StudentShare solutions
Triangle menu

Failing US Auto Industry - Essay Example

Not dowloaded yet

Extract of sample
Failing US Auto Industry

In today's environment you improve yourself. You need to be better than him to compete. There's no mercy. It's competition" (2006).
The fact of the matter is, that there are a multitude of issues than can be highlighted for the sake of listing causing for the failure of the automobile industry. But at the end of the day, the industry has only itself to blame. The reason is that it is not a sudden occurrence that this happened. Everybody saw it coming, and it has been a gradual decline for quite a few years. Therefore, the industry should have been responsive and responsible enough to have reacted earlier.
Many specialists argue that they have not seen as much innovation in the realm of auto industry as should have come out of the US in the uni-polar world. With the technological development in the rest of the fields soaring above conceivable heights, the automobile industry seems to have gotten stagnant, with no new ideas giving the industry the necessary 'kick'. It is not that research is not going, but that the lack of the application of the same is the major reason.
There are many who would point fingers towards the congress, at not taking the correct steps when the market from Asia should have been checked. Instead of giving a genuine growth atmosphere to the local automobile industry, not only the vested interest of a certain few in the congress brought in Asian products, it also staggered the growth process within the local industry by anti-growth policies.
3. Labor Policies
The auto sector and its subsidiary division seemed to have the most troubled waters in as far as the labor cost were concerned. Skilled labor came very expensive to the industry, which itself was trying to deal with the pension woes. There was more being asked from the industry in terms of fringe benefits than it was able to reap through sales. Surprise and drastic job cuts did no good to their cause either, and only increased lack of faith in the system, whereby the employee burnout rate increased overtime.
4. Selfish monopolies
The big three have been having their times, wherein their own sales have soared but they did not contribute for the industry in return., the result has been indigenous growth of the companies, and no support for the sector at large, when the companies started to keep their own interests in the prime position, and gave no interest to the bigger picture, two things happened. Firstly, they themselves are now feeling the after chocks of their selfish treatment. And secondly, the smaller companies even face the question if their existence as they are very much now at the verge of bankruptcy.
5. Customer dissatisfaction
Even though American cars were being sold, the domestic manufacturers paid no heed to the fact that why were the customers actually attracted to the Asian products. Just buying American was not a good enough reason for the clients, as they would want more. The Asians now rightfully becoming the gurus of innovation, especially in the past two decades had much to offer to the customer, which was only a dream for the stringent national companies in the US.
6. High raw material costs.
Katrina is now only an excuse. It is a recent happening, and the dent in the ...Show more

Summary

The US auto industry has been in quite a bit of criticism since the past few decades. Despite seeing a few boom zones, the over all trend has been far from promising. The obvious reason turns out to be the fierce competitors from the Far East, but there is much more to than meets the eye…
Author : hubertzulauf
Failing US Auto Industry essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Failing US Auto Industry"
with a personal 20% discount.
Grab the best paper

Related Essays

US Airline Industry
US Airline Industry Recently, the industry suffered poor level of profitability. There are various factors that could substantially explain this and the bottom line of doing it would mean understanding the external and internal business environment of the US Airline Industry.
9 pages (2250 words) Essay
Future of auto industry in China
The extraordinary nature of the change is characterized by the number of economic reforms the government faces, the number of individuals in the market, and the promptness at which the nation is making the shift to a full market economy. In particular, the China’s automotive industry represents an amazing case of industry development (Ban et al.
6 pages (1500 words) Essay
US Automobile Industry Analysis
US Automobile Industry Analysis This report analyzes the automobile industry in general, and considers a specific case of Honda Motor Company. The automobile industry, according to a 2007 census, consists of 174 companies, which employ 64,436 people (US Census Bureau, 1).
3 pages (750 words) Essay
Auto Industry in the United Kingdom
The three representative examples that will be discussed are Bristol Cars, Ford Motor Company and Mercedes Benz. The car industry is a huge industry for the United States and many other countries of the world. "The world's leading vehicle and automotive component companies have long seen the UK as being an important location for manufacturing." (Auto Industry 2005) Following the setting up of a number of UK-based companies, US-owned Ford first established a plant here in 1911, since joined by other investors including General Motors, BMW, Honda, Nissan, Peugeot and Toyota.
6 pages (1500 words) Essay
Failing US Auto Industry Essay
For the issue to keep getting out of hand over the years, there have to be other factors which prove to be more potent than the adversary factor. Oneal believes that "you don't kill your competitor to make yourself win. Maybe in the old times, yes, but not in today's environment.
6 pages (1500 words) Essay
American Auto Manufacturers Losses
At the end of articles, the author also offered recommendation to boost the local industry, lowering the car prices, the need of overseas plants, investment in research development and injection of
10 pages (2500 words) Essay
Should the Government Bail out the Auto Industry
If auto industries file a chapter 11 petition or if it declares a lock-out, it will have greater implication on communities whose infrastructure and housing may become nearly unimportant. The automobile industry of USA currently is providing employment for more than
10 pages (2500 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
One Economics asepct of the auto industry
Because of this significant role that the auto-industry has played in United States, one of the major economic issues that I had an interest in, is on how the American government played a role in
2 pages (500 words) Essay
Auto industry
These components vary and they are often obtained from different suppliers. This means that managing the supply chain of the various components. It is important to ensure that the right components are delivered at the right time. It is imperative to establish if
2 pages (500 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
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation