The Economy Of The Us Auto Industry

Second, if auto manufacturers focus on producing compact, fuel-efficient vehicles to meet the increase in CAFE Standards then they may be producing vehicles that consumers do not want. One of the biggest challenges that auto manufacturers face is building vehicles that are desired by consumers. The current trend is in crossover sports utility vehicle (SUV)’s, full-size SUV’s, and trucks all of which fit into the light truck category under the CAFE standards. If manufacturers want to maintain an average mpg that meets CAFE standards, then auto manufacturers must find a way to build the cars that are in high demand in a more fuel efficient way. The NHTSA acknowledged that one of the biggest challenges with this is that consumers consider many factors when purchasing a vehicle, “Consumers may prefer cars that use technology improvements to achieve better performance (e.g. engines with high horsepower) or more room, not just higher MPG” (Nichols & Datla, 2012, pp. 12, para. 1). If all of the manufacturers are

They have brands and models of cars to appeal to every kind of demographic group, and simply cater for the needs and wants of consumers.
• Ford is particularly successful in their sponsorships, advertising and other forms of marketing. Ford is currently sponsoring the football Champions League, with “Destination Football” slogan (Bloomberg, 2005).
• The current research and development activities of Ford allow them to be pioneers in certain production technologies (Kochan, 2001).
Weaknesses

• In an attempt to attract younger generations to purchase Jaguar cars, Ford introduced “baby Jag”. The effects of such an action proved to be negative in damaging Jaguar’s reputation, and is a weakness for Ford (Kerwin, 2002)
• Quality assurance needs to be more of a focal point for Ford to avoid recalling cars and expensive repair operations. (Kochan, 2001)
• In 2002, Ford and Bridgestone experienced a faulty tyre scandal which caused a two billion dollar loss (BBC, January 2002). 
Opportunities

• To develop vehicles that uses other forms of energy than petrol and diesel and to become pioneers in this area.
• The numbers of car owners who replace their old models with new ones are on the increase (Mintel, 2004). 
• Demand for cars by women drivers is on the increase and so is the overall demand for cars (Key Note, 2005).
Threats

• Further increases in gasoline prices, and eventually the world supply of gasoline finishing.
• To become

As the nation was introduced into the current recession, the auto industry and its labor was likely hurt more than any other industry. Few years ago it was the homebuilding industry that was troubled the most and held the first place, but it gave that position over to the auto industry the following year. Why was this industry affected more than any other is very interesting and complex situation. There are several factors why there was such a huge negative impact on this industry, its performance, and the labor involved. Some of the major reasons are very high foreign competition, higher oil prices, and certainly the recession.

Many could argue that the generational difference created this change over the years because “the difference between a “fix it” generation and a “replace it” generation is...cars with lots of mechanical things that [one] can open, repair and close rather than electronic high-tech in mysterious sealed cases”(Leno 1). This proves that older cars have parts that can be repaired instead of just replaced. Older cars are more desirable because the owner is allowed to be closer to the car and could spend time fixing the car instead of money. Furthermore, another drawback to newer cars is that the relationship between the person and the car is lost because the person could just “go down to the auto parts store and say, “Ya got this relay?”... [they] don’t feel like [they] fixed anything”(Leno 1).

The American automotive industry has been under a lot of pressure over recent years due to increased concern for the environment and increased global competition. An environmental scan on the American automotive industry shows that the global competition is a great cause for concern, new technology is providing an edge, emissions and laws regulating them are as tight as ever, and consumer opinion is reflecting concern for this.

For our initial strategy we wanted to choose a product line that would be most intriguing to customers in this poor economy. To initiate this we focused our products around better gas mileage, safety, and quality. In order to do this we needed to evaluate consumers’ needs and desires when making a high involvement purchase such as a car. We believe the best target market for this type of car would be a middle class family that does not have as much disposable income due to the recession in our economy.

