Appendix 1: PESTEL factors involved in the 1st event.
Events Comment Consequence
E Oil shock crisis 1980 Plans to build a line of small cars by the Big Three were scrapped when oil prices fell in 1974. It was not until 1979, when the second oil shock drove gasoline prices up permanently
S Emerging American Style after oil crisis The increasing popularity of small, fuel efficient cars with the permanent long term increase in gasoline prices beginning in 1979.
T Small engine tech The US has o skill on small engine during and after oil crisis.
S American Style 1980 the United States was largely based on superior vehicle quality and durability,
P Car standard barrier Imported motor vehicles are subject to pass on many standard in order to sell in the US e.g. safety standards, bumper standards, air pollution control standards.
E The end of the economics of scale Overall car can produce up to 70 million cars a year while Demand was only 52 million in 1998.
Automotive industries was in the mature(Product life cycle) cars force automobile to mature stage
E Japanese bubble crisis. Japanese 1987-1990bubble crisis. Japan automotive suffered from currency exchange.
S JPN Bubble crisis After the end of WW2, Japan’s economic are very economize resulted in high on saving rate. The government try to decrease interest rate to promote people to invest but it was not effective. This is one of reasons of Japanese crisis 1986-90
E The rise of the US economic Japanese’s car in the US regarded as a low-cost car also focus on young generation. When the US economic was good (1990-1999), the sale of Big three (GM, Ford, Chrysler) would rise. Nissan went from having a global market share of 6.4% in 1990 to 4.9% in 1998