Global Competition Of The American Automotive Industry Essay

Global Competition Of The American Automotive Industry Essay

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Global competition in the industry

The Automotive Industry in the United Stated was the market leader until the early 60s, however, many countries have begun to invest in the car industry, in particular, the countries of Europe. Despite the American automotive industry has been a market leader in the beginning of the century, the United States opened a new period in the history of the American automotive industry through an efficient production model invented by Henry Ford. The cars were manufactured on a large scale which led to the reduction in costs. In the decade of 30, the United States was present in several parts of Europe marking the American power in the industry. In the last 50 years, European companies have begun to expand their products to the market international. Practically, this same period, the Japanese industry began to expand its production to foreign markets. In the 50 's, the United States held approximately 85% of the world production car, however, in 1960, production of the US automotive industry dropped to 55% (Calandro). In this period, the production of European countries and Japan grew surprisingly "The competitiveness of the Japanese auto industry is the result of an organizational system that allows you the flexibility to meet changes in demand and the incorporation of microelectronic automation" (Calandro).

Globalization has given another boost to the competition, and now the competition is getting fiercer among countries. The United States lost the vehicle production ranking to China. In the decade of 70, China made an agreement with the United States which allowed closer ties between the countries "Big American companies will produce there and the main reason is the cost of labor, very cheap and e...


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...to consumers, regulators and to investors. As technology improves, and with it the infrastructure necessary to support widespread adoption, they will become a much more important part of the solution for the global auto industry. From BM 's plug in electric to the Tesla Model S, there are products on the market which are making Electric Vehicles a much more appealing prospect to the average consumer. We feel this trend is set to accelerate. For the global auto industry, it will become the long-term solution to the problems associated with the traditional internal combustion engine" (Clements, 2014).

Consumer opinions about the product your industry produces

The Brazilian consumer Augusta Henringer tested the autonomous vehicle, and she approved i "If I had to buy, I have one now. It is the dream car of any person who is afraid of driving" (Fussy, Oliveira, 2015).


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