- Produce fuel-efficient, smaller, and higher-quality models that can attract the consumers.
- Chinese government condensed automotive taxes in order to encourage declining sales.
- In February 2009; citing declining manufacturing numbers, the State Bank of India decreased interest rates on automotive loans.
- Establish or Equip facilities to manufacture ‘advanced technology vehicles’ that would meet up certain fuel economy and emissions standards.
- One of the big opportunities is to shift manufacturing to other amenities in order to produce in-demand vehicles. Manufacturing could be done in those countries where the labor as well as material cost is low.
- Diversification in other related and unrelated products or shifting to the hybrid electric engines.
- The purchasing power of consumers is increasing due to end of financial crisis 2007-10.
Threats
- The automotive industry crisis of 2008-2010 was the big downturn. Now it is challenge for industry players to recover.
- The financial crisis of 2007-10 caused by a liquidity deficit in the U.S banking system resulted decrease in consumer wealth.
- The crisis mainly felt in the U.S and also affected Asian and European automobile manufacturers.
- Car companies from North America, Europe, and Asia have implemented innovative marketing strategies to attract disinclined consumers.
- Major producers, including the Toyota and Big Three offered significant discounts across their lineups.
- North American consumers shifted to more fuel-efficient and higher-quality product of European and Japanese automakers.
- Environmental politics and allied anxiety concerning carbon emissions have sharp sensitivity to environmental protection worldwide and gas mileage standards.
- U.S manufacturers are facing soaring gasoline prices, health care costs for an aging workforce, dependence on declining SUV and eroding market share.
- The company is facing very high labor and raw material cost as compared to Asian manufacturers.
- GM is also facing criticism on its culture and corporate practices. In 2007, its employees union went on the first countrywide strike due to which a transmission facility and two car assembly plants were closed down.
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