Evolution Of Automotive Industry

1939 words, 8 pages

Intro Sample...


Also noted in the wallstreetjournal.com article, “so far this year Chrysler has reported big declines in monthly vehicle sales, as customers switch from trucks and sport utility vehicles to small cars and crossovers.”
The main factors dictating the way in which producers in the automotive industry price their products are supply and demand. Along with the supply and demand factor companies in the automotive industry also take into account the production costs when placing a price on their product. When setting prices producers have to determine whether the product price reaches the company’s financial goals, are consumers willing to buy at the set price and the product identity. “A good pricing strategy would be the one which could balance between the price floor (the price below which the organization ends up in losses) and the price ceiling (the price beyond which the organization experiences a no demand situation)” McKinney 2006.
The creation of automotive technology over the past years has been greatly affected by

government regulations. Congressional Committees and regulatory agencies have passed rules a

and guidelines with the purpose of enhancing safety, limit air pollution, and decrease fuel intake.

The creation of the automobile has had a deeper influence globally than any other creation in this

nation. With this being said, manufactures and designers have always had to keep up with new

demands of the economy and technology. The connection Americans have with the automobile

goes more in-depth than many people can imagine, especially those who made the transition

from horse to automobile. The biggest satisfaction was personal mobility. Even with that said,

the demand for personal mobility was the foundation for the private wants for automobiles. With

the growth of communities and industries in large cities, the automobile seem to be the

solution to many obstacles getting from one poin View More »

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