redbull marketing 4p

Topics: Automotive industry, General Motors, Chrysler Pages: 11 (3624 words) Published: December 25, 2013

Topic: Effects of the 2008-2010 Automotive Industry crisis on USA Thesis Statement: The 2008-2010 Automotive Crisis was based on the bad management of American Big Three (General Motors, Chrysler, Ford) and senate.

Outline:
ABSTRACT
1. Introduction
1.1. Background Information
1.2. Purpose of the Report
1.3. Statement of the Problem
2. Methodology
3. Findings
3.1. Bankruptcy in the Auto Industry
3.1.1. Arguments in Favor of Chapter 11 Bankruptcy
3.1.2. Arguments Against Chapter 11 Bankruptcy
3.1.3. Arguments Against Government Intervention
3.2. Federal Government Bailout Process and Timeline
3.2.1. Congressional Bailout Bill
3.2.2. Senate Rejects Bailout
3.2.3. Bush Approves Bailout
3.2.4. Second Bailout
3.2.5. Obama Address to Joint Session of Congress
3.2.6. Publication of General Motors 2008 Losses
3.3. Announcement of bankruptcy
3.3.1. Chrysler Bankruptcy
3.3.2. Bankruptcy of General Motors
4. Conclusion
5. Bibliography

Abstract
The automotive industry crisis of 2008–2010 was a part of a global financial downturn. The crisis affected European and Asian automobile manufacturers, but it was primarily felt in the American automobile manufacturing industry. The downturn also affected Canada by virtue of theAutomotive Products Trade Agreement.[1]The automotive industry was weakened by a substantial increase in the prices of automotive fuels[2] linked to the 2003-2008 energs which discouraged purchases of sport utility vehicles (SUVs) and pickup trucks which have low fuel economy.[3] The popularity and relatively high profit margins of these vehicles had encouraged the American "Big Three" automakers, General Motors, Ford, and Chrysler to make them their primary focus. With fewer fuel-efficient models to offer to consumers, sales began to slide. By 2008, the situation had turned critical as the credit crunch[4] placed pressure on the prices of raw materials.Car companies from Asia, Europe, North America, and elsewhere have implemented creative marketing strategies to entice reluctant consumers as most experienced double-digit percentage declines in sales. Major manufacturers, including the Big Three and Toyota offered substantial discounts across their lineups. The Big Three faced criticism for their lineups, which were seen to be irresponsible in light of rising fuel prices. North American consumers turned to smaller, cheaper, more fuel-efficient imports from Japan and Europe. However, many of the vehicles perceived to be foreign were actually "transplants," foreign cars manufactured or assembled in the United States, at lower cost than true imports

1. Introduction
1.1. Background Information
Many note that the crisis occurred mainly as a result of bad business practices of the Big Three U.S. automakers. Analysts point out that Asian companies that manufacture automobiles in the U.S. were not experiencing similar problems. A December 22, 2008 New York Times article stated, "For the most part, the so-called auto transplants — foreign-owned car companies with major operations in the United States — have deep pockets and ample credit, and they are not facing potential bankruptcy like General Motors and Chrysler." Much of the criticism centered on structural differences between the Big Three and the "transplants" (foreign companies manufacturing in U.S.) that result in major cost differentials.

1.2. Purpose of the Report
The US Big Three were first weakened by the substantially more expensive automobile fuels linked to the 2003-2008 oil crisis which, in particular, caused customers to turn away from large sport utility vehicles (SUVs) and pickup trucks, the main market of the American "Big Three" (General Motors, Ford, and Chrysler). The US automakers also suffered from considerably higher labor costs than their non-unionized counterparts, including salaries, benefits, healthcare, and pensions. In return...

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