The current global economy shake-up caused by the financial inflation and credit crunch has affected the industrial prowess of the United States. The situation has necessitated the need of the US economy to be bolstered. In his speech recently the US President highly encouraged the manufacturing and production of cars locally. This move would attempt to catch and keep in pace with the other manufacturing nations across the world and also to help boost economic growth. This paper interrogates the questions whether we have American car yet in the market. The paper further discusses if cars manufactures by KIA and Toyota in the US are really American cars.
When it comes to the automobiles manufacturing companies, two broad groups can be used to classify automobiles available in the this land: one, they are those automobiles manufacturers that are typically American such as General Motors and Ford and two, those non-American companies such as KIA and Toyota that originate from Korea and Japan respectively, but they actually have industrial stations in the US. In order to address this issue critically, it is important we have a keen look at two viewpoints that seek to elucidate what contributes to an automobile to be referred to as 'American', the same way, for example, we have Germany car, (Becker, 2011).
Similarly with the other market leaders in the automobile world across the globe, the title 'American Car' is comprised of more details than it might literally sound. First and foremost it must insinuate and guarantee a mark of undoubtedly quality and performance and at the same time it ought to support to the well-being of American people (Becker, 2011). For instance, it should safeguard the welfare of the work force and also tangibly contribute to the economic growth of the nation.
This statement is vital in explaining whether we have American car as of yet because the two groups are exposed to different terms and conditions and concurrently they do the same to the people around them. At the end of the day, products with any attachment of the America greatly affect the image of the nation (Becker, 2011). The government has therefore the obligation of maintaining standards regardless of the geographical positioning as the results shall be determined by the quality and performance.
Therefore, for the ideology of American car to be realistic and practical, such firms should be in a position of providing excellent working conditions, boost job-creation, and as well enhance growth of the economy. This perception will be holistic, in that it includes actions impacting the basic functions of economic growth like entrepreneurship and business. Importantly the whole processes and end products ought to be reflective of the policies and standards set by the state (Becker, 2011).
The other perspective that is worth consideration in a bid to explain whether American car is a reality or hoax, is a detailed look of the non-American automobile companies that are operating within the country such as KIA and Toyota. The fact stands that while most of the used technology in these companies is usually from their indigenous countries but, the basic and most required factor, labor and human resource, is supplied by the American people. This provokes the question of technology versus application of technology, which one is more important? Clearly without the required technologies nothing can be done in that industry but at the same breathe human resource is a very key component to application of that very technology. This instigates us to carefully explain whether cars manufactured by Toyota and KIA in the US are really American (Becker, 2011). However, a huge debate is still on whether currently there is anything like American car in the market.
One of the most commonly used approaches in automobile industry is the use of suppliers and subcontractors. In order to meet the needs of consumers and also for their profitability, the KIA and Toyota companies utilize subcontractors and suppliers in their operations. For instance, KIA has 134 subcontractors and suppliers in the market of Slovak. When this is viewed in the perspective of job creation, then these companies do contribute to job creation in the US and also to other countries. Therefore, they are not worth to be part of manufacturing industries for American cars. For instance, recently KIA opened a 1 billion dollar plant in Georgia; hence it contributed to job creation.
There are factors that determine the location pattern of the auto industry. Such factors include the cost of production, assessment of growth and the target market. Globally, there are three major regions that are associated with automobile production; the Western Europe, Japan, and the United States (Becker, 2011). These regions offer different factors at different season and hence the manufacturing companies tend to move and cease the environment with the best productivity conditions and minimum cost.
This is a critical factor in determining if the cars manufactured in the United States by Toyota and KIA can be termed as American. According to Becker (2011), the two companies are tending to outsource most of their services from outside United States. This approach works for them because the nature of the industry comprises of different spare parts, this means that different parts are manufactured probably at different quarters and then eventually assembled to make a single unit. According to statistic cars manufactured by Toyota and KIA actually are made from up to 80% of American parts. This is a great boast to the economy and at the same time widening the scope of employment opportunities(Becker, 2011).
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Comparatively the two viewpoints of describing American car company are valid and worth due consideration. However, based on recent studies and analysis it is clearly depicted that the core function and purpose of automobile companies should be human rights redress and provision of employment. To the contrary, these companies have been taking seriously the issues in line to these values, which include adequate address of union's matters, creating jobs, and people's employment location. Another important concern is the provision of safe conditions in the workplace and enhancement of better terms of employment like insurance, wages, and medical cover.
All the above mentioned features are very evident in non-American automobile manufacturing companies such as KIA and Toyota. A good example is that cars from these companies are made from up to 80% of American parts and Kia for example recently opened a 1 billion dollar plant in Georgia, hence it contributed to job creation. Therefore this paper is in favor of the point of view that Toyota and Kia can be named as American cars.