Hybrid Cars Marketing

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AStudyonHybridCars:EnvironmentalEffectsandConsumerHabits

AnInteractiveQualifyingProjecttobesubmittedtothefacultyofWorcesterPolytechnicInstituteinpartialfulfillmentoftherequirementsfortheDegreeofBachelorofScience.

SubmittedBy:MichaelBeliveauJamesRehbergerJonathanRowellAlyssaXarras

Submittedto:ProjectAdvisor:

Prof.ChickeryKasouf

Submitted:28April2010


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TableofContentsListofFigures................................................................................................................................................ 4

Abstract......................................................................................................................................................... 5

ExecutiveSummary....................................................................................................................................... 6

Chapter1. Introduction.......................................................................................................................... 9

Chapter2. LiteratureReview................................................................................................................ 12

2.1EnvironmentalEffects....................................................................................................................... 12

2.2Emissions........................................................................................................................................... 14

2.3ProductionofCars............................................................................................................................. 16

2.3.1ProductionEmissions................................................................................................................. 16

2.3.2ProductionEnergyConsumption............................................................................................... 20

2.3.3

RawMaterials

and

Recycling

..............................................................................................

23

2.4ConsumerBehaviorandMarketingStrategy.................................................................................... 24

2.5Widespreadchangetohybrid/electricinsteadofgasoline/diesel................................................... 34

2.6Conclusion......................................................................................................................................... 34

Chapter3. Methodology....................................................................................................................... 36

3.1QuantitativeDataAnalysis................................................................................................................ 36

3.1.1 EnergyConsumptionCalculations...................................................................................... 36

3.1.2 BreakevenCalculations....................................................................................................... 37

3.2ConsumerAttitudesandSelling........................................................................................................ 38

3.2.1InterviewwithaCarSalesperson............................................................................................... 39

3.3FocusGroups..................................................................................................................................... 40

3.3.1Peoplewhoboughtahybridinthepastyear............................................................................ 41

3.3.2Peoplewhoboughtanewcar(nonhybrid)inthepastyear.................................................... 41

Chapter4. Findings............................................................................................................................... 43

4.1EmissionsandEfficiency................................................................................................................... 43

4.1.1Energy

Consumption

for

Manufacturing

Vehicles

.....................................................................

43

4.1.2CO2EmissionsResultingManufacturingVehicles...................................................................... 44

4.4.3BreakEvenPoints....................................................................................................................... 45

4.2PublicsViewonPurchasingVehicles................................................................................................... 48

4.3SalesApproach:................................................................................................................................. 52

4.4Incentives.......................................................................................................................................... 53


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4.5FeasibilityofMassConversion.......................................................................................................... 54

Chapter5. Conclusions......................................................................................................................... 56

AppendixA:FocusGroupTranscript.......................................................................................................... 59

Bibliography:............................................................................................................................................... 85


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ListofFiguresFigure1:TransportationAirQuality:SelectedFactsandFigures2002...................................................... 15

Figure2:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfromVirgin

Materialsforallvehiclesconsideredinthisstudy,bymaterial.................................................................. 18

Figure3:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfrom

SecondaryMaterialsforallvehiclesconsideredinthisstudy,bymaterial................................................ 19

Figure4:EnergyUseinVehicleProduction(inMJperkgofmaterial)...................................................... 20

Figure5:VehicleMass(inkg)byMaterialforallVehiclesConsideredinThisStudy................................. 22

Figure6:TopFourteenReasonsPeopleBuyHybrids.Source:RoadandTravelMagazine,June24,2009.

.................................................................................................................................................................... 25

Figure7:FederalTaxCreditsforHybrids.................................................................................................... 32

Figure8:CalculationSpreadsheetforEnergyConsumption...................................................................... 37

Figure9:BreakevenPointEquation............................................................................................................ 38

Figure10:EnergyConsumptionforManufacturingVehicles..................................................................... 44

Figure11:CO2EmissionsResultingManufacturingVehicles...................................................................... 45

Figure12:BreakevenPointforthe2010FordFusion............................................................................... 46

Figure13:BreakevenPointforthe2010FordEscape............................................................................... 47

Figure14:BreakevenPointfortheToyotaHighlander............................................................................. 48


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Abstract

Thispaperfocusedonhybridvehicletechnologyanditsintegrationintosociety. The

encompassingissueansweredinthisprojectwaswhetherhybridsmeettheexpectationsfor

environmentalbenefitssuggestedbymanypeople. Researchwasdoneistheareasoftypesof

hybrids,consumertrends,andthefutureofhybridtechnology. Hybridproductionand

efficiencydatawereanalyzedtoexaminethetechnicalaspectsofthetechnology. Afocus

groupofpeoplewhorecentlyboughtcars,bothhybridsandnonhybrids,revealedwhat

consumerslookforintheircars. Analysisoftheneedsofhybridtechnologyhelpeddetermine

howfeasiblewidespreadchangetohybridswouldbeinfuture. Withallinformationtakeninto

account,weconcludedthathybridshaveseveraldrawbacksthatoffsettheirfuelefficiency.

Theirhigherpricebothturnsconsumersawayandmakesthevehiclesalessattractive

economicinvestment. Energyefficientprocessingtechniquesneedtobedevelopedbeforethe

advancedmaterialsinhybridscanhelpaddtotheircleanimage. Widespreadchangeto

advancedhybridtechnologiesisnotafeasibleoptioninthenearfuturebecauseofbothcost

andthelimitedamountofhybridsontheroadtoday. Overall,hybridtechnologyhasalotof

potentialinthedistantfuture,butasforrightnowtheyarenotasignificantimprovementover

todays

internal

combustion

engine.


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ExecutiveSummary

ThisInteractiveQualifyingProjectfocusedontheeveradvancinghybridvehicle

technologyanditsintegrationintosociety. Societyhasbeenmakingalargeefforttomake

everythinggreenandcleanerintodaysworld,includingtransportation. Advertisementshave

ledpeopletobelievethathybridcarspolluteless,willsavemoneyandreducedependenceon

naturalfuelsources. Theencompassingquestionansweredinthispaperwas;dohybridslive

uptoexpectationsthatsocietyhassuggestedoftheminthepastdecade?

