Question

Provide your responses to each discussion: (Responses were analytical and demonstrated original thought.)

Discussion:1

Better fuel economy is the primary motive behind hybridization. The electric cars rely on electricity, then less gasoline or diesel. When the first hybrid cars like Toyota Prius and Honda Insight went on sale in Japan, most automakers felt electric cars couldn’t travel very far on a full charge. In the recent years, electric cars have improved significantly and the sales have been increased too.

From the shells perspective hybrids, cars have been a threat to them. If people keep buying hybrid cars, that would affect the company financially. From the article, Shell says it plans to spend $1 billion a year on its new energy division as it transitions from fossil fuel to more renewable power. They say there are opportunities in hydrogen fuel cells and new biofuels for air travel. According to Shell, the electric cars will outsell fossil fuel powered vehicles within two decades. Now the electric car charging points will be available at the Shell gas station in the UK. The Shell planning to sign a contract with the UK government so that the customer who drives electric cars can plug in at the gas station. I feel like it’s a great idea this watt the customers can charge their vehicles and at the same time, they can put gas in their car.

Mercedes are known for the brand, luxury and power, and technology. If people can afford Mercedes they should be able to afford electric cars too. If you look at the Mercedes line up on their website they offer hybrid cars now but when compared to Tesla they don’t have that many features and power. I feel like the Mercedes hybrid cars are priced too heavy when compares to other electric and hybrid cars. If Mercedes do not step up their game they will lose customers plus they will be affected financially. I suggest that Mercedes should add more features, change their body style, add more power and reduce their price.

Chrysler is known for power and technology. Chrysler is slowly stepping up their game into hybrid cars. As far as I know, the only hybrid cars they have right now is Chrysler Pacifica. The Chrysler Pacifica isn’t as expensive as Tesla or other electric vehicles in the market. Now the Chrysler is focusing on better gas mileage, inexpensive cars for customers and power. Chrysler has all kinds of cars from inexpensive to very expensive. If people start buying electric cars I don’t think Chrysler will be targeted financially as Shell or Mercedes. I believe Chrysler is trying to make 4-cylinders turbocharged cars for better gas mileage.

Discussion:2

Hybrid cars are starting to take over the market of vehicles. With technology becoming so advanced and constantly changing it helps hybrid cars become more efficient and available. As we can already see that driving electric or hybrid cars are more efficient to the economy in some areas.

Shell: Is a petroleum company that is all about being green and cares about the energy of the world. With hybrid cars in the picture, this can easily be a threat to the company. According to an article by Bloomberg Markets, Shell has said it plans to spend as much as $1 billion a year on its New Energies division as the transition toward renewable power and electric cars accelerates. With hybrid vehicles, it costs the company more money to create new and working ideas to satisfy the needs of the economy and its customers. The CEO of shell himself has switched over to an electric vehicle by Mercedes, in the article he states, “We need to be at a much higher degree of electric vehicle penetration -- or hydrogen vehicles or gas vehicles -- if we want to stay within the 2-degrees Celsius outcome.”

With diesel fuel in the picture, it provides more energy and miles per gallon on the vehicle. Companies like Mercedes will also face the threat of hybrid cars because people care about efficiency and saving money. Although Mercedes has diesel fuel vehicles eventually the hybrid car will take over diesel fuel vehicles. I do believe that a hybrid car for Mercedes would ruin the company’s brand name. The company is known as luxury and high end for their vehicles.

Chrysler is already very popular for their Dodge brand. A hybrid vehicle would be great for this company because it would not hurt the brand. They would be competing with GM on the hybrid Chevy Volt. Chrysler could make a vehicle in similarity to the Volt and continue the creation of hybrid vehicles.

Answer 1

Discussion 1:

The need to introduce hybrid vehicles is to reduce dependence on gasoline and diesel. The launch of electric vehicles is seen as a threat to shell UK as the people shift from gasoline and diesel to alternative fuels. They have started investing $1 billion on getting prepared for alternative fuels. They are also planning to install electric charging points at their outlets so the customers get the benefit of fossil fuel and electric charging at the same point.

The leading car companies like Mercedes who are leaders in offering luxurious, powerful, high-end cars will have to offer an electric or hybrid variant. Their current variant in hybrid cars does not have enough features and is expensive. Comparatively Tesla is leading in giving excellent features at a great price.   Mercedes will have to come up with a less priced variant with better features to compete with Tesla.

Chrysler also known for its technology has a hybrid car Chrysler Pacifica which is inexpensive and gives a good mileage. They are trying to introduce cars with better mileage. The companies which will financially impacted by increased use of hybrid vehicles are Mercedes who need a low cost hybrid variant with better features and Shell who needs to change their product offerings according to changes in the market conditions. Chrysler and Tesla are already moving according to the market trends by offering hybrid vehicles Tesla with better features and Chrysler a hybrid car with better mileage for a better price. The automobile market is looking for a change in technology and at a better price. The organization, which adapt will survive and gain whereas the organizations which lag behind will become obsolete and may be extinct.

Discussion 2.

The change in technology and movement in the automobile industry from fossil fuels to electric charge requires all leading manufacture to launch products with hybrid option of fossil fuel and electric charge. Hybrid vehicles give economic benefits and save on fuel costs and at the same time follow the go green need of the environment.

Mercedes has offered an electric car to cater to the new change; Shell is supporting the change by investing $1 billion in alternative fuel. Most leaders and companies are address the need for innovation in technology and the demand for cleaner air and change in the emission norms to address the Global environmental concerns.   

Mercedes has powerful, high end and good technology vehicles in diesel variants but will have to introduce hybrid vehicles to address the need for fuel efficiency and cost saving. The Mercedes brand might get impacted by the needed change if they do not research and introduce a suitable car which matches their brand image. Chrysler also need to introduce a suitable hybrid vehicle to compete with GM’s Chevy Volt which are already low cost hybrid vehicles.

The need for hybrid vehicle and innovation in the vehicles is critical, the main features customers require is good mileage, cost saving and good features at a lower price.