According to Highfill, D., Baki, M., Copus, S., Green, M., Smith, J., Whineland, M. (2004) the environmental challenges facing American auto industry emerged with the growth of the industry and prompted concern for the environment with focus on emission reduction and the USA Congress 1965 passed, “Pollution and Control Act”, hence becoming the first Act to benchmark on setting industry standards. Following 1970, Congress again passed the clean Air Act as the automobile industry is growing fast and high competitive hence having these laws enacted in curbing behavior change and instilling sense of responsibility to the users and the automakers, with focus on sustainability of the environment.
Vehicle emission Environmental challenges …show more content…
et al (2004) Congress passed, The Vehicle Air Pollution and Control Act 1965, and it became the first and only Act to set standards on automobile pollution. The number of automobile increases with time and pressure mounts on manufacturers to innovate new alternates energy powering fuel, increased regulatory compliance and reducing imminently the rising concern on global warming. The automobile industry unwillingly ventured into Research and Development for new methods of producing alternate models with other energy powering fuel, although citing the prohibitive cost involved, however the introduction of the legislation forced many automakers to seek innovation into alternate ways of the automobile powering fuel with efficient and effective engines with internal combustion to reduce pollution to the environment. A research by Mckinsey & Company (August 2013) customer demands and regulation for emission and safety have added cost unlikely to be passed to consumers, product differentiation is aligned to customer preference rising complexity and going green becomes expensive as carbon regulation tightens. According to KPMG International (2010) report new legislation passed American Clean Energy and security Act 2009 which still under debate emphasizing the need for fuel efficiency standard for the automobile industry.
However, according to Highfill, D. et al (2004) the leading manufacturers on innovation General Motors, Daimler-Chrystal have already powered …show more content…
(2004) and in their research paid more attention to Japan, with its main focus on solid waste reduction and carbon emission, whilst Europe paying more attention and emphasis on solid waste reduction and also eying the International Standard 14000 certification and United States of America’s focus is on regulatory compliance and safety. The study concludes that, Europe is leading on environmental issues and following through is Japan, then thirdly USA, Sutherland et al (2004) meaning the automobile industry in America must do more to reduce the environmental impact. American companies are not globally represented in the emerging and Asian markets as globalization becomes critical to automobile industries, although Daimler-Chrystler claim as the leader in hydrogen fuel cell powered automobiles and paying more attention to cleaner, efficient diesel automobile hopes to reap more benefits as compared to current competition on electric and hybrid offered by other competitors in other markets, Sutherland et al (2004); Highfill, D. et al