The health of the US economy is directly proportional to the health of the automobile industry and the well being of the automobile manufacturers. The automobile manufacturing industry happens to be the country's largest manufacturing faulty. Approximately 4% of the GDP of U.S.A comes from the automobile manufacturers. According to new reports by the alliance of automobile manufacturers, out of every 10 U.S. jobs, or about 13 million, is auto-related, and auto workers receive $335 billion annually in compensation.
The clouds of the economic crisis engulfed the automobile manufacturers in September 2008 when the auto industry reported a loss of $9 billions in US sales as compared to the sales in September 2007. The industry fears further losses in the coming months if the dwelling prevails.
The economic turmoil is affecting auto consumers and communities in a chain reaction and every sector seems to be connected to one another in this crisis. As the inquire nose dives, automobile manufacturers are forced to prick down on supply, which further results in less work for assembly-line workers. Fewer parts are needed from the suppliers which are the ancillary industries and workers remove less and less which results in the lack of interrogate for consumer goods. This eventually forms a vicious cycle engulfing the entire consumer economy. Automobile manufacturers can thus originate or shatter the US economy.
Here are some facts and figures that bring the dependable describe to us:
o An ailing auto industry can really distress the financial sector further as more than 90% of the original vehicles are purchased on credit.
o Major purchases like automobiles really matter for the economy.
o Reports have confirmed the fact that consumers are finding it more and more difficult to bag loans for automobiles.
o Rising delinquencies in auto loans are hurting the automobile manufacturers further.
o About 1000 dealers closed their businesses closed their businesses, in September 2008 and more are on the method (CNW) .
o Autos sales contribute more than $10 billion dollars of annual tax revenue every year. A descend in auto sales invariably hurts plot budgets too.
o By the kill the 3rd quarter, almost 100,000 automotive jobs were reportedly slice.
The recession is a stark reality for the automobile manufacturers however they have not lost their optimism. They have supported the 2007 Energy Bill, which requires a 40% increase in fuel economy by 2020. The automobile manufacturers have now joined hands to compose and introduce more fuel-efficient technology.
Labels: Affecting , Ailing , automobile , Economy , Manufacturers
