Challenges Facing The Automobile Industry Case Study

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The Environmental Challenges Facing The American Auto Industry A survey shows that environmental issues top the list of challenges facing the automotive industry, outranking cost reduction for the first time in 14 years. The survey was conducted by DuPont and the Society of the Automotive Industry. (DuPont,18, 2008) Global competition resulted in less market share for U.S. car manufacturers and threatened company profits as more foreign brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. High labor costs, product lines that emphasized large vehicles with significant gasoline use and a looming global recession caused a crash in U.S. automaker profitability in 2008. …show more content…

(iformat Developer,Thursday, April 30, 2015) The large majority of today 's cars and trucks travel by using internal combustion engines that burn gasoline or other fossil fuels. The process of burning gasoline to power cars and trucks contributes to air pollution by releasing a variety of emissions into the atmosphere. Emissions that are released directly into the atmosphere from the tailpipes of cars and trucks are the primary source of vehicular pollution. While new cars and light trucks emit about 90 percent fewer pollutants than they did three decades ago, total annual vehicle-miles driven have increased by more than 140 percent since 1970 and are expected to increase another 25 percent by 2010. The emission reductions from individual vehicles have not adequately kept pace with the increase in miles driven and the market trend toward more-polluting light trucks, a category that includes sports utility vehicles (SUVs). The US automotive industry has long relied on gasoline-powered vehicles. Only in recent years, due to widely

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