Since 1980, foreign auto industry entered the United State, which create high entrant threat for the auto industry in United State. The auto industry has been effects by the threat directly by many ways. However, as one of the biggest auto company in the United State and it had been in the industry for long time, beside GM and Chrysler, Ford is the brand that popular all over the global and this can be used as a strength for the company. In addition, Ford recruit Alan Mulally as a Chief Executive Officer (CEO) of the company was a smart decision. Alan Mulally has carried the company through many difficult times.
This shows that government was to be involved in the bankruptcy of Chrysler and other companies. This in turn would be a spark of effects on the automotive industry and the economy of the United States. The unemployment rates of the country would be negatively affected on a large scale. It was apparent that the failur... ... middle of paper ... ...Business Times. N.p., n.d.
The American Automotive Industry, popularly known as the U.S. Automotive Industry is one of the most rapidly evolving industries in North America. It is generally oligopolistic with a few players who in the past have been known to avoid price competition among themselves. The industry consists of industries manufacturing vehicles, car parts, replaceable parts and those engaged in assembling parts into complete models. However, the most dominant players in this industry are the vehicle manufacturers.
Arrogance and greed led to the fall which followed with desperation for money and began making cars that they could make more money off of to try to recover from the loses that they were having. This was the start of the fall of General Motors and auto industry as a whole. Robert J. Samuelson in his work “How to Bail Out General Motors” states, “General Motors, once the world 's mightiest industrial enterprise”( 1 ). This was the headlines for magazines, newspapers and online articles for the failing enterprise. This was a devastating blow to our economy and to us as a society with things like layoffs and budget cuts on the horizon for this iron fist of a company.
Automobiles are one of the biggest contributing factors to the oil dependency of the United States, and they are also one of the largest pollution causes also. The pollution from automobiles became so bad that the United States had to pass the Clean Air Act in 1970 which forced a series of rules to reduce pollution from vehicle exhaust, refueling emissions and evaporating gasoline. The act had to be amended two more times in 1977 and 1990 to set more goals in addressing hazardous air pollutants. Even though the Clean Air Act helped control the pollution a bit, it still did not fix the underlying problem: the U.S.’s fixation on oil and gasoline vehicles. Due to high environmental pollution, we should move away from the traditional gasoline automobiles and instead look for greener alternatives like electric or hybrid vehicles and improved public transportation.
Global competition in the automotive industry has responded to consumer demand for less-polluting cars in what often appears to be a dismayingly-money oriented fashion. An example of this would be the case of evading regulation by German company VW, which installed a device that appears to have “tricked” the EPA into passing cars that did not actually meet clean air act standards (Bomey, 2015). The US government reacted very negatively to this, but not before passing thousands of cars on to consumers. VW is currently embroiled in huge lawsuits while the US government and EPA has taken the opportunity to make public statements about the need to control emissions and to better regulate industry. This would be encouraging if only the US was actually responding to the global climate crisis with regulations that were realistic.
That is not preferable to such company. That though is the purchasing power of the consumer. Consumers have influence over a brand choice and as well can influence friends to patronize a product, which is why consumer satisfaction cannot be downplayed by manufacturers. However, not everybody appreciate this production of the American automobile industry because of the fuel and combustion engine which they argue pollute the environment and result in so many diseases and death. In summary of this piece of writing, the American automobile industry will and continue to face challenges, while the world continues to depend on fuel to power vehicles which release dangerous particles into the environment and cause both human, Animal, and plants damage.
Growth in Ford Motor Company created problems within the company. Poor quality plagued every line of vehicles produced by Ford. Growth included Ford Motor Company purchasing multiple vehicle brands from other companies in different countries. Operating one company that contains smaller companies can create inter organizational rivalry. Rivalry sent each company in its own direction and drained money from Ford Motor Company.
Inspite of the wide differences they experience, they merged to gain competitive advantage in the tough global market and to reach the top position in the global car market which were in the hands of their rivals GM and Ford and also to strengthen their position to keep themselves well-grounded even during the low economic times. With the merger the DaimlerChrysler which they called it as ‘merger of equals’ were able to make to the 3rd position in the world car industry, the merger was later dubbed as ‘marriage made in Hell’ when the companies fell apart and lost the market. Though there was a promising look from the merger, the wide differences in organizational behaviour, culture, style of working, regulations and lifestyle increases the risk for such cross-border culture mergers. This is an attempt to support the previous works to show how these differences can dissolve the mergers and ground the company. Problem Analysis Experts and analysts had mixed opinion about the merger in 1998.
Most if not all of these manufacturers have started down this road, however there is much more considerable investment required in order to ensure that they reach the finish line with this technology. • The effect of emissions on the environment and government reactions to this Manufacturers must constantly take into account their global emission footprint. One can remember this scandal a few years ago involving a European automaker falsely reporting the emissions from their vehicles. In a society of environmental well-being, this led to the departure of many high-ranking executives within