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It is a big question what to do with the crumbled auto industry. While there are a lot of different opinions on the matter, the one thing that we all can agree with is there are going to be some changes. Let's look at a few of the biggest changes you can expect, both directly and indirectly related to the retooling of the automotive industry.
1. Availability of Smaller, Economical Gas Vehicles
A few years ago it was by far more profitable to manufacture and sell large SUV's as opposed to small economical cars. The recession then hit and the luxury and big SUV market crumbled, leaving manufacturers in shambles. The retooling of the auto industry is said to be changing this. In fact, the smaller vehicle may soon become a bread winner among auto manufacturers.
2. Stricter Emission Standards
While some will say the new emissions standards are not nearly strict enough, they are a lot stricter than they used to be. Starting in 2012 the emissions of new cars will be required to improve by 5 percent each year, reaching a climactic average of 35.5 by the year 2016. This means that we can expect to be seeing a lot more hybrids and electric vehicles being released in order to reach these new standards. On the negative front, the cost of reaching this goal is believed to add $1,300 in technology to each new vehicle, which will most likely come out of the pockets of buyers.
3. The Electric Car Will Not Be Killed this Time
Despite some question about the politics involved with an electric car, it is definitely on the way. The Big Three are no longer in control of the vehicles being made, the consumer has voiced their opinion, the funding is there, the enthusiasm, and there is already quite a selection of styles and packages of electric vehicles (like the Chevrolet Volt) already on the way. This places the electric car in a position that it has never enjoyed before, which should help to drive the electric revolution even further.
4. Affordable Chinese Vehicles
China has had some big plans to take the automotive market by storm. They plan on getting in on the action while many of the old standbys (a.k.a (The Big Three) have been knocked down from the pedestals they used to stand. What this means to you, is some very affordable electric vehicles coming to a shopping area near you. Possibly even within the next two years or so. The only question will be, are American's ready to buy a vehicle that is relatively unknown, has a minimal track record, is labeled "Made in China", and could possibly be sold through chains like Wal-Mart or Costco?
5. An Electric Car Revolution is at Hand
While China is very prominent right now in the media, they are not the only ones taking advantage of the troubled automotive industry to get their foot in the door. There are a number of start-up automotive companies trying to get on the fast track to success. This means more competition, increased affordability, and ultimately a better overall choice of electric and hybrid vehicles. It used to be your choices were Ford, Chrysler, or GM. Then the European companies became a trusted choice. Soon the Japanese vehicles were all the rage, and today we have such start-ups as Tesla, Quiet Car Company, and many others gaining public confidence. Welcome to the revolution of the electric car!
6. With Gas Prices on the Rise, Manufacturers Are Ready This Time
When the gas prices originally began to escalate a few years ago, dealerships were stuck with stock piles of dusty SUV's and other large gas guzzling vehicles. They were just not prepared and quite frankly probably did not see that such a devastating result could result from their stubbornness. Instead of making the same mistake twice however, the retooling of the auto industry is going to include plenty of smaller, economical choices that will ensure steady vehicle sales, even as the price of gas begins to escalate once again. This will help ensure at least a portion of stability within the automotive market. While many people have enjoyed the low gas prices, there are many reasons why low gas prices aren't great for the planet.
7. Renewed Interest in Public Transportation
The tragic story of the automotive industry has changed the romanticism Americans once had for the automobile. The automobile used to symbolize adventure and freedom, but now it is associated with cost, pollution, non-sustainability, and instability. In other words, consumers are falling out of love with their vehicles. This is opening the possibility for public transportation to take hold like never before. This increased interest has been furthered by the introduction of such cool projects as the high speed rail corridor. There is currently $13 billion in stimulus funds going towards this 150 mph wonder, with the promise of more providing public interest continues to build for projects such as these.
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