Challenges Of The Automobile Industry

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nvironmental Challenges When one thinks of the United States Automobile Industry they typically think of Detroit and the big three manufacturers, Ford, Chrysler, and General Motors. The truth is that almost every major automaker in the world has opened assembly plants in the United States (commerce.gov, n.d.). The automobile industry, especially the American Big Three, have had their fair share of ups and downs over the years stemming from recessions, mismanagement, and competition from abroad. With new comers like Telsa and other tech companies throwing their hat into the ring and the public perception of internal combustion engines, or at least the emissions associated with them, is changing; creating a situation where the current automobile industry maybe in for drastic changes in the near future. Consumer Sentiment Consumers are becoming more conscious of the environmental aspects of their choices and their “carbon footprint”. This change in the way that consumers think is forcing companies to shift away from vehicles with low gas efficiency and update to more energy efficient models. This shift has also inspired the electric vehicle market to begin to grow. Political Climate The United States Federal Government as well as several state governments have issued regulations concerning emission standards, minimum miles per gallon ratings, as well as safety ratings. These regulations have forced automakers to adapt and modify their strategies which has a tendency to add cost by requiring more research and development dollars, retooling and updating of assembly lines, and retraining of employees. The Federal Government makes the tax environment for automakers extremely enticing while keeping foreign imports to a minimum which helps... ... middle of paper ... ...er, more efficient, and more comfortable. These tech advances have helped open the door to tech giants, such as Google and Apple, to kick around the idea of getting into to auto business. Both companies are currently working on autonomous driving systems and while in the end they may decide to just license the technology to current players there is always the possibility of a Google or Apple branded car (Hotten, R, 2016). In conclusion the car as we know it is changing and while the new technology will probably just bring about new problems such as where do we dispose of all the batteries, updating the power grid to enable more cars to charge, and the fact that human drivers will have to share to road with computer ones to name a few it will also bring about new horizons and could possibly make your commute a much more satisfying and productive time. References
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