to the competition. With the data in this report from earlier years recent research indicates that the
fundamentals of this research still exist to this day.
It is no surprise that globalization of the auto industry would result in less market share for those operating in
environments with lower labour costs. With lower labour costs, the costs per vehicle would be reduced allowing
the influx of the foreign markets to those environments which cannot afford the same reality.
For example let’s look at the American automotive industry as in the research document. With the constant
threat of labour disputes and employee satisfaction issues, application can be detrimental to the manufacturing
costs of the vehicles.
For example comparing General Motors against Toyota. General Motors is constantly putting out the fire with
constant labour disputes and employee satisfaction. How can a company focused on reducing costs when
constantly having to deal with such issues? Toyota on the other hand is a lean and efficient company user
their Total Quality Management System, they are putting out a great product at a reasonable cost. This is
called the Kaizen and theory of continuous improvement.
• New technology for powering the product that this industry produces
As stated in the article, the automotive companies are driven by the consumer requests and demand. In a day
and age where the environment is much more meaningful and important to consumers. It then pressures the
automotive industry to come up with new innovative technologies to reduce emissions and be less harmful on
the environment. This in conjunction with the rules and reg...
... middle of paper ...
...and acquire a major part of the
market share. This leaves their current manufacturers what a comfortable position in regards to threats from
Manufacturers should be aware the considerations of the environment as well as innovation when it comes to
design of their vehicles, gaining market share will be highly dependent on these areas. Manufacturers must find
ways to be green and reduce costs per unit in order to gain profitability and have happy investors.
In our earlier studies we learned about the environmental issues and how business would consider this. It is
very interesting to read how much impact the environment has on the automotive industry. Environmental
pressures from government and from consumers have changed the way that the manufacturers do their
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