Essay on Environmental Challenges Facing The American Auto Industry
The American auto industry is going through some serious environmental issues which over the over years has not been solved and the problems keeps on getting bigger each day. Although we shouldn’t forget to mention it is going at real pace and overcoming these challenges.
One big challenge the auto industry is facing global competition. It has resulted in less market share for U.S. car manufacturers and threatened company profits as more foreign brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6% by 2014. The other two of the Big Three car manufacturers also lost U.S. market share during this same period. Ford fell from 24.1% to 14.7%. Fiat-owned Chrysler now holds only 12.7% after having 15.7% of the market in 2000.
High labor costs, product lines that emphasized large vehicles with significant gasoline use and a looming global recession caused a crash in U.S. automaker profitability in 2008. American car manufacturers were struggling to compete against better, more efficiently manufactured products from overseas companies. As of 2015, Toyota earns more than GM, Ford and Chevrolet combined.
Lower per-car costs have allowed foreign manufacturers to gain larger portions of the U.S. market. Decades of market control by U.S. manufacturers caused the major automakers to invest heavily in meeting labor union demands. U.S. auto workers saw higher wages and better…