Global Competition In The Automobile Case Study

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• Global competition in the industry
Global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovation and adopting process and product improvements.

The automotive industry is one to the largest and most important industries in the world. The Global competition in the automotive industry has similar concerns as in the United States. The automobile is one of the most highly recycled product with a 95% of retired cars entering the recycling system, and approximately 75% of each car …show more content…

Environmental factors such as fuel economy, fuel emission and clean air regulations are the main concerns of the public. To achieve this task, cost reduction remains very important in the automotive industry.

Environmental concerns are driving the automobile’s design and development to comply with governmental rules and regulations. These changes are forcing the manufactures to come up with fuel efficient alternatives and new emission controls with the objective or reducing the negative environmental impact that is damaging the environment.
General Motors the top leader in the motor vehicle industry turns all negative threats into a positive. General Motors has taken the lead in Hybrid cars, and the fuel cell prototype HydroGen3 which is being successfully completed in Europe. General Motors is now selling Hybrid cars in China and they hope to also lead in the future with hydrogen …show more content…

In 1965 Congress passed the Clean Air Act demanding 90% decrease of the automobile emission within the next six years. Manufactures now are looking into additional alternatives like Hydrogen. According to Daimler Chrysler, Hydrogen is the future for the automotive companies. Hydrogen is considered to be next breakthrough in fuel for all automobiles engines here in the United States and all over the world. By investing in research and development technology Daimler Chrysler will be able to revolutionize the automotive industry and remain on top of the automotive world. These changes and regulations comes with a cost, it will eventually affect the financial automotive industries who will pass the cost to the

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