The global auto industry: Dire on some fronts; Better on others
Summary :
Table of Contents
- Introduction
- The North American automobile industry
- Conditions imposed upon the automakers by the US federal government
- Competition by other countries
- The deteriorating market conditions in the US
- Conclusion
- References
Abstract
The auto industry, especially in North America and Europe, seems to have nothing but bad news these days. Whether the subject is government bailouts, downsizing, labor relations, job losses, bankruptcy, mergers, or the price of gasoline, it appears to be one depressing piece of news after the next. some alarmists even suggest that North America will not even have a car industry to speak of in a few more years, and there have been lawmakers in the USA, especially on the Republican side of the Congress, who think it best to just let Detroit's Big Three (GM, Ford, and Chrysler) die a quiet death.
True free marketers believe that if Detroit can't survive, it's simply because foreign car makers make better cars, period. This paper will first look at the worldwide developing trends in the auto industry, and then pay closer attention to the effects of globalization, labor relations and job losses within the auto industry, particularly as it affects the North American auto industry. The future points to further contract concessions and large-scale buyout or early retirement offers in North America and Western Europe, subsequent weakened collective bargaining, further global consolidation of mass producers, and an even greater reliance on emerging markets for future sales.
True free marketers believe that if Detroit can't survive, it's simply because foreign car makers make better cars, period. This paper will first look at the worldwide developing trends in the auto industry, and then pay closer attention to the effects of globalization, labor relations and job losses within the auto industry, particularly as it affects the North American auto industry. The future points to further contract concessions and large-scale buyout or early retirement offers in North America and Western Europe, subsequent weakened collective bargaining, further global consolidation of mass producers, and an even greater reliance on emerging markets for future sales.
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