Thepushtodevelopgreentechnologiesstemsfromthefactthattheearths

atmosphereisrapidlychanging. Thischangeislargelyduetohumanactivity;industry,

transportation,waste,andeverydayliving. Everydaylargeamountsofpollutantsarereleased

intotheatmosphereleadingthegreenhouseeffectandglobalwarming. Thisglobalwarming

cancausemajorissuessuchasthemeltingofpolaricecapsandariseinsealevel,whichinturn

wouldcauseintensefloodinginmostifnotallcoastlineareas,givingcausetootherdisasters

suchasmasserosions,mudslides,outbreaksofdiseasetomorehumidclimates,coastal

reformation,andotherdisasters.Givenenoughtime,asteadyincreaseofthesegasseswould

alsochangethelengthandintensityoftheseasons,createdroughts,andincreasethe

frequencyandimpactoflargestorms. Conjoinedeffortsarebeingmadebycountriesto

understandthisgrowingdilemma,andscientistsaretryingtotheorizewaystoslowitseffects.

Industryplaysalargeroleintheamountofemissionsthatarereleasedintothe

atmosphere. Everyvehiclemanufacturedproducesemissions,bothwhilebeingmadeand

whiledrivingontheroad. Theseemissionsincludenitrogengas(N2),carbondioxide(CO2),

watervapor(H2O),carbonmonoxide(CO),hydrocarbonsorvolatileorganiccompounds

(VOCs),andnitrogenoxides(NOandNO2,togethercalledNOx).1 Regulationshavebeenplaced

onindustriestotryandreducetheamountofpollutantsreleasedintotheatmosphere,but

furtherstepsneedtobetaken. Energyconsumptionbyindustries,inthemanufacturingof

products,alsoleadstopollutants. Whetheroil,coal,nuclear,orevenwaterorwindpoweris

usedtocreateenergy,harmfulbyproductsarestillproduced.1Randy2009


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Peoplebuynewcarsforavarietyofreasons,sometimesoutofnecessity,sometimesfor

vanity,andsometimesforfun. Buyingacarisabiginvestmentandrequirestheconsideration

ofmanydifferentvariables. Peoplelookintoprice,performance,safety,andreliabilitywhen

searchingforanewcar. Withthegrowinginterestinsavingourplanet,manycompanieshave

createdhybridcarsandthegovernmentisdevelopingincentiveprograms. Thesefactorshave

enticedmanypeopletoconsiderbuyingthesevehicles.

Withmanytypesofhybridtechnologyavailablethereismuchinterestinwidespread

conversiontohybridtransportation. Withsuchamassiveworldpopulationandhigh

dependencyontransportation,asignificantswitchtohybridsfromgasolineanddieselvehicles

mustbemetbeforeanychangescanbeseen. Thiscouldmeanconvertingallofourgas

stations;possiblytoelectricpluginstationsorhydrogenfillupstations. Awidespreadchange

tohybridsrequiresanextendedperiodoftimeandalsomaynotbecosteffective. Manyofthe

outcomesarenotworthallthatgoesintogettingtheadvancedtechnologyontheroad.

Afterextensiveresearchwedecidedtofocusoncarproduction,efficiency,whatthings

peopletakeintoconsiderationwhenbuyingacar,andwhatcurrentpurchasingtrendsare. To

dothisweanalyzedemissions,energyandmaterialdataallowingustocompareenergy

consumptionvalues,emissionlevels,andvehicleefficiency. Thisdatawasthengraphedto

draw

conclusions.

Focus

groups

were

organized,

for

both

people

that

bought

hybrids

and

non

hybrids,togatherconsumerpurchasinginformation. Aninterviewwasconductedwithalocal

cardealershipownertodiscusshybridmarketingstrategies.

Thedatasuggestedthattheproductionofhybridsconsumesmoreenergyandreleases

moreemissionsthantheproductionofconventionalcars. Thisismostlybecauseofthe

advancedmaterialsthatarerequiredinhybrids. Itwasalsodeterminedthathybridsarenota

greatinvestmentfortheconsumer. Forahybridtobreakevenwiththehigherpricea

consumer

will

have

to

drive

primarily

in

the

city

and

for

more

miles

than

the

average

person

keepsacarfor.

Focusgroupparticipantsindicatedthatthereareavarietyofdifferentreasonsfor

individualstopurchasenewvehicles. Themostprominentdecidingfactorswererelatedto

lifestyle;havingtodowithfamilynecessities,dailycommute,differentpersonalactivities,or


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weatherconditions. Anothermajordecidingfactorforpurchasinganewvehiclewas

affordability. Theinterviewwiththelocalcardealerverifiedthattheircurrentlyisnotmuchof

amarketforhybridvehicles

Wemadeseveralconclusionsabouthybridvehicles. Wefoundthathybridvehicles

createmuchmoreemissionintheirproduction,beforeevenbeingdriven,insomecases

consuminguptofourtimestheenergy. Althoughhybridcarstypicallyachievebettergas

mileage,theyareinitiallymuchmoreexpensivethanconventionalvehicles. Iftheincreased

initialcostofahybridistoomuch,theinvestmentwillbeveryhardtobreakevenwith. Hybrids

mustbedriventohighmileagesincertainconditionstoreallybeworthpayingfor;these

mileagesareoftenmanytimeshigherthantheaveragemileagethataconsumerkeepstheircar

for. Inourfocusgroupofnonhybridvehicles,theadditionalinvestmentofahybridcarwas

oftenadecidingfactoragainstpurchasingahybridvehicle. Othersinthenonhybridfocus

groupwereunabletofindhybridvehiclesthatfittherequirementsthatwerenecessaryto

accommodatetheirlifestyles. Thosethatpurchasedhybridvehicleswereoftendoingsoasa

statementabouttheirconcernandeffortstosavingtheenvironment. Industryneedstofind

cleanerandmoreefficientwayofproducinglightweightmaterialssuchasaluminumand

carbonfiber,whichisusedinthecarbodies. Moreeffectiveandincreasedlevelsofrecycling

would

lead

to

much

lower

energy

consumption

and

would

add

to

the

clean

image

of

hybrids.

Hybridvehiclesneedtobeutilizedinsituationsthatwillbenefitthemostfromthem,suchas

publictransportation. Itcanalsobeconcludedthatwidespreadimplementationofhybrid

technologyisnotfeasibleatthistime. Theproductionofequallyefficienthybridvehiclesisnot

greatenoughtocompetewithnonhybrids,botheconomicallyandnumerically.


