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Essay / The automobile industry: the development of...
Automobiles and associated manufacturing contribute to environmental degradation, causing great concern from consumers, governments, policy makers and environmentalists , concerning the economy and global warming. This has led to changes in the market, due to new laws, legislation, standards, product requirements and consumer wishes. The gasoline engine produces emissions that are deadly to the environment, hence the great race by automobile manufacturers to develop an efficient alternative fuel/energy to power their vehicles. Deloite (2014) “In 2012, new Average Fuel Economy (CAFE) standards were issued in the United States, requiring automakers to increase the average fuel efficiency of new cars and trucks to 54.5 MPG by 2025." ("Global Automotive Consumer Study", 2014, p.4) The industry is engaged in research and development to develop internal combustion engines, electric vehicles (EVs), plug-in hybrids and powered vehicles more efficient natural gas. The government provides incentives in the form of rebates for energy-efficient purchasing and selling of energy.