United States Automobile Industry - Essay Example

Only on StudentShare

Extract of sample
United States Automobile Industry

Automobiles are durable experience goods that sell for a fairly high price. Consequently, as the purchase of a car constitutes a large investment for the average household, the demand for cars is fairly price and income elastic and strongly affected by macroeconomic conditions, including income trends, employment, and interest rates (Adams and Brock, 1995: 68). Because we look at competitive performance within the industry, however, we do not consider the industry's overall performance and its impact on the national economy.

The US automobile industry is highly concentrated, with domestic production dominated by a tight triopoly. The top three firms, General Motors, Ford, and Chrysler (the 'Big Three'), account for 98% of domestic production. This high concentration started mainly in the 1930s. In the first three decades after the automobile was invented in the 1890s, more than 80 firms existed in the industry, with a number of companies entering and leaving the market every year. The number of companies that managed to stay efficient and profitable, and that survived the Depression in the 1930s, shrank to eight firms in the 1940s (White, 1982: 143). Since then, the Big Three have merged with or bought the remaining domestic firms.

In the 1970s, however, US auto makers first began to face significant foreign competition. ...Show more


United States Automobile Industry
The auto industry is one of the most influential segments in the US economy, providing a substantial fraction of the national employment and having a major impact on GDP…
Author : jessyca47
United States Automobile Industry essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"United States Automobile Industry"
with a personal 20% discount.
Grab the best paper

Related Essays

Many of the car companies and component exporting companies in Japan have been devastated by the successive natural disasters and it could take a while before the production and exporting of these companies are reinstated to their former capacity. According to reports the worst hit company of the several Japanese car companies is the Nissan and their luxury car unit Infiniti.
15 pages (3750 words) Essay
Motor Vehicle Manufacturers Association of United States vs. State Farm Mutual Automobile Insurance Company
Motor Vehicle Manufacturers’ Association of United States vs. State Farm Mutual Automobile Insurance Company 463 US 29 (1983): A Case Study Case Summary The facts in question in the iconic case of 1983 Motor Vehicle Manufacturers’ Association versus State Farm Mutual Automobile Insurance Company are, briefly, as follows.
5 pages (1250 words) Essay
Better Place Automobile Industry
The move of Better Place was considered to develop environmentally friendly engines and the use of the renewable energy sources. Developing such technologies required well-coordinated stakeholders including the developers, consumers, and efficient management.
8 pages (2000 words) Essay
Automobile Industry in China
In the end, the entry of China into the WTO was considered a positive thing by most, although there are certainly those with contradictory opinions. The efficacious qualities that China gained by entry into the WTO; an aid to the economy, and the opening up of China's markets for more international trade and investment (to name a few).
19 pages (4750 words) Essay
Automobile Industry Essay
Toyota's Prius hybrid car gained immense popularity. Toyota has planned to produce 48,000 hybrid Camrys yearly. The demand for Toyota's Lexus RX400h hybrid crossover is also gaining momentum. Many companies are trying their expertise in making a mark in the emerging hybrid car market in the coming years.
14 pages (3500 words) Essay
The Automotive Industry In the United States: An Economic Standpoint
The industry owes its importance and size merely to the popular use of its product, the motor vehicle (McAlinden, Hill, Swiecki, 2003). Cars have become the most important form of transport since their widespread use after the Second World War. In the last century, they were considered to be the most important invention since they have affected more lives and have changed the world in more ways than any other invention such as computers, the internet, mobile phones or any other piece of technology.
12 pages (3000 words) Essay
The Automobile Industry in the Early 1900s
history of the automotive industry, more specifically, the introduction of the assembly line and how it has played a significant role in establishing Ford as a market and industry leader, and changing the industry itself. Currently, the automobile industry has suffered a
10 pages (2500 words) Essay
The Automotive Industry In the United States

The author states that an understanding of this industry is very important for any student of business, politics and even sociology. Along with an understanding of the relevant issues of the automotive industry, it is also important to understand what can be done and what is being done by the players in the market to overcome these issues.

15 pages (3750 words) Essay
Wheel and Rims Industry: The Case for China and the United States
China's car wheel rim and cover industry is growing rapidly, fueled by the booming auto industry in the mainland. Ford, Fiat, Toyota, GM, Honda, Nissan and Isuzu are some of the international automakers that have set up production facilities in China. The study’s goal is to determine the past, the present and the future trends in the trade.
7 pages (1750 words) Essay
LoNGPestel Analysis of the US automobile industry ( only passanger cars )
Branding has changed so much with even more new brands being created. Big car manufacturing firms are increasing to deeper market to provide financial serves to customers. In the meantime it’s important to note that all the successful companies in the
8 pages (2000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email