Impact of the Auto Industry on the Economy and Job Market

The auto industry is a major contributor towards theone another, which increased commerce. The
economy of all the major manufacturing countriestransportation of goods to consumers and
worldwide. It not only provides countless jobconsumers to goods has become an industry in itself.
opportunities but also has the economic impact. TheThe automobile however has also brought related
global automotive industry is highly diverse andproblems, such as air pollution, the emission of
comprises of various product segments like enginegreenhouse gases that contribute to global warming,
parts, drive transmission and steering parts,congested traffic, and highway fatalities.
suspension & braking parts, electrical parts andNevertheless, the automobile industry continues to be
other auto components.an important source of employment and
Autos industry covers a vast array of vehicles liketransportation for millions of people worldwide. The
luxury cars, passenger cars, specialist vehicles,automobile industry directly influences the economies
motorcycles, scooters, mopeds, and off-road vehiclesof the United States and other countries around the
manufacturers & dealers of automobileworld. In a typical year, the U.S. automobile industry
components and accessories, car-care products,generates between 12 and 14 percent of
environment and safety equipment, garage andmanufacturers' shipments of durable goods. The
service equipment, moulds and dyes, oils &automobile production consumes large amounts of
lubricants, petrol vending machines, tires, batteriesiron, steel, aluminum, and natural rubber. An
and auto electrical, upholsteries and much more. Theinteresting fact is that it also consumes more copper,
automobile has enabled people to travel andglass, zinc, leather, plastic, lead, and platinum than any
transport goods farther and faster and has openedother U.S. industry.
wider market areas for business and commerce. TheAutomotive parts manufacturers form another large
auto industry has also reduced the overall cost ofsection of the USA auto industry, comprising about
transportation by utilizing methods such as making5,000 firms, including Japanese, European, and
several products at once, rather than one at a time,Canadian companies. These firms supply the original
selling products nationally rather than locally andfor manufacture and the replacement parts market
globalization of production. In the early days of itsfor maintenance and repair. By some estimates, for
inception, this invention had to face many problems.every job created in the automobile assembly
There was no real established industry and theindustry, three to four jobs are created in the
manufacturing processes involved were slow. Withautomotive parts industry. Numerous other industries
the automakers and auto buyers' base expandingsupport the automobile industry. These include the
globally, auto making became the world's largestinsurance, security, petroleum, and roadway design
manufacturing activity. Now this industry is makingand construction industries. Still other industries, such
approximately 58 million new vehicles each year allas motels, drive-in theaters, and fast-food
across the globe.restaurants, owe their existence to the mobility
The diverse mobility offered by the automotiveprovided by the automobile.
industry allowed remote populations to interact with