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Year 2009 witnessed the bankruptcy of the world's biggest automaker, GM, which was just a tip of an iceberg. The whole US auto sales plummeted to 10 million units, the lowest level since 1982. Apparently, the global financial downturn had huge impact on every aspect of the US auto sector. Although many people optimistically project a gradual recovery of the auto market from the recession in 2010, no one can exactly tell how long the market depression may last or any even worse situation may lie ahead.

Upon the "unexpected" heavy blow, every auto giant is struggling to survive such a difficult time by taking emergency actions. For example, GM started to scale back by cutting its dealers from 6100 to 3600, trimming the US assembly capacity from 2.8 million to 2 million vehicles, reducing employment levels, only offering 34 nameplates in 2010, and so on. Similarly, Toyota also cut employee bonuses, reduced executive pay and condensed pay for some factory workers by reducing hours. Accordingly, they expect to focus on dramatically lowering their fixed costs to achieve the break-even point and the profitability as early as possible. The trade-off of such actions is that the lowered operating leverage would limit the profitability in the event of economic recovery and booming in the future. It is indisputable to lean auto manufacturing operations at least in short term and this also represents the future trend of auto industry reform. However, besides temporary fixes, one has to consider some fundamental changes to alleviate the symptoms of the US auto industry's problem.

Oil price shock of 2008 caused the auto buyers' dramatic shift from once popular gas-guzzlers such as pickups and sport utility vehicles toward the smaller, more fuel-efficient cars. As many countries throughout the world, including the United States, entered the economic recession in the 3Q of 2008, oil prices continued to slide accompanying a significant overall decline in auto sales. Unfortunately, the reduction of the oil demand would not end the oil crisis, while such shortage would persist and possibly even get worse in the near future. Another problem is that the acceleration of the global warming triggers more environmental concerns regarding carbon emission. Aside from the non-substantial recognition of the Copenhagen Accord, automakers should have been aware of the potential significant change of the CO2 emission threshold and corresponding more restrict fuel efficiency standard.

As a result, further improving fuel efficiency is imminent. In the meanwhile, the exploration of alternative cleaner engine energy, like electricity, advanced biofuel and solar energy should be the top priority of the R&D innovation. Large amount of R&D investment in new technology as part of fixed costs should be amortized into the fixed cost in addition to the expenditures on retooling, new facilities and materials, etc. It may sound contradictory to current emergency actions of lowering fixed costs, especially the fact that the costs of technological innovation are generally uncertain. Taking plug-in hybrid vehicles and battery electric vehicles as examples, the cost premium may add as much as 50% to the price of a conventional car.

Rapid globalization has generated toughest competitions ever to US automakers. All domestic automakers have to react upon potential new entrants anytime soon. It is inevitable that the new players will induce more severe competitions in the US market. As it took Toyota 50 years to be well-established in the US market, maintaining over 16 percentage of US market share at present, other new emerging automakers may not have to spend that much of time. BYD Auto, China, Warren Buffett's favorite investment in 2009, opened two sales and marketing outposts for the US operation. It has moved ahead of GM, Nissan, and Toyota by selling a plug-in electric car with a backup gasoline engine in other global markets. One may question the quality of their cars and the reliability of their batteries for now, but the undeniable fact is that the pursuit of technology innovations is an exclusive cost-effective way to secure competitiveness.

When most of domestic automakers emphasize on aggressive cost conservation to stay afloat in the economic recession, far-sighted automakers should stand in a higher ground. Questions, like "other than closing this facility, can it be adopted to manufacture the new product line in the future", need to be asked before making decisions. In addition to investing on substitutions of fuel engines, further technology innovation on lowering the variable cost is still indispensable to lower the break-even point.

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide-Aarkstore Enterprise

In 2009, the Toyota Prius hybrid electric vehicle (HEV) became the best selling passenger vehicle in Japan, beating out all other gasoline powered cars. It has been thirteen long years, but hybrids have finally hit the big time. No longer just for environmentalists, electric vehicles (EV) are now mainstream.

Hybrids have always been a niche market, capturing one percent or less of the world passenger vehicle market through the first decade of the millennium. But in 2009, Energy estimates that just over 700,000 electric vehicles were sold worldwide, with 99% of those being hybrid electric vehicles. HEVs stole 1.5% of the world passenger vehicle market in 2009, and almost 8% of the same market in Japan.

