Ny Times Automobile Section

By admin, June 20, 2007 4:22 pm

ny times automobile section

The motor vehicle is the most important treasure for the second most Americans after the housing. The motor vehicle and parts industries employ 732,800 workers, reported in September 2008 and the Detroit Three of 239,341 hourly employees and salary workers in the United States in late 2007. Over 9 million people are employed in the automotive industry worldwide.

The U.S. automotive industry has always been the largest in the world. The U.S. economy depends directly from the automobile industry and the automotive industry contributes to a higher level of output into the United States than any other industry one of the other, and this result has been increasing until the year 2008.

The contribution of automobile production for the U.S. GDP was despite considerable structural transformation in the global economy. Many other industries are also indirectly related to or dependent on the auto motive industries. For example, industries metals are based on purchases in the automotive industry for a major part of their production. Thus, the U.S. economy is driven by the automotive industry for no doubt.

All this went on until the global recession hit the U.S. economy. This large scale recession had a hand in reducing of slow auto sales and the crisis in the auto industry. Many think that the crisis was mainly the result of bad business practices of the U.S. Big Three automakers. December 22 2008 New York Times article stated: "For the most part, automobile transplants called — foreign-owned car with major operations in the United States – have much money and credit enough, and do not face potential bankruptcy as General Motors and Chrysler. "

Americans are three major automobile, now recently, the "Detroit Three" are General Motors, Ford and Chrysler. Three of Detroit was destabilized by the increase in automobile fuel that is linked to the oil crisis, which automatically discourage customers buy sport utility vehicles with fuel economy.

With the other side of the option as a vehicle fuel economy, like green cars, sales of the three large cars declined slowly. Criticism of three alignments face their constant regardless of the rise fuel prices. Finally, customers in North America went to vehicles with high fuel economy of Japanese and European car manufacturers. The big three are facing financial losses and thus were idle factories and drastically reduce the employment rate.

The sudden crisis impacted not only based industries in the U.S. but also in foreign-based automakers.

Employment effects:

Direct: reduction of income due to employers cutting jobs at the Detroit Three.
Indirect: Changes in employment due to the cancellation of the purchase of inputs to the automobile.
Spin-off: These include the costs induced by the effects on the economy.

If only we could separate U.S. economy automotive industry, the solution to the economic crisis would be permanent in my view. It's good not to depend on a single large industry always an economic benefit of a country. Why rain automobile industry must worry us all the time? Do you have decreased production auto industry would mean that the employment rate of countries should go down? If the automotive industry could incorporate high-efficiency technologies fuel vehicles, which could increase the average fuel efficiency of 40 mpg. If the industry conversion of its fleet of new vehicles to gasoline-electric hybrid vehicles, which could give consumers 60 mpg.

If we want a safe country and developing, need to kick the oil habit.

Miguel Covarrubias is an author for Car Shipping. He has written various articles on Car Shipping.

Automobiles: The 2009 Detroit Auto Show – NYTimes.com/Video



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