Hybrid Company Cars: Ford, Lexus, and Toyota Compared

Introduction and Purpose

This report compares and contrasts three automobiles within a particular class and makes a recommendation to the organization regarding the kind of cars it ought to purchase for its company fleet. The key audience for this report is the purchasing managers of the company as well as the individuals who will make use of the fleet. Satisfying this audience is essential, as failure to do so could be detrimental to the decision-making process.

Criteria for Vehicle Selection

Each year, organizations face an intricate variety of choices when assessing and selecting company vehicles. It is imperative for any organization to establish clear criteria for this process. Numerous car makes and models, differing equipment options, combinations of engines and drivetrains, and organizational budget constraints make selecting company cars considerably challenging. Conducting a thorough review of car fleets and strategically analyzing their benefits and shortcomings can lead to decreased costs in maintenance and fuel, as well as a lower total fleet expenditure (Ewald Fleet Solutions, 2017).

One of the key criteria for choosing company cars is cost. A primary cost-related factor is fuel efficiency, which directly correlates with ongoing running costs. This variable can have a lasting influence on overall organizational expenditure and individual finances. A second cost factor is road tax, an expense that can increase rapidly when operating a large number of company vehicles. In the contemporary market, a number of cars are exempt from road tax depending on the levels of carbon dioxide discharged from the engine. For diesel and petrol vehicles, there is an allowance of up to 100 grams of CO2 per kilometer before a vehicle tax charge applies (McAllister, 2013).

A second criterion is environmental impact. As an organization, we are committed to being socially responsible — not only as a liable employer but also in doing the right thing for our personnel, the community, and the environment. Responsible fleet management means recognizing that operating company vehicles directly influences road safety, environmental performance, and employee welfare. The organization is dedicated to decreasing the fleet's environmental impact through carbon dioxide reduction targets, emissions limits, and reducing the volume of business travel. Furthermore, the financial benefits of lowering emissions are both tangible and immediate, owing to the direct link between taxation and CO2 output (Tooze, 2013).

The Case for Hybrid Vehicles

Vehicles belong to different classes, ranging from compact and hybrid to sport utility vehicles (SUVs). The selected class for this organization's company car fleet is the hybrid class. A vehicle is classified as a hybrid if it uses more than one type of onboard energy source to achieve propulsion. In practice, this means a hybrid vehicle combines a conventional internal-combustion engine and fuel tank with one or more electric motors and a battery pack. In most cases, hybrid vehicles burn gasoline while simultaneously using their electric components to capture and recycle energy that would otherwise be wasted in a standard vehicle (Edmunds, 2013).

The hybrid class was selected because it satisfies both criteria outlined above. According to Edmunds (2013), while consumers benefit from improved fuel economy, hybrid vehicles also help manufacturers meet Corporate Average Fuel Economy (CAFE) standards and recommended restrictions on CO2 emissions. Hybrids have been available in the market since the beginning of the 21st century, and a progressively growing hybrid market continues to attract consumers seeking fuel-efficient vehicles without a significantly higher price tag.

One of the primary justifications for selecting hybrid vehicles is that they are environmentally friendly. Hybrid cars run more cleanly and deliver better fuel mileage than conventional vehicles, operating on a twin power system — an electric motor and a gasoline engine — which limits fuel consumption while conserving energy. The financial advantages are equally compelling. Hybrid vehicles benefit from numerous tax credits and incentives that make them cost-effective (Makhtar, 2016). Lower annual tax charges and exemption from congestion charges translate into reduced fuel expenditure. Hybrid vehicles also tend to hold a higher resale value; as gasoline prices continue to rise, more consumers are choosing hybrids, which has driven up average resale values for the class (Makhtar, 2016). Finally, hybrid vehicles are built from lighter materials, which means less energy is required to power them, further reducing emissions and dependence on fossil fuels (Makhtar, 2016).