The demographics for hybrid ownership are still very much skewed towards affluent, educated families; the classic early adopters of new technologies. But with the surge of general consumer acceptance of HEVs, seen by the uptake in HEVs in 2009 even during the most difficult recession since the 1930's, there will be new consumer segments purchasing HEVs in the coming years.

And with hybrids hitting the mainstream, plug-in hybrid electric vehicle (PHEV) and BEV models are not far behind. Plug-in electric vehicle products from Toyota, Nissan and Mitsubishi are coming to market in 2010, following in the successful tire tracks of hybrids. But the lithium-ion battery technology required to make PHEVs and BEVs with a sufficient driving range to appeal to consumers is expensive, leading to a cost premium for plug-in vehicles that will keep sales minimized over the next four to five years. This leaves the road wide open for hybrids to continue to dominate the EV market.

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide Energy analyzes the manufacturing and sales of electric based passenger vehicles throughout the world with a particular emphasis on the United States and Japan as the leading markets for electric vehicles. The analysis will include definitions, current product offerings and market detail on the following segments:

• Road legal hybrid electric vehicles (HEV), both current offerings and anticipated models, that use gasoline, diesel or ethanol blends for the internal combustion engine (ICE). This includes road legal passenger vehicles and light duty trucks.

• Road legal plug-in hybrid electric vehicles (PHEV), both current offerings and anticipated models, that use gasoline, diesel or ethanol blends for the internal combustion engine (ICE).

• Road legal battery electric vehicles (BEV), both current offerings and anticipated models. This will include passenger vehicles, light duty trucks, motorcycles, and neighborhood electric vehicles (NEVs, essentially non-highway rated road-legal vehicles).

Report Methodology

This report contains both primary and secondary data obtained from government sources, trade associations and publications, business journals, scientific papers, company literature, investment reports, and interviews with industry professionals. Statistics describing the sales of hybrid vehicles in the U.S. are primarily through the U.S. Department of Energy Alternative Fuels Data Center. Sales and production data of hybrid vehicles in Japan is from the Japan Automobile Dealers Association and the Japan Automobile manufacturers Association.

Simmons Experion Market Research Bureau's fall 2009 survey, based on a nationwide sample of over 25,000 U.S. adults, provides the primary research data on consumer penetration and demographics related to hybrid vehicle adoption in the U.S. market.

What You'll Get in This Report

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide provides a concise, focused look on the world of battery electric and hybrid electric vehicles as it exists today, and shows where the market is moving towards in the next five years. The report highlights key players in the industry and pinpoints ways current and prospective competitors can capitalize on recent trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide offers. Plus, you'll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You'll Benefit from this Report

If your company is already doing business related to hybrid vehicles, or is considering making the leap, you will find this report invaluable as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for all aspects of electric vehicles, as well as projected markets and trends through 2014.

 

 

For more information please visit:

 

http://www.aarkstore.com/reports/Electric-Vehicle-EV-and-Plug-In-Hybrid-Electric-Vehicle-PHEV-Markets-Worldwide-38100.html

 

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About the Author

Aarkstore Enterprise press@aarkstore.com http://www.aarkstore.com

Would you like some vehicular advice?

Never buy a Nissan if you ever plan to work on your own car. Nor Toyota, Honda, Acura, Chrysler, Lexus, Kia, Hyundai, Volvo, or Audi.

That leaves a few high end cars, Ford, and Chevy.

What a friggin' clusterfuck they are to do anything to. (On one, the book says 4 hours to change the spark plugs, 6 of them.) My Ford Truck I can change all 8 in 30 minutes but only if I screw off a while.

Old real Jeeps are cool. Actually, anything pre-1990 is cool.
W W TTTTTTT FFFFFF
W W T F
W W T FFF
W T F

Suggested Category

Politics & Government > Law Enforcement & Police

Vehicular=vehicular manslaughter-thus Law Enforcement and Police?

TY for the advice. Kinda makes me glad that we have an Impala...even though my old @$$ still doesn't drive.
*cries*

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