
- Explains that the american automotive industry is oligopolistic with a few players who in the past have been known to avoid price competition among themselves.
- Explains that although the big three dominate the market, there are other players in this industry, though most operate as foreign branches.
- Explains that michael e. porter of harvard university developed five forces to assist in analyzing different aspects of an organization in terms of its competitiveness in the industry in which it operates.
- Explains that buyers of a company's products may have power over the firm hindering its scope decisions that directly affect them. sensitivity to price, poor brand identity/product differentiation, large volume of purchases and lack of buyer incentives increase the buyers' bargaining power.
- Explains that firms and individuals who supply labor, raw materials and other components can be a source of pressure to the firm by charging very high prices or by switching completely to its competitors.
- Explains that a major determinant of competitiveness of an industry is the strength of the rivalry among competing firms.
- Explains that an industry with high profitability attracts many potential firms, but when these new firms enter the industry, the high returns will reduce. the u.s. automotive crisis was heightened by high exit barriers and expensive inputs.
- Explains that consumers' propensity to switch to alternatives is high when the cost of switching to other sellers is low, product quality and differentiation are low and the consumer is well informed.
- Explains that economic conditions change rapidly, either favorably or unfavorably, especially when the political environment is unstable. 2009 was a particularly hard period for the u.s. automotive industry with general motors and chlysler facing bankruptcy.
1547 wordsRead More - Ford Motor Companyanalytical essayFord Industry Analysis The automobile industry began with Henry Ford’s production of the Model T in the early 1900’s. With the creation of the assembly line, cars became cheaper and quicker to produce, thus making them affordable for many people. There were originally 500 auto manufacturers. By 1908, there were only 200; and in 1917 only 23 remained. This vast reduction was due to large amounts of consolidation within the industry.
In this essay, the author
- Explains that the automobile industry began with henry ford's production of the model t in the early 1900s. with the assembly line, cars became cheaper and quicker to produce.
- Explains that the industry is a global producer of automobiles, which is evident in the recent acquisition of chrysler by daimler-benz.
- Predicts that the global car market will grow to 64 million vehicles by the year 2002. the automobile industry will see more changes than it has in the last 100 years.
- Explains that the oversized vehicle was the body-style of choice among american consumers. japan's efficiency at producing this type of car allowed them to take 30% of the u.s. automobile market away from american manufacturers.
- Explains that the luxury vehicle segment has grown more competitive, yet maintains large profit margin potential. american buyers have been showing increased interest in european and japanese manufacturers.
- Explains that the sport utility vehicle segment has emerged as one of today's hottest markets through its increased sales. north-american consumers in higher income brackets are choosing suv’s in their garages.
- Explains that minivans market share was 8% in 1998, which was down 12% from 1991, due to a shift in consumer demand away from these vehicles.
- Explains that pick-up trucks, uniquely american vehicles that span all of the consumer target markets, show good potential for domestic manufacturers.
- Explains that the largest and most important product segment in the automotive industry is mid-size cars. popularity for midsize vehicles is due to consumers’ preference for luxury cars they cannot afford and compacts that they do not like.
- Explains that all these vehicle segments combine to form an industry in which consumers have continuously changing tastes. manufacturers who can compete worldwide, profit and growth potential will be ever present.
- Explains the history of ford, which began with the first car sold in 1903 and the millionth car produced in 1917. ford's finance subsidiary, ford motor credit, was formed in 1959.
- Explains that ford's three major subsidiaries are hertz, ford credit, and visteon.
- Explains that ford's prime focus in the 21st century will be on the consumer. ford has made a deal with microsoft to take advantage of the msn carpoint service.
- Explains that general ford has shown a steady pattern of sales growth from 1994 to 1997, growing at 5-7% each year. however, in 1998 sales were down 6%.
- Analyzes how ford's borrowing can be explained by its leverage ratios, and their debt-to-equity ratio, which is up from past years.
- Explains that ford's current ratio of.41 indicates that they have many current liabilities. this number is lower than the industry average, and their quick ratio has trended upward over the last 4 years.
- Evaluates ford's efficiency by examining its asset turnover ratio and days inventory held ratio, which show how effectively it is using its assets.
- Analyzes how ford's profitability is measured by the net profit margin, rate of return on assets (roa), payout ratio, and rate-of-return on common shareholder’s equity.
- Explains that ford's 1998 price/earnings ratio of 12.64, meaning investors are willing to pay $12.64 per dollar of earnings, has more than doubled from 1997, a positive signal from investors to ford management.
- Explains that the united auto workers (uaw) union represents the ford motor company's workforce. the company has $22 billion in cash to limit the threatening power of its unionized employees.
