Challenges Facing The American Auto Industry Essay examples

856 Words May 10th, 2016 4 Pages
Challenges in the Business Environment Facing the American Auto Industry

The American auto industry has faced many challenges throughout the years since Henry Ford’s first Model T rolled off the production line in 1908. From an initial reluctance on the part of the public, as noted in The Evolution from Horse to Automobile: A Comparative International Study (Chiu, 2008) to more recent challenges such as the repeated oil crises and competition from foreign manufactures, the automobile industry has had many ups and downs. However, the current business environment may be bringing a challenge that will change the face of the auto industry as we now know it world-wide.

For the many decades car ownership has been a given in the United States, as well as most of Canada and Mexico. However, this is beginning to show a downward trend, leading many to question whether the era of individual car ownership has come to an end. In this paper I will examine the technological, global, consumer opinion, and environmental pressures that may be driving this trend.

Environmental
As early as the 1920s, cars were seen as sources of environmental degradation (Melosi, 2004). We now know that their use is a great contributor to worsening air quality, as well as the pollutants produced in the production and reclamation of the automobiles. While governmental regulation has sought to mitigate their impact, they still remain a great source of pollution. Even as there is a push away from gasoline as a…

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