Automotive Industry Essay
A third valid point regarding the problem of a low demand towards cars is the credit crunch happening due to the global recession in 2008, which made it much harder for people to get loans from financial institutions and ultimatley made it more difficult for consumers to purchase a car. Another problem within the car industry is the fact that there isnt much competition and there isnt much room for new companies to evolve since major companies like crystler, GM or Ford are in a dominant position within the American industry. The only competition the companies are getting within the US market are from oligiopolic companies from other parts of the world. The fact that these companies were able to take over and control other major car manufacturing companies gave incredible power to the mother companies and made it basically impossible for new companies to be successful without being bought by one of the leading firms.
Moreover there has been a change in taste within the car industry regarding cars being environmently friendly as well as making them economically more efficent, which in other words means make the cars use less fuel. This change in fashion came due to the rising oil prices as well as a globally higher awareness of our environment. Consumeres generally also tend to buy rather