Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Impact of the american automobiles industry
Analyze the auto industry in the usa
Impact of the american automobiles industry
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Impact of the american automobiles 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 started to put standards for automobile pollution in
…show more content…
(Motor Vehicle and passenger car bodies ,2004) . The automobile industry has a huge impact on the U.S economy since this industry is the major user of computer chips , textiles, copper, still, iron, aluminum ,lead, plastic, vinyl, and rubber and a study shows that for every autoworker there are seven other jobs created in other industries (Gale,2004).In 2001, the total sales of automobiles were 3.7 % of NGDP ($ 375 billion dollars in sales). New technology for powering the product that this industry produces The Internet had a huge impact on the automobile industry ,the consumers started looking for the internet before making their purchase .
Ford, GM. and Daimler Chrysler announced their plans in 2000 to create a global online exchange for suppliers and manufacturers and they called it NewCo then it was changed to Covisint .
Concerns about global warming have caused the automobiles industry to develop alternate fuel
…show more content…
Many Companies like General Motors which has to operate in 32 countries and its vehicles sold in 192 countries and annual sales of
$ 185,524,000 million and reaching about 15 % of the global market (www.gm.com)
GM currently is releasing two Hybrid cars in China and more in U.S in the year (2007) and it hopes to be the leader in the future with hydrogen fuel, but if GM does not see that the customers adapting with hybrid cars then it might be making a decision to jump to the next level of fuel efficiency but it would be very difficult to catch up with other competitors like Honda , Toyota, and their hybrid cars.
Daimler-Chrysler is currently a leader in Hydrogen fuel cell technology, Hydrogen considered to be the next big breakthrough in automobile engines and has the ability to revolutionize the industry.
Also, Daimler-Chrysler believes that hybrid power is only an interim step and more efficient Diesel technology is the better in the near time solution to increase fuel economy. Consumer opinions about the product your industry
Cars changed the way people lived, worked, and enjoyed leisure time; however, what most people don’t realize is that the process of manufacturing automobiles had an equally significant impact on industry. The creation of the moving assembly line by Henry Ford at his Highland Park plant, introduced on December 1, 1913, revolutionized the automobile industry and the concept of manufacturing worldwide.
This radical idea of the automobile permeated throughout America with most, if not all credit renowned to Henry Ford. Observed as a technological mastermind, Ford commenced experiments involving machinery from the time he was adolescent to launching his career working at the Edison Illuminating Company. He examined internal combustion engines and gasoline buggy ideas eventually resulting in removing himself from Edison’s company and his introduction in the emerging automobile industry. Following in 1903, he established the Ford Motor Company, which expeditiously became a leader in the automotive industry and would gain extensive wealth within only a few decades. While other manufacturers strove to produce automobiles to be extravagant and luxurious predominantly for the wealthy, he immensely focused on efficient mass production of durable, affordable vehicles for the expanding middle-class market.
When Henry Ford was born on June 30th, 1863, neither him nor anyone for that matter, knew what an important role he would take in the future of mankind. Ford saw his first car when he was 12. He and his father where riding into Detroit at the time. At that moment, he knew what he wanted to do with his life: he wanted to make a difference in the automobile industry. Through out his life, he achieved this in an extraordinary way. That is why he will always be remembered in everyone’s heart. Whenever you drive down the road in your car, you can thank all of it to Henry Ford. Through his life he accomplished extraordinary achievements such as going from a poor farm boy to a wealthy inventor who helped Thomas Edison. When he was a young man, he figured out how to use simple inventions, such as the light bulb. He then taught himself the design of a steamboat engine. His goal was to build a horse-less carriage. He had come up with several designs and in 1896, he produced his first car, the Model A. When Ford’s first car came out, he had been interviewed by a reporter and when asked about the history of the car, he had said “History is more or less bunk.” Ford worked in Thomas Edison’s factory for years and the left to become an apprentice for a car-producer in Detroit. While working there, he established how he was going to make the car.
In 1913 Henry Ford designed and implemented a new strategy to meet the needs of his customers by revolutionizing the automotive industry and manufacturing process. By September 1927, Ford had transformed all steps in the manufacturing process from refining raw materials to final assembly of the automobile which significantly reduced assembly time per vehicle, lowering costs, while increasing productivity (AAM, 2003).