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Chapter 1. IntroductionAsmoderncultureandtechnologycontinuetodevelop,thegrowingpresenceofglobal

warmingandirreversibleclimatechangedrawsincreasingamountsofconcernfromtheworlds

population.Earthsclimateisbeginningtotransform,provenbythefrequentseverestorms,

thedrasticshrinkingofpolaricecapsandmountainglaciers,theincreasedamountofflooding

incoastalareas,andlongerdroughtsinaridsectionsoftheworld. Therearelargeholesinthe

ozonelayeroftheearthsatmosphereandsmoglevelsareeverincreasing,leadingto

decreasedairquality2.Itistruethatnaturalcausessuchasgeothermalventsandvolcanic

hotspotsarepartoftheglobalwarmingproblembutmanyoftheissuesarestillaresultofthe

massivequantitiesofgreenhousegassesthattheworldspopulationhasproducedinthepast

fewcenturies. Ithasonlybeenwithinthepastfewdecadesthatmodernsocietyhasactually

takennoticeofthesechangesanddecidedthatsomethingneedstochangeiftheglobal

warmingprocessistobestopped,orevenslowedatthispointintime.Countriesaroundthe

worldareworkingtodrasticallyreduceCO2emissionsaswellasotherharmfulenvironmental

pollutants.Everythingfromcarsandindustriestolivestockandcropsarebeingstudiedand

regulatedwithplansofminimizingpollutionlevels.

Amongstthemostnotableproducersofthesepollutantsareautomobiles,whichare

almostexclusivelypoweredbyinternalcombustionenginesandspewoutunhealthyemissions.

Carsandtrucksareresponsibleforalmost25%ofCO2emission,andothermajortransportation

methodsaccountforanother12%.3 Withaglobalpopulationinexcessofsixbillion,andover

50%ofwhomliveinurbanareasandrelyontransportationtocontributetosociety.Inthe

opinionofmany,carsarealargecontributortourbanpollutionslevelsand,inthebigger

picture,globalwarming. Withimmensequantitiesofcarsontheroadtoday,purecombustion

enginesarequicklybecomingatargetofglobalwarmingblame. Internalcombustionengines

accountforalotofthepollutionproblems,buttheissuestillstandsastowhatsystemwilldrive

thenextwaveofautomotivevehicles.

Onepotentialalternativetotheworldsdependenceonstandardcombustionengine

vehiclesarehybridcars.Hybrids,liketheirnamesuggests,arevehiclesthatutilizemultiple

2Shanklin2009

3Hopwoodetal.2009


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formsoffueltopowertheirengines.Inthemajorityofmodernhybrids,carsarepoweredbya

combinationoftraditionalgasolinepowerandtheadditionofanelectricmotor. Inthissortof

hybridengine,thecombustionengineisusedathighspeedsforlongdistances,suchasthe

highway,andtheelectricengineatlowspeedsandshortdistances,suchasinurbanareas.By

incorporatingalternativeenergydrivetrainsintovehiclesthatalsousecombustionengines,

theyallowforaslightlycleanermodeoftransportation.Hybridshowever,dostillusethe

petroleumbasedenginewhiledrivingsotheyarenotcompletelyclean,justcleanerthan

petroleumonlycars.Thisenableshybridcarstohavethepotentialtosegueintonew

technologiesthatrelystrictlyonalternatefuelsources.

Justascombustionenginesarestillbeingimproved,alternatefuelbasedtechnologies

aremakingadvancementsaswell.Automotivecompaniesarecurrentlyinproductionofstrictly

electriccarsalongwithmanymoredesignsthatarestillintheprototypestages.Alternative

fuels,suchashydrogen,naturalgas,andbiodieselareextensivelystudiedandexploredin

hopesofwidespreadfutureimplementationintosociety.However,manyofthesealternative

fuelswillrequirefartoomanyresourcesfortheworldspopulationtofullyconverttowithin

thenearfuture,ifatall. Fuelcellswouldrequireacompletereinventionoftheautomobile,not

tomentionthenation'sgasstations,andthetechnologytoputthemontheroadisstillalong

way

from

fruition.

4

As

is

the

case

with

many

alternative

fuel

sources,

a

great

amount

of

time

andmoneywouldhavetobespenttochangethecurrentgasstationssothattheyare

alternativefuelcompatible.

Theintroductionofhybridtechnologyinthepastdecadewasthefirststeptowards

turningtheworldspopulationintoamorefuelefficientandemissionsconscioussociety.There

aredifferentclaims,however,astohowhelpfulhybridsactuallyareintheracetosavethe

environment,withprojectionsrangingfromsignificantlytomarginally. Somesourcessay

hybrid

cars

cause

significantly

less

damage

to

the

environment

than

the

current

standard

combustionenginedrivetrain,whileothersarguethatifonelooksatgrowthprojectionsforoil

consumption,hybridswillslowthegrowthrateofoilimportsonlymarginally,atbest,withthe

4Hakim2005


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amountdependingonhowmanyhybridsaresold.5 Manypeoplethinkthathybridsareakey

answertomanyofthegreenhousegasissues;howevertheyareoverlookingthegreaterpicture

regardingthesubjectofthehybridsthemselves.Themanufacturingofthesecarsandthe

natureofalltheadvancedelectronicsinthemmayconflictwiththegreenerimagetheypose.

Hybridsarecleanerontheroadbuttheirproductionmaynotbeableboastthesamestandard.

Tofullyknowifhybridsgivemorethantheytake,onewouldneedtolookintoenergy

consumptionandemissionsbefore,duringandaftertheirlifeontheroad.

Ourgoalwastoinvestigatetheoveralleffectsontheenvironmentduetohybridcars

whencomparedtotheircompetition. Bycomparingtheirmanufacturingprocesses,their

functioninmodernsociety,andconsumerbehaviortowardsthem,wegainedabetter

understandingofhybridvehiclesandtheireffectontheenvironment. Theresultofanalyzing

thefulllifeofacar,bothfromtechnicalandconsumerstandpointsleadustomanyquestions

aboutthesignificanceofhybridtechnology. Thisallowedustodetermineabetterapproach

withfutureconversionfromcombustionenginestonewerpropulsionsystems. Thispaper

includesourconclusionsonhowtobestapproachthefutureofhybridcars,botheconomically

andresourcefully,andalsogivesourfinalverdictontheefficiencyofthehybridcar,notonlyas

analternativetocombustionenginesintermsofenvironmentalimpact,butfromafinancial,

economic,

and

social

standpoint

as

well.

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Chapter 2. LiteratureReviewTherehasbeenmuchwrittenabouthybridtechnologyandalternateenergydrivetrains

inthepastdecade. Thereareargumentsbothforandagainstalmostanysubjectinthelarge

topic.

Inour

pursuit

of

fully

understanding

this

new

technology

and

its

impacts

we

explored

muchofthisinformationandtrytoapplyittoourproject. Weseparatedthisinformationinto

categoriesincludingenvironmentaleffects,emissions,carproduction,andconsumerand

marketingtrends.

2.1EnvironmentalEffects

Thefearthatmankindhasbeentamperingwiththeearthsecosysteminirreparable

wayshasbeenaroundformanyyears,whetheritbedrivenbyreligionorscience.Yetithas

onlybeenrecentlythatsuchfearsnotonlyhavebeenjustified,butbeenprovenaswell.There

isanincreaseinanxietyaboutthecurrentglobalsituationastheaverageglobaltemperature

slowly,butsteadilyincreases.

