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Factors Affecting Automotive Industry

Essay by   •  November 2, 2015  •  Case Study  •  349 Words (2 Pages)  •  668 Views

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Sr. No.





Economical Factor



  • Labor, Fuel Prices Threaten to Derail North American Auto Industry in 2015
  • 2- tier wages system at risk
  • Falling gasoline price put pressure on automakers
  • Global unpredictability threatens industry


Its threat for the industry because if the labor and gas price increase then the industry will face a economical threat because of loss.  



(Threat for Canada and opportunity for Mexico)

Mexico races ahead in auto industry as Canada stalls then Canada.(

  • Its threat for Canada because if the Mexico will have the manufacture plant their country then the job employment in Canada will decrease

  • And its opportunity for the Mexico because their people will get more job employment and income level of the people will increase


Socio-cultural factors


Volkswagen Canada said more than 100,000 of the affected models were sold in Canada.

There are a lot of angry and upset people. They thought they bought a great car, one that’s good for the environment, and it turns out that’s not the case.

By this the people will get negative thought about the company and before buying this company car the people will think 1000 time.




( opportunity)

Innovations in Automobile Industry in 2014 

New technology like Automated Manual Transmission (AMT), V2V Communications, bus powered by human waste in  Britain ect

This  all new technology attract new consumers


Competitional factors


 As alluded to in "Technological" consumers are demanding sustainability car  by the automobile industry

Now the automobile industry are manufacturing cars which powered by bio-fuel, electricity.

By this Consumer  superior performance as well as top-of-the-line gas mileage.




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