The Automobile and the Economy Essay

The Automobile and the Economy Essay

Length: 1024 words (2.9 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

The Automobile and the Economy

The effects the automobile has had on the economy of the world are tremendous.
The major effects have came in many ways and include sales of the automobile, jobs
provided to sell and manufacture the automobile, gas/oil sales to run the automobile, and the start of auto racing sport. The revolution of the automobile was the start of the most popular and successful industry in the world.

The Effect of Gas/Oil

There is a great effect on the economy due to the sale of gas. The major effect of
how much gas is sold is how efficient the particular automobile uses gas and what
automobile the people choose to buy. Since the start of production of the automobile fuel efficiency has steadily increased for the most part thanks to better engineers, tires, and laws that force better efficiency.

First, The Energy Policy and Conservation Act of 1975 established C.A.F.E.
(corporate average fuel economy) which was meant to steadily increase fuel efficiency in
passenger cars every year (http//www.cnie.org/nle/air-10.html#summ) . The only problem
was oil prices softened and the demand for small cars that were the most efficient
diminished. As a result, the N.H.T.S.A (National Highway Traffic Safety Administration)
was forced to relax the standard of the model years 1986-1989. The standard for
automobiles of today is 27.5 miles per gallon.

In the 1990’s the United States had an increased urgency raise their standards as
they were more dependent on importing oil instead of producing it. Currently, the Clinton Administration is going to great depths to try to increase fuel efficiency. Bill Cliton made a partnership with the domestic industry to develop a new...


... middle of paper ...


...mobile Manufacturing Industries Act”. October 27 1996. Internet Explorer.
Online. March 1 1998. http://www.japanauto.com/about/hjai_01.html

“Auto Production to Expected 3 Million Next Year”. Short Takes. Internet Explorer.
Online. September 17 1997.
http//www.korta.co.kr/ki/issues/1997/11-12/short.html

“Automobile Fuel Economy”. CRS Issue Brief for Congress. Internet Explorer. Online.
October 8 1997. http//www.cnie.org/nle/air-10.html#summ

“Do Automobile Fuel Economy Standards Work?”. Do Automobile Fuel Economy
Standards Work?. December 10 1996. Internet Explorer. Online. March 10 1998.
http//www.azfms.com/DocReviews/Dec96/art3.htm

“How TV Wizardy Made Stock Car Racing the Hottest, Family-friendliest Sport
Around”. Nascar Nation. December 11 1997. Internet Explorer. Online. March 11
1998. http://www.mci.newscorp.com/tv/magazine

Need Writing Help?

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

Check your paper »

The Improvement of Automobile Fuel Economy Essay

- The Improvement of Automobile Fuel Economy Abstract In today’s society, it has been determined by energy analysts that fuel consumption is increasing at an alarming rate. This is due to the large influx of drivers on the road, and the increase in travel demands. Since energy is not a finite commodity, there have to be certain movements taken to improve the fuel economy in automobiles. Certain technological advances have been discovered, such as reduction in vehicle weight, and improvements in the engine design, that can greatly increase the efficiency of the automobiles....   [tags: Cars Fuel Oil Automobiles Essays]

Free Essays
7085 words (20.2 pages)

Essay about The USA Manufacturing Workforce

- ... In 2008 following a huge drop in sales General Motors, Ford and Chrysler all requested emergency loans in order to fill the cash shortage and by 2009 the situation got even worst General Motors and Chrysler were facing imminent bankruptcy. http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1671&context=key_workplace This ment that there would be massive job losses and severe damage to the U.S. economy during this economic crises finding new jobs were extremely difficult and the unemployment rate was extremely high and it was the less educated workers that were running more risks of getting fired from there jobs, but even the higher educated workers were getting layed of...   [tags: US economy, automobile sales]

Strong Essays
654 words (1.9 pages)

International Acquisitions By China on the Rise Essay

- INTRODUCTION According to the statistics of Chinese Ministry of Commerce, in 2013, Chinese investors made direct investment overseas in 5,090 enterprises in 156 countries and regions. As of the end of 2013, China’s non-financial direct investment overseas totaled US$ 525.7 billion. The number of international acquisitions by Chinese firms has grown remarkably in recent years. Traditionally, exploiting economies of scope and scale or taking advantage of market imperfections was deemed by firms a dominant way of achieving competitive advantage ....   [tags: economy, manufacturing, automobile]

