Automotive Environmental Scan

Alyssa Emmons, Amy Karlzen, Billy Warrilow and Zach Piper Pointer

Technology

• Companies compete for whoever has the best technology in their cars. That company will likely be the most desired car brand.

• Car brands with the best technology in their factory’s will likely produce cars the most effectively and quickly.

• New technology constantly has to be invented to keep up with people’s growing interest and modern trends.

Legal Issues

• Safety issues affecting car brands can cause car accidents and then can become lawsuits.

• Copyright infringement with certain technologies and innovations can cause problems with other automotive companies.

• There can be problems with the companies workforce and employment unions that cause issues for the company and its employees.

Environmental

• Factories need to make sure they are not releasing harmful things into the atmosphere.

• In recent trends, people want a car that does not use a lot of gasoline and is energy efficient.

• They need to make sure the materials they use in their products are legal and safe.

International Trade

• Importing and exporting cars need to meet safety standards because of the 1966 Safety Act.

• When importing cars from other countries, companies have to figure out transportation for their goods.

• Car companies have to choose where they want their products manufactured based on price and quality. Many cars today are made over seas in places like Asia and Europe.

Ethics

• Dealerships have to have a certain moral responsibility to their customers or no one will buy their cars.

• How companies treat their employees has to meet certain labor union agreements.

• Car companies can join associations that have set ethics that they must follow in order to be part of it. Such as the Colorado Independent Automotive Dealers Association (CIADA).

Trends

• A trend from 2010 that was introduced was smaller, lighter engines in cars that are more fuel efficient.

• 2009 was the lowest year for sales of vehicles in 27 years, so companies have to compensate for it.

• In 2011, the automotive industry expects their sales to increase and have stair-step growth.

• Trends in the auto industry are constantly changing so companies have to be able to adapt quickly.

Government

• There are different levels for state, country, and international safety standards that cars must meet.

• In 2009, the government bailed-out the “Big 3” car companies. GM, Chrysler, and Ford all took the governments more than $24.9 billion in bailout money.

• The government can control which auto companies can go out of business and which can’t.

Today’s Market

• The auto industry changes very quickly depending on the economy, technology, and current events.

• Companies have to be able to change their cars quickly and efficiently in order to keep up with the changing market.