Automobile Industry Crisis
Habib Alhadai
December 12, 2012
PROFESSOR NAME
CLASS
Automobile Industry Crisis
People depend on their cars for everyday life. They need it to go to work, school, and events. What if one day the automotive industry crashes? People across this country rely on this industry to provide them the safest and most affordable cars. But just recently the car companies in Detroit almost came to an end. Just in "Ohio, about one out every eight jobs has ties with the carmakers" (Cohn, 2012). If these industries did actually come to an end then it would have caused so many people to lose jobs in the Metro Detroit area as well as surrounding areas. However, The Big Three Companies such as General Motors, Ford, and Chrysler, almost did crash do to their debt, lack of effort put in their companies, bad business decisions and foreign competitors.
My topic is the automotive industry crisis. Automotive industry crisis is the first key term that I would like to discuss. This can be defined as the time in late 2008 when the Big Three automotive companies where on the verge of going bankrupt, so they came to the government for money. If they didn't receive the money from the government within a certain time frame then they would have to file for bankruptcy and millions of automotive factory workers would have lost their jobs. This was a big issue especially for Detroit, because Detroit is the automotive capital of the world. Another issue that influenced this crisis was foreign competitors. American people started buying cars from foreign companies such as Honda and Toyota. Cohn explains this in his article by saying, "The American automakers were in trouble long before Chrysler and GM came to Washington in late 2008, seeking emergency assistance. Once models of American efficiency and emblems of American industrial power, the companies had struggled to keep up with foreign competitors" (Cohn, 2012). This shows that they weren’t up to scale in their cars because many Americans weren’t
December 12, 2012
PROFESSOR NAME
CLASS
Automobile Industry Crisis
People depend on their cars for everyday life. They need it to go to work, school, and events. What if one day the automotive industry crashes? People across this country rely on this industry to provide them the safest and most affordable cars. But just recently the car companies in Detroit almost came to an end. Just in "Ohio, about one out every eight jobs has ties with the carmakers" (Cohn, 2012). If these industries did actually come to an end then it would have caused so many people to lose jobs in the Metro Detroit area as well as surrounding areas. However, The Big Three Companies such as General Motors, Ford, and Chrysler, almost did crash do to their debt, lack of effort put in their companies, bad business decisions and foreign competitors.
My topic is the automotive industry crisis. Automotive industry crisis is the first key term that I would like to discuss. This can be defined as the time in late 2008 when the Big Three automotive companies where on the verge of going bankrupt, so they came to the government for money. If they didn't receive the money from the government within a certain time frame then they would have to file for bankruptcy and millions of automotive factory workers would have lost their jobs. This was a big issue especially for Detroit, because Detroit is the automotive capital of the world. Another issue that influenced this crisis was foreign competitors. American people started buying cars from foreign companies such as Honda and Toyota. Cohn explains this in his article by saying, "The American automakers were in trouble long before Chrysler and GM came to Washington in late 2008, seeking emergency assistance. Once models of American efficiency and emblems of American industrial power, the companies had struggled to keep up with foreign competitors" (Cohn, 2012). This shows that they weren’t up to scale in their cars because many Americans weren’t
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