Alargeportionoftheprobableecologicalharmhasbeenassociatedwiththechangein

theatmosphereofourplanetandhowthechangeinclimateisaffectedbywhatmodernday

societycurrentlyconsidersstandardactivity.Humansareconstantlyaddingharmfulgases,

commonlyknownasgreenhousegases,totheatmosphereatanalarmingandextremely

harmfulpace.Whilemanyofthegassesthatarereleasedintotheatmosphere,suchascarbon

dioxide,arenaturallyoccurringcompounds,thereareothersthataremostlymanmade,in

particularchlorofluorocarbons(CFCs),whichsupplytheenvironmentwithextragreenhouse

gases.6 Greenhousegassesarecalledassuchbecausetheytrapheatinsidetheearths

atmosphereeffectivelyprotectingandinsulatingit,whichinmostcasesisagoodthing.

However,ifthereistoomuchofthesegasses,thentheoverallsurfacetemperatureofthe

planetwillriseasmoreheatistrappedin.Itisthisreactionthatiscausingthedistinctclimate

changethatweareseeingtoday,appropriatelylabeledasglobalwarming.

Thisglobalwarmingcancausemajorissuessuchasthemeltingofpolaricecapsanda

riseinsealevel,whichinturnwouldcauseintensefloodinginmostifnotallcoastlineareas,

6Desonie2002


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givingcausetootherdisasterssuchasmasserosions,mudslides,outbreaksofdiseasetomore

humidclimates,coastalreformation,andotherdisasters.Givenenoughtime,asteadyincrease

ofthesegasseswouldalsochangethelengthandintensityoftheseasons,createdroughts,and

increasethefrequencyandimpactoflargestorms.Organizationsaroundtheworldsuchasthe

IntergovernmentalPanelonClimateChange(IPCC)examinethepotentialcausesandeffectsof

humanrelatedclimatechange,andattempttounderstandtheimpactsthroughnational

inventoriesandotherfindings.7

Conjoinedeffortsarebeingmadebycountriestounderstandthisgrowingdilemma,as

wellascountriesconductingtheirownindividualresearch.NationalgroupsliketheU.S.

EnvironmentalProtectionAgency(EPA),alsoestablishregulationstohelpreducegreenhouse

gasemissions.

AccordingtotheEPA,theaveragesurfacetemperatureoftheEarthhasincreasedby

about1.2Fto1.4Finthepastonehundredyears. Expertspredictthattheaveragecould,and

mostlikelywillincreasetoaround3.2Fto7.2Fbyapproximatelytheyear2100.8

Inorderformankindtocontrolandreducethegreenhousegasesthatweareemitting

intoouratmosphere,astheycontinuetoshapetheenvironment,theremustbean

investigationintowhytheyarebecomingmoreabundant.Manyscientistsbelievethatglobal

warming

is

the

most

serious

threat

to

our

planet.

By

2025

the

world's

energy

demand

is

projectedtobe3.5timesgreaterthanin1990,withannualCO2emissionsnearly50percent

higher.9

Itisimperativeforustounderstandthenegativeeffectsthatenergyconsumptionhas

onourenvironment. Howeveritisalsoimportanttoidentifywherethemajorityofthis

consumptioniscomingfrom.Homes,lightingandheatingareallcontributingtotheproblem,

yetcarsareamongthemostsignificantastheyareavailableinthegreatestnumbersallacross

the

world,

and

are

very

high

on

the

list

of

things

to

change.

Regretfully,thedemandsontodaysenergysourcesareveryextensive. People

generallydonotthinkabouttheproductionofenergy,aflickofaswitchorpushofabuttonto

7Irvingetal.2009

8Randy2009

9Desonie2002


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turniton,andtheinstantaneouspowerprovidedleadstoitbeingoverlooked.Adecreasein

energyconsumptionwillreducethenegativeeffectupontheenvironment,givingusmoretime

tofindareliablewaytomanageeverydaylifewithoutseverelyimpairingourplanet.

IntheUnitedStates,ourenergyrelatedactivitiesaccountforthreequartersofour

humangeneratedgreenhousegasemissions,mostlyintheformofcarbondioxideemissions

fromburningfossilfuels.Morethanhalftheenergyrelatedemissionscomefromlarge

stationarysourcessuchaspowerplants,whileaboutathirdcomesfromtransportation.10

AstheevidenceofourcarelessnessbecomesmoreblatantandhazardoustotheEarths

inhabitants,themainquestionbeingaskednowis:whatshouldwedotofixthis?Because

theseissuesaredirectlylinkedtotheamountofenergythathumansconsumeonadailybasis,

itbecomesmoreimperativethatchangesmustbemadetosaveenergyandreduceourwaste

production.Itisimportanttoinvestigateallfactorsinmodern,everydaylifetosolvethisissue.

Itisrequiredthatwecontinuetolookintowaystoslow,andatsomepoint,fixthedamageswe

havedonetotheenvironment.

2.2Emissions

Wheneveracarisstarted,sittingidleordrivingitisproducingemissionsthatarefilling

ouratmosphere. Theseemissionsincludenitrogengas(N2),carbondioxide(CO2),watervapor

(H2O),carbon

monoxide

(CO),

hydrocarbons

or

volatile

organic

compounds

(VOCs),

and

nitrogenoxides(NOandNO2,togethercalledNOx).11

Theairwebreatheismadeupof78

percentnitrogengasandinthecaseofanengine;mostofitjustpassesrightthroughandisnot

consideredaharmfulemission. Aproductofcombustioniscarbon,whichwhenbondedto

oxygenproducesCOandCO2,apoisongasandabelievedculpritofglobalwarming.VOCsare

producedfromevaporated,unburnedfuelsandareamajorcomponentofsmog. NOxarealso

majorcomponentofsmogaswellacidrain. Manyoftheseemissionsarenaturallyoccurring

compoundsbut

the

concerning

part

about

them

is

the

levels

in

which

they

are

produced

by

cars. TheFederalHighwayAdministrationhasdocumentedthelevelsoftheseemissionsand

howmuchofeachcompoundisproducedbycars(seeFigure1).

10Randy2009

11Bryantetal.2008


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AirPollutantProportionfromOn

roadMotorVehiclesNote

OxidesofNitrogen

(NOx)34%

precursortogroundlevelozone(smog),whichdamagesthe

respiratorysystemandinjuresplants

VolatileOrganic

Compounds(VOC) 34%

precursortogroundlevelozone(smog),whichdamagesthe

respiratorysystemandinjuresplants

CarbonMonoxide

(CO)51% contributestosmogproduction;poisonousinhighconcentrations

ParticulateMatter

(PM10)10%

doesnotincludedustfrompavedandunpavedroads, whichare

themajorsourceofparticulatematterpollution(50%ofthetotal)

CarbonDioxide(CO2) 33% thoughttobeprimarycontributortoglobalwarming

Figure1:TransportationAirQuality:SelectedFactsandFigures200212.

