Environmental aspects affecting the automotive industry

University Degree Business and Administrative studies

Environmental aspects affecting the automotive industry

Social

1. Record number of passenger vehicles has resulted in increased traffic congestions (W)

2. Growing number of cars are contributing to urban pollution (W)

3. Pricing at affordable levels, better quality and other factors have contributed to more vehicles per household (S)

4. Higher percentage of women are working- employed persons per household are up (S)

5. People are earning higher incomes which allows them to spend more (S)

6. Auto companies see commercial future for fuel cell-powered vehicles (S)

B. Economical

Consumers feel less confident about economy as gas prices soar (W)
Consumers have shifted from large to smaller SUV's to respond to rising gas prices (W)
Desire for hybrid cars which is prompted by high oil prices (S)
Automotive industry consumes large shares of all iron, steel, aluminum, rubber and plastic produced in U.S. (W)
Hybrids need market penetration to make a difference (W)
Hybrids cost about $6K - $14K over base models (W)
Major shift to hybrids poses problems for automakers who have invested heavily in large SUV segment (W)

The Top 5 Performers ranked by Sales are:

General Motors Corporation
Ford Motor Company
Daimler Chrysler AG
Toyota Motor Corporation
Volkswagen AG

C. Political/Regulatory

Stricter emission requirements have manufacturers under pressure (W)
Clean Air Act regulations on the release of volatile organic chemicals from vehicles (W)
Given the Kyoto protocol to global warming automakers are being pressured to make early reduction in their greenhouse gas emissions

D. Technological

...

This is a preview of the whole essay

The Top 5 Performers ranked by Sales are:

General Motors Corporation
Ford Motor Company
Daimler Chrysler AG
Toyota Motor Corporation
Volkswagen AG

C. Political/Regulatory

Stricter emission requirements have manufacturers under pressure (W)
Clean Air Act regulations on the release of volatile organic chemicals from vehicles (W)
Given the Kyoto protocol to global warming automakers are being pressured to make early reduction in their greenhouse gas emissions

D. Technological

The advent of Intelligent Assist Devices aided in reducing ergonomic concerns, while also improving safety, quality and productivity (S)
To improve quality and efficiency, automakers invest large amounts and rely heavily on research and technological innovation (S)
The movement toward electric powered vehicles began as a result of the 1973 oil embargo (S)
Production of gas electric hybrids signifies the first significant move away from total reliance on the internal-combustion engine In nearly a century (S)
Automakers have invested billions of dollars in projects to develop hydrogen fuel cell technology (S)
Advanced vehicle operating system and vehicle sensor technology to serve as collision-avoidance systems (S)
Investing in hydrogen fuel cells and introducing more hybrids (S)
New technologies are available and looking for homes in new vehicles, but process is complex (W)

E. International

A global competitive market place and increasing global trade (S)
Globalization due to construction of overseas facilities (S)
Establishment of mergers between giant multinational automakers (S)
Export of fuel-efficient cars from Japan (W)
Continuing investment into production facilities in emerging markets (S)

Mission

∙The global auto business grows more competitive every year. To succeed, to continue leading the industry, we at General Motors must work to be the best in every facet of our business, including the way we conduct our business. At GM, we’re committed to leading not only with our products and business results, but economically, socially, and environmentally, as well.

∙General Motors enjoys a long tradition of accountability, integrity, and transparency that has helped establish our reputation as a leader in corporate responsibility. We place a high value on communicating clear, consistent, and truthful information about our performance to our employees, suppliers, dealers, investors, and customers.

∙At GM, we will continue to work toward innovative solutions to our society’s economic, social, and environmental challenges.

∙Now we’re shifting into high gear – celebrating our successes on the run, never satisfied, never complacent, but always moving, always forward. Becoming the best is an unending journey, a constantly changing destination

Strategic Objectives

∙At GM, we believe it is critical that we achieve success by doing things the right way, all around the globe.

∙Work together globally, leveraging considerable resources – not the least of which is the talent of GM’s people all around the world – to develop exciting new products.

∙Team up with global partners involving in various product, powertrain and purchasing collaborations.

∙Manage technology collaborations and vehicle manufacturing ventures with several automakers around the world.

∙Staying aggressive in the marketplace, continue to improve cost competitiveness, and getting stronger by many financial measures.

∙Determined to improve profitability and further strengthen the balance sheet, fund future products and growth plans, and create shareholder value.

∙Plan to do this by sticking to our strategy: introducing great cars and trucks; staying aggressive in the marketplace; reducing costs and improving quality; and generating more cash.

Recommendations

∙To take advantage of the growing number of people that can afford to buy and drive a car. To be able to cater to all categories of drivers and to have several customer segments to serve, will determine future success.

∙Fuel cell and hybrid vehicles are the future. Must invest money and research into this field. If GM wants to be competitive and have a substantial market share, they cannot afford to neglect this part.

∙Technology is extremely important in the automotive industry. By taking advantage of the newest technology, GM can improve on safety, environmental aspects and even the use of resources and raw materials used in the cars.