SUPPLY AND DEMAND WITHIN THE AUTO INDUSTRY

GAS PRICES AND NEW TECHNOLOGY

• Increased fuel prices force companies to invest in new technology.
• Average Econ is 24.9 in U.S today
• Since August 2007 average Econ is up 4.8 miles
• To compete companies must produce efficient vehicles to keep up with demand

SALES ARE RISING WITH GAS PRICES

• 19.9 percent increase in auto sales
• Average car age is 11 years "gas guzzlers"
• American auto makers seeing huge gains in their efficient vehicles

TECHNOLOGY

• Stricter regulations and smarter technology
• Regulators are demanding deeper cuts in carbon dioxide emissions
• Battery powered cars have been a disappointment - expensive, lack range
• Super efficient petrol and diesel - natural gas or hydrogen
• Switch between batteries and an internal combustion engine

CONTINUED

• Driver assistance technologies
• Reverse park, read traffic signs, maintain a safe distance, auto brake
• Detects pedestrians and cyclists, overruling the driver
• Google trying to create a car that can drive itself within five years
• Insurers are pressing motorists to use black box - auto pilot safer?

NEW TECHNOLGOIES

• Google tested new technology with a blind man
• Huge numbers of elderly or disabled people could regain mobility
• Lower insurance costs for young people
• Driverless cars will ease congestion and save on fuel
• Computers brake faster than humans and can sense when other cars brake

DRIVERLESS DRIVING?

• People will be terrified with a vehicle they cannot control
• Many people already travel on planes and trains that drive themselves
• Googles self driving cars have already gone 700,000km
• TV and heavier than air flying machines once sounded very far fetched too

UNIONS

• Union strikes shut down production costing them billions
• Forced auto makers to bankruptcy
• Wages exceeded 70 dollars an hour driving up the cost of production
• Made buying cars unaffordable and forced loyal buyers to other companies
• Restricting job opportunities

ADVERTISING

• GM spent 3.59 billion
• Toyota spent 2.86
• 5.0 increase in digital adds 26.5% increase in 2012

FINANCING

• Government purchase of 85 billion in bonds Quantitive Easing.
• Allows individuals and companies to acquire capital at low in interest rates.
• Increase in financing options equal increased demand.

CITATIONS

• http://www.usatoday.com/story/money/business/2013/09/18/federal-reserve-qua...
• http://capitalresearch.org/2012/01/the-union-difference-a-primer-on-what-un...
• http://capitalresearch.org/2012/01/the-union-difference-a-primer-on-what-un...
• http://www.economist.com/node/17902837