The Effects of the Great Recession on the Auto Industry
Luis A. Castro
Professor John Machnic
BUSN 6120, Managerial Economics
Summer 1, 2012
July 24, 2012
CERTIFICATE OF AUTHORSHIP: I, Luis A. Castro, certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
The automotive industry in the United States is a key factor in ...view middle of the document...
The auto industry has already shown more than half a million people in the door to meet the challenges of the market. The industrial economies seem to show a sharp increase in unemployment, wages and salaries. Cutting jobs is in turning affected the purchasing power of consumers and the result of the manufacturing production line.
Employment results are consistent with a double reduction. Compromise the ability of individual investments and the global market for cars that are manufactured, processed and marketed in the United States. The automobile industry reeled under the vicious circle of falling profits and job cuts with a massive numbers. The current evidence on the automotive industry will quickly reduce the cost of doing business. There is a huge drop in orders as a result of capital spending worldwide. As the inventory and a very unstable measure of impact of the recession, employment grew in the area. The decrease in productivity has resulted in lower production and employment falls. Auto loans and mortgage arrears do not help in any way (Erixson and Sally, 2009).
General Motors is struggling with heavy losses in the middle of soft money markets and the decline in net sales. Statistics are not as attractive on the labor...