The influence of the Big Three is not only shrinking in the domestic market Wholesale Jerseys Free Shipping , but also declining as a force in the global economic landscape. The decline in sales and productivity may seem like a result of the US automotive industry lagging behind as businesses, but the problem has many complex factors. The industry itself is of course partly to blame, but there are many influences that have led to the current status of American car companies in comparison with foreign car companies.
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From a business standpoint, the difference in production between Asian and American companies demonstrates one area where the US industry lags behind. First, labor costs are one major issue that Japanese car companies have been able to control through union relations. American auto workers' unions have held influence over company executives, and as a result, union demands reduce profit margins starting right on the factory floor.
Car companies are also plagued by their corporate structure. Ford initially solved a problem of miscommunication and uncoordinated suppliers Wholesale NFL Jerseys Cheap , but they created more problems down the road. Toyota avoided problems of inefficiency and bureaucracy by creating small, efficient entities for supply and manufacturing. The inflexibility of American car companies started from the suppliers upward, and higher costs were felt at every step in the manufacturing process. The philosophy of centralized control not only drove up costs but drove down innovation, leading to designs and ideas that were too slow to react to market changes.
Finally, government policies have slowed American innovation. Asian governments have used taxes and incentives to encourage their citizens, and the lack of these kinds of programs has led to a stagnant auto industry. In China Wholesale Sports NFL Jerseys , taxes on small, fuel-efficient cars have been cut in half, creating increased demand for small cars. As a result, manufacturers have been able to charge more for their product at a time when American car companies are slashing prices to encourage sales.
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