American Automobile industry: A Case Study

American Automobile industry: A Case Study

Introduction

Auto industry is one of the top revenue generated industries which has fallen in several crisis in today's age. American Auto industry is facing declination by their less production of the Auto mobiles as compare to other foreign Automakers. The US government used to import large amount of vehicle from Japanese but the native Auto makers pressurized on these uplifting imports to protect the local industry. However, the analysis showed that local industry produce the lowest profit margin for the country in contrast to their competitors and they rely on extra legacy cost which other foreign Automakers are not bearing. In this manner, Local producers asked US government to bailout program in the recent financial crisis as they have insufficient cash flow to endure these expenses.

Discussion

It is been observed that the core reason of the industry diminishing is the great expenditure on Auto retiree's, who have devoted their best services to lead the Auto industry to the top mark. Different media also suggests that the healthcare of Auto retiree's is the major reason of the fall of US Auto industry. The Auto industry is quite different from other industries where the workers are intensely near to harmful toxic elements which can injure them in a harsh way. Therefore it is also important to provide the health measures to the workers because Auto industry holds the great importance in the industrial cities as it contributes the large number of employment, tax revenues to support the local government. The employees of the Auto industry has trust on their organization health and safety officials to protect them from deadly work environment. The different poisonous substances which include welding fumes, pattern maker carcinogen exposure, paint vapors and solvents, die cast part, cutting fluids, asbestos exposure, ...