For a long time, America had firmly hold their leadership role in automotive production market and only shared the position with Germany and Japan after the World War 2. Despite the unstable condition of the world economy and politics, there is still room for this industry to develop but at the same time, there are issues related to the market-share, environment and new technologies that the automakers and U.S Government are facing.
With the raising of Chinese economy, the U.S like other countries has to cope with many challenges. Looking at the whole pictures of car manufacturers, there are “big boys” originally born in America – General Motors, Ford, Chrysler but now, as we can see, freedom in international trade has wide opened the domestic market to foreign carmakers to come in, and those three companies have to share with new players. We see Honda, …show more content…
Yes, they are all good! In 2013, international manufacturers produced over 5 million vehicles, making up about 45% of all vehicles made in the United States. The fact that this industry would bring huge revenue back, it is very attractive and competitive at the same time, and North America market is a big cake for everyone.
American companies will have to work hard to solve the labor price and the auto body parts, materials to win the competition; especially with the fact material price keeps increasing.
The second challenge is the need to invest in technologies and environmentally friendly vehicles in order to meet 1) environmental protection requirement 2) new trend in consumers’ demand. The fact that the world is all concerned about global warming and climate changes together with greenhouse effect is pushing the governments to act. According to the Global Carbon Atlas, China and the United States are the two
With the raising of Chinese economy, the U.S like other countries has to cope with many challenges. Looking at the whole pictures of car manufacturers, there are “big boys” originally born in America – General Motors, Ford, Chrysler but now, as we can see, freedom in international trade has wide opened the domestic market to foreign carmakers to come in, and those three companies have to share with new players. We see Honda, …show more content…
Yes, they are all good! In 2013, international manufacturers produced over 5 million vehicles, making up about 45% of all vehicles made in the United States. The fact that this industry would bring huge revenue back, it is very attractive and competitive at the same time, and North America market is a big cake for everyone.
American companies will have to work hard to solve the labor price and the auto body parts, materials to win the competition; especially with the fact material price keeps increasing.
The second challenge is the need to invest in technologies and environmentally friendly vehicles in order to meet 1) environmental protection requirement 2) new trend in consumers’ demand. The fact that the world is all concerned about global warming and climate changes together with greenhouse effect is pushing the governments to act. According to the Global Carbon Atlas, China and the United States are the two