In this year Henry Ford created the first affordable, combustion engine car called the Model-T. The creation of the Model-T changed the lives of every American. Vehicles were looked at as a way of freedom and excitement. Soon after, every household in America had a car. The demand for vehicles sparked a whole new industry, creating jobs, more revenues and improving the American economy in every way. With so many vehicles on the roads, roads needed to become bigger and better which spawned a nation wide road construction. This also created more jobs and strengthened the economy even further. (Inventions: Car)
There are two categories of customers in the automobile industry: final customer, the actual users of the end product and industry’s customer, for instance manufacture company buying the necessary items from the supplier. The power of customer is the extent of an impact that the buyer has on a supplier or manufacturing business. Buyers are powerful if:
The automotive industry has been in the global scene since its inception. Off shoring of vehicle production was begun with the mass production of system of Henry Ford, which came alongside mass markets. The automotive firms in America pioneered the early age of globalization in the 1900s. Firms such as General Motors’ are remembered for their production
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
General Motors Company (GM) is one of the world largest manufacturers in the automotive industry today. GM value chain of activities include designing and engineering vehicles with state-of-the-art technology, research and develop new models and innovations, as well as creating effective marketing strategies to up sell and compete in its field of industry. With more than 212,000 valued employees working in 396 facilities, GM’s presence had spanned across six continents over the world. GM offers a comprehensive range of vehicle selections for its customers from electric and mini-cars to heavy-duty full sized truck as well as convertibles. Along with its strategic partners, GM produces cars and trucks selling and servicing its vehicle through many recognized brands such as Chevrolet, Buick, GMC, Cadillac,
Consumers are more likely to buy Hybrid and electric cars that do not have carbon emissions in the air. Increase in fuel prices has opened up new markets for Toyota due to their manufactured Hybrid cars and consumers are shifting towards Hybrid cars from conventional cars (Richardson et al., 2010). Customer needs are changing and they are demanding new car models. Toyota has achieved continuous growth by acquiring other car companies in the UK and around the world and they are continuously growing their network around the globe.
Global competition is changing the environment facing most companies today. As trade barriers fall and transaction costs decline, new global competitors are entering previously more isolated domestic markets. In response to this intensified competitive pressure, local companies are pushed to enhance performance by innovation and adopting process and product improvements.
In the beginning of the automobile movement, there were many spinoffs but most of them did not last long; however, the pioneers of the industry thrived and expanded as the movement grew larger. And those pioneers are still in business to this day, for example Ford, Dodge, and Chevrolet. Each of these forefathers of the automobile contributed their own ideas and innovations to mold and grow the automotive industry. Henry Ford created the assembly line, which helped him produce a massive amount of cars in the least amount of time. Dodge was one of the first companies to use an all steel frame (mostly wooden frames were still largely used). Chevrolet had been a hard hitter, producing some of the most iconic cars to this day. Chevy created the basic Chevrolet small-block V8 and this design has remained in continuous production since its debut in 1955, longer than any other mass-produced engine in the world.
This competition does not only refer to the different offers of different companies. The threat does not only mean buying a different car. The automotive industry products also have substitutes that must be considered. These include bicycles, motorcycles, commuting or even walking. Because of the high price and value of cars, other customers may drift their interest towards other substitutes. The higher the cost of operating a vehicle, the higher the chance that people will seek other options for transport. They may prefer to walk rather than buy a car or spend a few cents every day to commute rather than pay a lump sum amount for a branded car. The price of gasoline affects the decision of consumers whether to buy a vehicle or not. This actually has a large impact on the consumer’s decision. There are also several factors to be considered in determining the availability of substitutes. Time, money, personal preference, and convenience are some of these factors to determine if the substitute poses a big threat to the
However, their susceptibility or elasticity greatly depends on time frame. In the short-run, buyers tend to be more price elastic because they can opt to delay purchasing a vehicle. As a result, in the long-run these consumers are less elastic. Furthermore, buyers enjoy a plethora of choices, or substitutes, and therefore can easily switch firms. Therefore, buyers have substantial leverage over automotive manufacturers and exert a downward pressure on prices, as well as demanding better service and quality. However, it is important to note that automobiles are both a need and a want, depending on the situation of individual buyers. For instance, for a rural Canadian, public transportation may be difficult to acquire and therefore might constitute personal vehicles as a need; conversely, for someone residing in a metropolis like Toronto, a vehicle may be deemed
this new found way to build vehicles by currently being the only car manufacturer to have