i need to complete the project for economics class

Economics Project

By

Ziad El Khatib

Economics Issues and Concepts

ECON 2333

March 17, 2019

The fast paced technological advancements and different innovation strategies that have impacted every other industry in the world, car industry is also one of the most influenced industries. Companies like General Motors and Ford Motor Company are two of the oldest competitors and market leaders in the market. However, given the changing needs and expectations of the target audience, the car maker companies are more pressurized to introduce cars with features that beats any other product in the market.

The auto industry in US is one of the largest industries employing over two million employees in 2017 (Statista, 2018) and contributing around 11.5% to the annual GDP. However, as the surge for bringing in new innovation is set, old factories are no longer of use to the big companies and are left to be closed down with companies like GM and Ford involved in the major process of restructuring their businesses. The major reason being the increase in the competition in the global economy with foreign companies having a major lead in the building of new auto-plants (Isidore, 2015).

The sales in the auto industry for 2018 were around 17.3 million by the end of the year. However, even with a successful year of 2018 in terms of sales with companies keeping up to the expectations of the target audience, the future remains uncertain in the upcoming year of 2019 (Wharton University, 2019). The major reasons for these uncertainties occur as a result of the increased tariff wars between US and China along with other market factors including the influence of the technological advancements in this field.

The major upgradation being in terms of automation and artificial intelligence that has changed the dynamics of the car industry and the strategies of the companies with which they used to compete in the global market (Wharton University, 2019). There are also increased chances that US auto makers might have to cut down on the factory jobs in an effort to control costs (The NewYork Times, 2017).

References Isidore, C. (2015). The real problem with the American auto industry. Retrieved from CNN Business: https://edition.cnn.com/2018/12/17/economy/us-auto-plant-glut/index.html Statista. (2018). Number of employees in the U.S. automotive industry from 2007 to 2017, by sector (in millions)*. Retrieved from Statista: https://www.statista.com/statistics/276474/automotive-industry-employees-in-the-united-states-by-sector/ The NewYork Times. (2017). After Years of Growth, Automakers Are Cutting U.S. Jobs. Retrieved from The NewYork Times: https://www.nytimes.com/2017/07/04/business/automaker-jobs-trump.html Wharton University. (2019). The U.S. Auto Industry in 2019: Twists, Turns and Bumps Ahead. Retrieved from Wharton University: http://knowledge.wharton.upenn.edu/article/the-u-s-auto-industry-in-2019-twists-turns-and-bumps-ahead/