Government regulation of the automotive industry

| May 20, 2021 | Uncategorized |

The automotive industry is an important part of Detroit’s history, from Henry Ford’s first assembly line to the complex machinery used today, corporations in the automotive industry face unique legal challenges. The following is a brief overview of government regulation of the automotive industry.

Government regulations regarding automobile safety

It used to be the case that automobiles were designed with simply aesthetics in mind. However, dangerous designs lead to unnecessary deaths when these cars were in a collision. The government then started adding safety requirements to the design of automobiles. Some of these requirements included seatbelts, air bags and crumple zones.

Government regulations on fuel efficiency

With the growing climate crisis, the government has prioritized fuel efficiency requirements on the automobile industry. These standards, known as the Corporate Average Fuel Economy, went into effect in the 1970s and were revamped in 2012. The goal now is for vehicles to get 54.5 miles per gallon by 2025.

Emissions cost

Many states and localities have emissions laws. These laws affect the automobile manufacturer’s bottom line, as the devices designed to reduce emissions can be costly both in time and money. Environmental regulations have a major impact on the automobile industry to this day.

Learn more about automotive law

This post provides only a brief overview of how the automotive industry is affected by government regulations. This post is for educational purposes only and does not contain legal advice. Our firm’s webpage on automotive law may be a good starting point for those who want to learn more about this topic.