The automobile industry was, at one time, a driving force in the American economy. Detroit, where the three major American manufacturers were headquartered, was nicknamed "Motor City" and autoworkers remained with their employers for decades and often worked for one company for their entire career. The automobile industry was a large consumer of steel and rubber, and suppliers to the industry included other large companies as well as smaller suppliers. In the latter years of the twentieth century, however, the American auto industry faced challenges that were previously unthinkable. Gas prices began climbing, Asian manufacturers introduced their products and found a ready market among American consumers, and new production processes required innovation that was not always eagerly or easily embraced. This research considers the two leading American car manufacturers-General Motors and Ford-their current positions within the industry, and an analysis of the industry itself in which they compete.
The American car market remains a significant market in the global auto industry, although it is no longer the dominant market. In 2007, total revenues from new cars sold in the United States reached $228.2 billion, with a compound annual growth rate of 3.6 percent for the 2003 through 2007 period. This compares to revenues of $364.8 billion for the European market and $266.1 billion for the Asian market; these markets posted compound annual growth rates of 2.3 percent and 8 percent for the 2003 through 2007 period ("United States," 2007).
In terms of volume, the American market reached 8 million units in 2007; this represents a compound annual growth rate of 1.4 percent for the 2003 through 2007 period. However, this is a global market, and the United States accounts for only 19.3 percent of the global market, with Europe responsible for 38.5 percent and Asia for 34 percent of total volume ("United States," 2...