The Nissan Leaf is expected to price at 30,000 dollars (Winder), which would take years for a consumer to gain money back on it through savings on gasoline. So why would companies want to move forward with electric cars if they are so expensive to produce? The demand on being “green” has steadily increased over the past few years, which may be a factor as to why these cars are being created. When gasoline is burned, it emits tiny particles called soot which slowly poisons the air (Miller 23). The fact that electric vehicles make zero emissions is a leap for clean energy advocates;
Automakers are growing to boost efficiency, and many cars on the road already meet or exceed the 2016 targets. General Motors and Japan's Nissan are racing to roll out the first mass-produced electric cars later this year and other manufacturers have designs in the pipeline. The Obama administration in April completed regulations for passenger vehicles that Should Cars be more efficient? 3 will require a 30 percent decrease in carbon emissions and a 42 percent increase
Critical issues * A123 employs currently a small sales team of twenty members and four marketing sales individuals. Despite this team currently being sufficient and the company is expected to increase in the near future, it is important that this potential issue to be addressed as early as possible. * Gasoline price -this has been a critical issue to A123 Company for the last decade because, if the price of gasoline decreases, the demand for lithium-ion for hybrid electric cars will as well decrease. * Entry of potential and cheaper technologies that are better than lithium ion batteries are greatest threats to this business market system because, they will lure the public hence deviating demand for lithium ion batteries into their product supply. * Macroeconomic and potential climate of china - since this business system is based in china, any critical condition affecting china as a nation is directly proportional to adversely affecting the intent functioning of the A123 system.
Ford Motor Corporation - A Financial Assessment Elizabeth Patz Ford Motor Corporation - A Financial Assessment Ford Motor Company posted a sizeable increase in income in 2010 over that shown for 2009 despite removing subsidiary Volvo’s information from the 2010 total and posting it separately as a special item. Ford’s net income for 2010 was $6,561 Million dollars, up from $3,844 Million in 2009, an increase of $1.61 in earnings per share of stock. Also reported was the Net cash result of $1.4 Billion dollars. (Ford, 2011) These numbers are supported by Key Fourth Quarter Business and Product Highlights (Ford, 2011) that included a $7.3 billion reduction in automotive debt bringing the year total to $14.5 billion along with new investments to grow the business. Some of the new investments noted include: * $850 million in future investments for Michigan-based engineering and manufacturing expected to create 1,200 new jobs by 2013.
Currently, Thorr is experiencing a decline in sales because of changes in its target market and competitor’s gain in market share. Thorr’s marketing management has options to maintain, enhance, or create a new marketing strategy. Management can use a different positioning strategy for Cruiser Thorr or launch a new product (University of Phoenix, 2008). Phase One: The Situation The first phase of the problem indicates that Thorr sales are decreasing, “The motorcycle industry is growing annually, but sales of Thorr Motorcycle’s existing product CruiserThorr (a 1500cc power cruiser priced at $25,800) are deceasing” (University of Phoenix, 2008). The marketing manager must ascertain present market position to create a new marketing plan that will reverse the current downward trend.
As of the April 2011 first quarter reporting, the United States has produced 28.3 mmt, which is up 6.8% from the same period last year [ (Leybovich, 2011) ]. “In a report earlier this month, the Organisation for Economic Cooperation and Development (OECO) forecasts that global demand for steel would increase 6 percent in both 2011 and 2012. Growth over the next few years is expected to be considerably faster in emerging markets than in developed ones [ (Leybovich, 2011) ].” Nucor is the second largest steel producer in the United States, only behind U.S. Steel. Nucor is considered a low-cost steel producer in the U.S. and the most efficient and technologically advanced steel producer in the world [ (Thompson/Strickland/Gamble, 2010) ]. Nucor is North America’s largest recycler, 17 million tons in 2010, and uses the scrap steel as the raw material to produce steel and steel products [ (SEC filings Nucor Corporation Form 10-K, 2011) ].
Exports of mining, petroleum, and infrastructure equipment may help multinational corporations and developed countries access cheaper raw materials, with few benefits for the residents of developing countries. Changes will help increase imports, but in return will drain the treasuries and currency reserves of developing countries and create heavy debt burdens. Question #2: The Ex-Im Bank will provide innumerable federal programs for the subsidized U.S. companies which will include financing and insurance (Ball, Geringer, McNett, and Minor, (2013), pg. 351). Many U.S. companies claim to oppose foreign assistance linked to
Memorandum To: Ms Phapphayboun From: Janie Causby Date: March 12, 2012 Re: Hybrid Cars Comparison Report Introductory Summary The hybrid car market is one of the fastest growing divisions in the automobile industry with a very desirable growth rate. Hybrid cars make the US more energy secure and are presently quite vulnerable to oil supply, since 95% of the US transportation depends on oil disruption . It only makes sense to change from conservative to hybrid cars in helping the economy and the environment. What is a hybrid vehicle? The hybrid vehicle is powered by both a gasoline engine and electric motor.
Tesla was off to a great start in 2013 and has its first profitable quarter selling 10,500 of its second model, the Model S cars (starting price about $70,000) and is expanding in Europe. The long-term plan of Tesla is to build a wide range of models, including affordably priced family cars. Today Elon Musk wants to go further and build a lower end mass production of electric car to sell affordable car as well. According to the “Secret Tesla Motors Master Plan”, his goal is to build sports car, use that money to build an affordable car and use that money to build an even more affordable car. The question is, how to get there and become a mass car retailer?
Restructuring the Ford Motor Company to compete more effectively in today’s global marketplace, and particularly in North America, the company had to insure the path of maintaining flexibility within their action plans. First this was done by the choice to manufacture more fuel-efficient vehicles and addressed the lower demand of volatile fuel prices. This method is the options-based planning. The company made small, simultaneous investments in many different plans. The second was to implement One Ford global, the production of small and medium