Essay on Impact Of Global Industry On The Automotive Industry

Essay on Impact Of Global Industry On The Automotive Industry

Length: 1085 words (3.1 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

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 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. 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...

... middle of paper ...

... 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 website, are increasingly complaining about audio, entertainment and navigation issues in their new vehicles.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Impact Of Global Industry On The Us Automobile Industry Essays

- he American auto industry has seen many changes since its first car was built. From steam powered vehicles to electrical automobiles, the industry has literally paved the way for some of the most innovative ideas the world has ever seen. However, to remain in the forefront, the industry has had many obstacles stand in its way. Global competition in the industry 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....   [tags: Automotive industry, Automobile]

Better Essays
906 words (2.6 pages)

Essay on Global Competition Of The Automotive Industry

- • Global competition in the industry Global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovation and adopting process and product improvements. The automotive industry is one to the largest and most important industries in the world....   [tags: Automobile, Automotive industry, General Motors]

Better Essays
879 words (2.5 pages)

The Automotive Industry Crisis Of 2008-2010 Essay

- Fueled by the 2008 recession, the automotive industry suffered a crisis that hurt the United States’ national economy. Lead Up to the Crisis The automotive industry crisis of 2008–2010 was a part of a global financial downturn. General Motors, Ford, and Chrysler, also referred to as the United States Big Three automakers, had limited access to offshore production, unlike their foreign equivalents. The New York Times wrote, “For the most part, the so-called auto transplants – foreign-owned car companies with major operations in the United States – have deep pockets and ample credit, and they are not facing potential bankruptcy like General Motors and Chrysler." Because of the rise in gas pri...   [tags: General Motors, Automotive industry, Chrysler]

Better Essays
1083 words (3.1 pages)

Essay about Ford Motor Company 's Impact On The Global Financial Crisis

- Unlike its peers in the industry, Ford Motor Company successfully endured the negative impact of the global financial crisis of 2008 through decisive corporate leadership, introduction of innovative products, and positive culture and corporate values. More specifically, some of the primary factors that helped Ford stay afloat during the global financial crisis include: the top management’s decision to mortgage the company’s assets to have adequate cash on hand; continued investment in product development and introduction of new products that appeal to customer’s new preferences; and the company’s positive corporate culture, particularly the introduction of One Ford....   [tags: Ford Motor Company, Automotive industry]

Better Essays
1542 words (4.4 pages)

Essay on Environmental Impacts Of The Automotive Industry

- While the automotive industry is touted as a success story of industrialisation, and the early days of automated assembly brought mobility to millions of people and fast-forwarded our society in ways we had never previously imagined possible, since the beginning, the automotive industry has been rife with ethical challenges. Some of these have been very public ones, typically involving labour practices, worker safety and issues of product safety over cost. However, there is another ethical challenge in the arena, and it is not small....   [tags: Petroleum, Internal combustion engine, Automobile]

Better Essays
773 words (2.2 pages)

Essay on The Global Automotive Industry

- Introduction The number of multinational companies is on the rise due to changes in business dynamics, technology and increase in pressure on businesses to diversify their operations and make the most out of available opportunities. Numerous automobile industries have resulted as a consequence of technology change. There is a lot to talk about when it comes to technology and business diversities. However, despite technology changes, businesses still feel immense pressure to ensure that they redesign their operations so as to make the most out of the available opportunities....   [tags: FAW, Tata]

Free Essays
2551 words (7.3 pages)

The Auto Industry From 1987-2002 Sheds Light On How Global Competition Impacts Domestic Sector Dynamics And Productivity Growth

- An in-depth case study of the US auto industry from 1987-2002 sheds light on how global competition impacts domestic sector dynamics and productivity growth. Studies of productivity by MGI and others have shown that when new, more productive players enter a sector previously sheltered from global competition, the sector 's overall level of productivity rises. Less clear, however, is what happens at a company level to link cause and effect. Taking US automotive manufacturing between 1987 and 2002 as representative of a sector facing increased competitive intensity, MGI examined how the "Big Three" US automakers responded to more productive Japanese entrants over the period....   [tags: Automotive industry, General Motors, Renault]

Better Essays
808 words (2.3 pages)

Outlook for the Automotive Industry Essay

- Introduction Throughout the world there are numerous automotive manufacturers. Appendix A is a list of 215 that can be found on the Wikipedia Website titled List of current automobile manufacturers (alphabetical). (List of current automobile manufacturers (alphabetical)) Due to the restricted amount of time available of information on manufacturers, and the restricted amount of time available for this paper, research was limited to only the manufacturers listed below for the majority of the industry outlook....   [tags: ford, honda, nissan, hundai]

Better Essays
1383 words (4 pages)

South African Automotive Industry Essay

- FACULTY OF INFORMATION AND COMMUNICATION TECHNOLOGY Dept. of Informatics   Table of Contents 1. INTRODUCTION 3 2. BACKGROUND 3 3. PROBLEM STATEMENT 3 4. PURPOSE OF STUDY 4 5. RESEARCH OBJECTIVES 4 6. RESEARCH METHODOLOGY 4 5.1. Participants 5 5.2. Data Gathering Instruments 5 Literature Review 5 5.2.1. Questionnaire 5 5.2.2. Interviews 6 7. CONCLUSION 6 8. CHAPTER OUTLINE 6 BIBLIOGRAPHY 7   Growth of Information Technology in the South African Automotive Industry 1. INTRODUCTION 'A successful automotive industry is often seen as a symbol of economic success and as a sign of mastery of modern technologies' (TISA (Trade and Investment South Africa), 2003)....   [tags: Growth of Information Technology, Communication]

Better Essays
1964 words (5.6 pages)

The American Auto Industry Essay

- The American auto industry has gone through a multitude of changes over the past one hundred years. Some of those changes are a result of new innovations while others were forced upon them by new government regulations due to safety or environmental concerns. Changes in consumer wants and needs have also played a crucial role in the design and manufacture of new vehicles. One of the most notable names in automotive history is Henry Ford. Mr. Ford is credited with creating the assembly line. This innovation revolutionized the auto industry by significantly increasing production which quickly made the automobile more accessible to the average consumer by significantly lowering production costs...   [tags: Automobile, Automotive industry]

Better Essays
1030 words (2.9 pages)