Once, US auto industry was considered to be the toughest market to compete with, but since few years, it is not able to compete tough due to various reasons. In 1999, US auto industry has received poor sales performance, but since then it has showed only positive sales growth. In spite of this positive growth, the US auto industry has not reached to its earlier sales value.
Japan and Germany motors are drastically increasing their production and are coming with low price benefits than US manufacturers. These manufacturers are competing with the US auto market and reducing the US automakers market share in local markets. Previously, US auto manufacturers were considered as a symbol of dominance in the local market, but their dominance is decreasing now.
Here under are few facts of US auto industry which explain the decline sales of local manufacturers and the decrease in its dominance in local markets.
- Present technology has led to the invention of high lifetime vehicles. So, the new car sales will be coming down which impact the future car sales.
- External competition in the chief areas of production and distribution is reducing the sales of domestic manufacturers.
- Japan, Germany car manufacturers are now leading the US auto industry with increasing market share value.
- Local manufacturers are having less dominant in domestic markets. For example, the number one car manufacturers in US, GM’s market share in 1970 was 60% but in 2011 it was 20%.
- US based facility workers have less productions, whereas, Mexican workers production capabilities are 10 times more than the US workers.
- Reducing manpower in plants, manpower in 2000 was 1.3 million but in 2011 the plants were with 698,000 people.
- Increasing exports to US is also reducing the local manufacturers domination in local markets.
Along with these facts, US car manufacturers are focusing more on external markets. For example, US automakers are focusing on China market.