Trigonometry

 American University of Kuwait – AUK [pic 1]

Applied Economical Theory Analysis                                      Economics [pic 2]

03/2014

The Effects of the 2007-2009 Global Economical Crisis on the North American Automotive Industry.

Author, Jad R Saab

S00026354@auk.edu.kw

ABSTRACT OF THESIS

The Effects of the 2007-2009 Global Economic Crisis on the North American Automotive Industry. This automotive industry had been severely affected by the tightening of credit caused by a subprime-lending crisis in the United States of America starting in the mid of 2000’s. The demand for automobiles had fallen sharply all over the globe, and the damage spread all over the world and struck all automotive industries in other continents. It was only with government assistance that the American automotive industry quickly recovered after the global economical crises or what’s called the recession

This paper will closely study and analyze the relationship between the global economical crisis and the automotive industry. It will emphasize deeply on US car manufacturers as they were the most affected industry in the globe. This paper will reveal This paper will reveal how auto manufacturers combated the crisis, how governments managed to rescue and protect auto industries, and how autoworkers had to compromise and cooperate to protect themselves as well. An analysis of their methods will be conducted. It has become clear that government help was essential yet not beneficial to the companies in question to the long run. Technology for environmental-friendly vehicles along with quality improvement should be the long-term focus of car manufacturers compared to short-term profits.

Table of Contents

1. Introduction .......................................................................................................................... 1

2. Literature Review ................................................................................................................ 2

3. Financial Crisis and the Automotive Industry .........................................................

3.1 Effects of the financial crisis on the auto industry ...........................................

3.2 Cyclicality of the automotive industry ...................................................................

4. Crisis in North America ....................................................................................................

4.1 Crisis in the United States ..........................................................................................

4.2 General analysis .........................................................................................................

4.3 Industrial data ............................................................................................................