Ford Vs Gm Hybrid Essay Example

and Philadelphia. Although these models are $3,000 more expensive than GM's regular vehicles, their lower cost per mile for gasoline can make up for the initial higher expense. Besides, a Ford car with a hybrid engine is $2,000 more expensive compared to its standard model.

While hybrid vehicles offer superior fuel efficiency and emit fewer pollutants, they may not fully resolve petroleum-related issues. The replacement cost of their batteries can be up to $2,000 if kept for a significant amount of time. Tax credits may incentivize consumers to purchase hybrids; however, gasoline savings are contingent on the car's lifespan mileage. Notably, some experts previously predicted SUVs would become obsolete due to downsizing baby boomers at a rate of 10,000 per day instead of environmental concerns.

Experts forecast a rise in the need for compact car-based automobiles, prompting adjustments from various automakers. Subaru, Mercedes and Toyota are already ahead of the trend as they have manufactured SUVs with car chassis. To cater to baby boomers' preferences, a new type of vehicle referred to as "hybrid" sport utility is currently being developed. These vehicles aim to be smaller, more nimble and less resembling conventional trucks despite having no reference to their engines in the name.

Although these vehicles may impact sales of traditional passenger cars, there is a chance for automakers to enhance environmental and energy efficiency during the redesign process. William Clay Ford previously announced plans for Ford and Mazda to produce smaller SUVs at a facility in Kansas. In late 1998, Ford's CFO John Devine stated that hybrids were rapidly gaining popularity, but recognized that the industry was constantly evolving.

According to Norma Carr in 2007, Ford has

upcoming products that will maintain their leadership position and they are not neglecting the important market segment. At that time, Ford was collaborating with Mazda on a new hybrid based on Mazda's 626 platform and aimed to manufacture new hybrids by 20001. Additionally, they were exploring the concept of a combination car, minivan, and SUV for another new vehicle. Meanwhile, GM was contemplating a sport wagon.

The perpetual new-model dictum, established years ago by Alfred Sloan, included the incorporation of new designs. This strategy aimed to keep customers purchasing different models or, at the very least, keep them purchasing. Norma Carr (2007) suggested that this approach has similarities to the 1970s era when the Japanese entered the American market with small, fuel-efficient cars during two energy crises. As a result, American customers and market share were acquired by the Japanese. However, in the current market, there is no energy crisis present.

GM's Jack Smith recognized in 1997 that the market was undergoing a significant change when he observed the new green technology displayed by Toyota and Honda at the Tokyo Auto Show. He expressed concern about GM's product line and stated that they would need to become pioneers in producing vehicles with high mileage and extremely low emissions.

Jim Motavalli (2007) realized the need to prioritize emissions and mileage. However, it raises the question of why GM had not focused on it before and if they were now playing catch up to lead the market. With GM holding one sixth of the global market share, the stakes were high. Nevertheless, ICE was gradually becoming irrelevant as environmental and energy values gained significance in the market. Notably,

Honda played a vital role in promoting these values.

In late December of 1999, General Motors declared that they would purchase low-emission V6 engines and transmissions from Honda in a "worldwide partnership". This partnership immediately helped GM meet California's future low-emission standards, as Honda's V-6 Ultra-Low Emission Vehicle engines were the top contenders for meeting those standards. Apparently, GM lacked similar capabilities. This pattern seemed to repeat what occurred in the 1970s when GM and other automobile manufacturers sought deals with or bought new technologies from Japanese firms. Richard G., the president of GM, confirmed this.

According to Jim Motavalli in 2007, GM's approach of utilizing its worldwide presence to swiftly introduce new products was reflected in their newly formed partnership. Wagoner remarked that the company has a great admiration for Honda's technological legacy and a collaboration between the two would improve their potential in designing future technologies. GM hoped to acquire roughly 100,000 Honda engines per year for the next five years, while also providing GM diesel engines to Honda for distribution in Europe and offering access to other GM inventions.

At a valuation of $2.1 billion, Honda would gain access to GM's advanced alternative fuel engines that they may not have been able to develop on their own due to financial constraints. This deal also marked GM's acknowledgement of neglecting their low emission engine development, resulting in their purchase of the technology. This was a rare move for GM, putting another company's engines - the core of their business - into their North American vehicles.

Some GM supporters in Detroit were outraged when they learned that GM was considering outsourcing engines from Japan. They believed it was

a shameful act that disrespected Americans and GM employees. Technical writer Ray T. Bohacz expressed his opinion that GM has the best engineering resources available, but fails to utilize them to design engines.

