Political Factors And Regulatory Conditions

782 Words Mar 26th, 2016 4 Pages
Political Factors/Legal and Regulatory Conditions
• Government has been proving money to companies that develop alternative fuel sources for vehicles.
• Regulatory credits (tax rebates) have been given to customers that purchase alternative fuel vehicles.
• Typically, environmental awareness has brought about legal/regulatory changes for the automobile industry. Potential/legal/regulatory factors could include greenhouse gas emission reduction, material disposal (lithium ion batteries), or even restrictions on the use of fossil fuels for power, etc.
• In many states, the franchised-dealer associations have lobbied for legislation blocking motor vehicle manufactures from selling directly to the public and providing after-market service (Thompson, et al., 2016, p. 261)
• Bailout funds to major US automotive manufacturing companies typically had restrictions attached to the funds limiting certain actions of the companies or influencing product development.
• Copyright, patents, and intellectual property laws are strong in the United States. However, different countries abroad may have lesser laws (or completely ignore) the proprietary usage of these intellectual properties.
Economic Conditions
• The growth of the US economy (and the worldwide economy) is expected to grow at low to moderate, single-digit rates over the next decade.
• The US dollar has strengthened substantially over the last year when compared to other currencies. This causes US exports of vehicles and…
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