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At its peak in the 1950s and 1960s, automobile manufacturing was the largest, most profitable industry in the United States and residents of industry hubs like Detroit and Flint, Michigan had some of the highest incomes in the country. Over the last half-century, the industry has declined, and American automakers now struggle to stay profitable. How did the most prosperous industry in the richest country in the world crash and burn? In Wrecked, sociologists Joshua Murray and Michael Schwartz offer an unprecedented historical-sociological analysis of the downfall of the auto industry. Through an in-depth examination of labor relations and the production processes of automakers in the U.S. and Japan both before and after World War II, they demonstrate that the decline of the American manufacturers was the unintended consequence of their attempts to weaken the bargaining power of their unions. Today Japanese and many European automakers produce higher quality cars at lower cost than their American counterparts thanks to a flexible form of production characterized by long-term sole suppliers, assembly and supply plants located near each other, and just-in-time delivery of raw materials. While this style of production was, in fact, pioneered in the U.S. prior to World War II, in the years after the war, American automakers deliberately dismantled this system. As Murray and Schwartz show, flexible production accelerated innovation but also facilitated workers’ efforts to unionize plants and carry out work stoppages. To reduce the efficacy of strikes and combat the labor militancy that flourished between the Depression and the postwar period, the industry dispersed production across the nation, began maintaining large stockpiles of inventory, and eliminated single sourcing. While this restructuring of production did ultimately reduce workers’ leverage, it also decreased production efficiency and innovation. The U.S. auto industry has struggled ever since to compete with foreign automakers, and formerly thriving motor cities have suffered the consequences of mass deindustrialization. Murray and Schwartz argue that new business models that reinstate flexible production and prioritize innovation rather than cheap labor could stem the outsourcing of jobs and help revive the auto industry. By clarifying the historical relationships between production processes, organized labor, and industrial innovation, Wrecked provides new insights into the inner workings and decline of the U.S. auto industry.
A concise 1995 review of the strengths and weaknesses of the British motor industry during the one hundred years since its foundation.
The Australian car industry is almost 120 years old, and has become part of the nation's industrial and social fabric. With protection from the federal government in the early years, and co investment more recently, the industry thrived, and dragged Australia out of the farm era and into the ranks of industrialised countries. These days, the industry has provided a great return on the taxpayer investment; income tax paid by automotive workers repays the taxpayer three times over. But this was not good enough for prime minister Tony Abbott, or his austerity-minded treasurer, Joe Hockey. They decided to bully the carmakers into leaving so the government could save a few dollars
This volume presents realistic estimates for the level of fuel economy that is achievable in the next decade for cars and light trucks made in the United States and Canada. A source of objective and comprehensive information on the topic, this book takes into account real-world factors such as the financial conditions in the automotive industry, costs and benefits to consumers, and marketability of high-efficiency vehicles. The committee is composed of experts from the fields of science, technology, finance, and regulation and offers practical evaluations of technological improvements that could contribute to increased fuel efficiency. The volume also examines potential barriers to improvement, such as high production costs, regulations on safety and emissions, and consumer preferences. This practical book is of considerable interest to car and light truck manufacturers, policymakers, federal and state agencies, and the public.
One of the principal arguments put forth by Brexit supporters is that by freeing the UK from the stranglehold of EU law, the country will be able to expand its markets through increased bilateral trade and enhance economic growth. This book tests this proposition by reference to the car industry. Brexit and the Car Industry explores the international position of the car market to argue that the hope of Brexit bringing regulatory freedom is illusory. The book starts by examining the structure of the vehicle industry, how its regulatory framework evolved and how the environment in which it operates is constrained by international standards and the practicalities associated with trading across different regulatory systems. By examining the evolution of vehicle regulations, particularly related to the environment, it argues that a UK independent path is not only impractical but self-defeating. The private car market is structured in such a way that is global, and meeting the various international regulatory requirements is a price of entry requirement which no bilateral trade agreements are likely to alter. The book also considers changing environment affecting the car industry in the context of an aspiration for regulatory freedom. The response to climate change and the impact of technological change – specifically driverless vehicles – are big questions for the industry and both are examined in this book. The book also considers the emergence of large metropolitan areas imposing their own use and environmental requirements operating separately to national standards. The future of electric and autonomous vehicles combined with the complexity of the regulatory environment with both international and localised pollution measures make the UK navigating a safe independent path through with a viable car industry highly questionable. Providing a comprehensive review of the relationship between regulatory frameworks and free trading models, this book is aimed at industry and legal professionals. It will also be of interest to students studying market behaviour, free trade law and the free movement of goods, and environmental protection.
