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Effects of Legal environment on France automobile industry

Many governments also regulate local content, impose tariffs and other trade
barriers, taxes and levies, and enact price or exchange controls. Toyota has
incurred, and expects to incur in the future, significant costs in complying with these
regulations. New legislation or changes in existing legislation may also subject
Toyota to additional expense in the future. Toyota is also subject to a number of
pending legal proceedings. A negative outcome in one or more of these pending
legal proceedings could adversely affect Toyotas future financial condition and
results of operations. The worldwide automotive industry is subject to various
governmental laws and regulations including those related to vehicle safety and
environmental matters such as emission levels, fuel economy, noise and pollution.
Many governments also regulate local content, impose tariffs and other trade
barriers, taxes and levies, and enact price or exchange controls. Toyota has
incurred, and expects to incur in the future, significant costs in complying with these
regulations. New legislation or changes in existing legislation may also subject
Toyota to additional expense in the future. Toyota is also subject to a number of
pending legal proceedings. A negative outcome in one or more of these pending
legal proceedings could adversely affect Toyotas future financial conditions and
results of operations

Conclusion Drawn
Environmental factors for a company or an industry refer to variables and conditions
around that company and industry that affect its working and performance, but
which cannot be controlled.
Political factors

Political climate in a different countries producing an buying automobiles


regarding policies on import, export and manufacture of automobiles and
automobile components. This will also include policies on allowing setting up
of manufacturing plants by foreign companies.

Stability of governments. This may affect the future conditions in a country.

Taxation policies.

Economical

The population figures and automobile buying capacity of people.

Level of economic activity that affects need for commercial use of


automobiles
Sociocultural

Lifestyle and preferences of people, that impact their choice of types of


automobiles.

Social norms that impact the decision to own and use automobiles versus
other means of transport.
Technological

Technology relating to automobile designs

Technology of automobile manufacture

Technological developments that may increase or decrease use of


automobiles.

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