Accordingto

the

EPA.gov

website,

for

every

gallon

of

gasoline

used,

about

20

pounds

of

carbondioxide(CO2)arepumpedintotheair. Here'showitaddsup:Agallonofgasoline

weighsjustover6pounds.Whenburned,thecarboninitcombineswithoxygentoproduce

about19poundsofCO2.Addingintheenergythatwentintomakinganddistributingthefuel,

thetotalglobalwarmingpollutionisabout25poundsofCO2pergallon.Anaveragecarthat

gets21mpgandisdrivenabout30milesadayuses1.4gallonsdailyandemits35.7poundsof

CO2everyday.13

Anaveragehouseholdwithtwomediumsizedsedansemitsmorethan20,000

poundsof

carbon

dioxide

(CO2)

ayear.

14

One

also

has

to

think

about

all

of

the

families

that

ownmorethantwocarsorhaveavehicleotherthanasedan,suchasatruckorSUV. Notall

vehiclesburnthesameamountofgasolineandthereforedonotallproducethesameamount

ofemissions. Forthepurposeofthispaper,onecanplacealltrucksandmidsizesinthe

categoryofSUVs. Onaverage,SUVsemit40%moreexhaustthansmallercarsandthe

percentageofSUVsonAmericanroadstodayisover30%.15

Whentakingintoaccountthe

amountoflargervehiclesontheroadtoday,thenumbersprovidedfortheaverageCO2

emissionsfor

atwo

sedan

family

can

be

significantly

increased

to

reflect

actual

amounts

of

pollution.

12Sterba2009

13Desonie2002

14Irvingetal.2009

15Antenora2008


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Hybridcarsshouldnotcreateasmuchemissionswhiledriving,becausethegasoline

engineisnotonallofthetime. Thewholeconceptofasecondpowersource,however,adds

weighttoacarwithoutbeingabletoremoveanyweight. Electricenginesaremadeupoflarge

amountsofcopperwireswhichultimatelyjustaddmasstothecar. Hybridsarecommonlythe

sameweightandsometimesheavierthanasimilarlysizedcar,whichmeansmorepowerhasto

beproducedthanusualtoachievecomparableperformance. Theneedtoproducemore

poweraddsemissionstothehybridsloweredemissionlevelswhichbringsthemclosertoeven

withconventionalcars. Incitiesorstopandgotraffichybridsaregreatfortheenvironment,

creatingalmostzeroemissions,butwhenhybridcarsaredrivingonroadssuchashighways

theyareinessencenormalcarsbecausetheelectricmotorisnotrunningatall. Takingallof

thesefactorsintoaccount,hybridcars,onaverageonlycreateabouta20percentreductionin

CO2emissions.16

2.3ProductionofCars

Whenmostpeoplethinkaboutcarstheygenerallydontconsiderwhatgoesinto

makingthem. Rawmaterialshavetoobtained,whetherthatmeansbeingmined,melted,and

carburizedorsomeothermethod. Thesematerialsmustbetransportedtovariousplantsand

factoriesbeforetheyaremadeintocarcomponents.Transportation,whetheritisbyplane,

trainor

automobile

all

requires

resources

like

fuel

and

oil

and

manpower.

Once

in

aproduction

area,evenmoreresourcesareusedtocreatepartsandtheneventuallyfinishedproducts. This

isallbeforeacarisevenseenbyaconsumer,butwhathappensaftertheconsumerisfinished

withthecar? Recyclingisamajorbusinessinthisdayandage,buthowmuchofacarcanbe

recycled?Howmuchemissionsarebeingproducedbytheserecyclingprocesses. Whatkindsof

byproductsarebeingproduced,throughouttheentirelifetimeofcars?

2.3.1ProductionEmissions

Carswith

different

propulsion

devices

are

going

to

need

different

types

of

materials.

Thingsliketires,windowsandpaintarethingsthatareprettymuchallthesameinallcarsand

youdonotfindmuchvariationintheamountneededtocompleteacar. Materialslikelead

andnickel,however,havealargedifferencebetweencars. TraditionalICEcarshaveleadbased

16Giggs2009


17/88

HybridCarsIQP

17

batteriesandzeronickelcomponents,whilehybridshavelargenickelbasedbatteriesandno

lead. Emissionslevels,specificallyCO2levels,fortheprocessingofthematerialthatmakeup

carscanbelookedatandcomparedagainsteachothertohelpunderstandifhybridsarebetter

fortheenvironment. Inthecaseofthebatteries,forexample,fromtherawmaterialstate,the

productionofleadbasedbatteriesproduces9kgC,andtheproductionofnickelbasedbatteries

produces2430kgCandashighas215kgCinthecaseofastrictlyelectriccar. Ifcompanies

weretouse100%recycledmaterials,thedifferencebetweentheCO2emissionslevelswouldbe

evenmoresevere. Figure2andFigure3showCO2theemissions(kgC)resultingfromthe

productionofautomobilecomponentsfrombothrawmaterialsand100%recycledmaterials.


18/88

PowerPlant Current Baseline Advanced Advanced Advanced Advanced Advanced Advanced

Fuel SIICE SIICE SIICE CIICE SIHybrid CIHybrid SIHybrid FCHybrid

Drive Gasoline Gasoline Gasoline Diesel Gasoline Diesel CNG Gasoline

Body Auto Autocl. Autocl. Autocl. CVT CVT CVT Direct

TotalFerrous

Metals778

589

285 333 307 340 304

563

Aluminum 290 348 1224 1205 1193 1179 1247 1090

Glass 22 22 22 22 22 22 22 22

Magnesium 57 117 117 117 117 117 117 117

Copper 18 18 18 18 22 22 22 22

Zinc 7 7 3 3 3 3 3 3

Lead 9 9 9 9 0 0 0 0

Plastics 188 182 188 203 180 190 196 135

Rubber 79 74 74 74 74 74 74 74

Wood,Felts,

Carpets,etc.