- Explains that interest rate fluctuations affect individuals' willingness to spend large amounts of disposable income and are a concern to ford. ford will spend $74 million to comply with pollution and hazardous waste control standards.
- Analyzes how ford has come to possess many strengths, such as their brand name, economies of scale, and diversified subsidiaries. ford's product lines reach all target markets.
- Explains that ford's large size could be a source of weakness to them because of bureaucracy, red tape, and timely reactions to changes in the industry.
- Opines that the opportunities for ford lie in their ability to lead the automotive industry in a global expansion. internet and e-commerce are examples of technological opportunities available to ford.
- Explains the threats facing ford include an increasing number of well-informed consumers attributable to the availability of information on the web. honda, gm, and chrysler are ford's main competitors.
- Explains that ford has been a leader in the automobile industry for the past 5 years. their 17.11% long-term annual growth rate shows they don't face going concern problems and expect to be profitable for many years to come.
- Compares ford's current stock price with its 52-week low of $40.25, and its high of $67.875. with 1,222 million shares outstanding, ford has a market capitalization of $54,531 million.
- Analyzes how a regression analysis of ford yields an accurate beta of 1.0151, compared with well-known financial news providers' estimates.
- Cites the following sources: http://www.askjeeves.com, cnbc, and msn.
3002 wordsRead More - What Are The Challenges Of The Automotive Industryanalytical essayOver the years, other automobile makers in different countries began to grow creating a rivalry in the global competitive arena. Rivalry among the competitors is very strong in this industry. (Highfill et al., 2004) In any competition, a winner is revealed due to the unbalanced nature one opponent would have up
In this essay, the author
- Explains that the global development of the automobile went from a steam powered three-wheeler in 1769 in france, to the internal composition engine in the 1800s in belgium, and the gasoline powered vehicle in 1885 in germany.
- Explains that rivalry is strong in the automobile industry due to the unbalanced nature of the competitors.
- Explains that even though there are few types of vehicles in the automobile industry, society judges people on the type of car they drive.
- Explains that americans had a strong attraction to these types of vehicles and were concerned about the impact they would have on their environment. the national traffic and motor vehicle safety act was passed in 1966.
- Analyzes how the 1970s oil crisis, global warming, and inflation prompted americans to look at alternative fuels. electric cars were the best way to meet legislation demands.
- Opines that innovation can help meet challenges in the industry, keeping the bar raised. if you observe the changes, improvements, and advancements this industry had made since the late 1700s, you may tip your hat to what it has become
935 wordsRead More - Levels Of Planningopinion essayFord’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
In this essay, the author
- Explains that planning is an essential process in today's organizations. the purpose of this essay is to focus on the strategic level of planning for the ford motor company.
- Opines that corporate citizenship in response to environmental disasters should be part of the overall strategy.
- Explains that the automobile industry is among the largest industries in the world and this competitive advantage directly influences the company's strategic planning.
- Explains that foreign policy directly affects ford's ability to be successful in international markets and is another component of its strategic planning.
- Opines that if ford motor company wants to stay competitive, they need to make vehicles that are more fuel efficient. washington wants automakers to achieve 4.5% annual improvements in federal standards.
- Explains that ford's innovation is contributing to their leadership in the green aspect of manufacturing and their commitment to the customers and communities that they serve.
- Explains that the ford motor company faces significant challenges in such a competitive industry and evolving market. ford's strategic plan must adequately address these issues or industry changing opportunities may overlooked leaving the company poorly position against its competition.
- Opines that the ford motor company faces significant challenges, based on their current weaknesses. the threat from current competition and alternative and flex fuel competitors has never been greater.
- Explains that many economic factors impact the development of ford's strategic plan, such as currency devaluation, oil prices, and the demand for smaller vehicles.
- Analyzes how ford, general motors, and ibm, the emergence of the transnational enterprise, helped customers rebuild from hurricane ike.
- Cites hardigree, m., a to z of materials, and intenational security & counter terrorism reference center.
1709 wordsRead More - The United States Of The Automotive Industryopinion essayWhen it comes to the automotive industry, the United States of America was at the top. It reigned supreme with the biggest percentages of sales coming from the “Big Three” car companies: General Motors (GM), Ford, and Chrysler, with the smaller percentages of sales coming from other brand names from different countries.
In this essay, the author
- Explains that the united states of america was at the top of the automotive industry with the biggest percentages of sales coming from the "big three" car companies: general motors, ford, and chrysler.
