Industry Analysis Case Study

Future of Hybrid Cars in the US

OR

Abstract:
In the recent years in the US, the prices of gasoline were increasing at an alarming rate and had reached a record high level of $2 per gallon in 2004 and the demand for gasoline was projected to average around 20.9 million barrels per day by the end of 2005. This created a lot of pressure on the consumers in general, and the automobile manufacturers in particular, to reduce the dependence on foreign oil. The manufacturers were forced to produce fuel efficient cars and advanced diesel and hybrid technology was considered as an alternative. The case discusses the anatomy of the hybrid cars and the issues for the success of the hybrid cars in the US. The case further highlights the challenges faced by hybrid cars in the US, for acceptance.

Pedagogical Objectives:

• This case can discuss where the US automobile industry is heading to. Will Hybrids out run the gasoline cars in the future?
• The increasing oil dependency of US and its impact on its economy
• How hybrids can mitigate the growing environmental pollution
• The challenges and strategies hybrid car makers have to face and pursue to sell more hybrids.

Keywords :  US automobile industry; Hybrid cars in the US; Hybrid Anatomy; Oil dependance; Global Warming; Fuel Efficiency; Toyota Prius; Zero Emission Vehicles; Industry Analysis Case Study; Advanced diesel; US auto Manufacturers; CAFÉ Standards; US environmental Protection Agency; Emission Levels; Ford; Honda Insight; Daimler Chrysler