U.s Auto Industrys Market Share And Fluctuations

U.S Auto Industry's Market Share and Fluctuations

The U. S. auto industry's share of the market has experienced fluctuations over the past 50 years. These fluctuations have been caused by many reasons, but some of the main reasons include quality, price, and foreign competition.

The Ford Motor Company, General Motors Company, and the Chrysler Corporation,

a.k.a. "The Big Three", are the three largest manufacturers of automobiles in the world. " The Big Three" hold nearly 75% of the market and produce over 8 million automobiles per year. The largest competitors of " The Big Three" are

Japanese auto producers that include Toyota, Nissan, and Honda. These three foreign manufacturers hold 20% of the market and produce about 2.7 million automobiles per year.

General Motors Company, the world's largest automobile producer, originally was composed of four major vehicle manufacturers- Buick, Cadillac, Oldsmobile, and

Oakland which became Pontiac. Presently, General Motors is made up of Buick,

Cadillac, Oldsmobile, Chevrolet, Pontiac, and Saturn. During the first thirty years of operation GM's only major competition was from U. S. manufacturers.

However, since the first foreign truck was imported from Japan in 1956, GM's share of the market began to decline. Foreign cars were smaller, more fuel efficient, less expensive, and often more reliable than their American counterparts. General Motor's market share dipped from nearly 44% in 1973 to below 30% in 1985. In response to this sudden drop in its share of the market GM founded the Saturn Company. Saturn produces compact cars very similar to

Japanese imports at competitive prices. This response halted GM's declining share of the market. Today, General Motors maintains about 30% of the market.

General Motors was the first large auto company to begin research on alternative fuel sources and continues to lead the way. Some developments of this research include the first production natural gas engine, and the first car powered completely by electricity. Many ideas are still in the process of being developed, such as affordable solar powered vehicles and ultralight plastic body parts. The Ford Motor Company, founded in 1903 by Henry Ford, was the largest car manufacturer in the world until 1929 when GM passed it. Ford is currently the second largest producer of automobiles in the world p...

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...f France to produce compact cars. Then in 1987 Chrysler purchased the

Italian company, Nuova Automobili F. Lamborghini, maker of expensive sports cars.

Chrysler also purchased the American Motors Corporation, the maker of Jeep products. These purchases increased Chrysler's share of the market from 11% to

16.3% and continuing to rise. Chrysler produces nearly 3 million automobiles a year under the Chrysler, Dodge, Plymouth, Jeep, and Eagle names.

Chrysler is also in the process of producing alternative fuel cars. These include vehicles powered by electricity, liquefied natural gas, and gasoline- methanol mixture.

The future share of the market for the " Big Three" should remain steady or even increase. Today, the " Big Three" is able to produce top-of-the-line, fuel efficient, affordable cars to compete with imports. The " Big Three" also leads the way in research on alternative fuels and designs that will make automobiles more efficient and less polluting. In conclusion, the United States automobile industry, which pioneered processes and technology in the early 1900s, has returned as the leader and will lead the auto industry into the 21st century.