- Explains that market shares are falling for all three companies — general motors suffered from many recalls and lawsuits because the ignition switches were faulty, airbags were defective during crashes, among other problems.
- Opines that technology will always update, and the automotive industry is no exception.
- Explains that cars can be a serious harm to the environment, as well as the disposal of cars and old car parts.
- Explains that the government has the public get emission inspections every so often on every car. in my state, you get a notice from the motor vehicle administration to get your car inspected every few years and pay $14 for the inspection.
- Opines that the auto industry has come a long way, and their family has three cars and one van and they love all of their vehicles.
- Opines that once automotive companies have a set plan to deal with issues like theses, these newer high tech cars will be more trustworthy to the public.
- Opines that the automotive industry has changed the way we travel by land and is an industry that is always constant and it will never die out as long as people need a faster way to get to places.
953 wordsRead More - Project Management in the Automotive Industry: A Critical Reviewanalytical essay(4) Abel, Ivan, Maali Ashamalla, and Robert Camp. Competitiveness of the US Automotive Industry: Past, Present, and Future. Rep. 2nd ed. Vol. 10. Indiana: American Society for Competitiveness, 2010. Print.
In this essay, the author
- Analyzes the chapter 'project management in the automotive industry' by christophe midler and christian navarre from the wiley guide to managing projects.
- Analyzes how s' focus has been on changes in automotive organizations in terms of hierarchy, individual responsibilities, inter-organizational communication and product strategies.
- Explains that the characteristics of each phase of automotive project management have been explained elaborately. market trends and customer demands play a major role in determining the decisions taken by car manufacturers.
- Analyzes how the post-war period saw car manufacturers divert infrastructure developed during the war towards satisfying the new found consumers’ demand for automobiles.
- Explains that the 1973 oil embargo and the rise of japanese car manufacturers changed the core structure of the automotive industry.
- Explains how the third and fourth phases of the automotive industry were discussed in great detail.
- States that toyota was at the forefront of the global automotive industry by the end of 1990s. they attribute their phenomenal success to their innovative managerial approach and production system summed up in the toyota way.
- Cites highway statistics 2003, federal highway administration, u.s. department of transportation, n.d.
- Analyzes how modular concepts in vehicle design and architecture would reduce development and manufacturing time and offer a higher degree of customization. modularity could help satisfy the upcoming consumers belonging to the generation z.
- Cites geller, howard, john decicco, skip laitner, and christopher dyson in "twenty years after the embargo us oil import dependence and how it can be reduced."
1824 wordsRead More - Ford Motor Companyexplanatory essayFord Motor Company Address: The American Road Dearborn, Michigan 48121, USA Public Company Incorporated: July, 1918 Employees: 383,300 Sales: $62.17 billion Stock Index: New York, Boston, Pacific Midwest, Toronto, Montreal, London Until recently, the Ford Motor Company has been one of the most dynastic of American enterprises, a factor which has both benefited the company and has brought it to the brink of disaster. Today Ford is the second largest manufacturer of automobiles and trucks in the world, and it’s operations are well diversified, both operationally and geographically. The company operates the worlds second largest finance company in the world, and is a major producer of tractors, glass and steel. It is most prominent in the US, but also has plants in Canada, Britain and Germany, and facilities in over 100 countries.
In this essay, the author
- Explains that ford motor company has been one of the most dynastic of american enterprises, a factor which has both benefited the company and brought it to the brink of disaster.
- Explains that henry ford i, the founder of ford motor company, was born on a farm near dearborn, mi in 1869. he began his engineering career as an employee of the detroit edison company.
- Describes how henry ford established the detroit automobile company with financial backing from private investors. he later withdrew from the venture after a disagreement with business associates over numbers and prices of cars.
- Explains that henry ford and his engineers designed several automobiles, each one designated by a letter of the alphabet. in october 1908, ford introduced the durable and practical model t.
- Explains how ford improved efficiency by having each worker specialize in one task, with one tool. slower workers needed to increase their work rate to maintain production at the rate determined by the speed of the belts.
- Explains that when the us became involved in world war i, the ford motor company placed its vast resources at the disposal of the government.
- Explains that henry and edsel disagreed with fellow stockholders over the planned expenditure of several million dollars for a large new manufacturing complex at river rouge.
- Explains that henry ford transferred as many automobiles as possible to the dealerships, which generated $25 million, and $28 million more by purchasing the detroit, toledo & ironton railroad.
- Explains that after 18 years producing the model t, the ford motor company faced its first serious threat from a competitor. in 1926, general motors introduced its chevrolet automobile.
- Explains that the economic crisis of 1929, which led to the great depression, forced many companies to close. ford motor company managed to remain in business, despite losses as much as $69 million per year.
