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Case Studies on US Automobile Industry

Edited by : Rajendar Singh Rathore
ISBN : 978-81-314-1642-6
Price: $25  ( INR)
202 pages( Hardcover edition )

Snapshot of the casebook

Since its origination in the Europe during the late 19th century, the automobile industry has become the main engine of industrial growth of 20th century. However, the industry has been facing a major plight in the recent years mainly due to the oil price hike during mid-2008, increasing cost of raw materials, the credit crunch, declining consumer confidence and introduction of new environment and safety standards. These factors have resulted in the increase in the overall cost of production, thereby affecting the carmakersí margins. Though it had a detrimental effect on the markets across the globe, the US automobile industry witnessed a major setback. The Detroitís Big Three had been facing a major survival challenge and had already shed over 150,000 jobs since 2005 in a bid to cut costs. However, the roots to their problems can be traced back to 1970s when the industry was hit by severe oil crises. Taking advantage of the situation, the Japanese automakers stormed the market with their fuel efficient and reliable models, which became an instant hit. Carmakers like Toyota now enjoy a leading position in the market.

To this, the Detroit carmakers were very slow to react as they were overburdened with spiralling costs. Though the companies came out with cost-cutting deals in 2006 (after much bargaining with the trade unions), the effect on their net earnings is unlikely to be seen before 2010. Chances are also very less for the US carmakers to mark a success in the fuel-efficient category before 2010. Highlighting the plight of these US carmakers, the book, Case Studies on US Automobile Industry, has assorted some of the finest case studies on the most successful carmakers in the US that were later mired into trouble. The book also discusses the various strategies being implemented by these carmakers to regain their lost market share in the US as well as their search for global status by venturing into new markets.

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