Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 8 pages
Data source: Published sources
Topics:
Renault-Nissan; Electric vehicles (EVs); US auto industry; Consumer preference; CARB (California Air Resources Board) and other anti-pollution regulations; Hybrid cars; ZEV (zero-emission-vehicle) mandate; Lithium-ion battery; Project Better Place; Global awareness to climate change; Increasing oil prices; GM (General Motors) EV-1; Toyota Prius; Renault-Nissan's Israeli Venture; Market potential of electric vehicles
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Abstract
The skyrocketing crude oil prices and perpetual environmental implications, made auto-makers, as well as consumers look at alternatives to the conventional gasoline engine. Consumer reaction to high oil prices has led to a boost in hybrid car sales in recent years. Giants like, General Motors and Toyota proposed advanced hybrid and plug-in hybrid technologies as alternatives, as the systems leverage both gas and electric power. At the same time Renault-Nissan has chosen to go in a completely different direction. Also, the company has teamed up with the Israeli government to launch its all-electric car in 2010. The company committed to become a leader in developing zero emission vehicles. Despite the limitations of all-electric vehicles - and the failure of such cars in the 1990s - the alliance is confident about its commitment. The case discusses whether this revolutionary concept will be successful and become a major milestone in the annals of the automobile industry. The case study also helps in understanding and analysing: (1) the evolution of electric cars and their initial debacle; (2) the global awareness arising out of rising oil prices and consumer preferences towards non-gas powered vehicles; (3) Renault-Nissan''s ambitious plan of an all-electric car; and (4) the challenges and future potential of electric cars.
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Abstract
The skyrocketing crude oil prices and perpetual environmental implications, made auto-makers, as well as consumers look at alternatives to the conventional gasoline engine. Consumer reaction to high oil prices has led to a boost in hybrid car sales in recent years. Giants like, General Motors and Toyota proposed advanced hybrid and plug-in hybrid technologies as alternatives, as the systems leverage both gas and electric power. At the same time Renault-Nissan has chosen to go in a completely different direction. Also, the company has teamed up with the Israeli government to launch its all-electric car in 2010. The company committed to become a leader in developing zero emission vehicles. Despite the limitations of all-electric vehicles - and the failure of such cars in the 1990s - the alliance is confident about its commitment. The case discusses whether this revolutionary concept will be successful and become a major milestone in the annals of the automobile industry. The case study also helps in understanding and analysing: (1) the evolution of electric cars and their initial debacle; (2) the global awareness arising out of rising oil prices and consumer preferences towards non-gas powered vehicles; (3) Renault-Nissan''s ambitious plan of an all-electric car; and (4) the challenges and future potential of electric cars.