120 120 120 120 120 120 120 120

Paint,Coatings

9

9

9 9 9 9 9

9 Nickel 0 0 0 0 24 24 24 30

Others N/A N/A N/A N/A N/A N/A N/A N/A

Total 1577 1492 2069 2113 2070 2100 2137 2206 Figure2:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfromVirginMaterialsforallvehiclesconsidere

17AuYeungetal.2009


19/88

PowerPlant Current Baseline Advanced Advanced Advanced Advanced Advanced Advanced

Fuel SIICE SIICE SIICE CIICE SIHybrid CIHybrid SIHybrid FCHybrid

Drive Gasoline Gasoline Gasoline Diesel Gasoline Diesel CNG Gasoline

Body Auto Autocl. Autocl. Autocl. CVT CVT CVT Direct

TotalFerrous

Metals481

362

176 206 190 210 188

348

Aluminum 59 70 248 244 242 239 253 221

Glass 11 11 11 11 11 11 11 11

Magnesium 6 11 11 11 11 11 11 11

Copper 8 8 8 8 10 10 10 19

Zinc 2 2 1 1 1 1 1 1

Lead 2 2 2 2 0 0 0 0

Plastics 94 91 94 102 90 95 98 68

Rubber 79 74 74 74 74 74 74 74

Wood,Felts,

Carpets,etc.

60 60 60 60 60 60 60 60

Paint,Coatings

5

5

5 5 5 5 5

5 Nickel 0 0 0 0 24 24 24 30

Others N/A N/A N/A N/A N/A N/A N/A N/A

Total 806 698 690 723 716 740 733 847 Figure3:CO2Emissions(kgC)ResultingfromtheProductionofAutomobileComponentsfromSecondaryMaterialsforallvehiclescons

18AuYeungetal.2009


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HybridCarsIQP

20

Carbondioxideisnottheonlyemissionthatisharmfultotheenvironmentthough,

manyotherbiproductsarereleased. Otherpollutantsmaycomefrompainting,fiberglassing,

moldingandcleaningparts.Forthepurposeofthispaper,wecanassumethatthesearefairly

constantintheirbiproductsandtheydonotvaryfromhybridstotraditionalcarsenoughto

makeasignificantdifferenceinourdata.

2.3.2ProductionEnergyConsumption

Thematerialsinwhichcarsaremadefromneedtocomefromsomewhere,andby

whateverprocessthatmaybe,allofthemuseenergy. Certainprocessestakemoreenergy

thanothersandallofthisaddstoboththecostofthecarandtheeffectithasonthe

environment. Theenergythatgoesintotheseprocesseshastocomefromapowerplantof

somesort.

Power

plants

may

be

coal

fired,

nuclear,

hydro

electric,

wind

powered

or

run

by

variousothersmallermethods. Nomatterwhatsourcetheenergyhascomefrom,thereare

negativeeffectstotheenvironmentthatgohandinhandwiththem. Figure4showsenergy

usethatgoesintotheproductionofvehiclematerials.

PrimaryProduction

(0%Recycling)

SecondaryProduction

(100% Recycling)

Automotive

Engineering

(1996)

Singhetal.

(1998)

ThisStudy Automotive

Engineering

(1996)

ThisStudy

FerrousMetals

Steel

Iron

40.0

34.0

52.3(1)

19.3(2)

40.0

18.1

24.0

30.0

Aluminum

Wrought

Cast

Stamped

196.0

189.0 206.6

205.2

220.0

26.7

26.0

40.0

Plastics 90.0 30.078.7(3) 90.0 15.0 45.0

Glass 30.0 21.6(3) 30.0 13.0 15.0

Magnesium,

Cast

274.0 280.0 27.2 27.00

Copper 100.0 113.7 100.0 45.0 45.0

Zinc 53.0 50.0 15.9 16.0

Lead 41.1 28.0(3) 40.0 8.0 8.0

Rubber 67.6 40.5(3) 70.0 43.6 N/A

Nickel 110.0 110.0 110.0Figure4:EnergyUseinVehicleProduction(inMJperkgofmaterial).

19

19AuYeungetal.2009


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HybridCarsIQP

21

NOTE:Allnumbersareexpressedinprimaryenergyrequirements.ThecolumnsThisStudyindicatethe

roundednumbersthatwehaveemployedinthisstudy;aswedonotdistinguishbetweenironandsteel,

energyintensitiesareidenticalforbothmaterialsandareincludedinouraggregatecategoryferrousmetals.(1)

Virginsteelparts;(2)

pigiron;(3)

mainproductionprocessonly.Source:OnetheRoadin2020,October

2000.

Manyhybrid

companies

are

designing

their

cars

to

be

lighter

in

or

order

to

try

and

use

energymoreefficientlywhiledriving. Thewayinwhichmanycompaniesachievethisisby

usinglightermaterials,suchasaluminum,inthebodyasopposedtosteelwhichisaboutthree

timesasdenseasaluminum. Thisdoeshelptousethecarsenergymoreefficientlyiftheiscar

lighter,butatwhatexpense? Theprocessingofaluminumcanuseuptotentimestheamount

ofenergyusetoprocessthesameamountofsteel. Chancesarethattheamountofextra

energyusedtoproducethealuminumisnotjustifiedbytheamountofenergysavedinthe

drivingof

the

hybrid

car.

Figure

5shows

amounts

of

certain

materials

and

how

the

vary

in

differentcars. UsingthemassesinFigure5andtheenergyusageinFigure4,wecancalculate

howmuchmoreenergygoesintocertainprocessesofmakingacar. Bycomparingthe

differencesinenergyconsumptionofproductiontotheenergysavedbydrivingalightercar,

weareabletodetermineiftheextraproductionisjustified.


22/88

PowerPlant Current Baseline Advanced Advanced Advanced Advanced Advanced Advanced Ad

Fuel SIICE SIICE SIICE CIICE SIHybrid CIHybrid SIHybrid FCHybrid FC

Drive Gasoline Gasoline Gasoline Diesel Gasoline Diesel CNG Gasoline M

Body Auto Autocl. Autocl. Autocl. CVT CVT CVT Direct Di

Ferrous

Metals886

667

325 379 350 387 346

640 56

Aluminum 81 97 342 337 334 330 349 305 30

Glass 35 35 35 35 35 35 35 35 35

Magnesium 10 20 20 20 20 20 20 20 20

Copper 9 9 9 9 10 10 10 21 19

Zinc 7 7 3 3 3 3 3 3 3

Lead 10 10 10 10 0 0 0 0 0

Plastics 100 97 100 108 96 101 104 72 71

Rubber 54 50 50 50 50 50 50 50 50

Wood,Felts,

Carpets,etc.

64 64 64 64 64 64 64 64 64

Paint,

Coatings5

5

5

5 5 5 5

5 5

Nickel 0 0 0 0 10 11 10 13 12

Others 9 9 9 9 17 17 17 76 62

Total 1323 1108 1007 1061 1022 1059 1038 1329 12Figure5:VehicleMass(inkg)byMaterialforallVehiclesConsideredinThisStudy.

