A Very Brief History of the American Automotive Industry...

Purchasing a car is one of the biggest and most important decisions that someone will make during their lifetime. Over the past several years, the prices of a vehicle have increased significantly due to the rise of inflation. Economists compare averages of vehicles to calculate and determine the cost of every vehicle that ends up on the car lot. To determine the cost they interpret all the above information and include everything from the cost of making the vehicle to the time of selling it. In the long run, the demand for vehicles is inelastic because they become a necessity for many people. However, in the short run, the demand is elastic because the purchase of a new vehicle can be put off for a while. After the steam engine was†¦show more content†¦This new industry not only created many jobs for the assembly line in the factories, but because the cars were made of steel and rubber many other industries was boosted in employment as well. As these cars became more popular, like most things in the United States, this market became very appealing to businessmen. Entrepreneurs became intrigued by the enormous demand for the automobile, so slowly more and more companies started to develop and evolve the model T into the cars and trucks we see on the roads today. The automobile industry has fluctuated greatly through the past several decades. In 2008 the United States economy entered a recession, which took a huge toll on the automobile industry. The industry was dramatically hurt by the increase in fuel prices due to the energy crisis in 2003-2008 (Industry Facts). This caused a huge decrease in sales of SUV’s and trucks since they had the lowest mile per gallon ratings. General Motors, Ford, and Chrysler used these types of vehicles as their primary target because they were the highest profit yielding type of automobiles. As the price of fuel increased, the sales started to slide for the three major companies, so they had to make price cuts and discounts on their vehicles in order to stay afloat. However, even this could not help save and some of the automobile producers had to file for bankruptcy and get government bailouts, GMShow MoreRelatedThe Effect Of Lean Production On A Process Plant Essay1138 Words   |  5 PagesHARRY DEB OLE Griffith School of Engineering, Griffith University, Gold Coast, QLD4222, Australia This paper presents a review of the use of Lean Production in a process plant. It defines lean production as a process putting into consideration the history and the reason it was formulated. It also considers the application, benefits and the barriers to the effective maximization of the process. Keywords: Lean Production, Process plant, Definition, Applications, Benefits, Conclusion 1. DefinitionRead MoreFord Essay1041 Words   |  5 PagesMotor Company Final Paper – ECO201 14EW1 Karen J. 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