Alternative Fueled vehicles as rental cars
Lotus Car Rental (LCR) is on the move to making a very wise decision. LCR has successfully operated its business for a number of years. Today’s competition among Budget Car Rental, Avis, and Enterprise does not measure up to the services and advancement that LCR has displayed. With consumers making more advances toward environmentally friendly cars, alternative fuels for vehicles are a better choice. The assessment prepared for the Chief Financial Officer will display four primary components which will emphasize solid reasons for this decision to proceed. The components discussed are the pros and cons of alternative fueled vehicles, the availability of alternative fueled vehicles, and the cost comparison between hybrid and traditional gasoline powered vehicles. Pros of Alternative Fueled Vehicles
There are several advantages to using alternative fuels or hybrid vehicles in a rental fleet. Some of these are company image, reduced spill hazard, and economic benefits. When considering the air quality an alternative fueled vehicle has lower emission levels than the traditional gasoline engine. Generally speaking, when a vehicle is first started the emissions released are at their highest for a gasoline engine. A vehicle that runs on natural gas creates a very low release of carbon while a hydrogen powered vehicle only produces water as a byproduct. The company image is linked to the go green movement throughout the country. If it can be shown to potential customers the environment is a major concern, it may bring more business. Alternative fuel vehicles are linked to improved air quality, renewable fuel sources, and decreased dependence on imported oil. When the vehicles produce lower emissions, they lower the company’s carbon footprint. The fact that alternative fueled vehicles and hybrids use fewer oil products also helps to reduce the national dependency on imported oil. With the air quality and oil dependency in the news, if Lotus Rental Inc. shows that the public is important, it could produce favorable publicity for the company. Compressed natural gas, liquefied natural gas, liquid propane gas, electric and hydrogen powered vehicles also offer a lower expense with regard to accidental spills. If there is a spill or accident of traditional gasoline or oil, the organization is responsible for payment for the cleanup. However, most of the alternative fuels do not leave hazardous spills. This is a way that as a company we can reduce the chance of fines from regulatory organizations. Finally economic benefits must be considered. The US Department of Energy is currently considering options for credits to be issued to companies that utilize alternative fueled vehicles in their fleets. (C.R. Cog) These credits may include reduced purchase price or credit given towards the purchase of future vehicles. If the organization is proactive and purchases vehicles now, it may place itself in a better position to receive these credits when they first become available. Cons on hydrogen fuel
A hydrogen fuel converts chemical energy into electrical energy, similar to the way a battery works. Hydrogen fuel requires a continuous supply of hydrogen to provide an uninterrupted flow of electricity. For example, a battery in a vehicle has one purpose, to help start the vehicle. After the vehicle is started, the alternator takes over and keeps the battery charged. The cost of a battery is cheaper than running electricity all the time. Hydrogen fuel is cleaner but expensive. You will be taking a financial risk if you choose to run hydrogen fuel. Hydrogen, while plentiful, is very powerful and expensive. Hydrogen fuel is more dangerous than gasoline and other common fuels. It requires special procedures to store it effectively and safely, and must be kept at a very low temperature. Ethanol is another fuel source that can be used that is less expensive than natural...
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