Have you ever been car shopping, or just surfing the net, and came across a really nice vehicle you would love to see in your driveway? Then after a little digging, it turns out that vehicle is no longer sold in America, or at all? Man, we’ve been there. Literally, the new Kia Ceed teased for the Frankfurt Motor Show was shaping up to be real nice, but it may never see the light of day in the North American Market. And don’t get us started on how long it took Mitsubishi Motors to bring the Mitsubishi Outlander PHEV to America. Why do automakers selectively sell their vehicles to certain markets? Apparently, there are many variables to juggle when it comes to selling automobiles in the international market.
The Market and its Factors
Going global is probably one of the smartest things an automaker can do in today’s day and age. One good example is Mitsubishi Motors, expanding with Nissan resources to get a better foothold in the auto market. At the same time, an automaker needs to perform careful analysis of where an automaker makes the majority of its sales, like Swedish automakers for instance – 90-percent of their sales come from outside of Sweden. However, there’s a larger factor at play than sales.
Automakers need to use certain strategies to appeal to a certain market, usually depending on the economic and cultural background of the people they target. Depending on the location, there may be certain standards and regulations to meet, and depending on the local culture, marketing and production can quickly become a high-stakes game of trial-and-error. Some automakers can make the move and modifications, but not all can tackle these variables.
Variables In the Way of Going Global
Regulations is a big one for many automakers. One of the main reasons we won’t see certain models come overseas to the U.S. market is due to environmental regulations enacted by the government. It’s a little backwards – the government wants to protect the air and the environment, but companies still get the go ahead to tear down forests for shopping malls. Either way, along with environment regulations, there are federal regulations that control gasoline and diesel prices, and standards that must be met for an automobile’s emissions.
