What was the effect of deregulation on carmakers and the environment?

Deregulation in the automotive industry allowed carmakers greater flexibility in design and production, often leading to reduced costs and increased innovation. However, it also resulted in a decline in environmental standards, as manufacturers prioritized profit over emissions control, contributing to higher pollution levels and environmental degradation. This shift has prompted ongoing debates about the balance between economic growth and environmental responsibility in the automotive sector. Ultimately, while deregulation may have benefited carmakers financially, its impact on the environment has raised significant concerns.