• Service: Advisory, Transactions & Restructuring, Transaction Services, Restructuring Services, Management Consulting, Management Consulting Services, Risk Consulting
  • Industry: Diversified Industrials
  • Type: Business and industry issue, White paper
  • Date: 12/31/2009

Transformation of the Automotive Industry: The Environmental Regulation Effect 

The global automotive industry is undergoing a fundamental transformation due to increasing consumer preferences toward vehicles with a lower carbon footprint. Governments throughout the world have responded to these market forces and other geo-political factors by imposing stringent environmental regulations on original equipment manufacturers (OEMs) for emissions control and fuel economy. These regulations vary markedly from one part of the world to the other, adding complexity to the mix of vehicles offered by OEMs worldwide. As a result, global OEMs and suppliers are being challenged to constantly update their product portfolios to meet numerous regional regulatory requirements, which are expected to add significantly to their manufacturing costs.