THE RELATIONSHIP OF AUTOMOBILE CHARACTERISTICS TO LIST PRICES AND PROFIT MARGINS -- A PRELIMINARY ANALYSIS
The report describes research on potential impacts of fuel economy regulations on the U.S. automobile industry. The study focused on the possible effects of auto "down-sizing" on manufacture profit margins. Historical price data were used to estimate variable profit margins. Estimated margins were strongly correlated with vehicle inertia weight and the price of the average options packages and, to a lesser extent, were negatively correlated with production volume. Regression analyses were also performed to relate list prices to vehicle characteristics believed to represent valuable attributes to consumers. The results, although ambiguous, suggest that vehicle roominess, fuel economy, and power-to-weight ratio are positive influences on prices. However, the extent and quality of the data employed in the analyses were too limited to support firm general conclusions. Further study is required to anticipate the long term effects of the fuel economy regulations on price.
EIC Corporation67 Chapel
Newton, MA USA 02192
Transportation Systems Center55 Broadway, Kendall Square
Cambridge, MA USA 02142
- Cassella, M A
- Rabe, F T
- Publication Date: 1978-8
- Pagination: 56 p.
- TRT Terms: Automobile industry; Automobiles; Federal government; Fuel consumption; Manufacturing; Motor vehicle industry; Prices; Profits; Reduction (Chemistry); Regression analysis; Regulations; Size; Standards; Weight
- Geographic Terms: United States
- Old TRIS Terms: Reduction; Weight mass
- Subject Areas: Data and Information Technology; Economics; Energy; Highways; Law; Society; Vehicles and Equipment;
- Accession Number: 00186207
- Record Type: Publication
- Source Agency: National Technical Information Service
- Report/Paper Numbers: DOT-TSC-NHTSA-78-30 Final Rpt.
- Contract Numbers: DOT-TSC-1311
- Files: TRIS
- Created Date: Feb 3 1979 12:00AM