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PESTLE Analysis - Essay Example

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The nature of the United States automotive industry is a topic and focus that has intrigued many; both industry analysts and those that might seek to make a profit by campaigning against domestic US auto manufacturers. As a means of seeking to understand this industry to a more…
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PESTLE Analysis
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Download file to see previous pages analysis it is the hope of this particular author that the reader will gain a more informed and valuable understanding in terms of the way in which this particular industry operates and what its determinant factors are.
In terms of the political influences and dynamics of the US automotive industry, it must be understood that a significant shift has occurred over the past several years. Beginning with the 2007/2008 economic downturn, the United States government made it clear and apparent that it was willing to step in and offer to be a lender of last resort for the struggling domestic auto manufacturers. This was, at least at that time, an unprecedented move that further cemented the relationship that the political system had to the industrial base of United States auto manufacturing (Townes, 2011).
Another noted political involvement that the government has with the automotive industry is in terms of the way in which very large domestic orders are fulfilled by the three major US automotive manufacturers; Dodge, Ford, and General Motors (Hoke, 2011). As the United States government purchases only domestic made automobiles to fulfill its fleet inventory needs and to provide equipment for US personnel stationed overseas in embassies and other foreign environments, the interrelationship and involvement that the political and governmental process has to the automotive manufacturing sector is profound and connected at various points (Roberts, 2014).
As indicated previously, the past six years have been an extraordinarily difficult period of time for domestic auto manufacturers. This is as a result of the fact that that their overall demand has dropped to record lows and the ability of consumers to afford and purchase new products has dropped commensurately. However, the past year has indicated a situation in which increasing demand has once again been exhibited and there is a steady but determinant increase in consumer interest for new products, new technologies, ...Download file to see next pagesRead More
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