Lotus Rental Car Assessment Essay

INTRODUCTIONAdding cream enkindle vehicles to the fleet is essential to our environment, beneficial for our consumers, and likelyly highly doughable for genus Lotus renting automobile. With the everlasting subjoin in supply, the consumer is looking for pick shipway to save money on render and at the same sentence be conscious about the blackball impact that fuel and diesel motor motor absorb in our environment.Alternative fuel vehicles have never been much than popular in the U.S. and be becoming a major ejaculate for public trans behavioration. Our community has become better about the damaging forcefulness in which gas and diesel vehicles have been causing our environment. These vehicles be more environmentally friendly and are typically more cost-effective to produce. Therefore, it has a great financial impact to the common family. Alternative fuel vehicles stinkpot help our consumers save money on gas while concurrently impacting our environment in a p ositive and healthy way.If Lotus renting machine is aggressive and proactive in the purchase of election fuel vehicles, it go forth become the archetypical major rental railcar guild to lead a successful path to the future. Lotus Rental Car go forth become the model company of the raw(a) rental car era. We ordain decrease expenses, expand the variety of a brand-new guest base, amplify tax r thus farues through the new continuous revenue stream and sponsors. As a result of your new and wise investment, our companys securities labor shares and profits entrust soar to a new company and industry records.A new division to our securities industrying de departmentment impart be accomplished to help promote the importance of renting from Lotus Rental Car. The marketing department will incorporate the benefit to our environment a considerable with the potential savings to our consumers. The brand new marketing campaign and dodging will help promote our new vision. The alternative fuel market has few competitors, therefore, giving us the hazard to add new customers to our company. We will be the first modern company to benefit from this rare opportunity to dramatically increase our revenue flow.ENVIRONMENTIt does not take long to notice alternative fuel vehicles on the road everywhere you go. These eccentric person of vehicles are becoming the new trend in instantlys evolving automotive industry. As a community and consumer, we are more educated on how we directly impact our environment, both in a prejudicious and positive way.Our federal g overnment activity has developed agencies and passed federal acts to ensure we topical anaesthetic anaestheticize 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 government to help reduce our nations rising send out taint. concord to the United States Environmental Protection Agency, Tran sportation source emit greenhouse gases that contribute to climate changeIn 2011, pane represented nigh 27 percent of total U.S. GHG emissions (Transportation, 2011). In other words, we will have a signifi evictt impact in reducing the greenhouse gases being emitted into our atmosphere.The EPA has been credited with signifi dejectiontly improving our air quality. In 1997, the uninfected Air flake was passed to control and reduce ozone pollution. The blame Air Act is essentially a fuel control measure to assist our local states in helping reduce our ozone pollution. Alternative fuel is importantly unspotted than conventional gasoline and provides significant reductions of certain compounds that contribute to air pollution and ozone pollution. consort to Aaron Windecker and Adam Ruder (2013), Emissions were reduced by adopting alternative fuel vehicles (p.40). Their search concluded that alternativefuel vehicles that were added to vehicle fleets had reduced emission that har m our environment.In todays new automotive industry, we can exit how these measures have greatly impacted our communities and businesses. Al nearly all major ports are transitioning to alternative fuel vehicles. In the Long B individually and Los Angeles Ports, traditional diesel semi-trucks are no long-lived allowed access. In 2008, the Los Angeles Port established the Clean Truck Program to assist the Clean Air Act. This program targeted major sources of air emissions and incorporated a ban on polluting trucks. All pre-1989 trucks were criminalize from entering the port. question 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 al tering 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 layer and reducing toxic air pollutants.Transportation agencies are alike transitioning to alternative fuel vehicles. Buses being operated by diesel and gas are being bodd 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 versatile 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 earn that at Lotus, we are not thinking just about profit for our company Lotus is in any case concerned 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 ahead of our competitors, and our growth will occur as projected. Doing our best to provide a full cream of rental cars including alternate fuel source vehicles will satisfy and experience 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 counterproductive effects, and wish to do something positive about it. Alternative energy sources and technologies can play a vital role in lowering or eliminating our reli ance 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 cost and reduces the circularise of air pollution. Those consumers will generate 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 clobber for the U.S. government are still developing ways to both increase fuel efficiently and reduce harmful emissions. However, we do not live when the next breakthrough in technology will become operable to the market Lotus needs to utilize the current technology today. The try of incorporating alternative fuel source vehicles is one whic h 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 environmental 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 substantive. 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 scarcely one other car rental agency that rents alternative fuel vehicles, which means we would have minimal aspiration 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 add together is evaluate 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 magnification shows this is the best time to invest in the alternative fuel industry. Research tells us there is a gigantic 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-run 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. some three-quarters of drivers would consider an alter native fuel vehicle for their next car (Consumersunion.org, 2012).We cerebrate renting is no different than buying. A fleet of twelve new vehicles per lot would cost Lotus Rental Car Company near $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 region 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 place 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 reason we should not already have bought these natural gas vehicles. shuttingIf 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 polish 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. permit Lotus 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/ intelligence/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. _Bullet in 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//portoflosangeles.orgWindecker, A., & Ruder, A. (2013, August). Transportation Research Part D Transport and Environment, _23_, 34-40.