Case Study: Adding Alternative Fuel Vehicles to Lotus Rental Fleet
Introduction
This case study examines the initiative by Lotus Car Rental's Chief Financial Officer to incorporate alternative fuel vehicles into the company's fleet. This decision is driven by the rising costs of gasoline and diesel, concerns about global warming, energy security, and the increasing interest of consumers in cost-effective and environmentally friendly transportation options.
Abstract
The world has predominantly relied on fossil fuels for centuries, with recent times witnessing all-time high prices, significantly burdening the economy and consumers. The shift in consumer preferences towards alternative transportation means presents an opportunity for businesses like Lotus Car Rental to
innovate and adapt.
Background
Lotus Car Rental, amid escalating fuel costs and a growing consciousness about environmental impact, is exploring the feasibility of adding alternative fuel vehicles to its fleet. This initiative aligns with global trends and consumer demands for more sustainable and cost-effective transportation solutions.
Types of Alternative Fuel Vehicles
According to the U.S. Department of Energy, there are numerous alternative fuels and advanced technology vehicles in production or development. These include vehicles powered by biodiesel, propane, ethanol, hydrogen, natural gas, and electricity. In the rental car industry, the most popular alternative fuel vehicles are hybrids, ethanol-fueled, and electric vehicles.
Analysis of Potential Benefits
1.
Cost-Effectiveness:
Alternative fuel vehicles can reduce operational costs due to their efficiency and lower fuel expenses compared to traditional fossil fuel vehicles.
2.
Environmental Impact:
These vehicles emit fewer greenhouse gases and pollutants, contributing
to a reduction in the company's carbon footprint.
3.
Customer Appeal:
Offering alternative fuel vehicles can meet the growing consumer demand for
eco-friendly transportation options, enhancing the company's market appeal.
4.
Energy Security:
Diversifying fuel sources reduces dependence on petroleum, enhancing national energy security.
Challenges and Considerations
1.
Initial Investment:
The upfront cost of acquiring alternative fuel vehicles can be higher than traditional vehicles.
2.
Infrastructure Requirements:
Adequate charging or refueling infrastructure for certain types of alternative fuel vehicles is essential.
