American Auto Industry Case Study

According to Investopedia the global competition resulted in less market share for the American car manufactures and caused a threat to company profit results because more foreign brands entered the American market. The total shares for General Motors fell from 28.2% in 2000 to 17.6% by 2014. The American manufactures were struggling to compete against better, more efficiently manufactured products from international companies and lower per-car costs have allowed foreign manufactures to gain bigger portions in the American market. Because their shares dropped so drastically they had to cut down on operating costs, they reduced their workforce by more than 40% eliminating brands and restructured employee compensation to create more effective

Because they are big companies that manufacture an abundance of cars, motors, and all of the things that goes into a car every single day. They have to manage their fabrication waste very wisely without it causing any harm to the environment. The concern of air pollution has been expressed occasionally it first started in 1960 when California established the first new car emission standards. Researcher A.J.Haägen-Smit did a scientific research that showed that photochemical reactions among hydrocarbons and nitrogen oxides produce the many secondary pollutants that reduce visibility and cause eye and nose irritation in the Los Angeles

For example, if one supplier was to perform below and an auto industries standard then other options open up for the industry and that supplier could be replaced very easily. Recently, auto industries and suppliers have moved toward a system called a tier based system, where the auto industries would contract with a limited amount of suppliers and then those suppliers would contract products with an upstream market. The shift has been very good for the suppliers and has led to an increasement of power for