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Automotive Industry Research


Submitted By ramon
Words 2220
Pages 9
Through the years, various automobile makers have come and gone. Hudson Motor, Auburn Motor, Essex Motor, and Duesenberg are just to name a few automobile companies that have failed through the years (Sullivan, 2008). The competition has been fierce between different automakers, whether it is with Ford, Mercedes-Benz, Honda, or General Motors (GM). Each company strives to make a car that will not only sell at a reasonable price, but also appeal to the consumer. Now the U.S. automotive industry is financially struggling and may mark an end to an era. Currently Chrysler, Ford, and GM are struggling so much so right now that the manufacturers are temporarily closing doors in an effort to save money. Chrysler itself is in such financial need that the government recently bailed them out with a loan of $4 billion dollars. However, that money has not helped this company out. Sales for Chrysler are steadily dropping. Chrysler sales were so low for the year of 2008 that the Toyota Camry alone outsold the entire line of cars that Chrysler manufacturers combined. Chrysler admits that they need approximated $7 million every 45 days to operate, yet with sales so low analysts are predicting an end to Chrysler alone (Critics suggest reeling Chrysler is a lost cause, 2009). While U.S. auto manufacturers had the biggest drop in sales, Japanese automakers Toyota and Honda also saw a drop in sales, 15.4% and 7.9% respectively. Overall, car and truck sales for all auto manufacturers in the year 2008 totaled 13.8 million, which is the lowest since 1992.
When automobiles first came out back in the late 1800’s, only for the rich were able to purchase a new car. Many Americans were unable to purchase a vehicle due to cost but also due to the wages that they earned. In the early 1900’s the average annual income was $400-$500 (1900 statistics, n.d.) whereas, the cost of a new Oldsmobile

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