The oil crisis increased demand for more economical cars and this demand was met by Japan imports, threatening US and European manufacturers. Trade barriers were called for but this ‘invasion’ could not be halted. The advancements in the industry with regards fuel and green efficiency is moving at a fast pace. It is estimated that by 2020 “electric vehicles and other “green” cars will represent up to a third of global sales in developed markets” (Russ Heaps, 2013). The move from mechanics to electronics and low tech mobility trends give rise to great opportunities. The growing environmental awareness and concerns, growing fuel prices, regulations and depleting oil reserves will increase the demand for fuel efficient automobiles. Alternative fuels such as natural gas which Asia and Latin America have access to will drive the advancements in natural gas powered vehicles.
It is thought Chinese manufacturers will lead the next wave of import competition. This issue arises because of