Car Industry
To cope with the economic downturn, both businesses and the government in the United States implemented various relief programs. One of these was the Consumer Assistance to Recycle and Save (CARS) program, also known as the "Cash for Clunkers" program. This program was implemented during July and August in 2009, and offered consumers $3,500 or $4,500 in return for older vehicles that were traded in for newer, more fuel-efficient ones. The program was administered by the National Highway Traffic Safety Administration (NHTSA). While some believe that the program was very successful in reaching its objectives, others believe that the program did not fully reach its objectives or benefit all stakeholders.
The two main objectives of the Cash for Clunkers program were to help stimulate the economy during the time of the downturn, and secondly to put more fuel-efficient vehicles on the road. According to the Government Accountability Office (GAO, 2010), these objectives were met, although the extent to which it did so remained uncertain. According to the GAO report, 680,000 consumers used credit from the program to purchase or lease vehicles. However, the report also points out that not all these sales are necessarily the result of the program and would have occurred either way. According to a calculation by NHTSA, an estimated 88% of the 677,842 CARS sales were directly attributable to the program, while the average fuel economy of the new vehicles purchased or leased was 24.9 miles per gallon. The average fuel consumption of the vehicles traded in was 15.7 miles per gallon.
In terms of specific benefits, the GAO reported that eligible consumers benefited by receiving credit for purchasing a new vehicle.
The scrap and salvage industry reported mixed results in terms of benefits from the program. Vehicle manufacturers and dealerships mostly benefited by means of increased sales, although there were some administrative challenges. It therefore appears that most stakeholders benefited from the program.
Fox (2009) confirms that the program was "spectacularly successful" during the time of its existence. At the time of writing, the author noted that...
growth of the Korean automobile industry in the Unites States from a trade and finance perspective. Use eight sources of information. Korean Auto Industry Red To begin an investigation into the Korean automobile industry, we first have to start with some basic facts about the Korean Passenger car Industry. The South Korean auto industry is the second largest in Asia and has been one of the key growth industries, along with construction, shipping
The process would then need to continue so that the changes that can be seen in the environment can also affect the changes in entry strategies. Environmental factors, economic factors, political/legal factors, social/cultural factors and also technological factors should all be considered. The legal factors that need to be addressed include issues in employee law, monopolies and mergers legislation, environmental protection laws, and wider issues such as foreign trade regulations.
Government Intervention in the Steel Industry The Bush administration announced the imposition of sweeping tariffs of up to 30% on steel imports to the United States for a period of 3 years in March 2002 purportedly to save the ailing steel industry from collapsing. Predictably, the action has invited particularly harsh criticism from the U.S. trade partners that have been directly affected by the tax, i.e., the European Union, Japan, and
2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will
(Das; Puri, 2003) Innovation Management systems are also able to generate structured processes for evaluation and sharing ideas, such that decision makers are able to target those who possess the maximum potential. Nevertheless from the perspective of a manufacturing industry, the two costs which are important are material cost and processing costs which together accounts for 60% to 70% of the cost of goods sold. Material cost reduction in this
Government Subsidized Student Loans Have Economic Costs but Political Benefits Higher education has become increasingly important in the contemporary world scenario today where globalization has led to a higher need for a skilled labor force that is mobile and that is well-versed in the academic disciplines followed all over the world. In fact university education is starting to be seen as a hallmark for success, even though there are college drop
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