Introduction The automobile industry has been through major changes during its existence. Cars over the years were destined to run on gas alone because of the money that it generates for oil companies. During the last decade hybrid automobiles have begun to take a more prominent role in the automobile industry. “Historically, many in the automobile and oil industries have fought progress on electric cars. It's the same story we've seen before with seat belts and catalytic converters: The automakers leave the technology on the shelf until policymakers require them to do what is in the best interests of the American people.” (Anair & Shahan, 20011). Policy will dictate how the industry will be impacted over the next five years. Lawmakers are constantly changing the rules and regulations that automakers have to produce cars by. In the following essay we will use a macro trend analysis to determine the path of the hybrid vehicle.
Issues
Legislation has evolved over recent years requiring automakers to adhere to a minimum fuel economy standard. As gas prices continue to rise, people have started to trend toward more energy efficient means of transportation. Hybrid vehicles have an electric motor along with rechargeable batteries and have an increased efficiency of up to 50 percent. There is an onboard computer that switches between gas and electric power. The hybrid car runs on the energy of the battery when it is cruising, using less energy. When it needs additional power, the fuel engine is used for energy purposes. The market for hybrids can be analyzed by looking at the macro-environmental trends (macro trends). According to Mullins and Walker (2010), “the macro-environment can be divided into six major components: demographic, sociocultural, economic, technological, regulatory, and natural environments” (p. 74). Understanding these trends will help managers learn how to market these vehicles successfully. The questions for the marketers are easy but they are complicated at the same time. Selling a premium product at a higher price is difficult to accomplish so the marketing team has to analyze the environment they will be placing the product. Social class and economic factors hinder the ability of manufacturers to sell this type of product. “Automakers are spending more than $50 billion to meet the government's 2016 fuel economy law, but consumers aren't buying enough of the fuel-efficient vehicles necessary to allow automakers to achieve the required 35.5 miles-per-gallon average.” (Gardner, 2011). Americans are still truck and sport utility vehicle owners. While, the advent of the hybrid vehicle has allowed some groups of people to purchase a vehicle that will cut down on fuel expenditures not all groups are able to do this due to the inflated price. When the economy crashed during the first part of the twenty first century, it also affected auto manufacturers. The government had passed new legislation that mandated certain fuel standards by 2025. Companies have begun developing all electric vehicles with a price tag of over 49,000 dollars. This will be extremely challenging for marketers to sell to the public. With the rise in foreclosures and the decrease in spending the forecast for the all electric vehicle could be difficult. “Most projections for HEVs put their price tag around $40,000 to $50,000, which is too high for mass-market appeal. Some numbers bandied about for EV end-user prices are over $100,000. Much of this is due to high battery pack costs, which are projected to range anywhere from several thousand dollars to well over $10,000 each.” (Allan, 2010, p. 26)
Conclusion
For marketers trying to sell a new vehicle to a public that is in financial crisis is a challenge that all marketers will have to deal with. In the next five years legislation will continue to dictate how the auto manufacturers develop new technology and how it is sold to the consumers. Currently the price point is far too high for the average consumer. If hybrid and electric vehicle technology are to continue to be an option in the market, manufacturers will have to develop new technologies but make it more affordable for the middle class. “In first-generation technology, you're not going to see a dramatically high production because the cost is too high.” (Beene, 2009, p. 1). Due to this forecast it is unlikely that hybrid or electric technology will be any more affordable in five years than it is today. The environment continues to dominate many companies and with the go green initiative that has taken hold over the last decade it would seem that the hybrid vehicle would have a long shelf life. With the price so high for a four cylinder automobile that does not offer the same hauling capability as a truck or SUV it will be very difficult for marketers to bring this product to the middle class. The manufacturers must continue to develop new technology, while also working to lower the price to make the vehicle more affordable. Policy will dictate how the industry and marketing teams will be impacted over the next five years.

References
Allan, R.. (2010, March). ELECTRIC AND HYBRID VEHICLE TECHNOLOGIES CHARGE AHEAD. Electronic Design, 58(4), 26-28,30,32-33. Retrieved December 4, 2011, from Career and Technical Education.
Don Anair, & Rosemary Shahan. (2011, November 25). Give consumers the choice of clean car future :VIEWPOINTS. The Sacramento Bee,A.21. Retrieved December 3, 2101, from ProQuest Newsstand.
Greg Gardner. (1 April). Sales of fuel-efficient autos stall despite high gas prices. McClatchy - Tribune News Service, Retrieved December 4, 2011, from ProQuest Newsstand. (Document ID: 2308388881).
Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach (7th ed.). Boston: McGraw-Hill Irwin.
Ryan Beene. (2009, April). Incentives lead the charge. Crain's Detroit Business, 25(16), 1. Retrieved December 4, 2011, from ProQuest Newsstand.