Environmental Challenges Of The American Auto Industry

The American Auto Industry which began in the 1890s has over the years thrived since the early 1900s.This is as a result of the increase in the market share of most American auto companies around the globe. The auto industry which began with hundreds of manufacturers was dominated by the three larger companies: General Motors, Ford, and Chrysler by the end of the 1920s. Henry Ford innovated mass- production techniques that became the standard adopted by the three big auto companies in America. By 1950, the American Auto industry nearly produced three-quarter of all automobile in the world. With all this success, the auto industry in America is still facing some environmental challenges. These environmental challenges include global competition,

With the advent of safe and affordable cars that appeal to the taste of consumers around the world from some Asia countries like Japan that produces Toyota, Honda, Nissan, Mazda etc. The America auto industry is hereby faced with the challenge of global competition from the automobile companies in Japan. Also, with India and China producing an automobile, the American automobile is further subject to more global competition. This is as a result of the low cost of labor that these countries enjoy that has given them the comparative advantage to manufacture affordable and safe automobiles.

More so, global warming is one of the environmental challenges nations faced around the globe. The auto industry is one of the major source of this environmental issue and its hazard. The challenge to manufacture alternate fuel vehicles that do not contribute to the hazard caused by the combustion of fuel has been one of the recent challenges faced by the auto industry in America. Hence, most auto companies are striving to manufacture a vehicle that utilizes modern technologies such as internal combustion engines with an electric motor and solar power to effectively power