Essay on Impact Of Global Industry On The Automotive Industry

Essay on Impact Of Global Industry On The Automotive Industry

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According to our reading materials this week, the automotive industry in the United States of America is dominated by General Motors, Daimler Chrysler, Toyota, Ford and Honda. These are all international brands and huge multinational organizations with many years of experience in the motor industry. There are currently 250,851,833 registered passenger vehicles in use in the US, and about 10 to 11 million which reached the end of their useful lives and are taken out of service annually. Retrieved from www.yosemite.epa.gov/r10/owcm.nsf/Product+Stewardship/autos-impacts Global Competition in the Industry According to a research by the consultancy arm of the IBM Corporation, the global automotive industry is really dynamic and evolves in way that is increasingly complex due to factors beyond the control of the automotive industry manufacturers. The research goes on to point out that a majority of these influencing factors interact with one another and have strong interdependence; and also that, the said factors are market induced and consequently, cannot be influenced directly by the automobile manufacturers. These factors include: globalization, regionalization and market convergence; increasingly diversified consumer aggregate patterns of behaviour; accelerated modification and diversification of product portfolio; pervasion of automobiles with digital technology and; increased pressure for innovation and flexibility in development and manufacturing. ftp://ftp.software.ibm.com/software/plm/de/challenges_automotive.pdf Amidst all these challenges, the captioned research states is very optimistic about the prospects for the manufacturers remaining competitive in the short runs and successful in the long term, as the industry continues...


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... standards for automobile pollution; The Clean Air Act in 1970 demanded a 90% decrease in automobile emissions with the six years; The Energy Policy and Conservation Act OF 1975 required vehicles to meet a certain mileage per gallon. The concern to safety saw the government pass The National Traffic and Motor Vehicle Safety Act in 1966 by forcing the manufacturer to ensure improvements in safety for the passengers, driver visibility and car braking system. Consumer Opinions about the Product This week’s reading materials highlights the fact that today’s consumer judge people by type of car they drive. It also goes on to point out that the same consumer prefers a fuel-efficient car. According to a research conducted by J.D. Power reported in the www.Forbes.com website, are increasingly complaining about audio, entertainment and navigation issues in their new vehicles.

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