Auto Industry: Analysis the American Thesis

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Abroad, in Europe and Asia, such amenities are provided by the state, not corporations. Additionally, Japanese car makers have benefited from a national culture that stresses loyalty to one's employer, often at the expense of individual rights.

However, even the powerful United Auto Worker's union (UAW) has realized that the solvency of the industry is integral to its future. The Obama Administration has pressured the major American car manufacturers to adopt a new business model, and companies are currently researching improved use of electric, clean and sustainable fuels.

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Historically low interest rates and programs such as 'cash for clunkers' have motivated consumers to begin to buy new cars again. Such measures have resulted in a slight improvement in auto sales, but unless the industry changes its business image and exhibits innovative thinking in car design its future rests on shaky grounds.

Reference

Lifton, Jack. (2008, December 10). Toyota's business model is the reason that Detroit should not be bailed out. Gershon Lehman Group. Retrieved November 30, 2009 at http://www.glgroup.com/News/Toyotas-Business-Model-is-The-Reason-That-Detroit-Should-Not-be-Bailed-Out-29852.html.....

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