Essay: The United States Automotive Industry crisis

The crisis fell on the United States auto industry because of a number of reasons. Firstly, the United States auto industry is one that adds significantly to the process of credit lending and retrieval. More cars are bought on credit basis than they are on one hundred percent down payment basis. This caused the United States auto industry to contribute significantly to the process of the build-up of credit. In this regard, it was only obvious that the United States auto industry would also become part of the damage when the financial crisis came on with its full force. It is perhaps because of the very same reason that numerous external plants owned by the United States auto industry had to be shut down and had to be subjected to layoffs.

As far as the question of the role of management issues comes through in this question, it can be observed that the management issues were ones that came forth with regard to the policies that supported the cycle of credit based lending.