Environmental Challenges facing the US Automotive Industry The American Automobile industry has been at the forefront of many great innovations over the years and provides a multitude of products that serve many different uses in today’s society. The Alliance of Automobile Manufacturers estimate that the industry is responsible for 7.25 million jobs in the USA. SWOT analysis
BUS 1101 WRITTEN ASSIGN UNIT 5. ENVIRONMENTAL CHALLENGES FACING THE AMERICA AUTO INDUSTRY American automobile industry has striven through the years with excellence and great dominance both in America and in the global market. The history of it global dominance could be attributed to many factors which include global acceptance of American cars and brand superiority. However, American automobile industry has not strived without major challenges that include: political, global competition, technological, economical, and environmental challenges. • The effect of emissions on the environment and government reactions to this.
Automotive industry began in the 1890s in the United States. As a result of the domestic market size and the use of mass-production, the industry grew so quick into the largest in the world. The United states is the second largest automobile manufacture in the world by volume with over eleven million manufactured in 2014 according to a survey conducted by Organisation Internationale des Constructeurs d 'Automobiles (OICA).
There are many trends that can affect the US automobile industry. Today, the biggest impact globally for US automakers comes from East Asia, China specifically. In 2014, China produced 23,722,890 vehicles (Organisation Internationale des Constructeurs d’Automobiles), with car makers in Europe coming in second with 16,976,883. This put the US in third place, with over 11 million vehicles produced in 2014. For many years, the US was the industry and
Nowadays, BMW Group Company is a powerful international company represented all over the world with more than 96,000 employees and over 1 million vehicles sold every year. Importers in 120 countries represent the BMW and worldwide sales organisation comprise...
Impacts of new companies entering the market are significantly decreasing the sales of domestic automotive sales. Chery and Geely are prime examples of automotive companies in China planning on importing cars to the U.S that will be priced under $10,000. Consumers will be thrilled, but it could be devastating to General Motors and Ford. New foreign automotive businesses entering the market in the near future will have a huge impact on domestic automotive businesses. Eaton produces OEM’s for Ford and GM trucks. The new business entering the automotive market is foreign cars. There will always be a demand for trucks. The demand for truck sales may decrease due to increase gasoline prices. Demand and Supply for domestic vehicles is going to decrease in the future. Increasing foreign car sales will impact domestic automakers by laying off more employees and shutting down more and more plants. Thousands of people have already lost jobs and thousands more will. Eaton has sold their mirror business and will continue to sell off more automotive businesses if sales do not increase sales by 14% every year. Eaton will have to purchase or win new business for foreign vehicles in the future. Eaton is currently doing 10% business with foreign vehicles and needs to increase foreign sales by 20% or more.
Over the years, a trend has been emerging where the largest automobile manufacturers build production plants in developing countries to lower production costs. These countries include China, Malaysia, and others located in Southeast Asia. For example, "The Big Three" automakers (GM, Ford and
Since the time of Henry Ford in the early 1900’s, the auto industry in the United States enjoyed almost complete supremacy, with little foreign competition. Nonetheless, as time went by, foreign competition kept gaining more and more strength. By the time the 1980”s came around, the Japanese auto makers had surpassed the Americans in productivity, quality,
The automobile sector has been a robust sector that has experienced tremendous growth in the past seven to eight years. Apart from two years in particular -2008-09 & 2012-13, there is general trend of ten percent plus growth in various segments like passenger car, commercial vehicles, two and three wheelers. The following chart shows the growth rate of various years in each sectors.
The ownership of the company is as follows: FAW around 51%, Volkswagen 20%, Volkswagen (China)19% and Audi AG 10% (FAW-Volkswagen International cooperation, 2015)