Andrea Woloski expressed concern over GM's expenditure in re-establishing its brand identities, questioning what will happen to the brand identity when Honda power trains are used in GM cars. Woloski referred to a previous promise of manufacturing 100,000 electric cars by GM's Roger Smith in 1990. Meanwhile, there has been notable effort in Germany to address global warming issues.

During the Kyoto treaty negotiations, Chancellor Helmut Kohl made a pledge to reduce CO2 emissions by 25 percent below 1987 levels by 2005 in Germany. In order to achieve this target, German utilities opted for natural gas instead of lignite. Additionally, Daimler aimed to become an industry leader and invested $350 million in Ballard Power Systems to establish a new fuel-cell engine company. This investment also gave Daimler a 25 percent equity position in Ballard. As a result of this partnership, two joint ventures were formed - one focused on licensing the technology to other companies while the other sold fuel cells and fuel-cell engines.

Despite the willingness of Daimler and its competitors to collaborate, Daimler's goal of manufacturing 100,000 cars by 2005 posed obstacles. However, Toyota had already established dominance in hybrid technology through the Prius and GM had leased multiple EV-1s. In addition to this, GM and Chrysler were also working on fuel cells but were expected to be "several years" behind Daimler.

Ford announced that they anticipated having a functioning prototype by 2000. The primary challenge for all researchers was determining the fuel

for the hydrogen-producing reaction in the fuel cell. Initially, hydrogen was considered for the fuel-cell powered vehicle directly, but this was obstructed by the bulky hydrogen tanks on the vehicle and the necessity of developing a hydrogen refueling infrastructure.

Other possible contenders for fuel emerged, such as gasoline and methanol. Hydrogen could also be produced on board vehicles from other fuels using a reformer to supply the hydrogen fuel cell. Gasoline and methanol were considered as leading reforming fuels, but in the future, it is possible that solar power could be utilized to produce hydrogen, eliminating fossil fuels completely. Despite current pump prices of $2 per gallon, gasoline still remains a historical bargain when compared to the Arab oil embargo in 1973-74 when prices skyrocketed from 30 cents to about $1.20 per gallon.

By implementing mandated fuel efficiency standards, responding to market demands, and utilizing technology, efficiency gains can be made which ultimately lead to reduced gasoline costs on fixed mileage trips. This decrease in fuel expenses may result in families choosing to live further from work in order to be closer to high-quality schools, as the cost per trip remains the same. Similarly, landscapers may choose to travel farther for more lucrative jobs, thereby enhancing company profitability. Although conservation through improved fuel efficiency can slow future petroleum usage, human nature may undo these efforts. A more reliable way to conserve petroleum is through unpopular tactics such as increasing gasoline costs through taxes or scarcity-induced price hikes.

High fuel costs have a negative financial impact on low-income and fixed-income households. General Motors is looking into using nonpetroleum technology, such as hydrogen-powered fuel cells or advanced Lithium

Batteries, for transportation. Hydrogen-powered fuel cells emit mainly water and do not produce smog-causing ingredients or carbon dioxide emissions during travel. This eco-friendly idea was first used in the Apollo space program over 30 years ago. However, there are significant energy, economic, and environmental costs associated with hydrogen fuel cells. Engineers at General Motors are also developing advanced Lithium Batteries to power their Chevrolet Volt for distances up to 70 kilometers.

Located under the rear seats of a vehicle, the Battery has a weight of around 180 kg and a length of approximately 1.8m (6 feet). The process of extracting hydrogen and oxygen from seawater requires significant energy since hydrogen is commonly present in compounds like water. Fuel cells consume more energy than they produce by utilizing water as their main source of hydrogen.

To extract hydrogen from water, the United States' power supply would provide the required energy. This change would shift reliance on petroleum to the power grid for fuel cell cars. To achieve significant reduction in vehicle petroleum usage through fuel cells, there must be substantial growth of infrastructure in the United States.

If vehicles are not electrified, there will be a 30% rise in electricity demand within the next two decades. In the US, most electricity is generated using coal and natural gas, both of which emit carbon dioxide. If fuel cell vehicles run on hydrogen, they would release more carbon dioxide during manufacturing and operation than high-performance gasoline or diesel engines.

