Demographic
Rising wealth is a big trend going on in demographics. This means that more people are going to be buying cars when maybe before they couldn’t afford one. We are seeing an increase in the number of vehicles on the road worldwide along with the geographical trend of more people moving to urban areas. This might create a challenge with mobility issues with so much congestion.
Sociocultural
Today’s society now has a greater concern for the environment which can affect the automobile industry. More people want hybrid or fuel efficient cars to decrease their carbon footprint. People also want to see businesses take on more corporate social responsibility as well as continuing advances in technology.
Political/legal
Legal issues come up when doing business in foreign countries that can be sometimes very costly. Ford of South America suffered an estimated loss of $300 million due to trade restrictions, which resulted in a weaker South American market.
Technological
There has been greater focus on sustainability, nanotechnology, and wireless communications improvements. The automobile industry has made advances with fuel efficiency and driver accessories. Ford CEO Mulally saw the automobile as the all-time mobile device and has headlined many Consumer Electronics Shows. The new technology involved serves as a link between the car and the consumer requiring more built-in communications and voice control.
Economic
Knowing the state of the economy is always necessary
The American automotive industry has been under a lot of pressure over recent years due to increased concern for the environment and increased global competition. An environmental scan on the American automotive industry shows that the global competition is a great cause for concern, new technology is providing an edge, emissions and laws regulating them are as tight as ever, and consumer opinion is reflecting concern for this.
Ford's major move in recent years is that of the technology that is in their cars. With Ford's venture with Microsoft to introduce a "smart car" that has an understanding of what types of music the driver prefers to read text messages aloud and voice commands; Ford has definitely taken the lead in terms of technology inside the car.
Introduction Automobile usage has increased in America and elsewhere in the world. In a research done by Sutherland, J., et al. (2004) “The US has a contributed to 200 million passengers in cars and light truck over the past few years. Further in 1990, studies showed that US cars increased six times faster than human population. The leaders in the automotive industry must adopt some key elements to ensure success in this fast-moving environment. They must invest in knowing their markets, building brands, adapting product strategies and taking long-term view on their goals and objectives. This paper outlines some of the key factors which should be considered. Environmental factors automotive designers and engineers have always said the main threats in the American Automotive industry are the environmental factors such as fuel economy and the clean air regulations. Automotive Emission posed different problems than manufacturing discharges such as coal smoke. Increased fossil-fuel emission has resulted from the million car increase. Irritation smog, which is comprised of carbon monoxide, hydrocarbons, sulfur oxide and other various chemical mixtures are cited in major cities such as Los Angeles. These auto emissions are also said to cause headaches, visual pollutions, contribute to lung cancers and other respiratory disease. In the end, the engineers have designed cars that are better environmental performers, cost effective and fuel efficient to reduce the environmental
The rise of green products and the want of consumers to become more environmentally friendly has been increasing. In 10 Green Marketing Milestones, the reading mentioned how the “rise of the Toyota Prius: It may not have saved the world, but at 1 million cumulative vehicle sales the Prius became the predominant fuel-efficient hybrid vehicle” (Neff 2). This is an example of how companies are actually wanting to go green in order to make more profit and rise above their competitors. Going off the Prius example, it was also mentioned how Hummer cars, which use an excess amount of fuel, sales have plummeted. This was because this model no longer appealed to the consumers and General Motor’s had to discontinue the model and even went bankrupt. This sale tactic works and is so successful because the consumer’s mindset have evolved to seek things that are better for the environment. Many would prefer Toyota over General Motor because of their company’s reputation with being green. Although this might not work for all companies, but for some, they have become more successful than their competitors by going green and so, convincing more and more to
Recently America and the European countries are saying that the automobile industry is very dangerous for our world, and the likes of china should not produce them as we have created a lot of pollution already. What the world should be currently focusing is reducing the pollution, nor creating more cars.
