request for bailouts and may protest to why certain companies can get bailed out and others can’t II. Bailing out the automobile industry can not help to save the jobs in the United States, and the new competitors will take over the market share in the long run. A. New competitors will take over the market. If there were no bailout, Toyota and Honda would pick up the market share that GM and Chrysler left 1. A decline of 30 percent of sale in GM and Chrysler. 2. Toyota and Honda will pick up 4 million jobs in automobile industry. 3. Toyota and Honda will take the market shares from GM and Chrysler since they have an increase sale in America. B. GM plans to import more vehicles made from other countries which have a competitive advantage in labor cost, such as China, Mexico, South Korea, and Japan. 1. Imports from South Korea to the United States will rise from 36,967 vehicles in 2010 to 157,126 in 2014. 2. Cost per vehicle has 20 to 30 percent lower when manufacture happens in
developing countries. 3. Toyota has more earnings in per vehicle sold. a. Toyota with $2726 earning per vehicle sold. b. Ford with $994 earning per vehicle sold. c. GM with $654 earning per vehicle sold. III. The automobile industry is not being able to pay for the pension plan and health care for auto workers. A.GM was trying to reduce the debt of pension and health care cost with chapter 11 protection.
You've reached the end of your free preview.
Want to read all 3 pages?
- Spring '16
- John Z
- Business, The Land, Automobile, automobile industry, Auto Bailout