Automobile Industry Analysis Paper
Economics of General Motors
The role of the automotive industry in U.S economy is quite important. Given the multiplier effect, its impacts on other industries such as glass, steel and rubber, so it is considered an industry that shows some level of welfare in the economy one that has a greater share of production in manufacturing. The automobile industry provides thousands upon thousands of jobs, and in the last century the automobile has revolutionized the world, and become an indispensible aspect of the global culture. In the past, investing in the automobile industry was not considered risky; however with the bankruptcy of GM, investors might begin thinking twice about investing in this particular industry.
Car manufacturers have adjusted their production and almost all vehicle-producing countries experienced a sharp drop in 2010 of output growth. The decline was particularly marked in Spain and Italy. United States, the decline of automobile consumption of durable goods and investment vehicle production businesses contributed 20 to 30% decline in production complete the second half of 2010. The current downturn in car sales appears more pronounced than the fundamentals such as revenue growth and …show more content…
There could never be an automobile company without business savvy people to run the companies. Therefore it is inevitable that wage inequality affects the automobile industry. Some feel that the NAFTA or North American Free Trade Agreement is responsible for lowering the wages of workers in the United States, including automobile workers. One article mentions that as long as companies know they can go to Mexico, where the cost of labor is much cheaper, workers will never get the benefit of higher wages in the United States. There are several visual props, including tables and graphs, available on the internet which shows the decline of available US jobs since 1993, when NAFTA was first
The role of the automotive industry in U.S economy is quite important. Given the multiplier effect, its impacts on other industries such as glass, steel and rubber, so it is considered an industry that shows some level of welfare in the economy one that has a greater share of production in manufacturing. The automobile industry provides thousands upon thousands of jobs, and in the last century the automobile has revolutionized the world, and become an indispensible aspect of the global culture. In the past, investing in the automobile industry was not considered risky; however with the bankruptcy of GM, investors might begin thinking twice about investing in this particular industry.
Car manufacturers have adjusted their production and almost all vehicle-producing countries experienced a sharp drop in 2010 of output growth. The decline was particularly marked in Spain and Italy. United States, the decline of automobile consumption of durable goods and investment vehicle production businesses contributed 20 to 30% decline in production complete the second half of 2010. The current downturn in car sales appears more pronounced than the fundamentals such as revenue growth and …show more content…
There could never be an automobile company without business savvy people to run the companies. Therefore it is inevitable that wage inequality affects the automobile industry. Some feel that the NAFTA or North American Free Trade Agreement is responsible for lowering the wages of workers in the United States, including automobile workers. One article mentions that as long as companies know they can go to Mexico, where the cost of labor is much cheaper, workers will never get the benefit of higher wages in the United States. There are several visual props, including tables and graphs, available on the internet which shows the decline of available US jobs since 1993, when NAFTA was first