U.s. Automaker s Environmental Outlook - 861 Words

The U.S. Automaker’s Environmental Outlook The U.S. automobile industry (hereinafter referred to as the â€Å"Industry†) represents 3% of America’s Gross domestic product (GDP) and almost 5% of the country’s workforce. The Industry has made huge gains since the Great Recession (2007-09), with domestic sales topping US$570 billion in 2015, the highest in fifteen years. Exports of vehicles and parts generate more revenue than aerospace. Current capacity produces over eleven million vehicles annually (AAPC, 2015). This paper looks at the environmental challenges facing Detroit s â€Å"Big Three† (i.e., Ford, General Motors, and Fiat Chrysler), America’s three largest automakers, who compete alongside European and Asian car manufacturers, many of whom build their vehicles in the United States. Environmental Factors The Industry faces global competition, restrictive environmental regulations, and a millennial customer base that demands corporate social responsibility (CSR) and the Internet of things connected to their vehicles. Historically low fuel costs in the U.S. drive larger vehicle sales, and at the same time, environmental concerns necessitate putting more electrically powered cars on the road. Above all is market pressure to deliver quality, which builds a brand, creates a following, and saves automakers future warranty repair costs. Below, some of these environmental forces are examined. Political At the forefront challenging the Industry is the growing body of evidenceShow MoreRelatedThe Auto Industry : A Global Economic Powerhouse And Juggernaut Of Cultural Influence1051 Words   |  5 PagesSince it’s inception in the 1900’s, the auto industry has become a global economic powerhouse and juggernaut of cultural influence. In recent decades, the industry has faced various crises and yet has remained one of the most powerful drivers of global economic activity. In the U.S. alone, 1 in every 22 jobs derives from the auto industry (Cutcher-Gershenfeld, J., 2015, para 1). Generally speaking, industry analysts are optimistic about the U.S. market and less so in other markets (Strategy, 2015Read MoreTesla Motors, An Electric Power Train And Car Manufacturer1072 Words   |  5 Pageswith the rise of environmental concerns. Company has a limited amount of direct competitors - the current direct competition includes all major luxury car manufacturers, plans for a sub-$ 40,000 electric vehicle potentially expand the direct competition to the entire automobile industry. (Ex.: Ford Motor Company, GM Corporation, etc.). Tesla’s market share is 1, 13% in Automotive sales in the U.S. which is not that much. In order to justify valuation it had to capture 14% of U.S. market share. 4Read MoreEnvironmental Issues Facing Automobile Industry1071 Words   |  5 PagesENVIRONMENTAL ISSUES FACING AUTOMOBILE INDUSTRY IN AMERICA The development of automobile industry in America started in 1896, when Henry Ford built the first American car. With the invention of the automobile and the mass production techniques of Henry Ford, which made the cars affordable, the American economy has been transformed by this key element in its prosperity. Tens of thousands of jobs were created as the industry grew. Workers were required for the assembly lines on which they were constructedRead MoreAutomotive Industry Analysis in the Us13024 Words   |  53 Pagesautomobile manufacturing and we are all mechanical engineering graduate students. Analysis Methodology: The report begins with a historical overview of the automotive industry. This is followed by an analysis of the industry s structural characteristics using Porter s 5 Forces Model as a framework, which provides an understanding of the automotive industry as a whole in its current state. Next, ten representative companies of varying sizes are analyzed and compared; the chosen companies andRead MoreVolkswagen, The Worlds Best Selling Automotive Oem1744 Words   |  7 PagesVolkswagen (VW), the world s best-selling automotive OEM, has been caught in a vehicle emissions scandal of unprecedented proportions. At least 11 million diesel-powered VW cars worldwide use a specially-coded piece of software to purposefully cheat during emissions testing. The result is that VW s diesel cars appear sufficiently clean to government regulators – enough to be eligible for sale – but when consumers drive their cars in the real world, the vehicles software switches the engines Read MoreToyota Hybrid Cars and Legal Issues2620 Words   |  11 Pagespublic and the government because of the many serious allegations and lawsuits brought against the Company. This paper will examine the first mover advantage of Toyota got by launching Prius. The initiatives undertaken by Toyota to bring their envir onmental friendly hybrid into the market will be discussed. Additionally, we will point out the many legal issues Toyota currently facing in the marketing environment. These issues will be analyzed and discussed in further detail such as: (1) intellectualRead MoreCar Dealers4365 Words   |  18 Pages..........14 CONCLUSION............................................16 REFERENCES............................................17 BIBLIOGRAPHY..........................................18 EXHIBITS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. U.S. Car Sales For Major Manufacturers (1973 - 1983) Number of Dealerships VS. Principles(1979 - 1989) Breakdown of Total Sales Net Profit as a % of Sales Gross Profit as a % of Sales Now Car Sales - Hamilton County Ohio Sweat Mountain News Break StatsRead MoreA Outlook Into The Future Of Autonomous Vehicles1415 Words   |  6 Pagestrends in autonomous vehicles, projection of growth as a ratio of GDP among other measures, and policy change s needed for the progress of this innovation. It concludes with a promising outlook into the future of autonomous vehicles. SAE International (formerly known as the Society of Automotive Engineers) in the U.S. has developed a carefully-formulated set of definitions of the various levels of automation, which are becoming well accepted by experts within the industry and government agencies.Read MoreOrganizational Change General Motors3739 Words   |  15 Pagesdescription of G.M environment, the Burke-Litwin model will be the base of this report and the PESTLE analysis will be used to analyze the different pressures applying on General Motors. General Motors History General Motors was the worlds largest automakers company for more than seventy years. This company was once the single largest employer in the world. Nowadays its global headquarter is based in Detroit, the company employs more than 200,000 people all around the world and does business in someRead MoreCorporate Overview Of The Automotive Industry1548 Words   |  7 Pagesand sales. This analysis will take a further look at automakers in the industry, more specifically General Motors (GM), Volkswagen (VLKAY, Honda, Nissan, Toyota. Beginning around the 1890s, the automotive industry has evolved and undergone shift changes in consumer trends, product development, marketing, and industry competition shifts. Some of the major changes have been the result of: Regulatory, Safety, Economy, Reliability, and Environmental. It is a global industry that impacts the lives of billions