Should the Government Bail out the Auto Industry Essay

Should the Government Bail out the Auto Industry - leaven ExampleFurther, US automobile industry is dominated by three major players namely Chrysler, oecumenical Motors and Ford. However, from the year 2003, the scenario in the U.S. automobile industry has dramatically transformed. At present, the lions share of cars change in the U.S market were either assembled or manufactured by abroad manufacturers at their new conglutination the Statesn manufacturing units which is famously known as transplant facilities or imported.Due to cut throat competition, the jumbo three U.S. auto majors now need to concentrate only in light trucks manufacturing and counterbalance there, they are being encountered by competition from foreign manufacturers. Since 1980, on financial ground, the major three magnanimous players of U.S.A have laid off more than 600,000 jobs.Michigan has been the worst affected state since more than 100,000 individuals have lost their jobs in the automobile industry s ince 1980. It is to be noted that in 1980, Regan administration had been urged to negotiate quotas on imports from Japan. Nonetheless, by and large U.S deficit in automotive trade deficit in automotive doctor had enlarged from $ 10 billion in 1979 to in excess of $150 billion per annum in 2000 disdain of high quantum of inward remittances by foreign automobile manufacturers and a fall in the imports as foreign model cars have been manufactured at transplant assembly facilities in U.S.A itself. In 1980, U.S. had framed policies intend at demanding foreign automobile manufactures operating from America to manufacture more of the model of cars that they sell to America and some other policies intended at increasing awareness of consumers about imported vehicles and automobile parts, similar the American Automobile Labeling Act, seem to have had no effect on the increase of this sectors trade deficit.In 2004, the trade deficit with the Japan was more than $48 billion and the U.S expo rts to Japan were further $ 2 billion Further, U.S.A trade deficit with Korea