The Lotus Rental Car company is the world’s leading company in a multimillion dollar industry and can take this great opportunity to provide the consumer with alternative options in vehicles by adding alternative fuel vehicles to its fleet in Los Angeles, California, it would be a good move for this company because alternative vehicles like hybrids offer a less contaminated environment, better fuel economy, and the best in its money worth. Electric vehicles produce zero contamination, but are limited to the distance they can travel. Compare to gas powered vehicles offering lower mileage and higher emissions, which is a factor to the contamination of the air we breathe in. Also by adding the alternative vehicle can improve the company’s image and show that we as a provider do care about what we rent out to our consumer, and by providing that image the consumer would be motivated to drive a much cleaner vehicle that will protect the environment.
With more car companies coming out with alternative vehicles this would be the right move to make in investing in alternative vehicles and gaining that momentum that would push this company over the top of all our competitors. The standard engine vehicle has come a long way; Conventional vehicles have only grown more reliable. And year after year they come out with more improvements for the vehicle’s engine. The gasoline car has improved from decades before, and in the past century. Modern civilization depends on automobiles for much of its daily existence, to travel to work and back. Gas stations are everywhere and it’s easier to go and fill up your car with gas, rather than go and sit and plug into a charging station. That being a one of pros to having a gas powered vehicle.
However a growing disadvantage to having the gas powered vehicle are the gas prices rising. For every gallon of gas you put in your tank, only 1/5 produces mechanical energy that moves your car. The other 4/5 is lost as heat which is why the gas powered car has more engine parts (The Amazing Rate, 2012). The more parts help the gas powered vehicle in cooling down and maintaining power. The parts convert gas
that is flowed through the motor into energy, and more parts to manage the excessive heat. Take a Honda Civic EX, for example, normally the Civic would get about 24 mpg around the city and about 36 on the highway, thanks to developments such as the VTEC valve train profiling system that adjusts as speed adjusts and keeps the engine working at optimal levels (Autos.com, 2014). The hybrid and electric cars that they have out for sale only make up one percent of 250 million sold in America. The maintenance of the car would add up after a couple years of having it, but would still cost you less than the alternative vehicle that would’ve got purchased over a gas powered car. The cost of maintenance is lower compared to hybrid vehicle. Spare parts and replacement kits are readily available on car service centers auto body part centers as well.
The maintenance of gas powered vehicle is simple as regular oil changes, air-filter changes, and spark plug replacements, keeping the vehicle in good condition will better the emissions and lengthen the lifespan of the vehicle and improve the gas mileage of the car. For most vehicles now dealers offer you more mileage and better coverage on the vehicle of choice, take for example the Ford 150 it offers you a flex-fuel, Eco-Boost truck and the offer more warranty on the vehicle per miles and years. The point in that is for the company to lengthen the life of the truck and offer better gas mileage to the consumer. The gas powered car, truck, SUV all have the one thing in common and that is that they all run on gas and all vary on gas mileage. Maintenance would also vary, because it is not as cost effective as an alternative vehicle.
The Gas powered vehicle has been the one vehicle around for decades and still will improve in making better and less cost effective vehicles for people to drive. Since the first electric car was made in 1900 by William Morrison there have been major technological advances throughout the century that have made today’s electric car a more popular choice for the American consumer (Berman, 2009). It was not until 1999 when interest in electric cars began to increase due to growing concerns about the environment and drastic increases in gas prices (Berman, 2009). The electric car runs on an electric motor and battery to increase a vehicle’s miles per gallon ratio and does not require gasoline. The reason Lotus Car Rental did not jump on to this opportunity was because at the time there was a $15,000 price difference between electric and gas engine vehicles. As of 2012 there is only a $5,000 difference which is a more acceptable amount to consider and there are now electric cars that are in the $15,000 to $20,000 range (Cars Direct, 2012).
The positives of electric cars are that they require no gas and they can be charged by electric stations around Los Angeles and they do not emit pollution and that fact alone might persuade the consumer to rent an electric car (KBB, 2014). The average miles per full battery charge in the city are about 120 miles and highway about 100 miles in town. The maintenance of an electric car is extremely low because there is no longer a need to purchase gasoline and the company no longer has to do oil changes, air filter changes and emissions tests on a yearly basis thus creating a higher profit margin plus whatever major mechanical problem happens it will more likely be covered by the warranty provided by the dealer when buying the electric car brand new from the lot (Cars Direct, 2012). The average dealer warranty is about six year or 100,000 mile whichever comes first but because we are a car rental company, we will reach the mileage first.
