The Effect of a Struggling Economy on the Auto Industry

Introduction When the "subprime mortgage crisis" began in 2008, it caused a global recession. Demand is decreasing in all industries, but the automobile industry is particularly hit hard by the fact that cars are large items. This is awkward for car manufacturers even before the recession, the high price of raw materials and fuels, and the pressure on the government and consumers who manufacture "more environmentally friendly" cars for automobile manufacturers. In the industry, Canadian and American automakers are suffering the most.

The global economic downturn shocked the global automobile industry and pressured the Indian auto industry. India is a strongly growing economy, but the blow to recession brought a red mark on the entire balance sheet of the Indian economy. Therefore, the second challenge is that TATA Motors experienced a recession that began in the 2008-09 season when TATA NANO, the project of Latan Tata's dream to make the cheapest car in the world began. The impact of the economic downturn has a direct impact on the future of the project and how to reduce nanocost to 100,000 rupees ($ 25,000)

In addition, the last factor affecting the automobile industry was the tragedy of September 11. Terrorist attacks had a major impact on the global economy and, of course, the automobile industry. Sales increased due to the influence of September 11th. According to Voice of America report, John Birchard said, "During the first few months after the terrorist attacks in the US on September 11, new vehicle sales of American cars and trucks were promoted by automobile manufacturers interest free financing programs" Said. Bar Chard 1)). As many car companies are concerned about the drop in sales, they have offered a special interested period to motivate customers to buy a car.

Five years ago, President Obama completed the first new fuel efficiency standard in 20 years. The Obama administration, in cooperation with the automobile industry, the American Automobile Workers Association, local Michigan officials and others, is a powerful and flexible company that will improve the fuel efficiency of new American cars from 27.5 mpg to 27.5 mpg in 2011 and beyond We developed a rule. 30.2 mpg / gallon Notwithstanding strong warning from conservatives of the Congress, in the past five years, the US auto industry has created more than 250,000 new jobs and has annual honors of numerous global cars and trucks And is leading the way of worldwide efficiency. Last year, Detroit produced cars earlier than ever since 2005.