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The Automotive IndustryBy: Jennifer Moore



Automotive engineering includes all organizations and activities involved in the manufacture of vehicles, including critical components such as engines and chassis, but excludes gasoline, tires, and batteries. Passenger cars and light trucks are the mainstays of the industry (Wagner, I. 2021).

The automotive industry is made up of a diverse group of businesses and organizations that are involved in the design, development, manufacture, marketing, and distribution of automobiles.


Current state of the U.S. Automotive Manufacturing Industry

In the United States, the automobile business is one of the most competitive, but also one of the most difficult to get into. Automobile companies are rapidly expanding to satisfy increased demand.

In 2020, the automobile industry in the United States contributed 3% of the country’s GDP, or $627 billion. Light cars accounted for 97 percent of all sales in the same year (Wagner, I. 2021)

Ford, General Motors, and Chrysler LLC are the most well-known names in this business, with a combined net value of $1.2 trillion in the United States.

Despite the fact that the government’s limitations reduced corporate sales, automobile sales increased immediately once the limits were repealed. Light automobiles, on average, sell more than large ones.


Sales by Fuel Type

Gasoline-fueled ignition machinery accounted for more than half of all sold automobiles, or 52 percent.

Only 1.6 million electric vehicles are in use across the world (Amadeo, 2021)

Due to high production costs, a shortage of charging facilities, and insufficient battery life technology, electric automobiles are becoming less popular throughout the world.


Current Automotive Industry Trends

Between the middle of January and the middle of March in the year 2021, the Toyota Camry sold 80,000 vehicles.

The Toyota RAV4 ranked first on the list as the most popular car in the first quarter of 2021. (Wagner, I. 2021).

By March of this year, the massive automotive sector, which includes light cars, had already sold 1.2 million products, up from 930,000 in February.


Sales statistics




In 2021, global car sales increased to roughly 66.7 million vehicles, up from around 63.8 million in 2020.

The total number of light automobiles sold in this year was 6.6 million.

The worldwide light vehicle industry is expected to rise to roughly 84 million units by 2022, although supply and demand difficulties are a concern.


In North America, 13.5 million copies were sold this year.

The automobile business accounts for a significant portion of America’s net value. Despite the fact that the sector was severely impacted by the COVID outbreak, it was able to continue operating once the government eased transportation restrictions.


Trends in customer demands

Although vehicle color selection may appear insignificant, it is a significant decision for consumers.

SUV-style vehicles accounted for 40% of all sales vehicles.

In 2021, the most popular car color was black, which accounted for 22% of all sales.

With almost 19 percent of the vote, White was in second place.

Gray accounted for 17%, silver for 14%, and red and blue for 9%.

In the United States, vehicle color selections are quite popular. The relationship between automobile color and vehicle value is not well understood. Nonetheless, black, silver, and white are the most often purchased automotive hues. Blue, red, and yellow, on the other hand, have significant value depending on the customer.


Decision Making Models

The Rational Model is a model that is based on logic. It is a multi-step, linear approach for addressing problems, starting with recognizing the problem and ending with making rational and sound decisions (Lunenburg, F. C. 2016). The steps are as follows:

This simply indicates that in order to make excellent and reasonable decisions, one must follow the rational model’s step-by-step approach. If a decision maker skips a phase in the process, the study might be difficult to complete and lead to failure.


The Intuitive Model

This paradigm suggests arriving to conclusions without using deliberate reasoning (Lunenburg, F. C. 2016).

This approach essentially indicates that decision-makers focus solely on one viewpoint rather than a variety of options. When managers are faced with difficult scenarios with limits, time pressures, uncertainty, and high stakes outcomes, it is evident that they cannot afford to follow the step-by-step paradigm.


It’s a model that demonstrates how individuals make rapid, effective judgments in complicated circumstances (Lunenburg, F. C. 2016).

The Recognition-Primed Model

This model posits that the decision maker develops a plausible course of action, compares it to the condition’s constraints, and chooses the initial course of action that was not rejected.


Summary of Collective Data

Charging stations should be designed to consume as little energy as possible, if not none at all.

Finally, the cost of producing electric automobiles should be decreased to make them more affordable to the general public.

To retain sales amid hard times like as the pandemic, the car industry must expand into other types of technology, such as agritechnology.

Relevant or capable shareholders should be involved in the current technology’s investment to make it more affordable.

In light of the economic uncertainty caused by the COVID epidemic in 2020 and 2021, the automobile sector needs to be varied and open to new opportunities in order to stay in business regardless of the challenges.


Unknown Info Regarding the New Industry





Autonomous vehicles

It is safe as the world embraces this technology since we still need stable safety files

Human skills

Because of the rapid advancement of technology. Digitization and automation are two terms that are often used interchangeably. It appears that machines will be able to accomplish everything, leaving humans jobless.

Internet of things

Gadgetry has been around for a long time; how long will it take for IoT-enabled automobiles to take of

Digitization disrupts automotive manufacturing

Many processes, particularly manual labor, are being transformed by digitization. As a result, cost and production efficiencies are achieved.

Choice of Decision-Making Model

The intuitive decision model is my preferred decision model.

Many reasons exist, including the necessity for managers to make decisions quickly in difficult situations, time limits, high stakes outcomes, and ambiguity.

As a result, it’s understandable that one wouldn’t have enough time to complete all of the processes in the rational model.


Amadeo, K. (2021, May 4). How EVs Are Changing the U.S. Auto Industry. The Balance.

Wagner, I. (2021, April 27). Automotive industry in the United States – statistics & facts. Statista.

CGMA. 2021. Porter’s Five Forces of Competitive Position Analysis. [online] Available at: [Accessed 22 May 2021]

Lunenburg, F. C. (2016, September). THE DECISION MAKING PROCESS. In National Forum of Educational Administration & Supervision Journal (Vol. 27, No. 4).

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