Insurance for electric cars are considerably low because they offer discounts for owing that type of car so it will be easier to pass on the savings to the consumer if they decide to purchase it (KBB, 2014). One problem with electric cars is that they are low on horse power which might be a problem for consumers considering that they are more than likely to want to exceed the speed limit on the highway and it might make it a difficult drive when going up on hills and mountains. Another problem with electric cars is that depending on the make and model, the average energy span only lasts about 120 miles before the consumer has to stop and recharge the battery. The main complaint among consumers is the amount of time it takes for the battery to recharge. The average charge time is about 4 to 8 hours if the consumer does not use a rapid recharge station which will charge the battery in between thirty minutes to an hour again depending on make and model (KBB, 2014).
There are about sixty rapid recharge stations in and around Los Angeles but it more likely recommended that electric cars be used for in town usage instead of long trips because of the lack of rapid recharge stations. Although not considered as an alternative for the fuel vehicle, such as the electric, hydrogen, ethanol, and propane. The hybrid vehicle operates using advanced technology that combines the electric motor, fuel motor, and generator, to create a more efficient use of regular fuel. Hybrids have become the new sensation of invention since slice bread. There are many reasons why Lotus Rental Car should add hybrid cars to their fleet. Consumer reports and background information backing up on the hybrid vehicle, it also shows how their popularity has grown among the world and the American population.
Hybrids have their own unique way of operating, having an electric motor and a fuel motor, which makes them real fuel-efficient. Hybrids also offer a special braking system that allows the braking energy to be captured and stored in an onboard battery. Costumers report that this type of vehicle will offer a substantial savings in fuel costs because of the engine’s efficiency. Some cars typically getting 48 to 60 mpg, and offering 20% to 35% better fuel efficiency than a typical gasoline car. A typical car for example a Honda Civic only offers a range of 36 mpg on the highway. Costumers also report that hybrid vehicles have almost the same maintenance routine as regular vehicles. As, hybrid vehicles switch back and forth between an electric motor, and a traditional fuel engine depending on road conditions. This switch between power sources saves a lot of wear and tear on both of the motors, and increase the fuel range dramatically.
The repair costs are high but repair is not as common as it is on traditional vehicles, and as long as maintenance is done properly these vehicles can outlast a traditional vehicle because the technology saves on wear and tear. The typical cost of a hybrid ranges from $19,000 to $25,000 price range. These prices are a quite pricey compare to those of a gas saver car, which range from $14,000 to $17,000. Even though that initial cost of these vehicles is more than the comparable traditional style car, over the long run all of these technologies will save money. When comparing both vehicles the hybrid is still the best investment, on average hybrids offer a ten-year/ 150,000-mile warranty on the batteries and power training, and a three-year/ 36,000 warranty on the rest of the vehicle.
Hybrids batteries and motors do not require any more maintenance than any other car, hybrid brakes even last longer than those of a regular car. Hybrids also have tax incentives in the U.S., which can reduce the cost up to $3,400. After all the research we believe that hybrid vehicles are the best pick of an alternative energy vehicle for Lotus Rental Car Company fleet. Given all of this information on the multiple types of vehicles available we at Lotus Car Rental, Inc. have decided to focus on purchasing hybrid cars. The reason for this decision is because the prices of the new hybrid cars are acceptable even though they are more expensive than regular cars but the price difference is more acceptable now than when it is compared to a few years ago. The cost of maintenance will not be an issue because by purchasing a brand new hybrid car the manufacturer warranty will be able to cover any major mechanical problems that will happen.
This is an important factor for our decision because all rental companies including ourselves never keep vehicles for more than four years because the higher the mileage a car has the more likely that there will be mechanical problems that can happen. As soon a vehicle comes close to exceeding the manufacturer warranty that is when it will be put up for sale. Another reason is that we want to show the consumer that we care about their concerns for the environment and gas prices. Today’s consumer will more likely rent a hybrid car if the rental price difference is not a lot and the insurance fee stays the same.
Eventually Lotus Car Rental, Inc. will switch over to electric cars in the future when the concept is upgraded with technological advances. What we mean by this is that the miles for a fully charged battery will increase as the years pass by and there will also be way more Rapid Recharge Stations throughout the United States. For now the focus will be on switching over to hybrid vehicles because this will show the consumer that this company is adapting to change and that we care. This will create an image that will to financial success.
Autos.com. (2014, April). Electric Power Car Vs. Gas Powered Car. Retrieved from http://www.autos.com/car-buying/electric-power-car-vs-gas-powered-car?&session-id=d1fa38119d76b5d16b7f062d6bf474f0 Berman, B. (2009, October 30). Timeline: History of the Electric Car. Retrieved from http://www.pbs.org/now/shows/223/electric-car-timeline.html Cars Direct. (2012, March 08). Electric Car Costs vs Gasoline Cars vs Hybrids. Retrieved from http://www.carsdirect.com/car-pricing/new-electric-car-costs-vs-standard-gasoline-vehicles ConsumerReports.org. (2013, February). Hybrid/EV buying guide. Retrieved from