Brief Analysis of How EUs Policies Have Influenced the Car Industry Term Paper

Brief Analysis of How EUs Policies Have Influenced the Car Industry - Term Paper Example The car industry is no exception. The policies framed by the political leadership for the car industry are based on the information provided by different stakeholders and the push and pulls are strong and strategic. Hence, such policies have to be balanced so that they do not appear to lean in favor of one stakeholder at the cost of another. The major stakeholders in the car industry viz. the manufacturers, the OEMs, the distributors, society and the environmentalists make their contributions and influence the decision of the policymakers. These contributions and influences do not always coincide and can be quite diverse and even confrontational. For instance, the contributions of car manufacturers and the environmentalists are so diverse that any government will be hard put to frame policies agreeable to both parties. The car industry is stagnating in the United States (US) and the European Union. This industry has shown a rise in developing economies like China, India, Brazil, and Eastern Europe. In the United States and the EU, the survival of the industry depends on innovation, variety and technology fusion (Ahlgrimm, Michael, p3). Customer demands for these are high in the US and the EU. Constant innovation also plays a useful role in higher energy efficiency. There is a sea change in the car market. Until the 1980s, the market was dominated by a few big players who monopolized and were in a position to roll out specific models though user-friendly were not really individualized to suit the requirements of individual customers. This has now changed. There is greater awareness of customer specifics when designing cars of different models. The car market is no more the sellers' market. It is the buyers' market. Sensitivity to customer preferences and tastes rules the industry. The purchasing power coupled with the discernment of the customer decides the unique sales points of the car market. In this scenario, it is not only cost but also the salient features built into the car system that prevails in the market.