In the current U.S. auto industry, overall sales have fallen in August 2010 by 21% compared to the same month last year. This is mainly due to the “Cash for Clunkers” program that was instituted during the heat of the recession. Auto manufacturers have noted that slower sales are a result of uncertainty in the economy, high unemployment, weak home prices, and an unsteady stock market. These factors will be key determinants in the future of this industry as the year progresses. Primarily, only individuals who have owned their cars for a long time and are due for a new car are interesting in purchasing a vehicle.
Foreign automakers have created an impact in the auto industry, but are becoming less dominating forces as Toyota struggles to maintain its image. Overall sales of Toyota vehicles have fallen 34% as some of its most popular models plunged. The growing concern over the health of American carmakers has forced GM, Ford, and Chrysler to reconsider the quality and image of their vehicles. An increased concern in the American auto industry has made car buyers reconsider buying a domestic car instead of an import.
Source:
Bennett, J., & Ramsey, M. (2010, September 1). U.S. Car Sales Plunged in August.
The Wall Street Journal. Retrieved from http://www.wsj.com
So do you think car buyers are more keen to buy a domestic or a foreign car right now?
ReplyDeleteI think in most ways even what we call "domestic" cars have foreign aspects because american car manufactures are globalizing their industry and finding it cheaper to have their cars manufactured in factories across the world. So I don't really feel like there are any true domestically made cars.
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