The Auto Industry

The Auto Industry

In the automobile industry, a great proportion of income comes from selling automobiles. Globalization is the inclination of world investment and business to move from a country and local markets to a worldwide environment, is a major factor that affects the auto market. More than ever, it has been easy for foreign auto dealers to enter the American market creating competition. Competition is a major factor that takes a toll on the auto industry. In America the car making market is driven by what's known as the "Big Three:" Investopedia.com says, “The profits (and losses) of the big 3 are thought to be an indicator of the overall US economy”

· General Motors - produces Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. · Daimler Chrysler - Chrysler, Mercedes, Jeep, and Dodge. · Ford Motor Co. - Ford, Lincoln, Volvo, and Jaguar.

However, Two of the biggest foreign car manufacturers are:

· Toyota Motor Co. · Honda Motor Co.

Mr. Michael E. Porter identified 5 competitive aspects that shape all industries