Why There We Have Winners and Losers in the Automotive Industry

One reasons that has exposed or so auto rambling companies to severe vagaries of recession while sparing others is the existence of morphological differences between the so called auto transplants or foreign auto mobile manufacturing in the joined States and the major automobile companies incorporated and domiciled in the United States i. e. General Motors, Chrysler, Ford and the handle.The so called transplants split represented by Toyota, Hyundai and the like be structured in such a way that they bay window access credit from their mother countries most of which for instance were not soberly affected by the recent recession if compared with the United States (Ohno, 1988). Their deep air pocket and this ready pool of credit from their mother countries made them less temptable to the vagaries of financial meltdown. Another factor that has prejudiced some automakers while favoring others is what analysts bind called bad practices of the sizeable Three United States automake rs.These bad practices are the ones that are responsible for the big cost differentials that have existed for some time instanter between them and the transplant. Another tragedy that has benefited the transplants at the expense of the Big Three is the high prices of automobile kindles that have been occasioned by the recession (Ohno, 1988). In this regard the Big Three US automakers known for their SUVs and Pickup Trucks which commonly consume more(prenominal) fuel have found themselves uncompetitive collect to the avoidance of fuel guzzlers in the United States due to the high cover prices and reduced disposable income due to inflation.Most of those who have avoided these fuel guzzlers have migrated to the cheaper and more fuel efficient car made from the so called transplant i. e. Toyota, Hyundai, et al. The attention costs have also overwhelmed the Big Three US automakers more than others from foreign countries manufacturing in the United States (McCracken, 2006). This i s due to the fact that their workers are unionised and therefore able to press for high salaries while their non-unionized counterparts in the so called transplants do not have such powers (McCracken, 2006).Importance of the New Product discip variant for Corporation In regard to Toyotas New Product study Process with the launch of the Prius The development of invigorated produce whether in physique of bare-ass innovations, new applications or even completely new goods is a necessary component in agate line because it enhances the viability of the company. By ontogenesis new product the company is able to make a mark in the industry which is one of the best survival strategy that todays companies have perfected in their bid to withstand cutthroat contention that characterize todays business environment.The importance of continuously and consistently developing new product in todays business world is better captured in the statement innovate or scare off which has of late be come a popular catchphrase adopted by both small and large corporate bodies in reference to progressively knowledgeable consumer demand for the latest and finest products. One of the companies that have embraced the idea of developing new products in an effort to remain competitive while cool off providing their customers with the newest and finest goods in the respective market is Toyota Corporation.Toyota which is the second largest automaker globally realizes that in order to maintain its brand visibility as a extend automaker worldwide it has keep on innovating and coming up with new and more superior models (McCracken, 2006). All these Toyota models that have been launched in succession by Toyota Corporation are informed by this strategy. This strategy has been employed by Toyota for a long time now. However the most recent product of Toyotas innovative product development is Toyota Prius. The development of Toyota Prius is in line with Toyotas management desire to develop n ewer and more superior cars for this century.The transcendency of Prius as a new and different product from the other is better demonstrated by its superior features that include more spacious confine space, relatively higher seat position, aerodynamic exterior, a 20km/little fuel economy, and a relatively small engine placed horizontally with a variable automatic transmission (McCracken, 2006). References Ohno, Taiichi, (1988). Toyota Production System Beyond large-scale Production. New York Productivity Press McCracken, Jeffrey, (2006). Detroits Symbol of Dysfunction stipendiary Employees Not to Work. The wall street journal online. 06 March 2006