Automobile Industry

Name of Industry: The U.S. Automobile Industry
(a) Industry Profile
Size- The automobile industry consists of many sections, from production of automobiles to production of parts and components to even the retail aspect of automobiles. Given the nature of the products and the quantity and quality demanded, it should come as no surprise that this industry is one of the largest in the U.S. and world economies. The large number of people the industry employs has made it a key determinant of economic growth (Encarta.com). This industry has a spiral effect on the economy as the finished products are often used as factors of production in other industries. At the same time, in order to produce these vast amounts of automobiles, there is a heavy investment in the steel industry and other industrial products (Klepper, 11).
In recent years (1995-2001) the number of companies in the industry, including all sections, has reduced from about 4100 to around 3100 but yet sales have...