Bijal Shah
Ashford MGT 330: Management for Organizations
Georginne Parisi
July 14, 2008
After strong economic growth for the past a couple of(prenominal) years, the last twelve months suck up been a real struggle for the U.S. economy and it is unclear if the closing is in sight. Working for an investment firm I am fairly close to the economy and its issues and therefore writing this piece is very interesting to me. I could move over picked from a few different struggling industries, however I am deprivation to focus on the U.S. railroad car sector.
For years now, the ‘Big 3’ auto makers; General Motors, Ford and Chrysler, have been struggling to contend against the likes of Honda and Toyota because of the higher labor costs the domestic companies face versus their multinational counterparts. The cheaper labor enabled the foreign OEMs to be able to sell their cars for cheaper which oer time has led to significant market share press release by the Big 3. As oil prices have increase to as high as $145 per barrel the property has worsened. The ‘Big 3’ focused on manufacturing larger trucks and sports utility program vehicles and with $4.00 gas throughout the country sales of these gas guzzlers have severely been hit.
All three manufacturers have arrived prototype digit declines in sales year over year, or when comparing June 2008 to June 2007.
So if $4.00 gas is here to stay, what effect volition that have on the auto industry and specifically the U.S auto industry. The ‘Big 3’ has been unprofitable and losing market share for onetime(prenominal) now and I do not see things acquire better anytime soon. I can speak from personal experience that I prefer the design and reliability in Japanese cars over the U.S. Almost all of my friends and family drive foreign cars. In my opinion, Ford, GM and Chrysler are going to have get more than concessions out of its expensive unions and also invest heavily into redesigning its fruit line to compete...If you want to get a full essay, ready it on our website: Ordercustompaper.com
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