The Decline Of The American Auto Industry

The American auto industry is a very old industry in the United States of America and the world as a general. Henry ford the father of the motor world in the US created the first car in the 1896 and started mass producing the car. Due to the wide number of clients and technology the industry took off to very high heights only to be overtaken recently by some countries in the Far East such as china and japan. Some external environment challenges may have contributed to this downfall over the years.
Competition from other manufacturers such as Toyota and Hyundai into the local markets is one major challenge. These two companies come up with very cheap vehicles of good standards affordable to the middle and low income group. The middle income

The fluctuating cost of aluminum which is used to make the engine and gear blocks for its lighter quality has been a headache to the companies. Copper and steel which are also very key component of the chassis and electric wires have also been on the rise for a very long duration now increasing the cost of production. Gasoline which is a very vital component for any motorized machine such as a vehicle has been rising every day except for the last two or three months it dropped rapidly. This rise made it efficient for the people to use subways and trains and this affected the

They companies are competing with each other to come up with the best system that reduces man power yet increases the quality of their products and does not compromise the safety. This factor however comes at a price. The installation of all those robots and computer or PLC monitors which ensures high quality low cost products are very expensive. They also take too much time and space to install, test, train and commission. According to Highfill et al, (2004), internet is another technological aspect that has been a nuisance to these companies since everyone is now consulting the internet which is full of blogs and feedback from every Tom Dick and Harry. The feedbacks and blogs may not be true but nowadays everybody seems to trust the internet to a point where it has earned the consultation title in the automobile industry. Due to the emergence of new international laws governing the pollution, the companies have been forced to come up with research programmers aimed at coming up with new types of engines such as the hybrid or the hydrogen engines and the new variant fuels such as biodiesel, hydrogen and electricity to propel the vehicles (Highfill et al,