American Automobile Industry

1254 Words 6 Pages
The American Auto Industry Environmental Analysis
The automobile is credited to great discoveries from Europe back in the 1800’s. The USA however soon took the baton and has been a major player in innovation on both production techniques and Automobiles. Henry Ford invented Techniques for mass production which improved the layout of inputs in the production process of these automobiles. This led to a game changer in car production as what followed after were improvements in a lot factors. Design,logistics, customer service and speed became very important as the number of producers increased. America had the “big three” producers which includes Ford, Chrysler, and GM. These improvements in processes, design and technology did not advance without
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The Germans and the Japanese have been the major pioneers of such competition. This however has not happened without collaboration among the leading producers in the industry. Most producers collaborate to be closer to markets to reduce production costs. Writers have grouped these into 3 major groups even though there are many collaborating producers that have emerged from the developing economies. The main groups include 1. GM-Ford-Toyota-Honda 2. Volkswagen-Lamborgini-BMW- Rolls Ryce 3.Chrystler- MercedisBenz- Nissan- fiat. The major markets contested by the Americans include East Asia, North America, and Europe. The Big three had been doing very well in America market until before the economic meltdown between 2008 to 2009. They lost pace with their competitors as Toyota, Honda and Volkswagen penetrated the American market becoming leaders in the industry. Until then the American producers accounted for 50% of the sales in the American market. They have been relegated to a meager 20%. However post economic meltdown consumer confidence has been gained by the big three as they have recoverd from their financial problems. The mini SUV has been one model they have been able to use to get back their market share. The American car industry has recently seen some growth as they have ditched the fuel guzzling traditional American muscle cars for far …show more content…
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