Final Essay

The auto industry is the heart of America. Henry Ford and the Ford Motor Company were the first to build cars in massive quantities. American auto manufacturers were the top producers in the world until the 1980’s when the Japanese became the largest producers. The Chinese with 14.8 percent have become the number one volume producer in the world OICA (2014). The United States at 6.9 percent has dropped in position to the second highest volume auto producer in the world. The environmental changes have affected the auto industry and will continue to do so. Shifts in the supply and demand of automobiles influence the current and future household purchases. Households must determine what amount of their hard-earned income to allocate to certain

Six and eight cylinder trucks and SUV’s were at one time symbols of progress in the American dream. Consumers are trading these larger vehicles for lighter fuel efficient low emissions vehicles. The American consumer is more knowledgeable about the environment and greenhouse emissions, therefore it’s imperative that the auto industry reassure the consumer by, manufacturing efficient and environmentally friendly vehicles. Ford’s 2013 Ford C-Max Hybrid, Energy plug-in Hybrid and General Motors Chevrolet Volt are examples of green technology cars that are popular with consumers. The many recalls of U.S. manufactured parts and automobiles have contributed to the perception that American made automobiles are inferior to those made in foreign countries. Many consumers on the contrary, do feel obligated to the purchase only American manufactured automobiles. The American auto industry still has lots of work to do to change public perception and re-establish America as the leader in innovation, sales and once more the giant of the automobile industry. There are over four thousand colleges and universities in the U.S. and many are research institutions where new innovations and discoveries in the auto industry can take place.

The American auto industry must continually gather the information that is necessary for understanding the implications of these environmental factors, to implement the appropriate strategies for