What is the impact of economic crisis on the auto industry?

The present economic crisis is affecting all the businesses in USA. It has affected million of people in the world including USA. It has especially affected the automobile industry of USA in a very negative way. It is very easy to see the effects of economic crises on the automobile industry. Almost more than half million workers of automobile industry of USA have lost their jobs due the economic crisis. It has become a challenge for the automobile industry to meet the challenge suppressed markets in the world and USA.

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Due to the economic crisis, the pays and other incentives of the employees of the automobile industry have dropped to a great extent. Along with decrease in payrolls, the employment rate in the industry has also increased too many folds.

Due to decrease in the pays of the employees, it has greatly affected the buying capacity of the consumers. It has especially greatly affected the pays of the employees who were working at the lower ranks. The crisis in the auto mobile industry has not only negatively affected the industry in the USA but overall industry of the world. The reason is that USA is the biggest market of automobiles in the world.

General Motors, one of the biggest auto manufacturers of the world, is facing a lot of problems due to the global crisis. USA government has given a bailout to GM to drag it out from the global crisis. As the buyers have lower capacity due to the economic crisis, so the mobile industry is paying a heavy toll due to this lower capacity. It has been revealed through the current data that there is a huge drop in the orders, and the automobiles' manufacturers have to cut many jobs, so that they can battle this crisis.