SUBJECT AREA Arts entertainment
CREATED ON 6th February 2018

Effect of the Recession on the US Automobile Industry Writer examples

Introduction As the state has been introduced to the present downturn, the auto industry and its labor was probably hurt more than any other sector. Few years back it was the homebuilding business which was distressed that the most and kept the very first place, but it gave that standing over to the automobile industry the following calendar year. Why was that this industry affected more than any other is very interesting and intricate circumstance. There are numerous factors why there was such a huge negative impact on this industry, its functionality, and the labour involved. Some of the key motives are extremely high overseas competitors, higher petroleum prices, and certainly the downturn. The Auto Industry In the United States, modern car manufacturing has been historically dominated by the Western companies such as Ford Motor Co., Chrysler Group LLC, and General Motors Co.. These three firms, known as the Detroit Three, commanded 95 percent of this marketplace in the 1950’therefore and the dominance continued until the start of the 21st century. In the 1980’s Japanese automobile manufacturers entered the United States, a decade after that the Germans, and finally in 2000’therefore the Koreans. From the end of 2009, the Detroit three only accounted for 45% of their total U.S. auto industry. Another element that had impact with this was constant fluctuations in gas prices and price sensitive customers. According to the U.S. Department of Energy, gasoline prices hit record high averaging $3.07 per gallon in May 2007 and maintained climbing around $4.08 in July 2008. As gas prices kept increasing, consumer buying trends have been shifting. In 2006 earnings for SUVs, pickup trucks, and trucks fell 16 percent, while the market for compact automobiles climbed by 3%. Unfortunately, the Detroit Three were not ready for this since their...

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