Automotive Industry Analysis Paper

892 Words 4 Pages
Today we examine the Automotive industry in the United States of America. Not only is the automotive industry a cornerstone of the American economy, but there is a rich history of American involvement in this global industry for more than 100 years. When Ford’s legendary Model T began being mass-produced in 1913, the innovations brought about enormous advancements in manufacturing in general. ( (n.d.)) Esteemed as it may be, the American automotive industry is also faced with many challenges. Competition from foreign companies, the impact of new technologies, evolving emission requirements, and consumer opinions all play a part in the success or failure of the products being manufactured and sold in the USA.
Beginning with global competition,
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Currently, we are seeing a growing demand for electric vehicles. The idea of an electric car is not new, they were around before Ford’s Model T made gasoline vehicles take over the market. ( (2014)) The improvements in the technology surrounding that idea are making it more feasible and an increasingly attractive option for customers in the USA and the world. In 2014 the market leader was the Japanese produced Nissan Leaf, followed by the Chevrolet Volt. Coming up behind these and expected to make major gains in the electric car market is newer American automobile manufacturer Tesla. Understanding that a major entry barrier for consumers interested in purchasing electric vehicles is the high initial investment, Tesla has unveiled a lower cost model known as the Model 3. ( (2016)) Electric vehicle charging stations are also becoming more prominent, you may have already seen them popping up in parking lots for major outlet stores and shopping malls. Driving many of these technological changes are the requirements for vehicles to be more environmentally …show more content…
How do consumers feel about American cars? Consumer reports list of “Best cars” in 2016 has only one American model in their top 10 positions, Buick coming in at number 7. ( (2016)) While Buick sits alone in the top 10, among a variety of German and Asian vehicles, most of the GM brands show up near the bottom of the list with GMC and Cadillac in 23rd and 24th place. Ford and Lincoln look slightly less tarnished but hardly impressive at number 16 and 17. In a market where all 30 of the rated brands are readily available, with customers that often do research online before shopping, these rankings can make a big difference in company performance. While consumer reports provide a tool for consumers to use in making their determinations, they are not necessarily a measure of consumer opinion. Social media may provide a glimpse into the thoughts of consumers. In a global audience, thinking of American vehicles may conjure up the idea of American “muscle cars” from the 1960s, with their large engines and high fuel consumption built for performance through pure power. With rising gasoline prices and consumer demand for low emission vehicles, this may be a very difficult stereotype to dispel. Coupled with thoughts of unreliable models with many breakdowns, American vehicles struggle to find a place in some markets. (

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