Econ Research Paper
The Effects of the Great Recession on the Auto Industry
Luis A. Castro
Professor John Machnic
BUSN 6120, Managerial Economics
Summer 1, 2012
July 24, 2012
CERTIFICATE OF AUTHORSHIP: I, Luis A. Castro, certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
____________ 07/24/2012 Signature Date Introduction
The automotive industry in the United States is a key factor in economic growth because of the significant …show more content…
Employment results are consistent with a double reduction. Compromise the ability of individual investments and the global market for cars that are manufactured, processed and marketed in the United States. The automobile industry reeled under the vicious circle of falling profits and job cuts with a massive numbers. The current evidence on the automotive industry will quickly reduce the cost of doing business. There is a huge drop in orders as a result of capital spending worldwide. As the inventory and a very unstable measure of impact of the recession, employment grew in the area. The decrease in productivity has resulted in lower production and employment falls. Auto loans and mortgage arrears do not help in any way (Erixson and Sally, 2009).
General Motors is struggling with heavy losses in the middle of soft money markets and the decline in net sales. Statistics are not as attractive on the labor market and doubled the demand continued to weaken, and the natural. In the automotive industry, industrial production is also affected by the recession. The effect is to burden the sector that comes into the dangers of buying capacity of individuals and small international clients. This spread aggressively, when the