The Automotive Industry In the United States Essay

The Automotive constancy In the United States - Essay ExampleFundamentally, the self-propelled exertion is a textbook example of an industry where economies of scale pay a very important role. While there may be oodles of players around the world who produce, support and work with the industry, there are only a few producers who discharge claim to have a crucial share of the market. Similarly, even though cars are produced in closely every developing and developed nation, only a few countries contribute in a significant manner to the global car production and consumption statistics.Market ConcentrationIn the automotive industry the big three ( track drive Company, General Motor Corporation, Chrysler) dominate the market. Ford motor Company (Ford) and General Motor (GM) are the cardinal worlds largest car producers with a joint market share between 21% and 25% (Guerzoni, 2001). Market concentration of Ford and GM can be measured using a minute concentration measuring tool. T he H Index is obtained by squaring the market-share of the players, and then adding up those squares. The H index for Ford and GM is 1066. This figure is a sign of moderate market concentration of the two major producers. contender in the industry is measured by Concentration Ratio. Like H index, this is another measure and is uttered in the terms CRx, which stands for the percentage of the market sector controlled by the biggest x firms. For example, CR2= 46% for Ford and GM. The automotive industry produces a higher level of output in the US than any other angiotensin converting enzyme industry, with the rate consistently growing.