Corporate Average Fuel Economy

To some people, cars are more than just the sum of their parts. Ever since 1970 the United States Government has been placed crippling restrictions on sports vehicles. On December 2nd, 1970, Congress voted to pass a bill that would establish the Environmental Protection Agency to regulate and standardize the auto industry in order to protect the environment from pollution. From 1970 until now there have been thousands of vehicle emissions and fuel consumption regulations that have put substantial amounts of stress on automakers and their consumers. All of these laws were set in place to help protect the environment and reduce pollution; but now it seems like they are just more excuses for the government to tax you. I recently watched a documentary about sports cars featuring Eric Bana, Jay Leno, Dr. Phil, and Jeremy Clarkson. The film strived to demonstrate that some people don’t see cars as just modes of transportation; they see them as living beings. Eric Bana used to have a 1974 Ford Falcon XB Coupe that he had ever since he was fifteen. Eric puts his blood,…

Depression in November 1973. The aviation industry felt the same quake: domestic airline traffic decreased 5% in 1973. The Congressional Hearing on alternative fuels for aviation during the second session of the 98th Congress revealed just how heavy the effect was on airlines. Consuming 6% of the nation’s petroleum product, the civil aviation sector had tripled its energy consumption in the previous decade, thanks to the groundbreaking advent of the jet age, when bigger and faster passenger…

• POLITICAL: Various Indian states offered incentives to set the production in their land. Export of car is growing especially in Asia and Africa. Tax reduction are applied to specific vehicle such as UV and MPV. • ECONOMICAL: Asia is the fastest growing automotive market. Global recession impacted the industry and limited the available founding. Pricing and exchange rates impact the production and would set barriers to export in other countries, such as Africa. • SOCIAL: India population is…

Combustion Engine Versus Eco-Friendly Engine As the population becomes dependent on the environment, environmentally friendly vehicles have appeared as an alternative to gas-powered vehicles. Many methods exist to power SUV’s, trucks, and cars. Vehicles are powered by the combustion of both gasoline and diesel fuel. The transportation industry is drastically trying to improve its methods for reducing its greenhouse gas emissions and pollutants to the environment. Electric cars notably are…

sustainability profit, the automakers should provide innovative product since the demand for the connected, efficient, and low cost vehicle is growing. Some challenges that affect the automotive industry to be more innovative are (1) the cost of electronics and software content is 20% lower than the cost 10 years ago, (2) electronics systems contribute more than 90% of innovations and new features of vehicles and (3) timeframe for automakers to launch new products is 3-4 years, however the cycle…

in terms of revenue and customer statistics. By flying only cost-effective, cutting overheads and point to point destinations, Ryanair has positioned itself as the most affordable airline in Europe. This is through lowering fair process, as compared to its competitors who charge close to twice the average price of Ryanair tickets. It is important that as Ryanair expands, it is essential they continue to find and adopt groundbreaking strategies that…

Government policy affects the economy in a variety of ways, but it is ultimately better for the government to have an active role in regulating and controlling it. Statistically speaking, the economy does better the more government regulation of it there is. Under the Obama administration, the economy has now more than quadrupled the number of jobs present from the Bush administration, and unemployment rates have dropped below the current historical average (Brooks). In addition, corporate…

B. Evaluation of the Current Situation 1. External Audit a. The Competition The level of competition within auto industry is intense. Automakers compete primarily on the basis of price, fuel economy, reliability, styling and utility. Barriers for entry are high and steady. The list of top performers includes General Motors, Toyota and Ford. General Motors (GM) has been Ford’s competitor since 1920’s. Corporation is headquartered in Detroit and operates in about 157 countries, employing close…

the United States supplying weapons to Israel in their war against Syria and Egypt, which was called the Yom Kippur war. As a result of this embargo, the United States passed a law called the "Corporate Average Fuel Economy (CAFE)", the purpose of which was to "reduce energy consumption by increasing the fuel economy of cars and light trucks" (NHTSA, n.d.). This legislation remains impactful to the future of automakers. In 2011, "President Obama announced an agreement with 13 large automakers to…

OPEC and the U.S. Economy OPEC (Organization of the Petroleum Exporting Countries) was founded in Baghdad in 1960. It originally had five members; Iraq, Iran, Saudi Arabia, Kuwait, and Venezuela. In 1965 the headquarters for OPEC moved to Vienna where it remains today. OPEC is currently made up of thirteen countries and they are responsible for over 40% of the world’s oil production as well as over 70% of the world’s proven oil reserves. OPEC’s mission statement, according to its official…