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Automobile Industry Overview Essay

2078 words - 8 pages

PAGE \* Arabic 1 Automotive Industry Overview
The auto industry has been an established market for the United States for many years. A boost to the market came at a time in when the United States was in the worst possible position for growth of many industries. During the great depression not many companies were turning a profit. President Roosevelt implemented a way to stimulate the economy by building roads. This gave many people employment and may have provided a way for the auto industry to grow. This could have been a motivator in automotive sales now that people had an easier way to drive across the country.With Henry Fords implementing the assembly line aided in mass producing the automobile and began the industry present day. At the time it was "the big three," Ford, General Motors and the Chrysler Group, between the three they had a major share of the U.S. market. The mass production helped to create a prosperous economy, not only were jobs created to work on the assembly line many companies were formed to build certain parts for the automobile. Like today, one company makes the seats for the trucks while another produces the carburetors. A national economic boon was soon to follow. While the automobile industry did not create the economic windfall the diligence of the manufacturers were given credit for some of it.By researching the strengths and weaknesses of the industry one can see how automobile makers have influenced the economy as well are subjected to the highs and lows. The opportunities for growth in this industry is abundant, with the rise in gas prices the prospect of creating a vehicle that would be acceptable using alternative fuel or even solar powered engine would garner more than a fair share of the market. The trends at present are in hybrids and alternative fuel. If a vehicle gets good gas mileage it will sell better.General Motors, Ford Motor Company, Daimler Chrysler, BMW, Volkswagen, Volvo, Toyota, Mazda, and Nissan Motor Company come together to create a new trade association created the Alliance of Automobile Manufacturers (Gale, 2004). For General Motors (GM), the strengths, weaknesses, opportunities, and threats (SWOT) are rather powerful and each can be incorporated into another. For instance, what might be a threat in one class for GM, can change into an opportunity for GM in the upcoming.One of the most important strengths that GM has power over is the global awareness and the existence it embraces in the market today. "GM Corp. is the world's largest automaker, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 284,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries." (GM Corporation).Employee satisfaction is the main weakness that GM has been fighting for the last century, which in turn leads to steady strikes throughout the corporation. Managers have been struggling with workers and...

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