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Case study and Questions - Essay Example

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Many countries are not endowed with the natural resource, so they have to rely on external sources for their fuel. Sometimes this leads to fluctuations in market prices as the world oil market is beyond…
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Case study and Questions
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Download file to see previous pages This is not environmentally sustainable as it contributes tremendously to global warming. For this reason, automobile companies have consistently tried to alter their respective products in order to accommodate emission abatement targets set by their governments.
One uncertainty that pervaded automobile industry players is the availability of infrastructure required to make their technologies work. It is for this reason that ethanol vehicles, compressed natural gas fuels, hybrid electric vehicles, and hydrogen fuels cells have failed. Most of these companies entered the market with the hope of providing more sustainable alternatives. However, they did not live up to expectations because there were no dedicated networks of refueling stations, pipelines, storage and transmission of the fuel sources.
Efficiency has also been a key uncertainty in personal transportation as consumers often expect value for money. Most of the conventional automobiles in the market did not use their value sources efficiently, so this caused wastage and required greater consumer expenditure in order to make up for the lost energy. Several companies have been trying to introduce new automobiles that would consume most of the fuel and whose lifecycle was not expensive. Ethanol vehicles failed at this attempt because agricultural expenditure and the overall cost of producing food crops were costlier than the savings garnered from the automobile technology. Similarly, this problem has plagued a number of sustainability-driven auto firms as critics claim that the efficiencies enjoyed by consumers were offset by large scale producers of electricity or any other green energy. Therefore, organisations have been striving to maintain a balance between energy efficiency and cost efficiency.
Consumers require a vehicle that is practical, or one that can ...Download file to see next pagesRead More
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