The Advantages and Disadvantages of the Motor Industry
Ford, Chrysler, Toyota and Mitsubishi are the largest and
best known car manufacturers in the world.
Cars are now almost a necessity in the modern world.
These are used to transport people and goods, for business and pleasure.
The vehicles these companies produce come in different shapes and sizes and colours (even Ford now do more than just black!).
If you want a car all you need do is walk in to one of these companies dealerships,
check if the vehicle satisfies your expectations and then drive it home.
The motor industry has grown since the end of World War II.
Cars are more comfortable, spacious and elegant.
You can choose between bigger and more powerfull engines,
or engines built for fuel efficiency.
The advantage for consumers of the open markets in the automobile industry are
that the stiffer competition keeps the research and design divisions
working constantly to build better, cheaper, more powerful, more fuel efficient cars
to satify their customers.
.
In the 90’s the first hybrid car was introduced into the market.
Other manufacturers have quickly followed and developed similar models.
The fluctuating price of oil in the world market has helped the sales of
both hybrid and compact cars.
People who once owned SUV’s have also replaced them with cars with smaller engines.
The United States Motor industry is the strongest in the world.
But things have changed. Due to deals and agreements with foreign countries,
new cars are competing with local brands.
Since the new vehicles are cheaper and sometimes better, sales have suffered.
Recently, Ford announced 30,000 jobs cuts as part of the restructuring campaign caused by falling sales.
Other companies such as Volkswagen are also reducing their workforce.
In spite of job losses in parts of the motor industry, in other areas the automotive industry has generated new jobs.
The United States, just like Japan and Germany have moved manufacturing operations overseas.
This is because the cost of labor is cheaper and there is a market for those vehicles in those countries.
The disadvantage of work going overseas is that a lot of Americans will not have jobs.
This in turn will increase unemployment and people who have been working on the assembly line for years will
have a hard time looking for a new job.
The automotive industry has also made old rivals into friends.
Chrysler has merged with Daimler-Benz. Ford has made similar arrangements with Volvo.
The combining of technologies and know how of such partnerships has led to the development of better vehicles.
This as some analyst say is just the beginning of more global consolidations in the future.
The oil problem has also prompted manufacturers to try finding alternative fuels to power these vehicles.
Japan has developed the electric car. Some countries in Europe are trying to use sugar cane oil to replace diesel.
The disadvantage of this partnership will forever change how these cars are developed.
Volvo had a way of making a car. Ford had a certain approach.
Each of these companies had an x-factor that distinguishes one brand from another.
The advantages of the motor industry outweigh its disadvantages.
Though this might make the world one giant corporation,
as long as there is a demand from the consumer,
manufacturers will continue to build better,
safer more reliable and more efficient vehicles.
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