"What better opportunity than now to strengthen your business and come out of the recession even stronger? David Rhodes and Daniel Stelter provide an easy-to-understand perspective on the current economic environment, and some practical strategies to help readers come out ahead. A timely read for all who care about their business." —Paul Polman, CEO, Unilever "This is the most comprehensive assessment of the global economy that I've seen and is a must-read for any business, economic, or governmental-related leader". Jeff M. Fettig, Chairman & CEO, Whirlpool Corporation “A fascinating account of the causal factors of the meltdown and what we can do to avoid repetition.” Sanjay Khosla, Executive Vice President and President, International for Kraft Foods "This book combines brilliant analysis and strategic insight with a clear message: Companies that want to play a role in tomorrow's markets must act immediately. There's no place for complacency. The opportunities in the post-crisis world are good--and better than many might think." Dr. Jürgen Hambrecht, CEO, BASF "The lessons from companies that came out winners during past recessions are invaluable in the current context. Rhodes and Stelter strike a welcome note of optimism in today's tough times by showing that companies can do a lot to thrive when the global economy is struggling." Dr. Dieter Zetsche, CEO, Daimler "There are great lessons for today's chief executives: well-managed companies can prosper in the downturn and accelerate faster than their competitors in the upturn. Rhodes and Stelter have dug deep into history to vividly show how companies can do it." Dr. Martin C. Halusa, CEO, Apax Partners Worldwide LLP From the world's leading business strategy consultancy comes this essential guide to prospering in the aftermath of what is being called the Great Recession Accelerating Out of the Great Recession, by The Boston Consulting Group's David Rhodes and Daniel Stelter, is a call to action for today's executives. It shows how companies can win in a slow-growth economy by seizing the initiative--differentiating themselves from less fleet-footed rivals and executing their strategies with single-minded determination. It combines comprehensive and big-picture analysis of the global economic meltdown with smart management advice on how to win in an era of greater competition. The book is underpinned by a historical review of great companies that survived and thrived in past downturns, along with two new surveys of top executives and insights drawn from discussions with corporate leaders around the world. As such, it offers the clearest, most authoritative assessment yet of some present-day trends and "new realities"--and what they mean for business. Accelerating Out of the Great Recession shows today's executives how to: Learn from the decisive actions taken by companies such as General Electric, IBM, and Proctor & Gamble in order to accelerate out of past downturns Take the fight to your competitors--diversify and expand now, while other businesses are affected by the downtown Shake off conventional wisdom to protect and grow your market share Develop a new managerial mindset for today's tough times Backed by exceptional research and outstanding, up-to-the-minute advice, Accelerating Out of the Great Recession explains the magnitude and enduring nature of changes that have taken place in the global economy and how you can outperform today to create and sustain an advantage over your competitors for the long haul.
Analyzes the reasons for the failures of the American auto industry to compete with foreign imports and to make use of modern technology and styling.
Account of how and why cars kill, and why the automobile manufacturers have failed to make cars safe.
Detroit was established as a French settlement three-quarters of a century before the founding of this nation. A remote outpost built to protect trapping interests, it grew as agriculture expanded on the new frontier. Its industry leapt forward with the completion of the Erie Canal, which opened up the Great Lakes to the East Coast. Surrounded by untapped natural resources, Detroit turned iron into stoves and railcars, and eventually cars by the millions. This vibrant commercial hub attracted businessmen and labor organizers, European immigrants and African Americans from the rural South. At its heyday in the 1950s and ’60s, one in six American jobs were connected to the auto industry and Detroit. And then the bottom fell out. Detroit: A Biography takes a long, unflinching look at the evolution of one of America’s great cities, and one of the nation’s greatest urban failures. It seeks to explain how the city grew to become the heart of American industry and how its utter collapse resulted from a confluence of public policies, private industry decisions, and deep, thick seams of racism. This updated paperback edition includes recent developments under Michigan’s Emergency Manager law. And it raises the question: when we look at modern-day Detroit, are we looking at the ghost of America’s industrial past or its future? Scott Martelle is the author of The Fear Within and Blood Passion and is a professional journalist who has written for the Detroit News, the Los Angeles Times, the Rochester Times-Union, and more.
“A definitive account . . . It’s hard to imagine anyone better than Paul Ingrassia to ‘ride shotgun’ on a journey through the sometimes triumphant, often turbulent, history of U.S. automaking. . . . [A] wealth of amusing, astonishing and enlightening nuggets.”—Pittsburgh Tribune-Review This is the epic saga of the American automobile industry’s rise and demise, a compelling story of hubris, missed opportunities, and self-inflicted wounds that culminates with the president of the United States ushering two of Detroit’s Big Three car companies—once proud symbols of prosperity—through bankruptcy. With unprecedented access, Pulitzer Prize winner Paul Ingrassia takes us from factory floors to small-town dealerships to Detroit’s boardrooms to the White House. Ingrassia answers the big questions: Was Detroit’s self-destruction inevitable? Why did Japanese automakers manage American workers better than the American companies themselves did? Complete with a new Afterword providing fresh insights into the continuing upheaval in the auto industry—the travails of Toyota, the revolving-door management and IPO at General Motors, the unexpected progress at Chrysler, and the Obama administration’s stake in Detroit’s recovery—Crash Course addresses a critical question: America bailed out GM, but who will bail out America? With an updated Afterword by the author Praise for Crash Course “In order to understand just how much of a mess it was—not to mention how it got that way and how, if at all, it can be cleaned up—you really need to read Crash Course.”—The Washinton Post “Ingrassia tells Detroit’s story with economy, vigour and restrained fury.”—The Economist “A delightful mix of history and first-person reporting . . . Employing superb storytelling skills, Ingrassia explains in head-shaking detail the elements of a wholly avoidable collision.”—Kirkus Reviews (starred review)