Auto Sales Beat Expectations

The blog Auto Sales Beat Expectations by Alexander Hotz, caught my attention in terms of how sales change drastically in the automobile industry. The blogger cites an article, Ford sales up 25%, as Toyota tallies more pain, that talks in greater depth about auto companies last month’s sales.” These industry numbers aren’t going to light the world on fire, but they do indicate that the steady recovery is still working,” TrueCar.com analyst Jesse Toprak said. The auto industry finds itself at a major crossroads in its evolution. An evolving global economy, faced with numerous major financial crises, holds an extremely unpredictable position. In the last two years, United States automakers have found themselves struggling to remain financially solvent with sales and consumer bases quickly eroding to an onslaught of foreign competition, like Toyota and Hyundai. According to historical trends, the auto industry has been driven by oil price per barrel fluctuations. In recent years, the tremendous increase is gas prices, the economic recession “and government bailouts seemed to signal the end of an era,” (Hotz). However, this last January proves that the economy could be finally turning around since Ford Motor Company announced that their sales increased by 25% compared to their previous year. In contrast, Toyota dropped sales by a huge 16%; which led them to decision of stop “delivering the 8 models that constitute 56% of the United States market,” (Hotz).

Apart from that, auto makers should begin thinking about the future and gasoline prices that greatly influences their sales. In an increasingly complex and innovative society, managers must be keenly aware of possible threats and opportunities to be addressed in the coming years. Such a planning mechanism will allow for a business to be proactive in maximizing its performance by predicting both market and societal pressures.

An analysis of the future of the American auto industry requires an exhaustive and thorough examination of historical and contemporary trends. I deeply believe that by analyzing these factors, automakers will be able to anticipate future markets by addressing emerging issues proactively. Major trends to be addressed in the future are issues regarding: environmental sustainability, emerging economies, changing consumer demands, oil/gasoline demand shifts, increasingly complex political regulation, and changing demographics and technology. For example, after gasoline price decreased by a substantial amount, sales immediately began increasing. An analysis of current trends will provide management with evidence to justify hands-on action in an effort to mitigate future liability and financial loss.

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