The Pros And Cons Of The Automobile Industry

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The United States has one of the largest automotive markets in the world, and is home to many global vehicle and auto parts manufactures. In 2016 year alone, vehicle production reached almost 17.5 million passenger vehicles. Automobile industry involves many industries in it. It includes original equipment, manufacture, and adverting industry as well as oil and natural gases industry. Main players of the Automobile industry are Toyota, General motors, Volkswagen, Honda, Ford and more. The Automobile Industry is very complex and to start a business in automobile industry high level of capital investment is required. Not only huge amount of money but also a labor force will be essential, which are the main barriers to enter into the automobile industry. For Example, the US auto industry was once considered safe until Honda Motors gave a big challenge to these companies by opening a manufacturing plant in Ohio. The Automobile industry includes many other industries as well for example, tires and seat manufacture. These industries are the suppliers of the Automobile industry. The automobile industry is are in a more power position that the suppliers. Many of the suppliers are dependent on the auto makers (Kallstrom 2015).Also, bargaining power of the suppliers depends on the reputation. If the supplier is able to provide high quality products of the auto parts than they can expand their contracts with other Auto companies. For example, Lear Corporation operates from 245

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