Establishing a hydrogen supply system is crucial for widespread use of fuel cells, similar to the gasoline supply system. Although emissions from fuel cell vehicles will decrease, they will be transferred to power

plants. To refill cars with hydrogen, it must be available in liquid form at very low temperatures (-400 degrees F), which is expensive and prone to gas leakage into space. Currently, alternative energy sources have the potential to reduce petroleum consumption, carbon dioxide emissions and air pollution by providing hydrogen for vehicles; however, their high cost makes them impractical.

Despite the availability of alternative sources for electricity generation, such as nuclear and hydroelectric power, they are not receiving much support for capacity expansion. Meanwhile, wind and sunshine have limited usefulness due to their high costs associated with power generation, despite being free resources. Moreover, their intermittent nature prevents them from producing a reliable and affordable supply of electricity. This leads conventional sources like coal, natural gas, nuclear and hydro facilities to maintain a consistent capacity matching demand to ensure grid security while balancing out sudden changes in the grid. Additionally, the power potential from sunshine and wind is diluted.

Producing a significant amount of hydrogen using solar and wind technologies necessitates vast expanses of land. However, an environmentally negative impact would arise from the dense placement of solar panels on such land. Similarly, wind turbines require extensive stretches of ground covered with structures taller than the Statue of Liberty. Therefore, careful planning is required for wind farm siting.

Wind farms necessitate the construction of access roads, fire-fighting amenities, and high-capacity transmission lines to transport the electricity for distribution purposes. While spinning blades can cause fatalities among birds, produce flickers in people with susceptibility to vertigo, and generate low-frequency vibrations that can be felt some distance away. The following chart illustrates sales figures for leading companies in the hybrid

vehicle market. Source: Hybrid cars. As per the graph, Toyota is the top-selling hybrid brand.

When comparing Ford and GM, it is evident that Ford's hybrid has a better selling ratio. This is due to GM only installing the hybrid package in an SUV and had not launched a new model SUV since 2003, whereas other car companies had released their 2008 models. Only Ford's escape and Mariner saw flat sales, resulting in an increase in sales for the company in September. Despite their economic and environmental costs, solar and wind power are not expected to generate significant power in the next 20 years. The best option for fuel cell vehicles for Ford in the short term is an onboard converter that extracts hydrogen from natural gas. However, this technology also emits carbon dioxide, and its expanded use could raise security concerns about natural gas.

Concerns have arisen regarding the expansion of pipeline infrastructure to transport large quantities of natural gas. Unless hydrogen for fuel cells is supplied through nuclear power, fossil fuels will remain dominant for the next decade, with significant environmental and economic impact. While Ford and General Motors offer costly hybrid vehicles, they may become unaffordable for low-income households and could hinder petroleum conservation efforts. Despite General Motors developing multiple hybrid models, Ford only plans to launch one in 2008.

Ford may see a decline in sales due to competition from GM, who is also facing Toyota's Hybrid Models. To stay competitive, Ford needs to introduce new models. Despite an increase in petroleum consumption, the Environmental Protection Agency has observed a reduction in six critical pollutants that impact prosperity, health, well-being and the environment.

With

technological advancement, economic output per unit of energy consumed has increased, potentially reducing carbon dioxide emissions without hindering economic growth. The electrification of the United States is a notable example and was recognized by the National Academy of Engineering as a significant engineering achievement in the twentieth century. This development paved the way for other energy-consuming innovations such as automobiles and airplanes, contributing to global prosperity. Fossil fuels, particularly petroleum, have been vital in providing energy supply both in America and worldwide, refining nature while elevating humanity and playing an enormous role in shaping modern civilization.

In 2007 and 2008, Ford Motor Company and GM retrieved their respective Annual Reports. The report for Ford was obtained from http://www.ford.com/our-values/ford-fund-community-service/ford-motor-company-fund/fmc-2006-annual-report/ford-annual-report-404p, while the report for GM was accessed from http://www.gm.com.

To learn about stockholders, visit www.example.com/corporate/investor_information/stockholder_info/. Additionally, The Futurist magazine Volume 41, Issue 4 (2007) features an article by Norma Carr that explores the bright future of hybrid cars in light of increasing gas prices and evolving consumer attitudes.

In an article published in Magazine Title "E" in 2007, Jim Motavalli explores the development of eco-friendly cars including hybrids, electric cars, and diesel engines that use vegetable oil as fuel.

The second issue of Volume 133 of USA Today magazine includes an article by Lester R. Brown entitled "A Path to Oil Independence." The article outlines different tactics for achieving energy independence.

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