Partial Solution Assignment
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Partial Solution Assignment


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  1. Detroit Motors after GFC 
  2. The impact President Donald Trump's trade sanctions


Detroit motor after GFC

The global financial crisis impacted the American automotive sector exponentially. In the context of the Detroit motors, it was noted that substantial increase in the price of the fuels in view of the energy crisis led to a fall in the demands for the vehicles, especially the pickup trucks and SUVS (NBC news, 2008). In the face of such crisis, the consumer needs declined, and the pressure on the raw material prices was recognized. Meanwhile, the major manufacturers shifted their base to other regions in the world to ensure that the end-goal profit is not impacted substantially. This decision was also in alignment to the challenges with the worker needs alignment post the customer shift. Also, as per Counts, Ronson, & Spenser (1999), the emergence of the labor union and further challenges upon the people led to an increase on the stress of the administration, which further prompted a need to move. Even as measures were adopted to preserve the needs of the union members, yet, in long run the workers beyond the United States proved as more fruitful addition for the company (Gore, 2007). It is reflected that the company in general became the victim of the fuel crisis, changing consumer needs, a change in the regulatory climate within the sector owing to the shift in the carbon emission standards as per the government and lastly owing to the changing needs of the labor union (Gore, 2007). All these decisions and continued constrains in the market led to a change in the perspective of the people, and further prompted the market to evolve, and change the location of their manufacturing plant. In this sense, the company at large had to made different models of vehicle, as per the low cost and less fuel consumption needs of the consumers, and subsequently evolve their business model.


The impact President Donald Trump's trade sanctions

Through this research it is reflected that the automobile sector is in a state of challenge owing to the reduction in the consumer demands (NBC news, 2008). These trends have continued over the years, and in the wake of new tariffs on international steel and aluminum imports, it is expected that the cost of the vehicle in the country will further increase (Butters and Naughton, 2018). While the decision has been made to promote the U.S. steel industry, it is anticipated that in the absence of the steel competitors, the industry will leverage whatever price they wish to escalate in the sector. This in turn will make the cost of the manufacturing higher for the companies that have manufacturing plant in the U.S. such as Toyota, and further reduce the buying powers of the consumer, and hence impact the industry (Butters and Naughton, 2018).

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