Regulatory determinants of US automotive market structure – an overview

Tomasz Mutrynowski
Warsaw School of Economics, Poland
Mutrynowski, Tomasz (Warsaw School of Economics, Poland)
Regulatory determinants of US automotive market structure – an overview
Annals of Marketing Management and Economics, 2016, vol.2, nr 1, s. 79-89

Key words

American automotive market interventionism General Motors Ford Chrysler


Governments have different measures at their disposal to influence the car market and thus achieve particular goals. Indirect interventionism, thanks to i.e. environmental regulation, should include social welfare. The American automotive market is more than 100 years old and has been the subject of various regulations that have shaped its structure. The Big Three of the US car industry (General Motors, Ford Motor Company, Chrysler) has changed over the last 50 years into The Big Six, which now includes Nissan, Honda, and Toyota. Analysis shows how fiscal and environmental policies influence particular sectors. This should be a revealing lesson for Polish automotive market regulators, especially when we need to deal with our own problems, such as the high average age of vehicles. The article also describes government activity in rescuing a key national economic sector. The financial crisis of 2008 showed that market mechanisms are not sufficient. Possible further losses related to the collapsing car industry forced the government to take control of the bankruptcy of GM and Chrysler.