Why There We Have Winners and Losers in the Automotive Industry

One reasons that has exposed some automobile companies to yucky vagaries of recession while sparing others is the existence of structural differences between the so called auto grafts or foreign auto mobile manufacturing in the linked States and the major automobile companies incorporated and domiciled in the United States i. e. General Motors, Chrysler, cover and the like.The so called transplants bust represented by Toyota, Hyundai and the like argon organise in such a way that they can access identification from their mother countries most of which for instance were non severely affected by the recent recession if compared with the United States (Ohno, 1988). Their deep pocket and this ready crime syndicate of credit from their mother countries made them less susceptible to the vagaries of financial meltdown. another(prenominal) factor that has prejudiced some automakers while favoring others is what analysts bewilder called bad practices of the heavy(a) Three United St ates automakers.These bad practices are the anes that are responsible for the regretful cost differentials that have existed for some time now between them and the transplant. Another tragedy that has benefited the transplants at the expense of the heroic Three is the extravagantly prices of automobile give the sacks 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 normally consume to a greater extent fuel have found themselves uncompetitive due to the avoidance of fuel guzzlers in the United States due to the high oil prices and reduced fluid income due to inflation.Most of those who have avoided these fuel guzzlers have migrated to the cheaper and more fuel high-octane car made from the so called transplant i. e. Toyota, Hyundai, et al. The labor costs have also overwhelmed the Big Three US automakers more than others from foreign countries manufacturing in the United States (McC racken, 2006). This is due to the fact that their workers are unionized and therefore adequate 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 Development for Corporation In regard to Toyotas New Product Development Process with the delegate of the Prius The development of impudently product whether in form of fresh innovations, new applications or even completely new goods is a necessary division in business because it enhances the viability of the corporation. By developing new product the company is able to make a mark in the industry which is one of the best survival strategy that instantlys companies have improve in their bid to withstand cutthroat competition 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 die whi ch has of late set out a popular catchphrase adopted by both belittled and large corporate bodies in reference to increasingly knowledgeable consumer direct 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 still providing their customers with the newest and finest goods in the several(prenominal) market is Toyota Corporation.Toyota which is the second largest automaker globally realizes that in order to retain its brand visibility as a top automaker global it has keep on innovating and coming up with new and more greatest 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 wide time now. However the most recent product of Toyotas progressive product development is Toyota Prius. The development of Toyota Prius is in line with Toyotas gui dance 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 high seat position, aerodynamic exterior, a 20km/little fuel economy, and a relatively small engine placed horizontally with a variable automatic pistol transmission (McCracken, 2006). References Ohno, Taiichi, (1988). Toyota Production System Beyond Large-Scale Production. New York productiveness Press McCracken, Jeffrey, (2006). Detroits Symbol of Dysfunction Paying Employees Not to Work. The protect street journal online. 06 March 2006