Friday, October 19, 2012

The Automobile Industry in the U.S.

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3 percent and 8 percent for ones 2003 through 2007 period ("United States," 2007).

In terms of volume, the American market reached 8 million units in 2007; this represents a compound annual growth rate of 1.4 percent for ones 2003 via 2007 period. However, this can be a global market, and the United States accounts for only 19.3 percent from the global market, with Europe responsible for 38.5 percent and Asia for 34 percent of total volume ("United States," 2007).

When considering people businesses with sales in excess of $500 million, that is certainly the category exactly where both Ford and General Motors participate, the industry as a whole operates with an acceptable, but not high, modern day ratio of 1.53:1 in 2007. This has remained steady during the 2005 and 2006 figures of 1.58:1 and 1.55:1, respectively. Inventories were high during these 3 years mainly because the quick ratio falls to 1.15:1 in 2007. Profit for the marketplace has also been low, with return on sales falling precipitously from 2.18 percent in 2005 to 1.02 percent in 2006 and then recovering to 1.81 percent in 2007. They are razor-thin margins, nevertheless ("Industry," 2008).

Despite its extended history and its broad number of products, the business has not been in a position to operate profitably recently. The company posted world-wide-web losses of $10 billion in 2005, and almost $2 billion in 2006; these represent net loss margins of -5.3 percent and -1.0 percent, respectively. The loss from 2005 to 2006 occurred at a time as soon as revenues increased 6.5 percent ("2006 General Motors," 2007).



 

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