Global Competition In The Automotive Industry

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The Auto industry in America has been in the hot seat in the last months. But not especially due to the Amercian cars, but to the European ones.

But let have first a look inside the American Auto industry to note that, regarding Global Automakers, the industry has become a significant part of U.S economy and has changed drastically in the last 50 years. The industry employs 123.000 direct employees and creates 1.1 million indirect jobs, mostly in manufacturing

It seems that the industry is quite strong in the U.S. Now, the automotive industry suffered a deep crisis between the 2007 and 2010, which Bai X., (2012) relates directly to the global financial crisis. This crisis was suffered in America as well as in Europe, Russia or the UK.
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All this bad advertising affects directly the industry creating big amount of losses.

For instance, it was revealed a report that said that US cars were less safe that European cars, in a certain type of collisions. In this way, it was said that it would be dangerous to sell American vehicles in Europe. (Gallagher, 2015)

In the other way around, and here I come back to my first statement, the US accused Volkswagen of a failure in their control on the emissions of CO2. That was a huge scandal that affected the whole European car industry, as well as the markets.

Luckily, the new technologies are arising and there is one American auto company that is ahead of any other. I am talking about Tesla Motors. The American company, with its headquarters in Silicon Valley, is an example of futuristic research thanks to their electrical cars. Electric cars are the future of the auto industry, and in this sense, Tesla is more powerful that its competitors in Europe. This might also be the consequence of their CEO, Elon Musk, whose vision and ambitions are moving the company to the top in the
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At mentioned before, in September 2015, the company was accused of selling cars in America with a failure in its software. In this way, the software could detect when the car was being tested and provide false results about its emissions. As a consequence of that, the US government ordered to ‘recall almost 500.00 cars’ after the news were discovered. (Neate R., 2015) The American Government is very strict in this kind of tests, and it concerns about the quality of emissions of the cars that are sold in US ground. As Hotten R. (2015) mentions, ‘Car analysts at the financial research firm Bernstein agree that European standards are not as strict as those in the

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