20

20AuYeungetal.2009


23/88


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HybridCarsIQP

24

2.4ConsumerBehaviorandMarketingStrategy

Therearemanyreasonswhypeopledecidedtopurchaseanewvehicle. In2009itwas

foundthattheprimarymotivationforbuyinganewcarwashighmileageontheconsumers

previousorcurrentcar. Whenavehicleattainshighmileage,typicallyproblemswiththecars

conditionarise,whethertheexteriorofthecariserodingorbeginningtolookworn,the

interiormightbe unkemptandgrungy,orthecarmightbegintohavemechanicalproblems.

Carswhichcontinuallybreakdownandspendexcessiveamountsoftimebeingrepairedcan

workouttobeaverycostlyexpense.Inthelongrunitismoreeconomicaltobuynewandhave

thesatisfactionandknowledgethatthecarwillbecoveredunderawarranty23

,before

problemsarise,mostpeopletrytosellhisorhercarandthenpurchaseanewone,or,ifthese

problemsoccurredunexpectedly,ratherthanspendingmoneysenselesslyonavehiclethat

mightnotbeworthit,itismoreresourcefulfortheownertoinvestinanewcar.24

Otherssometimesjustgettiredoftheirvehicleanddesiresomethingmoreupdated.

Theymightwishforsomethingwithmoremoderntechnology,equippedwiththelatest

machineryandfeatures,somethingmorecomfortableandwithacontemporarysleek

appearance,Manypeoplearechoosingtogetanewercarbecausemanysafetyfeaturesnow

comeasstandardonmostmakesandmodels.Airbagsfittedtoboththedriver'sandfront

passengerareakeyfeaturemanypeoplenowlookfor.Additionalbackseatairbagsandside

impactairbagsarebecomingincreasinglyrequestedsafetyfeaturesbypeoplelookingforfamily

cars.25

Correspondinglynewervehicleshaveadvancedsoundsystemsandnavigationsystems,

electronicpowerfeaturesandinnovativevoicenotificationforroutinemaintenanceand

reminders,keylessentry,sunroofs,increasedcomfortofseatingandamenities,andenhanced

lighting,amongvariousotherluxuries. Alsohavingtodowithappearanceisthesizeofthe

vehicle. Manypeoplerequireavehiclewithmoreroomandadditionalspacetocompensate

foragrowingfamily,extracurricularactivities,etc. Corporationsarecontinuallyproducingnew

andimprovedSUVs,minivans,trucks,andlargercarswithaddedroomandextraseatingthat

23Giggs2009

24Giggs2009

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HybridCarsIQP

25

arerequisitesfortheircustomers.Theselargeroptionslikewiseareequippedwiththeupdated

moderntechnologyandfeaturesmandatoryforautomobilesproducedtoday.

Apopularbenefitofthecarsproducedpresentlyisthattypicallytheyfeatureimproved

gasmileage. Becauseofthisincreaseingaspricesaprevailingrationaleforgettinganewcaris

thisnewcharacteristicofimprovedgasmileage. Goinghandinhandwiththedesireforbetter

gasmileageisthedecisionforpeopletogogreen. Manyofthevehiclesthataremadewith

bettergasmileage,orthatfeaturethegreatestgasmileage,arehybridvehiclesthatarealso

betterfortheenvironmentandappealtothoseconcernedwithglobalwarmingandpollution,

Going'green'ishighuponthelistformanypeople.Savingonfuelandrunningcostsisgiven

carefulconsiderationbymanypeople.26

1.Oldcarhadhighmileage(35%)

2.Justtiredofoldcar,wantedsomethingnew(22%)

3.Oldcarwasalwaysinforrepairs(20%)

4.Wantedacarwithbettergasmileage(19%)

5.Oldcardied(18%)

6.Notsure(17%)

7.Likethestylingofnewermodels(15%)

8.Wantedavehiclewithbettersafetyfeatures(15%)

9.Gooddealstoohardtopassup(14%)

10.Neededanothercarforfamily(14%)

11.Significant

other

wanted

anew

car

(12%)

12.Neededavehiclewithmoreroom(9%)

13.Wantedacarwithmorehightechtoys(6%)

14.Leaseonoldcarisup(5%)

Figure6:TopFourteenReasonsPeopleBuyHybrids.Source:RoadandTravelMagazine,June24,2009.

Studieshavebeenperformedontheconsumersofhybridvehicles,whichhaverevealed

thatthesepeoplehavecertainaspectsinrespecttotheirpersonalitiesthatgivethemaunique

profile. OnestudythatlooksattheprofileofhybridconsumersistheJ.D.PowerandAssociates

2008PowerAutoOfflineMediaReport SpringEdition. Thisstudyhadatargetaudienceof

44,931driversofnewcarsandtrucks. Thestudyexploresthecharacteristicsofhybridowners

andpotentialhybridowners. Italsoevaluatesmediaviewingandreadershipbehaviors.

26Giggs2009


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HybridCarsIQP

26

Thecharacteristicsofhybridownersareforthemostpartlogical. Forexample,Those

whopurchasehybridvehiclestendtohavemuchhigherlevelsofeducationandreportmuch

higherhouseholdincomes.27

Carbuyerswhohavemoreknowledgecanmakeaneducated

andrationaldecisionbeforecommittingtoalargefinancialpurchase. Ahigherlevelof

educationbenefitsthebuyerbecausethetoolsofresearchanddecisionmakingcanensure

thatthebuyerreceivesthevehiclethatfitshisorherneeds. Italsocomesasnosurprisethat

hybridownershavehigherincomesthanthoseoftraditionalvehicles. Theaverage$5000price

differencebetweenhybridsandnonhybridsisnotsomethingmanyfamiliescanaffordtopay

upfront. Thisquicklyeradicatestheoptionofahybrid. Theaverageageofahybridbuyeris

fiftyfourwhiletheaveragetraditionalcarbuyerisagefifty.

J.D.Powersstudyrevealedsomepositiveoutcomesabouthybridowners. Thestudy

showedthatHybridownerstendtobeproudadvocatesoftheirvehicles(Mindsetprofile).

Thissuggeststhattheyarepleasedwiththehybridtechnologyandtheyenjoysharingitwith

others. Ingeneral,theygivemoreaffirmativesuggestionsthanthoseofothervehiclebuyers.

Thisfacilitatesthehybridmarketbecausethosewhohaveactuallypurchasedahybridare

givingrecommendationstoothers,whomay,inreturn,purchaseahybridthemselves.

Manypeoplehaveadesiretopurchaseanenvironmentallyfriendlyvehicle. Thiscanbe

seen

by

the

large

number

of

hybrids

being

both

purchased

and

produced.

