Adding Alternative Fuel Vehicles to Lotus Rental Car
In an effort to bring down the gasoline cost for his fleet, Lotus Car's Chief Financial Officer is looking at the possibility of adding alternative fuel vehicles to its fleet. To make a sound decision, she decided to hire a consultant firm that would review and determine if implementing the addition of alternative vehicles would benefit the company.
By performing thorough research, the consultants will first perform a comparison between gas vehicles and alternative fuel vehicles. The consultant will then determine the advantages and disadvantages of adding alternative vehicles to Lotus Rental Car Company.
Before the decision is made to add alternative-fuel vehicles to the Lotus
Most people will wait an average of six months in order to buy hybrid vehicles and their prices vary from dealer to dealer.
There are many reasons to buy a hybrid car. Hybrid cars are typically smaller and have engines that are more efficient. Hybrid vehicles also have regenerative braking. This means that the electric motor that drives the hybrid acts as a generator and charges the battery while the car is slowing (top five reasons to buy a hybrid, n.d). Hybrids also have a periodic engine shut off; meaning when a hybrid is stopped in traffic, the engine is temporarily shut off. Then when the car is put back in gear, the car starts automatically. The efficiency of the hybrid outperforms that of a conventional car. The government is creating incentives as tax breaks for owners of hybrid vehicles, which includes a $3,400 tax credit on their individual tax returns. The bill passed by the president focuses on the environment but also on the fact that hybrids save on oil use. This directly affects the country's dependency on foreign oil (Tax incentives for hybrid owners, n.d). Anyone who follows political policy of the United States can tell you that America consumes a quarter of the world's oil supply but only has 3% of the world's oil reserve on its territory. This fact gives the country no other option than to import over 60% of the oil it needs to function at normal levels. Due to the Sport Utility Vehicles and