The new wave in the automobile industry is alternative fuels as explained by the International Energy Agency (2006) Although few companies have entered into this line of business, Lotus car rental should consider it because it stands to gain numerous benefits from it. The essay seeks to unravel the challenges and opportunities of such a venture and the feasibility of adopting such a strategy. Benefits of introducing an alternative fuel Vehicles Afvs Fleet">alternative vehicle fleet Before examining the nature of opportunities, it is imperative for one to clarify the definition of these types of vehicles. Alternative fueled vehicles are those vehicles that are powered by unconventional sources of vehicles (‘unconventional’ in this case refers to any other fuel source except gasoline and diesel).
These vehicles may use any of the following fuels; Hydrogen Electricity Biodiesel Ethanol Methanol Liquid propane gas Liquefied natural gas Compressed natural gas (Yergin, 2003) The US government, federal representatives, international bodies, clean air activists have all voiced their complaints about the state of pollution within the country. Petroleum based fuels produce harmful and toxic emissions into the environment thus bringing about irreparable effects to the environment. Concerns about global warming and poor public health are just some of the effects of petroleum based fuels. The US public is very well informed and has started showing. If Lotus car rental were to adopt an alternative fuel fleet of vehicles, they would be meeting a ready demand for this product. Many American vehicle purchasers want to play their part in reducing air quality within the country; therefore the latter car rental would not run out of clientele. Lotus Car Rental should always consider the needs of their clientele before introducing a new product. This means that any product which represents savings for the consumer is likely to solicit positive responses from the respective clients. It is a known fact that changing vehicles to accommodate alternative fuels is very costly especially in terms of capital.
The Term Paper on Lotus Rental Car Assessment
... the future today. COST The initial cost of adding alternative fuel vehicles to the Lotus Rental Car fleet would be substantial. Generating revenue through selling additional ... bought these natural gas vehicles. CONCLUSION If Lotus Rental Car transitioned towards purchasing a large number of alternative fuel vehicles, it would lead the rental car industry in the ...
However, maintenance of the vehicle’s lifecycle would be quite economical. Lotus care rental stands to save up on lot of expenses by adopting such a line of business because their overall maintenance costs would be minimized. On the other hand, consumers who rent the vehicle would also spend less on fuel costs. Therefore, everybody gains and nobody looses. The vehicle operating cost would greatly diminish because of the following; statistics indicate that for every 500, 000 light duty vehicles converted Tester; Consumers stand to save up close to fifty four million barrels of gasoline every year. Such benefits can trickle down to the specific consumer who in this case happens to be Lotus Care Rental. The US is currently tackling the issue of foreign dependence on oil as explained by Jefferson et al (2005).
The US government is meeting the fuel needs of its population by importing it from other countries of the world especially the Persian Gulf. The overall result is susceptibility to world market forces and fluctuating prices for the average consumer. The country needs to start taking up projects that would reduce this foreign oil dependence. By introducing an alternative Fuel fleet, Lotus Car rental will be demonstrating good citizenry. Additionally, it may serve as an example to other car rental companies. Lotus Car Rental stands to gain a lot of tax incentives and assistance from the government if they adopt alternative fuel vehicle fleets. In the year 2005, the Government passed the Energy Policy Act. The purpose of this Act was to offer tax credits to alternative fuel vehicles. From the year 2006, the government decided that any vehicle purchased for this purpose would grant the vehicle owner tax credit thus reducing the amount owed to the federal government. Lotus Rental car rental would minimize their operating expenses if they modified their business because this would go a long way in increasing their profit margins. As if that is not enough, the issue of tax credits also applies to leased consumers who may claim the credit. Even if the car rental company decided to lease their alternative powered vehicles instead of purchasing them directly, they can still utilize this tax incentive. (Jefferson et al., 2005)
The Essay on Rental Car Complaints
Fresh off flight number six-two-one from New York City, twenty-four-year-old Marketing Representative Jim Smith needs to rent a car to get to a business convention in hectic downtown Los Angeles. He tries several car-rental companies near the airport with no luck. Finally, Ryder graciously rents him a huge moving truck. Nearly relieved, Smith hauls down to his meeting, where he bumps into parking ...
