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Governments are offering incentives in order to propagate sustainability goals.
However, there has been a shift towards outsourcing manufacturing to developing economies from developed ones. This implies that competition is rife in the automobile industry. Additionally, this model stretches the supply chain across geographies, thus increasing greenhouse gas emissions in production. Sustainability goals may be perceived negatively by auto investors, who may think of them as additional expenditures. Engineering skills are dwindling in the developed world with several innovation decisions being made in outsourcing nations; regrettably, most are not committed to sustainability. Tax regimes and complex human resource systems may be a force to reckon with in the sustainability agenda.
Small and medium enterprises are also involved in the supply chain, especially those which provide small automotive parts. Some of them find it difficult to access finance for their work. Incentives for research and development especially with regard to collaboration with other parties may be difficult. Certain governments have led the way in supporting automobile manufacturers and consumers in making sustainable car choices. Consumers are also learning about their role in enhancing intelligent mobility, as environmental concerns do not just end at manufacturing.
Several manufacturers are now prioritising environmental issues in production. A number of them want to improve their internal combustion engines. This ensures that waste recovery takes place in production. Additionally, they facilitate the integration of electric machines and combustion engines, thus minimising utility. Environmental issues have also led to innovation in enhancing the energy storage of automobiles and the material production of those items. Lightweight manufacture of products is becoming a key manufacturing goal. However, the
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