Customer center

We are a boutique essay service, not a mass production custom writing factory. Let us create a perfect paper for you today!

Example research essay topic: Issues In Today Global Automotive Industry - 1,231 words

NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote

What are the most important characteristics of the global environment in the automobile industry, especially those opportunities and threats faced by the top players in the industry? Why so? If a list was made of the top economic sectors with the greatest influence on the American economy, one could make a strong argument for including the automotive industry. A prime example of the validity of that claim was evinced when durable goods, such as cars, made up over 90 % of the spike in consumption at the end of 2001. (Wolkomir 34) Since consumer spending is now the prime indicator of the state of our economy, the success of our auto industry is very important to the future of our economy. In the last few years, many were quick to dismiss stalwarts of the Old Economy. In light of the astronomical growth of the "New Economy" technology sector in the late 1990 s, the auto industry seemed to be filled with lumbering, corporate behemoths.

With the recent crash of the technology sector, the automotive industry is again in the spotlight, along with many other manufacturing industries. Even though sales have been up recently, the automotive industry still faces many challenges. These challenges must be overcome in order to ensure the survival of the industry's major players. In this paper I will discuss what GM, Ford, Daimler-Chrysler, Toyota, and the remaining handful of smaller manufacturers must do in order to stay on top in the future. Each one of these companies is faced with its own unique strengths, weaknesses, opportunities and threats that must be properly addressed. As a whole though, they all face similar issues.

I will address those issues in this paper. If any one of these companies is not careful to handle these issues in the coming years, then it stands the chance of being absorbed by another company or going under. I will attempt to outline the future of this industry in general, and what several of the major corporations involved must do to stay on top of the game or survive. There are literally thousands of elements that are involved in shaping the future of an automotive firm. For the sake of simplicity and brevity, I have tried to divide it into four different areas: product, market, manufacturing, and economics. Each one of these major areas has several influencing elements that will shape the automotive corporations of the future.

The first area that I will address is product. Under product the following subject areas are included: product development and product marketing. Product is crucial to an automotive company because it defines the company. The VW "bug", the Chevrolet Corvette, the Mazda RX- 7, a Chevy or Ford pickup, a Cadillac sedan, the Jeep-whether a specific model or a vehicle series, these vehicles and many others have defined companies reputations and made for explosive profit growth.

A unique car design or excellent brand recognition can make or break an automotive company. An example of the significance of product recognition can be found in the recent efforts of Cadillac to restore its former image. A recent article in Business Week explained it as follows, "Lately, GM stock, up 22 % for the year, is even showing up on Wall Street buy lists. But pickups and sport-utility vehicles can only go so far.

GM cannot remain the world's preeminent caretaker without a viable luxury car. " Cadillac represents GM's luxury sedan line. In light of recent explosive SUV sales, foreign luxury lines have replaced the American luxury sedan. As gas prices rise, American consumers invariably will turn away from gas-guzzling SUV's and towards sedans. If GM wants to again dominate car sales, they will need a luxury line. In addition, there is an even more important reason for GM needing to have a line of luxury cars again. "It's not just a gold-plated image that's at stake. Without a strong Cadillac leading the way, GM will have trouble revving up Caddy-era profit margins again.

In a profit-challenged industry, an entry-level luxury car can earn an automaker $ 3, 000, compared with $ 500 for a midsize sedan. Top-of-the-line SUVs and sedans haul in $ 15, 000 a pop. That's why Ford has built up a luxury stable that includes Jaguar, Volvo, and Land Rover. " (Christina 60) In this case, having a strong-selling line of vehicles can restore not only the Cadillac name, but GM's profits in an area where it was previously under-performing. Another element of the product that will shape future products is technological change. Every year automakers use different technologies in the form of new materials, new production techniques, and new drive train technology.

This is part of their ongoing effort to make a better vehicle, a more efficient vehicle, a faster vehicle, a vehicle that handles and brakes better, and a vehicle that is cheaper to make. What is unique about the current state of technological change in the industry is that vehicles are about change in a way that they haven't seen for almost a century. In the next five to ten years, all of the manufacturers will be utilizing hybrid (Toyota, Honda, Chrysler, Ford, VW), fuel cell (GM, Chrysler, Ford), and electric power plants (electric will not be implemented though until battery technology improves greatly). The traditional four-stroke combustion design will probably continue for some time, but a radical change is in store for the industry, as these alternative power plants will make up the majority of the manufacturers product line-up. The pressures to move to alternative power plants come from several sources. Government has passed and will continue to pass legislation that defines how efficient a car must be and how much of an automakers fleet must be low emissions vehicles.

Just recently, Congress is even considering legislation that offers incentives for alternative fuel vehicles. The House energy bill includes tax credits ranging from $ 250 to $ 4, 500 for consumers who buy automobiles powered by the hybrid engines and other technologies. The incentives would help offset the higher costs of such vehicles, two of which, the Toyota Prius and the Honda Insight, are already on the market. (Goisher A 1) More importantly, consumers seem to be ready to accept alternative energy cars. The conflicting demands being placed upon the automobile today are unprecedented in their scope and number. Individuals as citizens may call upon governments to pursue the control of automotive emissions and fuel economy and to alleviate problems of traffic congestion. Yet as consumers, they may purchase large SUVs with poor gas mileage and oppose fuel taxes that would lessen automotive use.

The government continues to change fuel efficiency standards and offer incentives to manufacturers who provide alternative power plant cars. Automakers are trying to address both sets of customer requirements, typically through green initiatives that are independent of their ongoing product and operational activities. Yet the automaker that can persuasively link their current green strategies to a future vision of sustainability, from a competitive, environmental, and economic development perspective, may enjoy a strong advantage in both corporate reputation and consumer attractiveness. Opportunities certainly exist. New drive train technology, by disrupting the dominant vehicle design, may spur product innovation and create openings for new entrants. New lightweight materials can lessen the tradeoffs associated with green vehicles.

The green goals of recycling vehicle content and minimizing the environmental impact of manufactu...


Free research essays on topics related to: technological change, power plants, automotive industry, opportunities and threats, auto industry

Research essay sample on Issues In Today Global Automotive Industry

Writing service prices per page

  • $18.85 - in 14 days
  • $19.95 - in 3 days
  • $23.95 - within 48 hours
  • $26.95 - within 24 hours
  • $29.95 - within 12 hours
  • $34.95 - within 6 hours
  • $39.95 - within 3 hours
  • Calculate total price

Our guarantee

  • 100% money back guarantee
  • plagiarism-free authentic works
  • completely confidential service
  • timely revisions until completely satisfied
  • 24/7 customer support
  • payments protected by PayPal

Secure payment

With EssayChief you get

  • Strict plagiarism detection regulations
  • 300+ words per page
  • Times New Roman font 12 pts, double-spaced
  • FREE abstract, outline, bibliography
  • Money back guarantee for missed deadline
  • Round-the-clock customer support
  • Complete anonymity of all our clients
  • Custom essays
  • Writing service

EssayChief can handle your

  • essays, term papers
  • book and movie reports
  • Power Point presentations
  • annotated bibliographies
  • theses, dissertations
  • exam preparations
  • editing and proofreading of your texts
  • academic ghostwriting of any kind

Free essay samples

Browse essays by topic:

Stay with EssayChief! We offer 10% discount to all our return customers. Once you place your order you will receive an email with the password. You can use this password for unlimited period and you can share it with your friends!

Academic ghostwriting

About us

© 2002-2024 EssayChief.com