The article, “Automakers Prepare for an America That’s Over the Whole Car Thing,” by Neal E. Boudette, was published on December 22, 2016 in The New York Times. Boudette informs the reader about how “novel” technologies are creating new alternative ways for people, particularly in urban settings, that commutes to different places. Young Americans consider owning a car unnecessary, or a necessary expense. Carmakers are looking at a future where cars will play a little role, or no role at all, in many people’s daily routines. Thus, many industries are in the process of
New technology: Tesla created an electric car which plugs in to recharge. Some people have even created their own grease powered car. The grease can come from fast food restaurants or any business that serves fried food. An infinite amount of features are now available in automobiles. From stereos which can act as your phone to Wi-Fi being built into the vehicle. Recently, vehicles can now come with a feature which parallel parks for you. Google even invented a
Ford will have many different risks in their business expansion opportunity. They may face risks such as different laws and regulations by the government all over the World. They also will have to deal with the different cultural differences ("Ford Vehicles", 2011).
Those prediction posit that better public transportation from one city to another will go hand in hand with these developments and that driverless cars will be a more local phenomenon, taking you wherever you want to go within a particular city but not from one city to another. The reality is that Europe currently has better public transportation than the U.S. This is in part because Europe is simply more densely populated, so public transportation makes more sense logistically. However, Americans have a strong tendency currently to live in one city and work in another or live in an unincorporated suburb and commute elsewhere. They also have a tendency to take their car for long distance trips, whether business or vacations. Cars are currently not used as just local transportation, so it might be a bit of stretch to predict that people will give them up entirely and readily adapt to a very different transportation paradigm and all that goes with
In regards to the social changes the automobile industry is receiving from heavy feedback from their consumers. There is a need for automobile manufactures and engineers to create vehicles that environmentally friendly and conscious of their carbon footprint. The days of making huge gas guzzlers and air pollutant vehicles are long gone. In response to this social change outcry manufactures have stepped up to the plate, creating more hybrid and electric vehicles. For Autozone this could possible be unsettling, due to the fact that the technology that goes into creating and maintaining vehicles such as these parts will not be so easily accessed.
Similarly government regulations in the United States and Europe are tightening up, consequently requiring cars to be cleaner and more fuel efficient. As a result, the collaboration with BMW is paramount to getting the most fuel efficient vehicles to the market in a timely manner so that GM can harvest a substantial profit. (3) In addition General Motors is working on the next generation of fuel efficient and gasoline free vehicles to help reduce the impact of the vehicle on the environment, while preserving personal mobility, which further indicates its commitment to innovation. (6)
When making an analysis on why more companies are going green and to what are the benefits, the first argument that comes to mind are the government requirements that are now being required. Corporations are made to pass certain certifications to ensure that they are being environmentally responsible. A key industry that has been hit hard by such requirements is the automotive industry. The government in an effort to reduce the exhaust and evaporative gases that automobiles emit, have handed down regulations that must be implemented within a certain time frame. One program that the government came out with is called Light-Duty Vehicle Greenhouse Gas Emissions Standards Program. This program gave new standards for vehicles that are manufactured
The photo below is what it looks like stuck in 7am traffic on my way to work. People rely on cars more now than ever. Cars are relatively the recent phenomenon. Automobiles have been around for a very long time but yet it manages to make a big impact on U.S culture. People are going deeper into debt and for longer periods of time because they continue to buy more expensive new cars. Car buyers help increase the economy which is progress made since the
One driving force of change is technology. The automobile industry is constantly focusing on technology in order to make themselves and their cars better. They constantly compete to be the “first” one to have the newest and best idea. One of these ideas is an electric vehicle. GM, Ford, and Toyota all have electric automobiles. GM has the Chevy Volt. Volt One of Ford’s electric cars is the Electric Ranger. Ranger Toyota had the Rav4 EV, but due to discouraging sales it stopped production. “Toyota remains committed to developing an "Eco Vehicle," one that will have a minimal impact on the environment.” Rav4 One purpose of the electric automobiles is to have the ability to drive to work using only electricity. Currently during longer trips you would have to use a combination of electric and gasoline power. Electric Car
The world today is developing rapidly is every aspect of human life whether be it the technology, money or population. This change in the surroundings has made humankind to worry about the future. The advancement in technology nowadays is more focused towards the optimum utilisation of the exhaustible natural resources. The increase in population has resulted in the increase of the sale of automobiles as well.