Ford

12 Pages 2935 Words

a, India, The Pacific Rim, Sou!
th Africa, and South America. In America, a current trend is for the neighborhood car dealer to be purchased by a large manufacturer, such as GM, so cars can be sold through retail outlets. Other future endeavors include low emission cars, which are expected to provide expansions in sales. Some major automakers are investing in fuel cells, devices that convert liquid hydrogen into electricity, hoping to make future vehicles more environmentally friendly. The automobile industry will see more changes in the next 10 years than it has in the last 100. Economic Climate In the past, the oversized vehicle was the body-style of choice among American consumers. In the 1970;s, oil shortages led to an increase in demand for more fuel-efficient cars, thus the sub-compact car became popularized. After 1979, Japan’s efficiency at producing this type of car allowed them to take 30% of the U.S. automobile market away from American manufacturers. In 1999, total industry sales have risen!
8%2. Now, unprecedented competition has pressured firms to reduce costs.
This competition is a result of the mass consolidations occurring among worldwide automotive manufacturers. These immense companies are able to offer many styles and options, but so many options come at a cost. This could become a problem for them as more informed consumers insist on lower prices and more add-ons. The World Wide Web, which allows consumers to thoroughly research and purchase automobiles from home, has become an essential ingredient to any successful automakers arsenal, and will continue to play a large role in the 21st Century. The luxury vehicle segment has grown more competitive, yet maintains large profit margin potential. American buyers have been showing increased interest in European and Japanese manufacturers. A study in 1990 revealed 11% of Americans wanted to purchase European luxury cars, a number that has increased to 23% in 1999. ...