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Auto Industry Essay

4940 words - 20 pages

IntroductionThe Study of economics not only brings us closer to understanding how and when to purchase a vehicle but makes us better understand why those vehicles are not being purchased. We have not only learned about vehicles but we have learned the ins and outs of how economics works and what makes up our economy. This paper will show the many things that we have learned over the last several weeks as far as forces that drive our economy, automobile sales, understanding key roles in the automotive industry, and the better understanding that we have gained into the economic structure.Auto Industry HistoryThe automobile industry (AI) plans, designs, manufactures, markets, and delivers a dream. The AI took over 3 quarters of a century to evolve grounding its roots in Europe. Consumers depend heavily on the AI to deliver bigger and better and up to now, they have succeeded by far. The history will never be complete when it comes to the automotive industry because they will continue to deliver by making a mark on history time after time.The AI goes as far back as the 1680's. In the 1680's, a man by the name of Huygens designed what is known as the first combustion engine fueled by gunpowder. Unfortunately, Huygens' did not have his vehicle built. As one can see, the AI grew rapidly. The effect of macroeconomics is how AI is motivated. The effects that took place over a number of years show us the economic indicators that we are familiar with today.Many companies have cut the size of their workforce to stay competitive but where did this all begin back when there was no competition? In 1770, Nicolas Joseph Cugnot held the title of successfully making the fist self-propelled steam vehicle. Over the years, many others added to a piece of history like William Murdock, James Watt, and Richard Trevithick. These men are just a few to mention. Soon enough the automobile was to embark onto American soil.In 1890, the Stanley Brothers held the title of introducing us to what we know as the Stanley Steamer. William C. Durant introduced us to General Motors in 1904. In 1908, Henry Ford introduced the model T and Ford Motor Company. The mass production of these vehicles forced change throughout the U.S.During the next few years, the industry introduced Cadillac, Buick, and more. By the 1930's, we were becoming familiar to Toyota, Mercedes-Benz, and other foreign vehicles. These companies combined introduced cylinder engines, six hydraulic four-wheel brakes, rubber mounts, and steel bodies. The list is endless as to what they have provided us with over the years and what they will continue to provide in the years to come.Auto Industry OverviewIn 2005 alone, 21,495 new car dealerships opened with approximately 16.5 million cars sold in the United States alone. The sale of new and used cars is on the rise with gas prices slowly decreasing from $3 per gallon. There are approximately 240 millions cars in operation in the United States (Plunkett Research, 2006). By...

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