Impact of Auto Industry on the Economy and Job Market

The auto industry is a major contributor towards theThe transportation of goods to consumers and
economy of the all the major manufacturing countriesconsumers to goods has become an industry in itself.
worldwide. It not only provides countless jobThe automobile however has also brought related
opportunities but also has the economic impact. Theproblems, such as air pollution, the emission of
global automotive industry is highly diverse andgreenhouse gases that contribute to global warming,
comprises of various product segments like enginecongested traffic, and highway fatalities.
parts, drive transmission and steering parts,Nevertheless, the automobile industry continues to be
suspension & braking parts, electrical parts andan important source of employment and
other auto components.transportation for millions of people worldwide.
Autos industry covers a vast array of vehicles likeThe automobile industry directly influences the
luxury cars, passenger cars, specialist vehicles,economies of the United States and other countries
motorcycles, scooters, mopeds, and off-road vehiclesaround the world. In a typical year, the U.S.
manufacturers & dealers of automobileautomobile industry generates between 12 and 14
components and accessories, car-care products,percent of manufacturers' shipments of durable
environment and safety equipment, garage andgoods. The automobile production consumes large
service equipment, molds and dyes, oils &amounts of iron, steel, aluminum, and natural rubber.
lubricants, petrol vending machines, tires, batteriesAn interesting fact is that it also consumes more
and auto electrical, upholstery and much more.copper, glass, zinc, leather, plastic, lead, and platinum
The automobile has enabled people to travel andthan any other U.S. industry. Automotive parts
transport goods farther and faster and has openedmanufacturers form another large section of the
wider market areas for business and commerce. TheUSA auto industry, comprising about 5,000 firms,
auto industry has also reduced the overall cost ofincluding Japanese, European, and Canadian
transportation by utilizing methods such as makingcompanies. These firms supply the original for
several products at once, rather than one at a time,manufacture and the replacement parts market for
selling products nationally rather than locally andmaintenance and repair. By some estimates, for
globalization of production. In the early days of itsevery job created in the automobile assembly
inception, this invention had to face many problems.industry, three to four jobs are created in the
There was no real established industry and theautomotive parts industry. Numerous other industries
manufacturing processes involved were slow. Withsupport the automobile industry. These include the
the automakers and auto buyers' base expandinginsurance, security, petroleum, and roadway design
globally, auto making became the world's largestand construction industries. Still other industries, such
manufacturing activity. Now this industry is makingas motels, drive-in theaters, and fast-food
approximately 58 million new vehicles each year allrestaurants, owe their existence to the mobility
across the globe. The diverse mobility offered by theprovided by the automobile. We hope there will be a
automotive industry allowed remote populations tobright future for the automobile industry.
interact with one another, which increased commerce.