Shifting Gears: Global Competition in the Automotive Industry

Global competition in the industry

The Automotive Industry in the United Stated was the market leader until the early 60s, however, many countries have begun to invest in the car industry, in particular, the countries of Europe. Despite the American automotive industry has been a market leader in the beginning of the century, the United States opened a new period in the history of the American automotive industry through an efficient production model invented by Henry Ford. The cars were manufactured on a large scale which led to the reduction in costs. In the decade of 30, the United States was present in several parts of Europe marking the American power in the industry. In the last 50 years, European companies have begun to expand their products to the market international. Practically, this same period, the Japanese industry began to expand its production to foreign markets. In the 50 's, the United States held approximately 85% of the world production car, however, in 1960, production of the US automotive industry dropped to 55% (Calandro). In this period, the production of European countries and Japan grew

The United States lost the vehicle production ranking to China. In the decade of 70, China made an agreement with the United States which allowed closer ties between the countries "Big American companies will produce there and the main reason is the cost of labor, very cheap and extremely disciplined With that from 1970 to the present day, what we perceive is that China starts to incorporate technology into their products" (Vieira, 2014). China 's manufacturing lot to keep the front of the ranking. In China, the logistics are all prepared to meet the demand of production. China will dominate much of the market. The Chinese send students to learn in the United States, and then they return to China and start working (Vieira,