1 Explain the macro environmental factors that are relevant to the car industry. Identify the opportunities and threats that have been identified for this business sector. Identifying countries and products were potential growth is predicted and why. 2

The automobile industry is one of the sectors which was the most affected by the crisis. Its macro environment reveals the factors that it does not control, and brings to light opportunities and threats. However, various countries represent potential sources of growth for this sector, but it has to innovate today to face the current challenges and challenges of tomorrow.

The political environment is very important for the automobile industry. Indeed, the politic of the country where the production is made influence considerably the industry. The political power of the country which welcomes the production of the company decides on the level of taxation, what represents one of the most important expenses. Furthermore, the political situation of the country host must be stable, and allow a forward development. Moreover, certain political measures can be taken to revitalize certain sectors. Following the world crisis, numerous political powers of country decided to adopt, for example, subsidies to favour the replacement of the former vehicles. It is the case of Japan and thirteen countries of the European Union. For example, Germany proposes 2500 Euros for a nine years old car to be destroyed and replaced by a Green car.
The economical environment of the automobile industry is evolving. Fist of all, we can talk about the change rate. It strongly influences the decisions of production (it is more interesting to produce a car in a country which use the same currency as the customer, in order to avoid undergoing the variations of the exchange rate), the decisions of consumption. Secondly, the economic situation of the most powerful countries of the world is important. The Gross Domestic Product, since the