The Prospects of the Car Industry

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Assignment 12: The Prospects of the Car Industry. In the past decade the car industry has been experiencing dramatic changes. Growth has become increasingly more difficult to attain for many different reasons. One of the most obvious reasons has been the economic crisis which has had negative impacts on the demand of expensive cars. The culture has also had a dramatic impact on the automotive industry, as consumers are now demanding more eco-friendly vehicles. The urban lifestyle and the increasing populations of Europe, have made many people rethink their different travelling options; more and more people are getting fed up dealing with traffic jams. Furthermore, a car is a very big expense, as pollution taxes have increased and so has the price of oil. While the European car industry has suffered much from its European sales, it however has managed to have positive net exports to countries outside the EU. The car industry participates a great deal to the health of the European economies; a healthy industry means less unemployment throughout Europe as the industry provides a lot of jobs. Therefore, it is crucial for the industry to increase its sales in Europe; this will have to be done through finding innovative solutions to all the problems mentioned above. Changes have to happen to counter the loss of revenue; an unhealthy car industry could deepen the economic crisis. Economic crisis has created a situation of doubt and uncertainty. Because of this uncertainty consumers spend less of their income; consumers try to increase their savings to be more prepared for periods of hardship. Because less money is spent, less people buy cars, as “with sales forecast to decline for a sixth year in 2013, most experts believe that the industry needs to embark on significant retrenchment to better match the weakened state of demand from drivers” (Blackden, 2013). The
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