thought automobile help us in many ways they have a negative impact on the Ibrahim as well how can we minimise this effect
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Answer:
The U.S. automotive industry is facing a difficult if not unprecedented period of competition and capital spending in its efforts to compete with Japanese automakers and to meet pending government regulations on emissions control and safety. These burdens are falling on an industry trying to cope with massive losses due to the 1990-1991 recession and the battle for market share.
Fuel economy has not been a major competitive issue in the marketplace since 1981. Relatively low gasoline prices have allowed consumers to focus instead on vehicle prices, performance, comfort, and style. But firms that can provide all of those characteristics, plus superior fuel economy, should have an advantage over those that do not. Whatever the future fuel economy standards, U.S. automakers must confront the fact that the Japanese appear to have targeted improved fuel economy as an area deserving particular emphasis.1
Although properly designed fuel economy standards would not necessarily constitute a competitive disadvantage to U.S. automotive companies (see Chapter 9), new fuel economy standards that are extremely costly to implement or that greatly distort the normal product cycle of the industry would place an enormous financial burden on domestic automakers. Hence, the impacts on the industry are central to the discussion of new fuel economy targets. This chapter explores those impacts.
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