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  • Essay / What are the challenges of the automobile industry

    Not only was automobile fuel harmful to the environment, but it was also becoming very expensive. Fluctuating fuel prices have caused the American people to express their frustrations to the government; who then created laws to correct the problem. With this new legislation in place, automakers have had to develop the technology to make more fuel-efficient cars. (Highfill et al., 2004) Car manufacturers decided that electric cars would be the best way to meet the requirements of the legislation. (Highfill et al., 2004) Soon after, Honda, Toyota, and Accura began to pull ahead in manufacturing hybrid cars, but GM was still the leader in hydrogen fuel. (Highfill et al., 2004) Rivalry was already strong and now takes the form of alternative fuels. GM had a difficult decision to make about whether to develop its hydrogen fuel technology or catch up with its competitors in hybrid car production; in which they fell slightly behind. Which direction will GM go to stay in the