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 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.