Automotive Industry Crisis Reaction In Us And Germany
With the genesis in the USA and rapid spread all over Europe and Asia, financial crisis started in September 2008. Initially, affecting banking system as a result of mortgage turmoil for a very short period of time it threatened the automotive industry. According to the world economists reports it is considered to be the greatest financial crises after the great depression of 1930`s. First symptoms were the high rate of unemployment and inflation, collision of financial markets and collapse of financial and non-financial sector.
This global financial crisis associated with economic slowdowns has had a profound impact in the non-financial sector and particularly in the automotive industry, which is definitely an important contributor in the economic growth.
Since the performance of both countries is highly dependent in automotive industry, through this survey we want to point out causes, challenges and the need for state intervention during crisis.
After finalization of econometric models and results, we will update this abstract.
Facts and general economic information
United States USA
The world`s largest economy with its nominal GDP estimated to 14,256,300 (millions of USD), is the leading country with ï¿½ of nominal global GDP. Just before the crises U.S. economy was known for its stable overall GDP growth rate, even though the total trade deficit for 2008 reached 696 billion USD, ranking it as the largest importer partnering China, Japan and Germany.
As an important tool of economy construction is credit, public debt is around 53.5% of GDP (2009 est.), while the largest holders are Japan and China. Estimates (2009) have shown that 1.2% of GDP is composed by agriculture sector, 21.9% industry and 76.9% by services. The US economy is oriented on open and highly competitive markets. There are no barriers for foreign firms, despite the fact that existing firms are at or near the forefront in technological advances. Leading industrial power, it is mostly specialised in petroleum, steel, automotive, aerospace, and telecommunications industries.(责任编辑：BUG)