The transportation industry has a rich history of regulation in the United States surrounding the railroads that most grade school students learn about. The legacy of the transportation industry is rife with antitrust cases and the struggle of the government to protect consumers across state lines. Within transportation lies the automotive industry; which has dealerships in nearly every city and state in the country making regulation not only a national issue but a state and municipal category. A substantial amount of attention has been focused on the automotive industry adding to the history of transportation regulation.
The nature of the regulation has been progressive - a century of reforms and regulation that span safety, energy, infrastructure, …show more content…
The two elements of note that arise from product liability are consumer perception and its effect on demand and the supply side strain that occurs from having to replace recalled products. These two elements contribute to the strategic shift of automobile companies in hiring former Congressmen and top Congressional staffers who know regulation politics44.
Recalls in the automotive industry come from product liabilities that are above the maximum standards set by the legal and political systems across the United States. A product recall begins the process of brining and resolving the various claims and lawsuits from consumers and consumer groups. A troubling aspect of recalls is how much the company knows about the liability before and leading up to the recall. A lot of companies have gotten into hot water over this and has greatly affected the two elements of product …show more content…
The progressive rise of regulations also seems to be growing over the course of time in new and interesting ways that gives way for businesses and advocacy groups to develop new strategies for protecting their interests. The automotive industry is subject to shifting consumer demand and the availability of substitutes in a highly competitive market. The high regulatory cost of doing business as a manufacturer has resulted in outsourcing parts from numerous vendors and the development of standardized parts. A large question looms over whether the quality of outside vendors is efficient enough to prevent large scale
The nature of the regulation has been progressive - a century of reforms and regulation that span safety, energy, infrastructure, …show more content…
The two elements of note that arise from product liability are consumer perception and its effect on demand and the supply side strain that occurs from having to replace recalled products. These two elements contribute to the strategic shift of automobile companies in hiring former Congressmen and top Congressional staffers who know regulation politics44.
Recalls in the automotive industry come from product liabilities that are above the maximum standards set by the legal and political systems across the United States. A product recall begins the process of brining and resolving the various claims and lawsuits from consumers and consumer groups. A troubling aspect of recalls is how much the company knows about the liability before and leading up to the recall. A lot of companies have gotten into hot water over this and has greatly affected the two elements of product …show more content…
The progressive rise of regulations also seems to be growing over the course of time in new and interesting ways that gives way for businesses and advocacy groups to develop new strategies for protecting their interests. The automotive industry is subject to shifting consumer demand and the availability of substitutes in a highly competitive market. The high regulatory cost of doing business as a manufacturer has resulted in outsourcing parts from numerous vendors and the development of standardized parts. A large question looms over whether the quality of outside vendors is efficient enough to prevent large scale