Gm Pestle Analysis

1. Political Laws and government regulations have affected this industry since the 1960s. Almost all of the regulations come from consumers increasing concerns for the environment and the concern for safer automobiles. 2. Economic

The automobile industry has a huge impact on every country’s economy. According to variousstudies this industry is the major user of computer chips, textiles, aluminum, copper, steel, iron,lead, plastics, vinyl, and rubber. The study also showed that for every autoworker there are sevenother jobs created in other industries. These industries include anything from the aluminums tolead to vinyl. 3. Sociocultural

Today’s society judges people on the type of car you drive. Society does not like to admit to thisbut it is very true. Manufactures know this happens and targets their markets by these thoughts.Anyone who drives a nice vehicle is thought to be wealthy. No one wants to be seen driving anunattractive piece of junk because of what other people will think of him or her. Consumers alsojust feel better when they are driving a nice or new car, if makes them feel better about themselves. 4. Technology

The internet has affected just about every industry in the world and has also had a huge impact onthe automobile industry. A study was conducted by J.D. Power and Associates in 2002 andinvolved more 27,000 new vehicle buyers. The study showed that 60% of the buyers referred tothe internet before making their purchases and out of that 60%, 88% went to the auto websitesbefore going and taking a test drive. Business-to-business marketplaces have given the industrymany opportunities because of the internet, such as more efficiency and lower cost. 5. Demographics

For many years now, the baby boomers generation has been the main target market for just aboutevery product. As their generation is getting ready to retire and spend less money, the automakersare looking at the younger generations. Right now, the focus is starting to turn towards the babyboomers children (Generation X) who are in their mid 20’s and 30’s. According to Analysts, fiveyears from now Gen X will account for at least 30% of vehicle sales. 6. Global

General Motors, Ford Motor Company, Daimler Chrysler, BMW, Volkswagen, Volvo, Toyota,Mazda, and Nissan Motor Company come together to create a new trade association created theAlliance of Automobile Manufacturers. The organization was to replace the American AutomobileManufactures Association that only consisted of American manufacturers, the goals of theassociations were to work together on public policy matters of common interest to provide credibleindustry information and data, and seek consistent global regulatory standards