Regulations Affect the Automotive Sector


 

In the 1950s, a consumer could easily differentiate one car from another by its make and model. Car designs varied wildly from year to year, and the creativity of these designs played a part in their sales appeal. However, these designs also differed greatly from one another in terms of safety.

Lawmakers also made fuel efficiency a higher priority in recent years. The Corporate Average Fuel Economy (CAFE) is a set of national standards for automotive fuel efficiency that went into effect after the Arab oil embargo in the early 1970s.

Government regulations are not restricted to the United States. Most automotive companies make vehicles that ship around the globe. It is in their best interests to have standardized vehicles that do not require modification before being sent to a foreign market. As a result, many cars are designed to meet not only U.S. regulations, but the regulations of other countries as well. This adds further expense and hampers the design process because many different criteria need to be met for a vehicle to be street-legal in different parts of the world.


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