Strategic Management politics and law - Essay Example

Meanwhile the forecasted growth rate for the car industry in the United States for the third quarter 2005 is 3.6 percent and this has decreased to 2.6 percent for the last quarter of 2005. For the first quarter 2006, the first quarter forecasted grown rate has increased to 3.3 percent and finally for the second quarter of 2006, the growth rate has further increased to 3.7 percent. the European region has contributed the second highest growth rate of fifty percent as compared to the third top growth rate producer of forty two percent growth rate established by the rest of Europe for the year 2005.

For the year 2006, the growth rate of the European region has increased to fifty sixty percent as compared to the rest of Europe region contribution of only forty two percent. The number one contributor to growth rate is the United States with a one hundred twenty seven percent increase in growth rate for the year 2005. This growth rate has been maintained at twenty seven percent for the year 2006. This only shows that in order to increase sales, a car manufacturing company must offer their brands to the United States market.

Based on Table 4, Vehicle sales for the year 2004, 17.9 million cars for the year 2004 in the United States Market whereas for the year 2009, which is five years later, the number of cars sold in the United States is 16.1 million cars as compared to the Western Europe region of only 16.9 million cars. This will show that United States market has increased by four percent while the Western European market has increased by a higher five percent. The major market for American and European cars is China and India.

The population of China is now bigger the population of the United States and the Chinese government has opened up its gates to imported cars in its drive to be an industrialized nation under its agreement to implement the policies of the World Trade Organization in terms of exports and imports of goods such as cars. The Chinese government has also allowed the infusion of much needed investments in the tune of $60 billion per year. The entry, though, of foreign cars into China will taper off the five major local Chinese car manufacturers.

The sales of Chinese made cars, based on table 4, is estimated at 4.9 million cars for the year 2004 and this is greatly increase by sixty one percent to 7.9 million cars after five years or 7.9 cars in the year 2009. This is because the Chinese government has implemented the construction of roads which covers many locations within China. Employment. Based on table 4, the Vehicle sales there is an increase in United States car sales of four percent for the year 2009 as compared to the year 2004.

There is also an increase of car sales for the Western Europe region for the year 2009 of five percent as compared to the year 2005. There is also, as discussed above, an increase in car sales in China of sixty one percent in the year. Furthermore, Table 5 Vehicle productions in 2004 versus 2009 shows that the United States has produced 12 million cars in the year 2004 which will increase to 12.3 million cars in the year 2009. This resulted to an increase of three percent in terms of units manufactured.

This then will be