The Expansion Of Electric And Hybrid Vehicles

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Supposedly implicit in the term “leading edge technology” is the expansion of electric and hybrid vehicles in the GM line. Indeed, in order to meet its commitment to help achieve 500,000 electric or hybrid vehicles on the U.S. road by 2017 and to help reduce the average carbon emissions of U.S. cars by 15% by 2016, GM must continue to invest in green vehicles. However, multiple challenges currently stand in the way of GM’s previously defined goal to become an electric car provider. In fact, this paper suspects these challenges prompted GM to omit mention of electric cars in its 2014 strategic plan, and insofar as the failure to specifically mention electric cars signifies a wavering in the company’s commitment to green technology, GM has opened itself up to significant criticism in the formulation of its 2015 strategy. Given the current price of Brent Crude at $49.31 per barrel, down more than $50 in less than two years, demand for fuel-efficient cars has seen a precipitous decline. Through June 2015, the market share for hybrid electric cars and electric vehicles accounted for 2.8% of automobile market share, down from 3.6% through the same period in 2014. Correspondingly, GM’s plug-in hybrid Volt fell 35% in July. To make the outlook more dismal for electric cars, a global glut in oil and weakening world demand both point to sustained low prices for oil over the medium term. Despite these negative signs, GM must reaffirm its commitment to the design and
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