Toyota Prius Hybrid Marketing Plan
Hybrid Cars Versus Conventional Cars
Frank J. DiMauro ENVS 664-660
November 25th, 2008 Richard W. Berman 1
Hybrids, Hybrids Everywhere...
As Americans become increasingly more concerned about global warming, many are making choices about the vehicles they drive based on fuel economy and tail pipe emissions. Hybrid sales have increased 313% from 84,199 cars in 2004, to 347,102 in 2007.
Driving a hybrid might make people feel better for helping the environment, but is it really better for our planet? The answer it seems, is, “it depends.” It depends on who is doing the evaluating and what the criteria are. When I started this analysis, I expected to find overwhelming evidence in favor of one category or another. Instead what I found was a lot of confusing information. The confusion arose because different groups focused on different aspects. Most analysis focused either on economics, (i.e. how much money the owner would save over time) or consumption, (i.e. how many gallons of fuel the car would consume over its useful life), but in nearly all cases, the analysis was confined to the period of time during which the car would be driven. What went into making the car and what happens to it after it’s been abandoned by its owners was largely ignored, and I suspect it’s ignored because it’s so hard to evaluate.
I found this to be a very consistent theme in the rating systems of all products I’ve researched. Even Energy Star, which ranks household appliances, focuses on energy consumption during use, but the energy to produce, estimated useful life and eventual disposal, is largely ignored. This leads to an incomplete and sometimes inconsistent perspective to consumers.
One organization that focuses on the full life cycle analysis of automobiles is CNW Marketing in Bandon, Oregon. Founded in 1984, CNW is a for profit market research company that specializes in the automotive industry. In 2001, they pioneered a life cycle analysis of the auto industry in an annual report
Frank J. DiMauro ENVS 664-660
November 25th, 2008 Richard W. Berman 1
Hybrids, Hybrids Everywhere...
As Americans become increasingly more concerned about global warming, many are making choices about the vehicles they drive based on fuel economy and tail pipe emissions. Hybrid sales have increased 313% from 84,199 cars in 2004, to 347,102 in 2007.
Driving a hybrid might make people feel better for helping the environment, but is it really better for our planet? The answer it seems, is, “it depends.” It depends on who is doing the evaluating and what the criteria are. When I started this analysis, I expected to find overwhelming evidence in favor of one category or another. Instead what I found was a lot of confusing information. The confusion arose because different groups focused on different aspects. Most analysis focused either on economics, (i.e. how much money the owner would save over time) or consumption, (i.e. how many gallons of fuel the car would consume over its useful life), but in nearly all cases, the analysis was confined to the period of time during which the car would be driven. What went into making the car and what happens to it after it’s been abandoned by its owners was largely ignored, and I suspect it’s ignored because it’s so hard to evaluate.
I found this to be a very consistent theme in the rating systems of all products I’ve researched. Even Energy Star, which ranks household appliances, focuses on energy consumption during use, but the energy to produce, estimated useful life and eventual disposal, is largely ignored. This leads to an incomplete and sometimes inconsistent perspective to consumers.
One organization that focuses on the full life cycle analysis of automobiles is CNW Marketing in Bandon, Oregon. Founded in 1984, CNW is a for profit market research company that specializes in the automotive industry. In 2001, they pioneered a life cycle analysis of the auto industry in an annual report
References: • United States Environmental Protection Agency, A Comprehensive Analysis of Biodiesel Impacts on Exhaust Emissions, October 2002 • CNW Marketing Research Inc, 2007 Dust to Dust – The Energy Cost of New Vehicles from Concept to Disposal. www.cnwmr.com • Wall Street Journal, Volkswagen’s 2009 Jetta TDI Awarded Green Car of the Year, November 20, 2008 • The Rand Corporation – The Benefits and Costs of New Fuels and Engines for Cars and Light Trucks, Ryan Keefe, Jay Griffin and John Graham, November 2007, www.rand.org • The Green Motorist.com, Jetta sets Guinness Record, September 29, 2008 • Harvard.edu, Report on Bus Alternatives, July 31, 2001 • The Pacific Institute – Hummer versus Prius – Dr. Peter H. Gleick, May 2007 • Effects of Biodiesel Blends on Vehicle Emissions, R. L. McCormick, A. Williams, J. Ireland, M. Brimhall, R.R. Hayes, October 2006 • Energy Information Administration – Official Energy Statistics from the US Government - www.eia.doe.gov • www.factsonfuel.org – Gasoline Index 12