Daimler/Bmw a New Breed of Driver

The U.S. electric passenger car industry in 2011 was described as being in its infancy, because it is still a new concept to buyers. However there are signs of growth from 2011-2015. Buyers do not consider the car because of price, travel range and vehicle size, along with other secondary concerns.

The fourth part of this report will investigate the claim that “smaller cars provide better values than larger cars,” given the provided data. The claim does not make clear what measurement for determining “values” is to be used, but we will proceed with the assumption that Consumer Report’s Value Score is an accurate representation of real-world value. Because we determined that the Size category and the two related ‘dummy’ variables did not have a significant relationship with the Value Score (which caused their subsequent deletion from the equation), and also because Size is largely represented by Cost/Mile—the choice was made to analyze the coefficient for Cost/Mile to help come to a conclusion. We are going to use the following estimated regression equation (which we constructed in Part III) for our analysis:

When buying a car, 76.5% of consumers in United States say that environmental friendliness and carbon footprint have at least a medium amount of influence on them (Figure 1). In 2011, purchasing an electric car or hybrid car became more frequent among consumers. The percentage jumped from 4.1% in 2009 to 8.9%, and is forecasted to be 17.2% in 2013 (Figure 2). The increasing willingness to make green choices is expanding the market of electric vehicles. As the first

White says that “to produce a new vehicle it takes three to five years” (332), but he neglects to prove this information with ethos. The author later defends the automakers by stating “that doesn’t mean auto makers and their technology suppliers aren’t serious about rethinking the status quo” (333), therefore, he could confuse the reader with mixed opinions (332-333).

I watched this TedTalk on 6/16/2016, and the name of that TedTalk is Uber’s plan to get more people into fewer cars. The video was filmed on February 2016, and the speaker is Travis Kalanick, the co-founder of the peer-to-peer file sharing company Red Swoosh and the transportation network company Uber. The purpose of this memo is to understand the goal that Uber is trying to achieve.

The article I chose this week is by Ester Fung and gives light to a lifestyle I hope to never find myself…living in a big city without a car. Housing developers in big cities such as New York, San Francisco, and San Diego are opting to build apartment complexes and condos without the option of parking spaces for residences. One developer claims, “It’s the future…there is a strong demand for people who want to buy or rent units that are efficient”, while “local authorities seek to encourage the use of mass transit and free up space for parks, housing and other uses” (Fung, 2016). Parking decks and garages cost big bucks, and in cities where space is limited those decks have to be built underground, driving prices up and onto the consumer.

America’s modern society thrives on the need for personal vehicles. The desire to be an individual is evident in the choice of a car; it states personality and class, and it represents independence and freedom. However, if it was not for World War II, cars would not be what they are today.

“The cars we drive say a lot about us.” –Alexandra Paul Transportation is a large concern in todays modern world. Most individuals have opted to buy vehicles for their personal use. Most of these vehicles consume gasoline and a smaller proportion is hybrid based. These two types of vehicles have many similarities.

Across the world and for years governments have promoted the usage, production, and purchasing of electric vehicles. The first big push for electric vehicles was in 1998 in the state of California with the mandate that stated, “ a small percentage of vehicles sold after 2000 [ must have] zero emissions”( Baumgartner et Gross 35). This pushed many small and large vehicle companies to begin to look towards producing hybrid and electric vehicles. Another big push for electric vehicles in the United States was in 2005 when soon to be President Barack Obama advocated that” the United States [would] have one million electric vehicles on the road by 2015” (Barkenbus 56). Despite this goal never being met, without a doubt it promoted and furthered electric vehicles. Outside of North America in Europe, electric vehicle incentive is also prominent. Writing in October of 2000, Jack Barkenbus states “France is likely to be at the forefront of advocating electrical vehicle usage because of [their] nuclear power” (Baumgartner et Gross 35). This prediction was correct France now offers recharging services for electric vehicle owners. Another European country offering an incentive for purchasing electric vehicles is Switzerland. “Switzerland rewards individuals who take part in [electric vehicle promotion] by offering direct subsidies when buying a car”(Baumgartner et Gross 36). All of this incentive and promotion has been worthwhile, writing in 2017 Jack Barkenbus states that, “thirty percent of all new cars sold in the last quarter of

Statistics from the Department of Transportation’s CARS Report to Congress show that 677,842 vehicles were turned in under the CARS program. $2.85 Billion was paid out in rebates for these vehicles and $2.8 Billion in fuel savings based on the early retirement of less efficient vehicles. Thus the program did have a few successes; however, the successes are seen diminutively compared the failures; furthermore, the successes were seen by those who were wealthier. The program, many believe, was implemented not only ineffectually but also

(1) Summarize and justify alternative scenarios (i.e., compelling stories about the future) ranging from pessimistic to optimistic with regard to market performance of hybrid cars.

The sale of many cars that help companies comply with efficiency standards have remained very minimal, because consumers do not want these less functional or comfortable products. In January of 2015, the General Motors Company sold only 542 all electric Chevy Volts, out of 1.5 million total sales (Matthews). As vehicles are forced to achieve higher fuel standards, many cars are forced to get smaller, which sacrifices areas such as comfort and utility in many of America's cars, and consumers simply are not buying this. This lack of desire for fuel efficient vehicles shows that the government, with its fuel efficiency mandates, working against the majority opinion of the people. Also, over the years since CAFE standards were first put in place, the sales of large cars and SUVs has risen dramatically, reaching 2.9 million of 4.9 million total car sales in 2011 (Gardner). These large, heavy, high fuel consumption vehicles make it much more difficult for auto companies to comply with the minimum fuel economy. Even though this increase in the sale of low efficiency vehicles, average fuel economy has gone dramatically up, and has, for all years, been somewhat higher than CAFE minimums (ANWYL). This shows that there is still consumer desire to have fuel efficient vehicles, but it is not a top concern

The next aspect that we are going to analyse is the income elasticity of demand for BMW’s cars (fig2). From economic theory we know that as income increases, demand for luxurious goods will increase more than proportionately. This

One variable that will impact private and public investment in the EV space is obviously the infiltration of electric vehicles during the next decade. In other words, how many EVs will be purchased, replacing gas cars that are currently on our roads and highways. Understanding the speed of adoption and consumer acceptance rates for this new way of traveling is important for U.S. policy and planning purposes. Determining and understanding the causes of EV adoption and correlating that to estimates of future technology adoption rates requires application of statistical modeling methods. Baha Al-Alawi and Thomas Bradley provide a comprehensive summary of EV market saturation in their 2013 report entitled “Review of Hybrid, Plug-In Hybrid, and Electric Vehicle Market Modeling Studies” (Al-Alawi et al. 2013).

Vehicles are a part of a person’s everyday life these days. You see them everywhere, no matter if it’s a big city, or a little country town. People use cars to travel to all sorts of places, whether it is a school or work. We push our vehicles to the maximum so they seem to wear out really fast. It seems like every five to six years you have to purchase a new one. People have so many causes to by a new car these days but owning a car also comes with a lot of effects. New cars come with a lot of benefits like reliability and warranties. The biggest downfall with buying that brand-new car is the car payment and that expensive car insurance. A new car might look good, and you might get more attention, but you pay for that attention. You must ask yourself is the cost worth the award?