Lotus Rental Car Assessment Essay

INTRODUCTIONAdding utility(a) displace vehicles to the fleet is essential to our environment, beneficial for our consumers, and potentially passing profitable for Lotus renting Car. With the everlasting increase in fuel, the consumer is looking for alternative slipway to save money on fuel and at the said(prenominal) time be informed about the negative impact that fuel and diesel motor have in our environment. alternate(a) fuel vehicles have never been much popular in the U.S. and be becoming a major source for public transportation. Our community has sour educated about the damaging effect in which swagger and diesel vehicles have been causing our environment. These vehicles be more environmentally favorable and are typically more cost-effective to produce. Therefore, it has a great pecuniary impact to the common family. Alternative fuel vehicles laughingstock tending our consumers save money on splosh while simultaneously impacting our environment in a positive an d healthy way.If Lotus Rental Car is aggressive and proactive in the purchase of alternative fuel vehicles, it will become the first major rental car company to lead a palmy path to the future. Lotus Rental Car will become the model company of the sensitive rental car era. We will decrease expenses, expand the variety of a new customer base, increase revenues through the new continuous revenue stream and sponsors. As a result of your new and wise investment, our companys market shares and profits will soar to a new company and constancy records.A new division to our selling department will be established to help promote the importance of renting from Lotus Rental Car. The marketing department will incorporate the benefit to our environment along with the potential savings to our consumers. The brand new marketing campaign and strategy will help promote our new vision. The alternative fuel market has few competitors, therefore, giving us the opportunity to add new customers to o ur company. We will be the first modern font company to benefit from this rare opportunity to dramatically increase our revenue flow.ENVIRONMENTIt does non take long to notice alternative fuel vehicles on the road every(prenominal)where you go. These type of vehicles are becoming the new trend in todays evolving automotive industry. As a community and consumer, we are more educated on how we directly impact our environment, both in a negative and positive way.Our federal regimen has developed agencies and passed federal acts to condition we limit the harm we do to our environment. The United States Environmental Protection Agency (EPA) was established in 1970 and viewed as a necessary part of our federal g all overnment to help reduce our nations rising stress pollution. According to the United States Environmental Protection Agency, Transportation source emit greenhouse gases that sum to climate changeIn 2011, transportation represented approximately 27 per centum of total U .S. GHG emissions (Transportation, 2011). In former(a) words, we will have a significant impact in reducing the greenhouse gases being emitted into our atmosphere.The EPA has been credited with significantly alter our air quality. In 1997, the Clean Air Act was passed to chasten and reduce ozone pollution. The Clean Air Act is essentially a fuel control measure to assist our local states in helping reduce our ozone pollution. Alternative fuel is significantly cleaner than conventional natural gas and provides significant reductions of certain compounds that contribute to air pollution and ozone pollution. According to Aaron Windecker and Adam Ruder (2013), Emissions were reduced by adopting alternative fuel vehicles (p.40). Their research concluded that alternativefuel vehicles that were added to vehicle fleets had reduced emission that harm our environment.In todays new automotive industry, we can see how these measures have greatly impacted our communities and businesses. Almos t all major ports are transitioning to alternative fuel vehicles. In the Long Beach and Los Angeles Ports, traditional diesel semi-trucks are no longer allowed access. In 2008, the Los Angeles Port established the Clean Truck Program to assist the Clean Air Act. This broadcast targeted major sources of air emissions and incorporated a ban on polluting trucks. All pre-1989 trucks were banned from entering the port.Research conducted by the Clean Air Act showed that In its first year, the program reduced the rate of port truck emissions by an estimated 70 percent, and when fully implemented in 2012, the emissions were reduced by 80 percent (Portoflosangeles.org, 2014). This is just a small example of how one port can positively impact the environment. A comparable impact can be accomplished here at Lotus Rental Car. By altering our fleet to provide more alternative fuel vehicles to our consumers, we will be contributing to our environment by improving our current air quality, ozone la yer and reducing toxic air pollutants.Transportation agencies are also transitioning to alternative fuel vehicles. Buses being operated by diesel and gas are being phased out and being replaced with environmentally friendly fueled vehicles. Our local cities are purchasing alternative fuel vehicles and are incorporating them into their general use, such as for police detectives and forensic units. There is not a negative impact to our environment if we change our fleet to be more diverse and environmentally friendly.CONSUMERIn todays changing market, traditional fuel sourced vehicles such as gasoline and diesel are no longer fulfilling the needs of every customer. Vehicles and the fuel it takes to power them, are an essential part of our American infrastructure and economy, moving people and goods across the country (Department of Energy, p. 1, 2014, October). Expanding ourmarket-share in the leasing of vehicles will require a more diversified lineup.We want our customers to underst and that at Lotus, we are not thinking just about profit for our company Lotus is also touch with the moral values of each customer. Once we introduce our new fleet of vehicles which will include an alternative fuel source vehicle, we will be forrard of our competitors, and our harvest-feast will occur as projected. Doing our best to provide a full selection of rental cars including alternate fuel source vehicles will recompense and meet the demands of todays consumer.As the technology improves, more people are becoming aware of how traditional