Strong Essays
2022 words (5.8 pages)

Essay on Fast-growing Automobile Industry in India

- EXECUTIVE SUMMARY Indian automobile industry is a globally one of the largest industries and a key sector of the economy. The automobile industry is one of the prime industry in india and now one of the fastest growing industries in the world in terms of vehicle manufacturing. The automobile sector in Indian industry is one of the high performing sectors of the Indian economy this has added largely in crating india an important intension for many international players in the automobile industry who desire to deposit up their business in india....   [tags: motor vehicles, economy, manufacturer]

Strong Essays
1061 words (3 pages)

The U.S. Automobile Industry Essay

- The United States recession (which lead to a world recession), began in 1997 and significantly impacted the United States automobile industry during the recession period. The United States automobile industry is still reeling from the effects of the recession throughout the period of economic recovery that continues today. According to Chu and Su, “In this credit-driven recession, one of the hardest hit sectors was the automotive industry, along with the housing and financial markets. Chrysler and General Motors were pushed into bankruptcy; and 276,000 jobs in the automobile and parts industry were destroyed, a whopping 36 percent of the total employment in the sector”....   [tags: Economy, Recession]

Strong Essays
2538 words (7.3 pages)

Challenges of the Automobile Industry of USA Essay

- As we all know, automobile industry plays an important part in the economy of USA; however, this industry is facing some environmental challenges. In this assignment, I would like to discuss about the challenges that the automobile industry of USA is struggling with. Specifically, there are four main challenges that will be looked into details which are global competition, new technology, emission’s effect on the environment and the government’s reaction, and the consumers’ opinion about the products....   [tags: car industry, american automobile, gm]

Strong Essays
956 words (2.7 pages)

Essay on Global Competition Of The Automobile Industry

- Global competition in the industry. The development of Auto industry come from different people and countries around the world started in France in 1769 . In the USA in 1896 Henry Ford build his first car and innovate the assembly line which allowed him to mass production and making affordable  cars to the customers ( Gale, 2003). Consumers concerns about environmental and safety  issues started in 1960 , and the government 's  laws and regulation took place in 1966 through the congress which forced the manufacturers to improve the safety of passengers, driver visibility and the barking of the car, Also the Environmental concerns growing about the vehicle air pollution and the government sta...   [tags: Automobile, Hydrogen vehicle, General Motors]

Strong Essays
751 words (2.1 pages)

Global Development Of The Automobile Industry Essay

- There has been a lot of changes that have happened in the automotive industry. Even though the global development of the automobile went from a steam powered three-wheeler in 1769 in France, to the internal composition engine in the 1800s in Belgium, to the gasoline powered vehicle in 1885 in Germany, and to Henry Ford building the first car in 1896, it still had environmental challenges ahead; especially in America. (Highfill et al., 2004) This writing will summarize the challenges America went throughout to get where it is today....   [tags: Automobile, Vehicle, Renault, Electric vehicle]

Strong Essays
935 words (2.7 pages)

U.S. Automobile Manufacturing in the Twenty-First Century Essay

- The innovation of the automobiles had a significant social and economic impact on the United States. In the early 1900s, Henry Ford was well known for establishing the Ford Motor Company and five years after he launched his company, he introduced the first Model T (History.com, 2013). During this time, automobiles were considered luxuries, and 10,000 Model T automobiles were sold that year (History.com, 2013). In the 21st Century, automobiles are no longer luxuries but necessities. In addition, due to the technological, economical, and social changes, the automobile industries as well of organizational practices have changed since the 20th century (Greer, 2001)....   [tags: Case Study, Society, Economy]

Strong Essays
1549 words (4.4 pages)

Economics of the Automobile Industry Essay

- A vehicle is one of the biggest purchases a person will ever make. Over the years, the prices of an automobile have increased due to the rise of inflation. Due to a price index, the price of an automobile changes over a certain period of time. Economists compare averages of automobiles to calculate the cost of each vehicle that presents itself on a car lot. When all of the above is calculated within the purchase of an automobile, it affects every area of making the automobile to selling the automobile....   [tags: Vehicle Car Economy]

Strong Essays
2412 words (6.9 pages)