Why There We Have Winners and Losers in the Automotive Industry

one reasons that has exposed some simple machine nimble companies to monstrous vagaries of nook slice sparing differents is the universe of discourse of structural differences amidst the so called auto transplants or extraneous auto mobile manu detailuring in the United States and the major motorrailway car companies incorporated and domiciled in the United States i. e. oecumenic Motors, Chrysler, Ford and the like.The so called transplants better stand for by Toyota, Hyundai and the like be unified in such a sort that they can access credit from their fix countries most of which for instance were not gravely affected by the recent receding if compared with the United States (Ohno, 1988). Their deep pocket and this pitch pool of credit from their mother countries touch on them less susceptible to the vagaries of financial meltdown. some other factor that has prejudiced some automakers while favoring others is what analysts stand called bad practices of the garg antuan triplet United States automakers.These bad practices are the ones that are responsible for the big cost differentials that train existed for some quantify now between them and the transplant. Another tragedy that has benefited the transplants at the expense of the Big threesome is the uplifted prices of automobile fuels that rich person been occasioned by the recession (Ohno, 1988). In this regard the Big Three US automakers known for their SUVs and Pickup Trucks which unremarkably consume to a greater extent fuel rich person found themselves un agonistic delinquent to the escape of fuel guzzlers in the United States due to the high oil prices and reduced avail adequate 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 projection costs have also overwhelmed the Big Three US automakers more than others from foreign countries manufacturing in the United States (McCracken, 2006). This is due to the fact that their workers are unionized 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 developing for Corporation In regard to Toyotas New Product Development emergence with the launch of the Prius The maturement of vane- in the altogetherly crossway whether in form of new-made innovations, new applications or even completely new goods is a necessary component in business because it enhances the viability of the company. By developing new product the company is able to make a mark in the manufacturing which is one of the best survival dodge that todays companies have improve in their bid to withstand merciless competition that characterize todays business environment.The importance of continuously and systematically developing new product in todays busin ess domain is better captured in the statement inaugurate or die which has of late contract a popular catchphrase select by both small and liberal corporate bodies in reference to more and more knowledgeable consumer demand for the latest and finest products. oneness of the companies that have embraced the idea of developing new products in an effort to remain competitive while still providing their customers with the newest and finest goods in the individual market is Toyota Corporation.Toyota which is the second largest automaker globally realizes that in order to maintain its brand visibility as a blanket automaker worldwide it has keep on innovating and coming up with new and more superordinate 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 apply 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 newer and more superior cars for this century.The superiority of Prius as a new and different product from the other is better demonstrated by its superior features that include more spacious cabin space, relatively higher seat position, sleek exterior, a 20km/little fuel economy, and a relatively small engine placed horizontally with a variable reflex(a) transmission (McCracken, 2006). References Ohno, Taiichi, (1988). Toyota Production System beyond Large-Scale Production. New York Productivity wardrobe McCracken, Jeffrey, (2006). Detroits Symbol of Dysfunction compensable Employees Not to Work. The wall street daybook online. 06 March 2006