Analysis Of The U.s. Auto Industry - 974 Words

ANALYSIS OF THE U.S. AUTO INDUSTRY OVERVIEW OF THE INDUSTRY United States Auto Industry’s presence in the International scene can be trace to 1896 when Henry Ford built the first car in America (Gale, 2003). He then revolutionized the industry with the invention of the assembly line. The assembly line allowed him to mass produce the cars making them more affordable to the consumers. Now local American manufacturers are General Motors (GM), Ford and Chrysler or FCA US. Currently brands like Acura, Aston Martin, Audi, Bentley, BMW, Bugatti, Ferrari, Fiat, Honda, Hyundai, Infiniti, Jaguar Land Rover, Kia, Lamborghini, Lexus, Lotus, Maserati, Mazda, McLaren, Mercedes-Benz, MINI, Mitsubishi, Nissan, Porsche, Rolls Royce, Smart, Subaru,†¦show more content†¦market share. (AIADA, 2015). Global competition in the industry According to the American International Automotive Dealers Association (AIADA) there are 16 major automakers competing in the U.S. A report by the Automotive News (2014) said that â€Å"the tight race for market share is ‘the new normal’ for the U.S. automotive market, and the battle for market share among the largest eight automakers in the U.S. is great now as the range between them continues to narrow†. It said General Motors and Ford Motor Co. have continued to occupy the top two positions over the last 14 years, but their lead has narrowed significantly as Toyota moved into the 3rd position ahead of Chrysler, now called FCA US. Ranking them by Market Share this is how the top ten stood by the end 2013: General Motors (GM) 17.9%, Ford 15.9%, Toyota 14.3%, FCA US 11.5%, and Honda 9.8%, Nissan 8.0%, Hyundai 4.6%, VW 3.7%, Kia 3.4% and Subaru 2.7%. (AIADA, 2014) International automakers’ share of U.S. vehicle sales continues to rise, now accounting for more than 59 percent of total industry sales. Last year’s sales increased by 29 percent, which reached 7.5 million vehicles. (Global Automakers, 2015). Moreover, as new platform hubs grow, foreign auto suppliers may build new plants in the U.S. to serve them. Nine out of 10 of the world’s largest automakers and 46 of the world’s top 50 global automotive suppliers have opened RD facilities in Michigan alone. New technology for powering