Categories Auto

Mark Gilbert Scottsdale AZ Discusses How Regulations Affect the Automotive Sector

Government regulations in the automotive industry directly impact the way cars look and how their components are designed, the safety features the car has, as well as its overall performance. As Mark Gilbert Scottsdale AZ says,   government regulation also has a huge impact on automotive businesses by elevating production expenses in general, while also placing limitations on how cars are marketed and sold. Automotive regulations are usually designed not only to benefit the consumers but also to protect the environment. Automobile companies are likely to face heavy penalties in case they do not follow such regulations.

Mark Gilbert Scottsdale AZ talks about how regulations affect the automotive sector

The automotive sector is considered to be among the most regulated industries on the planet. Governments across the world have implemented a plethora of regulations that are focused on making sure that vehicles effectively meet certain standards in terms of safety and environmental sustainability.   Gaining a good understanding of such regulations is vital for players involved in the automotive sector, right from manufacturers and dealerships to even repair service providers.

Many regulations do vary from one country to the other, which can make compliance complicated for several global automobile brands. Government oversight is required to make sure that distinctive companies are capably adhering to a range of environmental standards, as well as protecting consumers from unfair practices. All players associated with the automotive sector must stay up-to-date with relevant regulations, and take proactive steps to comply with them.

It was fairly easy for the consumers to differentiate one car from another by its make and model in the 1950s. Car designs heavily varied from year to year. The creativity of these designs essentially played a major role in their overall sales appeal. The car designs also differed from one another in terms of safety. Over time, the government had stepped in and began to add various modern safety requirements like crumple zones, seatbelts and airbags. As a result, many car designs started to look similar so that automotive brands could more easily comply with the relevant safety requirements.  Most of the car safety features have many design limitations, take up a certain amount of space, and/or have to fit in a specific area of the car. As a result, they limit the options for car designers when it comes to developing concepts for new vehicles.

As per Mark Gilbert Scottsdale AZ, since the Arab Oil embargo in the 1970s, a higher degree of focus has been placed on improving the fuel efficiency of vehicles. The Corporate Average Fuel Economy (CAFE) is the set of rules that went into effect as a result. Many recent events have further caused more pressure to be put on manufacturers to increase fuel efficiency.

Emission laws are another important aspect to consider as they impact the bottom line of automobile companies to a good extent. Catalytic converters and other devices designed to lower the emissions of a car cost a good sum of money to develop, test and mass-produce. Even though this expense is typically passed on to the consumer, environmental regulations still significantly affect the day-to-day operations of the automotive sector.