- Explains that unionization activities climaxed in april 1941 when ford employees went on strike. the united automobile workers union drew 70% of votes. henry ford, an avowed opponent of labor unions, suddenly altered his stand.
- Explains that willow run aircraft plant was completed in may 1942, 5 months after the bombing of pearl harbor.
- Narrates how henry ford ii, age 28, was named president of the ford motor company in september 1945. the company began to lose money at a rate of $10 million per month.
- Explains that the ford motor company had been a notable pioneer and achiever in the automotive industry. it produced its 25 millionth automobile in 1937 and the following year introduced the mercury line.
- Explains that henry ford i had created two classes of ford stock before he died. the b class was reserved for family members and constituted the controlling 40% voting interest.
- Explains that ford motor company purchased philco corporation in 1961 and established a tractor division in 1962. the following year, ford introduced its highly successful mustang.
- Explains that ford motor company subsidiaries in europe entered a period of strong growth and high profitability in the early 1970's, and these subsidiaries produced components for the pinto sub-compact.
- Explains that the ford company encountered severe economic losses due to a reduction in market share, high costs incurred by labor contracts, and the development of cars that met the new federal standards.
- Explains that company officials studied japanese methods of industrial management, and worked closely with toyo kogy, the japanese manufacturer of mazda automobiles.
- Narrates how ford repurchased 30 million shares in 1984, and introduced the taurus, a modern full-size automobile that took 5 years to develop.
- Explains that sales and profits reached record levels in 1984, and in 1986 ford surpassed general motors in income for the first time since 1924.
1589 wordsRead More - The Car Industryexplanatory essayThe Automotive Industry In the U.S., the 2007 market was approximately 15.9 million cars and light trucks sold, down from about 16.5 million the previous year. Production in North America, during 2006, including cars and trucks of all types, totaled 11.8 million produced in America, 2.6 million produced in Canada and 2 million produced in Mexico. Globally, about 53 million new cars were sold in 2007, up from about 49 million the previous year. These estimates are from Scotiabank Group. There are approximately 244 million vehicles in operation in the United States.
In this essay, the author
- Reports that the u.s. automotive industry sold approximately 15.9 million cars and light trucks in 2007, down from about 16.5 million the previous year.
- States that there are approximately 244 million vehicles in operation in the united states. around the world, there were about 806 million cars and light trucks in 2007.
- Explains that the new-car and light-truck industry in the u.s. had about 21,200 dealerships, 1.07 million manufacturing employees, and 1.12 million retail new and used car dealership employees.
- Explains that high gasoline prices started a sea change among u.s. consumers that is finally creating significant demand for fuel-efficient vehicles.
- Analyzes toyota's response to the prius hybrid car, and the lexus rx400h hybrid crossover. consumers aren't as impressed with u.s. hybrid technology as they are with toyota models.
- Explains that the use of ethanol as a gasoline additive will grow rapidly in the u.s., thanks to encouragement by congress.
- Explains that sales of heavy suvs lagged miserably, and automakers such as chevy, hummer and cadillac offered large dealer incentives and rebates in an effort to move these vehicles.
- Explains that the rising affluence of consumers in china created both huge opportunities and huge problems. china is one of the world's largest importers of petroleum products.
- Opines that india's growing middle class is creating great demand for cars. tata hopes to launch a no-frills indian car at $2,200 u.s.
- Explains the vast changes taking place in automobile manufacturing. flexible factories are reducing man-hours and costs per car, while offering a much wider range of customization to consumers.
- Opines that the question is not whether china will export cars and trucks, but whether consumers will be convinced that they offer safety and reliability.
- Explains that cerberus capital management, one of the world's largest private equity investment firms, purchased chrysler from daimlerchrysler ag in 2007.
- Explains that toyota is attacking mercilessly while the u.s-based big three struggle. the company plans to sell 10.4 million vehicles by 2009, up from 8.8 million in 2006.
- Explains that the u.s. parts manufacturing business is equally dismal. delphi corp, the giant supplier that was part of gm until 1999, lost nearly $4.6 billion in 2004 alone and declared bankruptcy in 2005.
- Explains that asian car manufacturers are enjoying booming success, with toyota and honda at the forefront. south korean makers hyundai and kia have established themselves as true, high-quality manufacturers with a growing global customer base.
- Opines that tesla motors is on the verge of a significant success with its revolutionary, all-electric sports car.
- Cites the following sources: http://kslye.blogspot.com/2007/11/strategy-moves-jorge-vasconcellos.html
1325 wordsRead More