Transforming Transportation. In a number of societies around the world, it is noticeable that the automobile industry is

Transcription

1 Chance Wahl English 2000; Section 98 Rich Cooper 5 May 2011 Transforming Transportation In a number of societies around the world, it is noticeable that the automobile industry is beginning to take on a new look. Recently, hybrid and electric cars have begun to take over roadways in many cities overseas and are gradually gaining popularity in the United States. This transformation has been embraced by environmentalists and consumers alike on an international level, but in the United States the idea of the hybrid car has still yet to take off. Although some Americans are still seemingly unconvinced that buying these more expensive vehicles are worth the higher price tag, it will not be long before our roadways are infested with these green machines, too. In exploring the transformation of the automobile industry, we will determine the reasoning behind this forthcoming transition, the shortcomings of which that still require attention, and the future of transportation. In a world of scarce resources, it is becoming increasingly difficult to rely on fossil fuels to drive us into the future. In decades to come, an impending shortage of petroleum will mean unimaginably high gas prices for drivers nationwide. In fact, just one decade ago the national average price per gallon of gasoline was $1.52 compared to the $4.00 national average today, which is a 265% increase in cost over the past decade. In many foreign countries throughout Europe and in Japan, the average price of gas per gallon was already over $4.00 in 2001 and now, a decade later, the average price of a gallon of gasoline in the European Union sits at about $8.70 ("Global Comparison of Price per Gallon of Gasoline ). For that reason, it is no

2 surprise that more fuel-efficient vehicles have already made such strong debuts throughout those parts of the world in the last decade. To get even more of these electric cars on the road, European governments are considering giving tax breaks to their citizens. The German government has been torn over using taxpayer money to kick-start the market for electric autos. But its resistance now appears to be waning; German carmakers have been lobbying intensively for subsidies, incentives and other forms of support to develop a mass market for electric cars (Blau). It will only be a matter of time before a mass market will be developed for hybrid cars in America, too. President Obama has already signed an agreement that hybrid car buyers will receive tax incentives which means that all hybrid car owners will be able to save money on their taxes ("Hybrid Cars Disadvantages ). Polls at American car dealerships have shown that people have recently shifted to opting for these smaller rides. According to a study released in early March 2011, about two-thirds of shoppers are looking harder at more fuel-efficient rides than they were only a month ago Rising gasoline prices are creating fierce competition among dealers for fuel-efficient used vehicles at auctions, dealers report (Colias, 1+). With the current economic crisis and another spike in gasoline prices at hand, buyers are ready for this shift, and auto dealers are trying to make sure they are prepared for it as well. Buyers and automakers cannot ignore the cons that come as a consequence to the advantages of the fuel-efficient cars. The premium costs of these vehicles are definitely more expensive than their gasoline-powered counterparts. In a study of eight different vehicles, four popular hybrids and their four gasoline-powered counterparts, the average difference in cost was an extra $5,625 for the hybrid vehicle. Although, after an eight year period on average, what the buyer saves on fuel consumption costs makes up for this difference in the initial premium cost (FrugalTrader). Skeptics would most likely say that buyers do not even own their vehicles for

3 that long of a period before they would want to buy a new car. However, it is worth considering that people are starting to keep their cars for longer periods of time rather than buying a new one in order to save money. Another defect of the hybrid car is that the battery that makes the car work so effectively is also what makes it risky if it ever gets involved in an accident. Hybrid cars store high amounts of voltage in its batteries which means there is a high chance of getting electrocuted when you get involved in an accident ("Hybrid Cars Disadvantages ). Besides the high premium cost of hybrid vehicles and the risks involved in the case of an accident, skeptics also express concern with the power of these cars. Hybrid cars are built with two engines: an electric battery and the traditional gasoline engine. Therefore, because of the addition of the battery, hybrid cars are relatively heavy and have low horsepower. For this reason, hybrid car manufacturers integrated smaller internal combustion engines and constructed them with light materials in order to maximize efficiency. This also means the car can never really go fast ("Hybrid Cars Disadvantages ). While there are still skepticisms and kinks that the hybrid must overcome, automakers are working to buff these out as they prepare to shift their focus on the mass production of these vehicles. Many hybrid and electric cars are expected to be on the road within the next few years. As long as crude oil prices remain high, electric cars are going to be able to compete with ordinary cars on equal footing. Carmakers in Japan, the United States, China and South Korea have become serious about mass production of electric cars. Because the structure of electric cars is simpler than that of ordinary cars, it will be easy for former subcontractors of large carmaker companies to enter the business of manufacturing electric cars ("Pushing Electric Cars"). Lexus, a large auto maker that decided to jump on board the hybrid bandwagon, has already begun advertising their launch of their new entry-luxury hybrid. In the combined

4 driving cycle, the CT 200h will get 40+ mpg which they plan to push in advertising to young luxury buyers. Dave Nordstrom, Lexus president of marketing, says,...i don t like what s going on in the Middle East, but it s helping with this car (Rechtin, 14). With professional marketers setting out to advertise to youth the rising gas prices and the hybrid solution, it seems likely the vehicles are likely to see more sales as they get more mainstream play in the media in a short time to come. Large market research firms back the belief of the hybrid-electric car takeover. Market research firm IDC Energy Insights believes that around 2.7 million electric vehicles will be zipping around by 2015 (Lydon). Although the majority of cars on the road in a few years will not be the hybrid, there will definitely be a noticeable amount more. However, a decade further down the road, it should not be shocking to see the hybrid become the face of the automobile industry. The transitioning of the automobile industry to a more fuel-efficient small car will not be done overnight, but it will certainly happen. As petroleum becomes more scarce and expensive, the cars we drive will have to change as well to cope with the loss. With the use of high gas prices as its main stool, hybrid cars will continue to gain popularity. Although hybrid cars are an expensive luxury to buy now, they are what the future holds in store for drivers. Carmakers are planning to begin mass production of them. As supply will rise, it can be presumed costs of these hybrids should come down and the hybrid car will be modified to fit the family car mold and luxury molds as well. Works Cited

5 Blau, John. "Berlin May Offer Tax Breaks for Electric Cars after All Business Deutsche Welle " Home Deutsche Welle. 05 May Web. 05 May < Colias, Mike. "Buyers Move toward Better Fuel Economy." Automotive News [Detroit] 14 Mar. 2011: 1+. Print. FrugalTrader. "Hybrid vs. Gasoline Vehicle Comparison." Million Dollar Journey - Wealth Building through Saving and Investing. 09 June Web. 06 May < "Global Comparison of Price per Gallon of Gasoline." Energy and Security Research. Institute for the Analysis of Global Security. Web. 06 May < "Hybrid Cars Disadvantages. Are YOU Looking for HYBRID CARS? 05 Oct Web. 06 May < Lydon, Tom. "Lithium ETF: Anticipating the Switch to Electric Cars - Seeking Alpha." Stock Market News & Financial Analysis - Seeking Alpha. 14 Feb Web. 03 May < "Pushing Electric Cars." The Japan Times Online. 02 May Web. 05 May < Rechtin, Mark. "Lexus Thinks Young for Hybrid Launch." Automotive News [Detroit] 14 Mar. 2011: 14. Print.