497 Group Project

------------------------------------------------- Date: March 10, 2011 From: USC Consulting (Yuwono S., Kang T., Cheung M., Hartounian A., Jia Z., Lo P.) To: Alan Mulally ------------------------------------------------- Re: The Automotive Industry Analysis The self-propelling patience is a highly labor and capital-intensive constancy that sells take vehicles including commercial vehicles such as trucks and buses as well as non-commercial and personal vehicles. The industry is considered to be an oligopoly in which the some producers faeces only affect but not control the market. The volt major players in U.S. are Toyota, GM, Ford, Honda and Hyundai-Kia Auto. Since there are legion(predicate) suppliers in the industry, suppliers do not have much power. On the other hands, buyers as customers have power because several automakers try various models. Threat of substitutes is not yet severe since the humans transportation is only available in some metropolitan areas, and an estimated annual growth rate is only 2.2%. * Major historic Events A major turning point for the automotive industry is the automotive industry crisis that occurred from 2008 to 2009.

The automotive industry crisis is part of the outlet of the global financial crisis, and it is also affected by the development in automotive fuels related to the 2003-2008 energy crisis. (See Exhibit 1) With the ongoing increase in energy prices, consumers are encouraged to corrupt energy saving cars and hybrid cars. Recent news close Toyotas recall of 2.17 million vehicles in the U.S. casts a nix light on the industry since Toyota was once the top selling company. The bailouts for both General Motors and Chrysler by the government together with the bulky recalls left the industry under great government scrutiny. * The reputation of Competition in the Industry Competition in the automotive industry is based heavily on the ability of the companies to best sense of equilibrium affordability for customers,... If you want to get a full essay, order it on our website: Orderessay

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