Supply and Demand Determinants in the Auto Industry

514 Words2 Pages

The American auto industry is in a crisis, their vehicles are not in demand and they need government bailouts to keep their businesses afloat. American vehicles are not on demand because people want fuel-efficient, the car companies that are not at the point of bankruptcy, longer lasting vehicles, and hybrid cars. The American car companies are at a point of bankruptcy and people don’t want to buy cars from a company that may not be there in a couple of months. The foreign car companies are doing well and they much more dependable now that we are in an economic crisis. American cars are not fuel-efficient, not as long lasting, and don’t make many hybrids, so this affects their business negatively. I got some ideas that will make American car companies be on top of the industry again. Most American cars are not hybrids or fuel-efficient, they are usually big SUV’s or trucks that get eighteen to ten miles per gallon. Most of Hondas, Toyotas, and Hyundai’s get around 20 to 30 miles per gallon, and hybrids get 50 miles per gallon. Peoples demand fuel-efficient cars because oil is i...

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