Alternative Fueled Vehicles an Analysis

Alternative Fueled Vehicles

An Analysis Prepared for Lotus Rental Car to Determine What Alternative Fueled Vehicles could feasibly be added to the Rental Fleet

There are a wide variety of alternative fueled vehicles that are being developed for use in vehicles as a response to growing environmental concerns over the emissions of greenhouse gases as well as concerns over the availability of oil in the future. Many consumers are being proactive in their demand for more environmentally friendly products and services and are also willing to pay a premium over traditional products. Therefore, it is recommended that Lotus Rental Car add two types of new vehicles to their fleet. The first is cars that are fueled by hybrid technologies. The second type of vehicle is trucks that are powered by biodiesel. Although these represent emerging technologies, they have both been develop to the extent that they could be added to the fleet with minimal operational disruption.

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There are many options for alternative fuels in vehicles today. Electric powered cars are being introduced to the market rapidly in many different countries. Hydrogen has shown a lot of potential for use as a fuel source in vehicles as well and neither of these fuel sources emits any greenhouse gas emissions. But even while such fuel cell vehicles development is accelerating, there are potholes in the road (Consumer Reports, 2010).

Like other prototypes, today's hand-built FCVs can cost a million dollars or more to build. Even if mass produced, it's estimated that current models would cost $500,000 each. So reducing costs is a major goal for the government and automakers.

Few hydrogen fueling stations exist, and it will cost billions to build an infrastructure that will make FCVs practical.

Critics say that hydrogen is difficult to store and that producing the hydrogen makes FCVs less efficient than other types of alternative vehicles, such as electric or natural-gas-powered cars.

Even though FCVs may represent the future of the industry, they are still not practical for most applications. However, the hybrid technology and biodiesel powered cars are already practical and many of the mainstream international rental car companies are already offering these alternative fueled vehicles. For example, Hertz will rent a Toyota Prius or comparable model as well as a bio fueled Volkswagen Jetta at many locations (Hertz, N.d.).