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Challenges Of The Automobile Industry Of Usa

1161 words - 5 pages

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.
Firstly, the automobile industry of USA is facing an intense global competition. Beside some American brands of automobiles such as Ford, General Motors (GM), there are other foreign brands which are proving their positions in the automobile industry which are Honda, Nissan, Mitsubishi, Toyota from Japan, Hyundai Motor, KIA Motors from South Korean, Geely, SAIC, and Chery from China to name just a few. Also, all these brands are competitive in both price and quality.
According to 2012 U.S. Automotive Industry Survey and Confidence Index “A Return to Optimism,” people predicted that Chinese automobile industry might reach or “exceed 4 percent of the market share”. (2012).
However, the good news for the American Automobile Industry is that other brands are still developing and not as fast as the American brands. Moreover, the industry of USA is affected by the recession in 2009. According to “The Resurgence of the American Automotive Industry,” (June, 2011), the crisis in 2009 shed over “400,000 jobs” and the auto sales decreased “40 percent”. In such a situation, President Obama decided to provide financial support to two major companies which are General Motors and Chrysler in order to boost up the economy out of the depression. Besides, there is an association called “Alliance of Automobile Manufacturers” (Gale. 2004) whose purpose is to provide the best products to customers and fair trade. As we can see, the automobile industry of USA is affected by the economic depression in 2009, and there are more competitors trying to compete in the automobile industry.
Secondly, what is the role of new technology in empowering the automobile products? It is the fact that USA is one of the countries having the best technology which is always updated for new innovation. Nowadays, the means of shopping is not just going to the stores, looking at the catalogues and talking to the dealers. Everything now can be done just by a “click.” All the big automobile companies have their own official websites where customers can get the information about the newest trends with all the detailed information. By this way, it can save customers a great deal of time and they have more selection over a wide range of products. That is the reason why there are more and more customers turning to online shopping. According to a survey done by “J.D. Power and Associates” (2002), there were “60% to 80% of customers went to the company website to search for information before...

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