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Wednesday, December 16, 2009

What strategies American Automakers need to adopt to stabilize and expand their market?


The way the American auto market is struck by the global recession is not an illusion. This is the first time American economy is affected so badly which ended in bankruptcy, unemployment and a lag in industrial growth.
Craig Cather, President and CEO of CSM says:"we've hit bottom and positive signs areat hand".
 What even worse is that American policy is still vague and no solids steps are so far seen to regain the balanced economy.



CSM which provides trusted automotive market forecasting services came up with some solutions which are listed below.
  • Small vehicles CSM is opinionated of manufacturing small luxury vehicles which may be the source of attraction for the buyers belonging to all the classes due to low fuel consumption. American public needs to compromise to switch themselves from big cars like Ford Focus and Chevrolet Camaro to small sized vehicles. This downsizimg of vehicles may improve the sales and help in regaining the auto growth.
  • International competitiveness Auto makers need to think on expanding their market internationally. It is very important for auto makers not to diverge their thoughts in bringing new emerging technologies in the market at this stage because it may decrease their sales. CSM suggests going with the conventional gasoline powered vehicles with direct injection systems instead of manufacturing fuel cell cars and other similar technologies which demand high initial costs.
  • CO2 emissions is the major area of concern for industrialists at this point of time.25% CO2 emissions results through transportation which are believed to be decreased by 80% till 2050. So the auto makers need to shift their production lines to energy efficient technologies like electric, hybrid, plug in hybrid and green technologies once they get stabilized. 45% population volume is predicted to have electric vehicles by 2020. The current US vehicles are reported to produce 105 g/km which has decreased its sales overseas. This figure needs to be reduced.

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