The Automobile Industry: The Development Of The American Auto Industry

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The development of the American Auto Industry took place over many, many years, starting with Mr. Henry Ford building the first car in 1896. The industry has evolved, to what it is today and represents approximately 10% of the country’s Gross Domestic Product (GDP). According to the Bureau of Labour and Statistics, ‘the automotive industry includes industries associated with the production, wholesaling, retailing & maintenance of motor vehicles’. These industries are industries that have a tremendous impact on the U.S economy and can be directly impacted by changes in U.S. production and sales of motor vehicles. The US auto industry was dominated by what is known as the ‘Big Three’, being General Motors, Ford and Chrysler. The big three America auto makers enjoyed market dominance until the …show more content…

Automobiles and its related manufacturing contribute to the degradation of the environment causing great concerns from consumers, governments, policy makers and environmentalists, regarding the economy and global warming. This resulted in market changes, due to new environmental laws, legislations, standards, product requirements and consumer wants. The gasoline engine produces emissions that are deadly for the environment, hence the big race by the automobile producers to develop an efficient alternative fuel/energy for powering its vehicles. Deloite (2014) ‘In 2012, new Corporate Average Fuel Economy (CAFE) standards were released in the U.S. that requires automakers to raise the average fuel efficiency of new cars and trucks to 54.5 MPG by 2025.’ (“Global Automotive Consumer Study”, 2014, p.4) The industry is engaged in research and development to develop more efficient internal combustion engines, electric vehicles (EVs), plug-in hybrids, and vehicles powered by natural gas. The government offers incentives in the form of rebates for the purchase and sale of energy efficient

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