What are the microeconomic factors which affect the automobile industry?  

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One factor is the media's influence on the car industry. Car companies can tout their car's performance, safety, and price. They can vary in their advertising techniques by showing families, racing vehicles, or a wilderness motif in order to showcase their vehicle's best qualities. They may also advertise the easy financing for people looking to buy a new or used car. All of these things influence the car industry through marketing certain vehicles to certain demographics. For example, a company marketing minivans may advertise on a family show.

Another factor is gas prices. As gas prices increase, customers seek the best fuel efficiency. Some customers may even decide to go away from gas and buy a hybrid or an electric vehicle. This is seen as an environmentally friendly alternative and allows the customer to make a political statement with their car in addition to saving money at the fuel pump. Many car manufacturers, such as Ford, are looking at increasing their electric vehicle...

(The entire section contains 4 answers and 921 words.)

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