The American Automotive Industry

1788 Words8 Pages
The American automotive industry has led the American economy for many years. This industry has shaped our development, and influenced American culture and social mores. Now, ensnared by globalization and other dominant factors, it faces a difficult reality. The American automotive industry significantly impacted the lives of Americans. Detroit’s “Big Three” had the most significant roles in this. Chrysler, Ford, and General Motors were American symbols. They are credited for a significant percentage of all American jobs; they put numerous blue-collar families into the middle class, and helped America cultivate into the giant of the twentieth century. Unfortunately, the fabled automotive firms are not what they once were and are traveling down a precarious path. The viscosity of its situation has grown to a limitless problem. From a competitive foreign labor force, to an unreasonable foreign trade policy, problems have arisen on a vast spectrum. Out of the many problems that American carmakers have, three of them are the most prominent. The energy crisis, foreign trade policy, and finally, the perception gap are all the tribulations of the industry. If these three problems are deciphered, the American automotive industry may be able to exit out of volatility. The energy crisis began in 1973 when the Organization of Petroleum Exporting Countries (OPEC) cut off the supply of oil to the United States. This was carried on to the late seventies where another energy crisis began. In an effort to save energy the U.S. government began to set standards for fuel economy. This affected the auto industry in ways that the big three could not imagine. American car sales decreased due to fuel standards being suddenly changed. Subsequently, ...

... middle of paper ...

...stry. If this continues, this reputation will follow our industry and eventually destroy it. Mainstream media must learn to report accurate and feasible reports. Perhaps someday the American media will give GM and Ford the credit they deserve. And once they do, perception among the majority of the American public will rightfully change.

Toyota Prepares for Slow Start With New Pickup http://online.wsj.com/public/us

Norihiko Shirouzu, The Wall Street Journal, Sep 28, 2006

American Auto's Troubled Road http://hbswk.hbs.edu/item/5290.html

Garry Emmons, Harvard Business School, April 10, 2006

American auto industry seen at a crossroads http://www.msnbc.msn.com/id/10642724/

Roland Jones, MSNBC, May 9, 2006

Can't Stop Guzzling http://www.businessweek.com/investor/content/jul2006/pi20060719_167731.htm?chan=search

Peter Coy, Business week, July 20, 2006
Open Document