Challenges of the Automobile Industry of USA

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As we all know, automobile industry plays an important part in the economy of USA; however, this industry is facing some environmental challenges. In this assignment, I would like to discuss about the challenges that the automobile industry of USA is struggling with. Specifically, there are four main challenges that will be looked into details which are global competition, new technology, emission’s effect on the environment and the government’s reaction, and the consumers’ opinion about the products.

Firstly, the automobile industry of USA is facing an intense global competition. Beside some American brands of automobiles such as Ford, General Motors (GM), there are other foreign brands which are proving their positions in the automobile industry which are Honda, Nissan, Mitsubishi, Toyota from Japan, Hyundai Motor, KIA Motors from South Korean, Geely, SAIC, and Chery from China to name just a few. Also, all these brands are competitive in both price and quality.

According to 2012 U.S. Automotive Industry Survey and Confidence Index “A Return to Optimism,” people predicted that Chinese automobile industry might reach or “exceed 4 percent of the market share”. (2012).

However, the good news for the American Automobile Industry is that other brands are still developing and not as fast as the American brands. Moreover, the industry of USA is affected by the recession in 2009. According to “The Resurgence of the American Automotive Industry,” (June, 2011), the crisis in 2009 shed over “400,000 jobs” and the auto sales decreased “40 percent”. In such a situation, President Obama decided to provide financial support to two major companies which are General Motors and Chrysler in order to boost up the economy out of the depression. ...

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...rt_06_01_11.pdf

Tortuga Foundation, the Alida R. Messinger Charitable Lead Trust, No. 2, and the Stewart and Constance Greenfield Foundation (2006). The harmful effects of vehicle exhaust. A case for policy change. Retrieved from http://www.ehhi.org/reports/exhaust/exhaust06.pdf

(2012). U.S. Automotive Industry Survey and Confidence Index “A Return to Optimism” Retrieved from http://www.booz.com/media/file/BoozCo_2012-US-Automotive-Industry-Survey-and-Confidence-Index.pdf

David H., Matt B., et al (2004). Automotive Industry Analysis - GM, DaimlerChrysler, Toyota, Ford, Honda. Retrieved from http://www.academicmind.com/unpublishedpapers/business/management/2004-11-000aaa-automotive-industry-analysis.html

(2012).State of the U.S. Motor Vehicle Industry: 2012 Retrieved from http://www2.briefing.com/Marketing/includes/state-of-the-us-motor-vehicle-industry-2012.pdf

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