Younger generations value personal mobility and their perception about brands such as Chevrolet and Cadillac, which both became anonymous with luxury, is still strong and popular to this day. Today’s generation is less risk-averse and money conscious and more eager to experiment across different brands. I suspect GM’s new hybrid SUVs will raise in

Since it’s now 2016, these teenagers are getting their driver’s licenses. They studied how many teenagers talk about the automotive world. They found that people between the ages of 13 and 17 seem to talk less about automobiles than generations before them. They found a 27% decrease in conversations about automobiles in these teenagers. However, people who are between the ages of 18 and 29 seem to have an increase in conversations held talking about automobiles. It’s been increased by 18%. People who are in their 30’s show in increase in automotive conversations by 17%. People in their 40’s show an increase in conversations by 10%. However, they found that people in their 50’s show no increase or decrease in the automotive conversations they have. This is an interesting study because you often see younger people with the fuel efficient and small vehicles. On the opposite, you see older people with larger and powerful vehicles. It almost seems as if the older you get, the more interested you will be in automobiles. Perhaps this is due to your income level increasing? There is even more evidence of younger people choosing smaller vehicles than larger vehicles. The conversations that the young people have about automobiles actually consists of car brands such as Subaru, Audi, and Hyundai. Subaru leads with 89% most appealing . If you have seen

The automobile industry has brought the United States economic growth due to the impact that automobiles have made on society. There has been a plethora of jobs associated with the auto industry, including manufacturing, auto repairs, insurance, and the development of roads, sales, and auto parts to enhance vehicles. Cars, trucks, and SUVs’ have become a way of life for people and have made an additional economic impact by becoming the primary means of transportation for consumers to commute to and from work, vacations, and travel between destinations. Most family households live on a budget and they must make the decision of how much of their budget they can allocate to transportation costs.

In addition to their green initiatives, Ford is looking at other trends regarding consumer elasticity and behavior towards the automobile market. In addition to dealing with the shift in consumer short-term behavior (going from “I really want” to “I do not really need”), the automotive industry, along with all others are wondering what the long-term change will be in consumer behavior due to the recent recession. According to Barkley US, there will be significant long-term changes in consumer behavior. Most notably, the changes will be the consumer going back to a basics mentality, the use of technology and green strategy, and women influencing more purchase decisions. The biggest changes will take place in America and parts of Europe, where housing and stock market bubbles have imploded and unemployment has soared. Companies will also need to show they empathize with consumers’ new concerns. “There will need to be a move from passion to compassion in

When the “Sub-Prime Mortgage Crisis” began in 2008, it triggered a global recession. Demand decreased across all industries, but the auto industry was hit especially hard due to vehicles being big ticket items. Even prior to the recession, the high prices of raw materials and fuels, as well as increased pressure from the government and consumers for automakers to build “greener” cars meant trouble for automakers. Within the industry, Canadian and the American auto makers were hurt the most. The strong presence of unions meant that they had a much higher labour cost than their competitors. Also General Motors, Ford and Chrysler, known as the “Big Three” primarily focused on manufacturing pickup trucks and SUVs because of

Ford Motor Company is one of the top leading car sales company in the US. They have a good reputation, a great line of vehicles, and up to date technology. But that is not what is going to sell their cars. Marketing, specifically to each generation differently is what is going to sell their cars. The baby boomers, generation x and generation y each have distinctively different values and consumer behaviors. Ford needs to understand this and gather information to conduct profitable marketing campaigns to each of the generations. After they do that, Ford Motor Company shouldn 't have a problem having people from all generations coming to buy their cars.

Introduction Automobile usage has increased in America and elsewhere in the world. In a research done by Sutherland, J., et al. (2004) “The US has a contributed to 200 million passengers in cars and light truck over the past few years. Further in 1990, studies showed that US cars increased six times faster than human population. The leaders in the automotive industry must adopt some key elements to ensure success in this fast-moving environment. They must invest in knowing their markets, building brands, adapting product strategies and taking long-term view on their goals and objectives. This paper outlines some of the key factors which should be considered. Environmental factors automotive designers and engineers have always said the main threats in the American Automotive industry are the environmental factors such as fuel economy and the clean air regulations. Automotive Emission posed different problems than manufacturing discharges such as coal smoke. Increased fossil-fuel emission has resulted from the million car increase. Irritation smog, which is comprised of carbon monoxide, hydrocarbons, sulfur oxide and other various chemical mixtures are cited in major cities such as Los Angeles. These auto emissions are also said to cause headaches, visual pollutions, contribute to lung cancers and other respiratory disease. In the end, the engineers have designed cars that are better environmental performers, cost effective and fuel efficient to reduce the environmental

In as much as businesses are faced by challenges which occur within the working environment, they are also faced by environmental challenges which can determine the success or failure of the business. The American auto industry though viewed to be one of the top in the world; it faces its own challenges.

Today I will attempt to address the following topics of Global Competition, New Industry Technology, the effect of emissions on the environment and government reactions to this and Industry specific Consumer opinions about the product in regards to the Auto Industry in America.