PROBLEMS FACING THE AUTOMOBILE INDUSTRY

Despite problems with over capacity and low profitability,the auto mobile industry retains strong influence and importance. The automobile industry is a major industrial and economic force world wide. It makes 60 million cars and trucks every year,and they are also responsible for almost half of the oil consumption. The industry employs 4 million people directly and many more indirectly.

Although the industry might come up with some problems, over capacity and low profitability is one of them. The automobile industry retains a very strong influence and importance. This is because, the automobile industry mostly has heavy linkages with supplier industries. They tend to depend on these supplier industries for the supply of automobile parts which is mostly costly. Purchasing of the automobile parts at a higher cost sometimes leads to low profit and by that,it tends to create lots of problem to the automobile industry.
Over a decade, there have been a drastic reduction in the repairs of automobile. In Ghana,most Ghanaians are holding onto their vehicles longer than ever, and by that automobile industry have been facing numerous challenges interms of patronage in their work.
Again,some automobile manufactures demonstrate the use of online data to augment onboard technology. Others have experimented with copying mobile interface, by creating applications that would enable them fix their automobile when it is usually at fault. And by that matter, patronge of automobile start to deminish from the system, which in a way creats alot of problems to the industry.
On the other hand, motorist strugling to make ends meet are doing only what is absolutely necessary to their vehicles on the road and taking risks they shouldnt take. They mostly try hard to fix their automobile when it is at fault by themselves. By so doing, they put themselves into high risk of getting an accident and also making the work of the automotive industry difficult and unlucrative.