Explain The Environmental Challenges In The Automotive Industry
The American auto industry, starting back in 1896 when Henry Ford built the first car, has faced a range of challenges and changes. That changing industry landscape has increased exponentially in complexity over the last fifty years. There are multiple competing domestic and global variables including political, economic, technological and, global competition. Those factors provide a challenging industry but also provide unique opportunities for the American auto industry.
Politics has played a significant role in the U.S. Automotive industry since the 1960’s. The National Traffic and Motor Vehicle Safety Act, passed in 1966 ensured that manufactures improved passenger safety, visibility and braking on all American cars. Further regulations, around fuel economy and pollution control have continued to be added starting in the 1970’s and continuing to this day. The vast a majority of …show more content…
The reverse is also true especially since the late 1990’s. Increased production, with substantially lower manufacturing costs and improved quality by Japanese car manufactures allowed them to make significant inroads into the American auto market in the late 1908’s and 1990’s. This put significant financial pressure on American automotive manufactures and their related industries. This in turn led to several large manufacture mergers in the late 1990’s. However this was not a phenomenon restricted to the U.S. domestic market. In 1998 European Daimler-Benez A.G. merged with Chrysler to become DaimlerChrysler. Ford merged with Volvo and General motors with Saab. These mergers have consolidated the industry to some extent. However as all the manufactures continue to produce a product very similar in quality, features, technology, and ultimately in value, there is intense rivalry between these major