Automobile Industry Failure

[Name of the Institute]Automobile Industry Failure

Introduction

The Japanese engineering of vehicles has statistically proven to break down less. To the market and consumers this translates to added value and reliability for the money spent, value driven thought processes are going to be essential and critical to gaining a competitive edge and adding to the core values of General Motors. These automobile companies will no doubt need to remain vigilant with their pursuit of alternative energy vehicles to counteract the issues of rising oil prices and consumer demands for cleaner and cheaper options. The importance of producing a quality long lasting product is more important now than ever. The cost of a vehicle isn't exactly cheap, so the consumers are very cautious where and how they spend their hard earned dollars. If two vehicles are comparable on the scale of appeal but incomparable on the scale of dependability, one being more dependable (Toyota) and the other being less dependable (GM) which one do you buy? I think it's a no brainer; you buy the one that will deliver more value for the money spent (Liker, 2004).

Another factor that has hindered the growth of some companies is the rising cost of human resources. According to Annenberg Political Fact Check, the average salary for an automobile assembly line worker, including benefits and incentives, is roughly seventy dollars an hour (Miller, 2008). Some of GM's solutions for reducing these costs were to automate as much of the manufacturing process as possible to reduce the number of man hours needed per vehicle. . However, with the recent economic downturn, the challenge has been to capture and sustain their market share while adding to their bottom line. During the global economic crisis, management is left no choice but to make critical decisions that will enable their corporations to endure. Widespread change is necessary and was needed to all functions of GM's business, including management style, structure, wages, branding, marketing, and technology. The automobile industry employs nearly ten percent, or one out of ten, of the nation's labor force (Anna, 2012). GM is one of the largest purchasers of U.S. steel, iron, aluminum, copper, plastics, rubber, electronics, and computer chips. So, in essence, the survival of many other American businesses relies on the survival of GM. If GM doesn't make some essential changes to start realizing profits, many of their suppliers will suffer the same inevitable fate. According to the Auto Interiors Conference, U.S. auto sales for all foreign and domestic manufacturers have declined by more than 30%, which is the largest decline in over 50 years. Whether they want that partner is another question. Beginning at the Caboto Club in Windsor the Canadian Auto Workers (CAW) will host the first in a series of cross-country forums to build support for a new National Auto Policy.

Discussion

A more radical piece of economic policy has not been seen in Canada in decades. The campaign is based on a new report released Monday by CAW President Ken ...