fuels, such as gasoline and diesel fuel harm the environment. Todays consumers are concerned with these harmful effects, and wish to do some(a)thing positive about it. Alternative energy sources and technologies can acquire a vital role in lowering or eliminating our reliance on fossil fuels (Kouroussis, D., & Karimi, S. 2006, August p 346). By providing alternative fuel vehicles, we are allowing our environmentally conscious consumers a means of transportation in which they save money in fuel costs and reduces the spread of air pollution. Those consumers will try more business for us by sharing their rental experiences with both their colleagues and family. Everyone wants a healthy environment for the future generations.Traditionally fueled vehicles will no longer make up the majority of all vehicles being currently rented and operated today. Yes, technology is changing daily, and scientists that work for the U.S. government are still developing ways to both increase fuel efficiently and reduce harmful emissions. However, we do not know when the next breakthrough in technology will become available to the market Lotus needs to utilize the current technology today. The risk of incorporating alternative fuel source vehicles is one which Lotus needs to consider. permit us be the first rental company that offers a wider selection of vehicles by including the alternative fuel vehicles. This action will give our envir onmental conscious consumers a better feeling of spending their money with a company that aligns with their morals. Traditional fuel sources such as gasoline and diesel fuel may be a thing of the past, let us move forward into the future today.COSTThe initial cost of adding alternative fuel vehicles to the Lotus Rental Car fleet would be substantial. Generating revenue through selling additional shares on the stock market could have a negative effect if we do not show a profit after the first quarter in which we introduce a new fleet. There is only one other car rental agency that rents alternative fuel vehicles, which means we would have minimal competition in the industry. The United States currently has about 250,000 natural gas vehicles on the road today (Cngnow.com, 2014). Within the next ten years, that number is expected to increase by more than 200 percent. Not only do consumers want to buy eco-friendly cars, but they also want to rent them. Our proposed expansion shows thi s is the best time to invest in the alternative fuel industry. Research tells us there is a full-grown market, and we would expect to see a substantial profit from our investments.Adding new alternative fuel cars to our fleet will increase our customer percentage. Our new customer growth is expected to increase by 30 percent. Traditionally, more than half of new customers become long-term loyal customers. There is already a need to replace a large percentage of aging Lotus Rental Cars. This would be a great opportunity to retire some of the aging vehicles and implement the new alternative fuel vehicles to our new fleet. Replacing older vehicles as they phase out would cut cost while adapting to a more eco-friendly consumer service. Nearly three-quarters of drivers would consider an alternative fuel vehicle for their next car (Consumersunion.org, 2012).We believe renting is no different than buying. A fleet of 12 new vehicles per lot would cost Lotus Rental Car Company approximatel y $420,000. After one year, we would have all the cars paid off, therefore, a large portion of the rental fees would be primarily profitable revenue. It truly is a great long term investment in the company where the potential growth could exceed previous rental car records. After the first quarter with our new fleet, there could be a potential of a 100 percent growth rate by the end of the year. By gaining a competitive edge on the fact that we are the only company in our neck of the woods to offer this service, it appears the pros significantly outweigh the cons.According to Natural Gas Vehicles for America, Compressed Natural Gas (CNG) currently costs approximately $2.13 per gallon compared with approximately $3.90 for gasoline (Keys, 2012, p.1). As being significantly more cost effective per gallon, CNG vehicles also go farther distances per gallon, which is even more of an incentive to consumers that have to fill up their rental car. Not only are you saving the environment but you are also saving the money in your consumers wallet. By not investing in natural gas vehicles, we would lose out on substantial tax credits in which the government is currently offering. If we switch over by December 31, we will save 25 percent on the total purchase price per vehicle. By all of these pros outweighing the cons, there is no causation we should not already have bought these natural gas vehicles.CONCLUSIONIf Lotus Rental Car transitioned towards purchasing a large number of alternative fuel vehicles, it would lead the rental car industry in the largest transition of this industrys history. Consumers and sponsors would view Lotus Rental Car as environmentally friendly and the new leader in the industry. Our goal is that Lotus Rental Car will become one of the most profitable businesses while being environmentally and consumer friendly. There are no glaring drawbacks to our valuable environment, and both the consumer and our company can benefit from the savings. Let L otus Rental Car make the successful investment today to modernize and lead the automotive industry towards alternative fuel vehicles.REFERENCESconsumersunion.org. (2012). Retrieved from https//consumersunion.org/news/consumer- reports-survey-americans-say-fuel-economy-most-important-car-buying-factor/cngnow.com. (2014). Retrieved from http//www.cngnow.com/vehicles/consumer- vehicles/Pages/information.aspxDepartment of Energy, (2014, October). _Vehicles_. Retrieved from http//energy.gov/public-services/vehiclesepa.gov. (2011). Retrieved from http//www.epa.govKeys, R. (2012). Southwestern energy touts CNG. Arkansas Business, 29(20), 20. Retrieved from http//search.proquest.com/docview/1019740298?accountid=458Kouroussis, D., & Karimi, S. (2006, August). Alternative Fuels in Transportation. _Bulletin of Science, Technology & Society, 26_(02770), 346-355. Retrieved from http//bst.sagepub.com.ezproxy.apollolibrary.com/content/26/4/346portoflosangeles.org. (2014). Retrieved from http//port oflosangeles.orgWindecker, A., & Ruder, A. (2013, August). Transportation Research Part D Transport and Environment, _23_, 34-40.