The Change of the American Automobile Industry
Ryan L. Otto
Embry-Riddle Aeronautical University
Daytona Beach, Florida
Worldwide Online
Instructor: Paul Serluco
September 14, 2014
Abstract This paper is a discussion on how the automobile industry has changed in the United States the last few years. When we saw the rapid rise in the price of fuel at the pumps, over $4 a gallon, it was a life changing economic event. With the high price of fuel, consumers changed their thought process on purchasing a vehicle. When the consumer was shopping for a new car, it wasn’t all about the bells and whistles, it was all about MPG. With the lower demand for vehicles, how was the automobile industry going to survive? The only way …show more content…
A bi-fuel vehicle allows the use of two or more alternative fuels to be used in the vehicles. Some of the alternate fuels include: ethanol, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and diesel/biodiesel. Because of alternate fuels being produced, the emission testing also increased to make sure that there wasn’t a high amount of exhaust hazards polluting the air. The only place these fuels were for sale was in the high production areas of corn and soy beans. It was harder to find them in the bigger cities. Ethanol (E85) is one of the most popular bi-fuels. It’s a mixture of gasoline and a corn base product that reduces the amount of crude oil that’s required to make a gallon of gas. Even though the Big Three produced and sold millions of bi-fuel vehicles, I think they may have sold more flex fuel vehicles if bi-fuel was advertised more and also available at more gas stations across the …show more content…
The reason why the government wanted to help assist the Big Three was because they employed about 2% of the United States work force. Even though GM received $20 billion dollars from the government, they still had to release 20,000 employees and lock the doors of 12 factories. Chrysler on the other received $4 billion from the government. Out of the Big Three manufactures, Ford was the only manufacture that didn’t ask for government assistance. Even though they tried to deal with the hard times of the economy on its own, they have lost over one third of its work force and sold off some of its larger assets to Jaguar and Land Rover (New York Times 2009). When word first came out the government was going to bailout GM and Chrysler, there were a lot of mixed opinions. One way or another, the government was going to have to help out. If they didn’t execute the bailout there would have been even more people unemployed and requiring more assistance. Why not try to keep workers in the factories and hope in the long run it pays off? I think it was a successful
Ryan L. Otto
Embry-Riddle Aeronautical University
Daytona Beach, Florida
Worldwide Online
Instructor: Paul Serluco
September 14, 2014
Abstract This paper is a discussion on how the automobile industry has changed in the United States the last few years. When we saw the rapid rise in the price of fuel at the pumps, over $4 a gallon, it was a life changing economic event. With the high price of fuel, consumers changed their thought process on purchasing a vehicle. When the consumer was shopping for a new car, it wasn’t all about the bells and whistles, it was all about MPG. With the lower demand for vehicles, how was the automobile industry going to survive? The only way …show more content…
A bi-fuel vehicle allows the use of two or more alternative fuels to be used in the vehicles. Some of the alternate fuels include: ethanol, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), and diesel/biodiesel. Because of alternate fuels being produced, the emission testing also increased to make sure that there wasn’t a high amount of exhaust hazards polluting the air. The only place these fuels were for sale was in the high production areas of corn and soy beans. It was harder to find them in the bigger cities. Ethanol (E85) is one of the most popular bi-fuels. It’s a mixture of gasoline and a corn base product that reduces the amount of crude oil that’s required to make a gallon of gas. Even though the Big Three produced and sold millions of bi-fuel vehicles, I think they may have sold more flex fuel vehicles if bi-fuel was advertised more and also available at more gas stations across the …show more content…
The reason why the government wanted to help assist the Big Three was because they employed about 2% of the United States work force. Even though GM received $20 billion dollars from the government, they still had to release 20,000 employees and lock the doors of 12 factories. Chrysler on the other received $4 billion from the government. Out of the Big Three manufactures, Ford was the only manufacture that didn’t ask for government assistance. Even though they tried to deal with the hard times of the economy on its own, they have lost over one third of its work force and sold off some of its larger assets to Jaguar and Land Rover (New York Times 2009). When word first came out the government was going to bailout GM and Chrysler, there were a lot of mixed opinions. One way or another, the government was going to have to help out. If they didn’t execute the bailout there would have been even more people unemployed and requiring more assistance. Why not try to keep workers in the factories and hope in the long run it pays off? I think it was a successful