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Essay / Fall in sales of automobile manufacturers in the United States...
There is a considerable decline in sales of three major automobile manufacturers in the United States and CANADA, falling from 70% in 1998 to 58% in 2008 These three auto giants have asked for $50 billion in aid to avoid bankruptcy and to cover health care benefits, salaries and pension plans. The main reason for this is the drastic rise in fuel prices. Ford was criticized due to its wide product line, higher quality and higher employee wages, as well as the banks' employment programs. The 2008 recession added many problems to Ford. Due to the recession, the raw materials needed to manufacture vehicles have increased significantly. Ford tried to make inefficient gas guzzlers, which are only driven by fewer people in the country. Ford made them because they generate high profits compared to small, fuel-efficient cars. The profits made from selling 10 small cars are the same as those made from selling one SUV. Suddenly gas prices started rising 4% and people stopped buying these fuel-inefficient cars. This has led to discouragement about purchasing large pickup trucks and model sports cars. At the same time Japan...