Global Competition In The Automobile Industry

Good Essays
American Auto Industry

The effect of competition in every industry in the market have brought different benefits to the consumers, such as product quality, lower price and varied products to choose. These are the direct results of healthy competitions in every industry in the globe. And that includes the automobile industry.

This essay delves into subject of environmental challenges the American auto industry is facing in terms of global competition, new technologies used, the effect of emissions on the environment and government reactions and the customer opinions of the American cars.

Global competition of American cars
As global competition intensifies in the past decades American automobile industry has continue searching for various
…show more content…
These cars have designed for fuel efficiency, which is the number one attraction for its customers, and the demand for trucks and SUVs shrank. Lack of public support and fewer customer demands, Ford and GM had closed their electric car technological innovation in 2002. In 2001, another biggest threat came to the American market was the introduction of environmental friendly Toyota Prius, which pull large number of buyers in US, which resulted to an overwhelming sales. To combat, Ford had negotiated Toyota to use their Hybrid fuel system on a licensed …show more content…
This will require an average performance equivalent of 54.5 miles per gallon by 2025. In order to achieve cleaner fuels, the current administration pledge to continue to back-up research and encourage partnerships between the private and public sectors.

Customer opinions about American cars

Many patriotic Americans who believe that patronizing American made cars could help contribute to economy and boost employment to many American people. Nevertheless, there are also group of American consumers who prefer quality to nationalism. It is a common knowledge to most Americans that Japanese and German cars are superior in terms of quality.

Japanese cars such as Toyota is much preferred cars for many Americans because it is consistently good in quality especially its engine that last for decades. While, an American car such as Ford, it will cost a car owner thousands of dollar for repairs after just a couple of years when its engine started to falter. Aside from quality, Japanese cars tend to be cheaper and fuel-efficient because its vehicles are lighter than its American counterpart

Related Documents

  • Decent Essays

    People need to buy a better looking car even when they need it in order to keep a so called status, this is still one of the upside for American auto industry, GM is making some impacts in Japan and China’s own market because their product attract more young generation as thrilling and exciting. They are buying American cars because they feel better in it and feel as if driving these vehicles makes them more attractive. American auto industries know this and take advantage of it, recent commercials of Dodge are the proof of this in which they remove the driver from the car who is listening to classical music and driving slower than a…

    • 756 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Tesla has done most of sales online, but does quite a bit in stores too. If you ask me Tesla is a greats stock here are some reasons why. It has the best technology and strongest brand by far, in the auto market’s largest growth sector.The value of Tesla’s stock increased past Ford and General Motors to become the most valuable car company in the United States. The amount of Tesla's yearly car production rate is about to explode from 100,000 cars today to 500,000 cars in 2018 because of the company’s lower-priced Model 3. Even better, this doesn't even take into account Tesla's newest energy storage…

    • 1713 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Advancements of the Foreign Automobile Industry in American Markets In recent decades, the automobile industry has made significant technological and manufacturing advancements, making it very competitive to gain market share. As the market shares for American manufactured vehicles have decreased, the market shares for foreign manufactured vehicles have steadily been on the rise. Foreign car manufacturers have out-competed domestic American auto powerhouses by producing higher quality vehicles in performance, environment and aesthetic categories due to their innovative thinking and groundbreaking technological advancements. Throughout time, American car companies have experienced significant decay in market shares. Americans are not buying…

    • 2098 Words
    • 9 Pages
    Decent Essays
  • Decent Essays

    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.…

    • 892 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    First, “The Threat from New Entrants”: The threat of new entrants is very high. Log electric car industry in 2003, faced the same challenges Tesla being a newcomer to the market and there are many financial problems that require high capital investments, brand building and distributions channels. However, manufacturers established with great economic power to enter this market is relatively low due to its capabilities and support for a government program to develop electric car (Shirouzu, 2011). Second, “The bargaining power of Buyers”: The ability of buyers to the overall modest bargain. According to the annual report Tesla (2014), they rely on their relationship with Daimler and Toyota (Brown 0.2013).…

    • 1186 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    It had a sliding gear changer on the actual steering wheel and was controlled by the brake foot. Henry ford wanted to create a car for the everyday people so they could have access to what people thought was a luxury to the rich. Since it was more compared with price more than overall quality it had problems but nothing too major. It ruled for many years as a gas powered vehicle. Fast forward to the 21st century and the electric car is better and more efficient than ever making a good…

    • 790 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    This fuel standard will drastically reduce the United State’s dependence on foreign oil, pollute the environment less, and save American’s money at the pump. The EPA and DOT have both worked closely with automakers and have ensured that these standards are feasible. The program, beginning in 2017, will increase efficiency by an average of 5% per year. Cars give people the freedom to explore as far and wide as they possibly can. Since cars were first manufactured, standards have been growing and growing, giving people the ability to travel as they please and choose what type of car suits their needs.…

    • 812 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    More importantly gas prices are sometimes concern of many people, and many worry about how to save a few dollars on gas while get benefits of driving longer. According to Nerd Wallet ownership of an electric car can come in many benefits, and over the course of five years one can save 36% or $10,538 which is a big amount of savings. Even better news for people who live in Charlotte and drive a LEAF they can enjoy cost of ownership at $26,491 for over five years. There are many benefits of owning an electric car, such as big savings, cost efficient, and mostly importantly you’re helping the environment you live in with less CO2 emission. My main concern with this poster was to persuade people how they can help the planet we live in, and the amount of benefits they can get from owning an electric car instead of gasoline operated car.…

    • 1069 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    This is a huge advantage for Ford which invests large amounts of money to produce fuel-efficient engines and has had some success with its Ford Fiesta and Ford Focus ECOnetic models. There is also opportunity for automakers to enter into new markets by making strategic partnerships with other automotive firms. Alliances can make research and development costs decrease and offer a win-win opportunity for all parties by gaining some new…

    • 762 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    An investigation was done in the areas of types of benefits suggested by many consumer trends, and the future of hybrid technology. A focus group of people who in recent times bought cars, both hybrids and non-hybrids, revealed what consumers look for in their cars. Study of the needs of hybrid technology helped determine how feasible widespread change to hybrids would be in the future. With all the information taken into account, I concluded that hybrids have several issues that offset their fuel efficiency. Their higher cost both turns consumers away and makes the vehicles a less attractive economic investment.…

    • 1066 Words
    • 5 Pages
    Decent Essays