Analysis: The Threats To The Automotive Industry
But along with the success, comes many problems and threats to the industry. We are going to take a look at some of the environmental challenges that are facing the auto industry in America. Specifically the cost, consumer choices, global competition, technology, and the infamous self-driving car. The first threat to the auto industry in America is the cost of owning a car. A car is a very substantial investment. And once you make the investment, it 's value immediately begins to depreciate. The cost doesn 't stop there. Once a consumer purchases a car, they must now provide maintenance for the car if they want to continue to benefit from the …show more content…
In some cases, people might live in such proximity to their workplace that they can walk most of their commute. If however, an individual needs to go outside of their
Chandler Hudson 5/11/16 walking distance, they can take public transportation systems such as the subway or a train. I have discussed some of the scenarios of avoiding cars out of the way let 's take a look at some additional challenges the auto industry is up against. This industry is especially prone to global challenges. This is, fortunately, an area that proves to be positive for America. There are many benefits to trading; one benefit is a greater outlet for sales. Global trading seems to benefit both parties involved. There are some downsides to this, however. One of them being increased competition for both countries.
This is an area the American car industry struggles with. Many American cars are too large for foreign countries. Aside from that, American cars are not built with the steering wheel on the correct side of the car for use in foreign markets. Technology also plays a significant part in the automotive industry. Cars are continually improving with not only new models and engines. But also with …show more content…
This is the creation of the self-driving car. Google is currently in the prototyping stage of the development of a car that can drive on the road by itself.
The cons of the current version are the speed, space inside for passengers and cargo, and the fact that it isn 't mass produced yet. That being said, Google 's self-directed car doesn 't pose an immediate threat to larger vehicle manufacturers. However, the implications of a self-driving car could have on the compact car industries are much more significant. A self-driving car could mean the end of transportation as we know it, and thus the end of cars as we know them. The industry would have to scramble to assemble comparable alternatives, or eventually, try to compete with Google if they want to stay in business. These are some of the many challenges the automotive industry have to deal with currently. The industry has to come up with solutions to the great cost and maintenance associated with buying a car. Companies have to convince consumers of the need to own a car. The global and self-driving competition are fierce. And with many technological advances, this industry has to work very hard to keep up. Where do you think the automotive industry is headed?