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Market Trends

In: Business and Management

Submitted By mike2486
Words 391
Pages 2
Mixed reviews are given when predicting the impact of government regulations on the future market trends of the “Big Three” automotive industry. There are both positive and negative predictions on how these government regulations will impact the industry. Where Congress imposes regulations to protect or benefit the consumers they might actually create bigger issues in the market. Currently the U.S. Government has imposed regulations on the Automotive Industry affecting the environment, safety, and fuel efficiency of vehicles. These three features will continue to cause new regulations to be passed which will push the automotive industry to the brink of success or failure. The future outlook of these vehicles would be: Technology that will prevent crashes, additional safety features that will keep the people safe in a crash, environmentally friendly vehicles, alternative fuel sources, minimum fuel efficiency of 50 plus mpg, and many other regulations that will protect the environment and also protect the person. The market trend for these possible future regulations will either cause the “Big Three” to find the resources to comply with the regulations or they will fail and the company would go under. Government regulations appeal to consumers and consumers determine the market trends. “Government intervention can be a huge catalyst for growth.” (http://www.csmauto.com/news/csminsights/2010/01/Government+Regulations+Can+Drive+Industry+Growth) These regulations will provide a product that is appealing to the consumer which in theory would increase sales to the “Big Three”. The fine line is that it will cost too much money in research and development that it would increase the price of the vehicle making it too costly to the consumer. This would in turn cause massive layoffs, closing production plants and essentially provide a negative impact on the economy. The market trend will be determined by what the consumer will be willing to pay. The government regulations will make the “Big Three” provide a product that the consumer wants. If the “Big Three” can create vehicles that have the right cost associated with it, then the market trend will show sale increases which will help boost the economy as well as the company. If they fail to meet one aspect of consumer needs, which are imposed in government regulations, then the sales will decrease causing massive layoffs and ultimately the end of the “Big Three”.

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