The North American Automotive Industry

Paper Summary:

This paper explains that, if the big three domestic automotive manufacturers---General Motors, Ford and Daimler-Chrysler---wish to continue to be considered the dominant automotive brands in North America, they need to significantly reduce operating expenses related to employee benefits, costs, legacy expenses and related cost premiums. The author points out that they must re-brand themselves as environmentally conscious automotive manufacturers with fuel efficient products, such as hybrid powered vehicles similar to those developed by the Japanese manufacturers. The paper states that, unless the domestic automotive manufacturers undertake these actions, they will face bankruptcy, shattered union and supplier relationships and loss of domestic market share. The paper includes quotations.

Table of Content:
Industry Overview
Industry Competitors
Economic Dimensions
Technical Factors
Global Factors
Conclusion

From the Paper:

"Beyond various successes relating to individual vehicles, the big three automotive companies in North America are basically attempting to respond to the strategic success of their foreign competitors; primarily the Japanese big three: Toyota, Honda, and Nissan. While the German luxury brands, Mercedes and BMW are important competitors, they compete largely in the luxury car segment of the overall automotive industry and are not the volume threat that the Japanese companies are."

Sample of Sources Used:

• Beucke, D, et al. "Why GM's plan won't work...and the ugly road ahead." Business Week, 3923(2005): 84.
• "General Motors Corporation SWOT Analysis." Datamonitor, April, 2005.
• "New Cars in the United States-Industry Profile." Datamonitor, 0072-0358, Oct.(2005).
• Oughton, C. 2 Industrial policy and economic development. In Industrial and Labour Market Policy and Performance: Issues and Perspectives, Coffey, D. & Thornley, C. (Eds.) (pp. 9-28). New York: Routledge; 2003.
• Stoll, John D. "Up Against the Wall(St.)." Ward's Dealer Business, 39/1(2005):18.

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