However,

the

demographicsforpeoplethatdesiregreencars,isinteresting. AJ.D.Powerstudydiscovered

thatfemalesaremoreeagertopaymoreforanenvironmentallyfriendlyvehicle. IntheUnited

States,certainareasaremoresupportiveofthispurchase. ThewesternU.S.hasthegreatest

support,whiletheMidwesthastheleastsupport. Theenvironmentallyfriendlyconsumers

showinterestincompactvehicles. Furthermore,mosthavepreviouslyownedsmallervehicles.

Thepercentageismuchgreaterthanothernewcarbuyers. Thisjustifiesthatenvironmentally

conscious

consumers

have

a

trend

in

purchasing

vehicles

that

have

exceptional

fuel

efficiency.

MindsetMediacreatedapsychographicprofileofhybridownersthatpointoutsome

distinctpersonalityclassifications. Oneisthathybriddriversare78%morecreativethanthe

commonpopulation. Thatis,theyareinventiveandimaginativeandalsotendtobe

27Perrymanetal.2008


27/88

HybridCarsIQP

27

emotionallysensitiveandintellectuallycurious(mindsetprofile). Thecreativepersonality

wouldexplainwhytheypartakeinthenewtechnologyoffered. Anotherreasonforthisisthey

aremoreliberalthanthebroadpopulation. Theopenmindednessandspontaneitygivesthem

interestinnewhybrids,notleavingthemwithasenseofdistrustintheadvancedtechnological

aspectsofthevehicles.

Eventhoughtherearemanypeoplewhoareenvironmentallyaware,notallofthem

takeaction. TheJ.D.Powerstudyrevealedthatonly11%ofconsumersareverywillingtopay

moretobuyanenvironmentallyfriendlyvehicle. Also,onlyoneoutoftenenvironmentalists

haspurchasedahybrid.28

Thestudyprovedthattheinterestinenvironmentallyfriendly

vehiclesislimitedtohybrids. Consumersarenotinterestedinbuyingsocalledcleandiesel

vehicles.29

Manyofthenegativeaspectsofdieselvehicles,suchasthedirtyexhaust,have

persistedwithconsumers.

Throughresearch,interviews,andstudiesexaminershaveconcludedthatspecific

symbolsexistforthosewhoownhybridvehicles. InastudydonebytheInstituteof

TransportationStudiesattheUniversityofCalifornia,Davisitwasconcludedthatacertain

symbolismappliestothemarketforhybrids. Inresponsetohouseholdinterviews,the

denotationsofpreservingtheenvironment,oppositiontowar,managementofpersonal

finances,

reduction

of

support

to

oil

producers,

and

the

embracement

of

new

technology

were

justified. Ethicswasamajorfactorinthesedenotations. Independenceandasenseof

individualityalsocameintoplay. Theownersofhybridsfeelasthoughitistherightthingto

doandcharacterizetheirvehiclesassomethingtheycanfeelgoodabout.30

Therefore,owners

giveprecedencetohisorherpurchaseinanethicalviewpoint. Itshowsthattheycare. Owners

happilysacrificesomepersonalinterestsforthegreatergood. Inconjunctionwiththis

sacrifice,ownershopethatthepurchaseofahybridwillhelpsetanexampleandcreatea

future

where

everyone

drives

hybrids.

31

28Perrymanetal.2008

29LaMonica2008

30Heffneretal.2007

31Heffneretal.2007


28/88

HybridCarsIQP

28

Whenmarketinganewproduct,thegeneralwantsandneedsofyourtargetmarket

shouldbeyourfocus,andfulfillingthosedeterminedrequirementsshouldbetheoverall

objective. Thenewproductshouldbeanimprovementoverwhatitisattemptingtoreplace,

moretechnologicallyadvancedandestheticallypleasingtoenticethepublicintopurchasing

thisnewmerchandise. Traditionally,economistsandmarketresearchershavebeeninterested

inidentifyingthefactorsthataffectconsumers'carbuyingbehaviorstoestimatemarketshare,

andtothatendtheyhavedevelopedvariousmodelsofvehicletypechoice.However,theydo

notusuallyconsiderconsumers'travelattitudes,personality,lifestyle,andmobilityasfactors

thatmayaffectthevehicletypechoice.32

Lifestylesdeterminethetypesofvehiclesthatindividualspurchase. Someonethat

makesasubstantialamountofmoney,anindividualwithahigherstatusoramoreeliteranking

insocietyistypicallyinterestedinalavishvehiclethatisrepresentativeoftheaccomplishments

madeorthepositionupheld,Statusseekersaremorelikelytodriveanexpensivecar(luxury

andsportscategories)becausesuchcarsarecommonstatussymbolsinmodernsociety.33

Whereassomeonethatmakesalesssignificantamountofmoneyhastopurchaseavehicle

moremodestandinlinewithwhatisaffordable. Familiesrequireautomotivesthatarecapable

ofcarryingmultiplepassengers;thereforetheynecessitatelargercars,trucks,orSUVs. Single

persons

or

couples

usually

have

little

use

for

larger

vehicles

and

might

prefer

something

smaller

ormorecompact.

Demographically,apersonthatlivesinthecountrymightrequireatruckorlarger

vehiclewithfourwheeldriveorthecapabilitiesofdrivingonroadsthatarenotinthebest

condition,whereaspeoplethatdriveincitiesmightdesireacarthatismorecompactso

compensateforlimitedspaceandsmallparkingareas,Thosewholikelivinginhighdensity

areasmaychooseasmallercar(smallandcompactcategories)becausetheyhaveaccessible

public

transit

and

restrictions

on

parking,

making

them

less

likely

to

commute

by

car.

34

Somepeopledreadtheircommutetoworkortravelinganywhereingeneral. Toatone

fortheirdislikeofdrivingtheyaremorelikelytobuyalarger,morecomfortablevehiclesothat

32Chooetal.2003

33Chooetal.2003

34Chooetal.2003


29/88

HybridCarsIQP

29

theymightrelaxwhiledrivingandmaketheirexperiencelessfrustratingandmorepleasant.

Though,eventhosethatenjoytravelingarelikelytobuytheseextravagantvehiclesinorderto

maketheirexperiencethatmuchmoregratifying.

Peoplethatareconcernedwiththeeffectsofemissionsontheenvironmentaremore

attractedtosmallervehicleswithbettergasmileageinanattempttohaveamorepositive

effectontheenvironment,Thosewhostronglysupportproenvironmentalpoliciesaremore

likelytoprioritizereducingmobilesourceemissionsandthereforetodriveasmallercar(small

andcompactcategories).35

Hybridvehiclescanbeanoverallimprovementoverconventionalvehicles,butonly

whenmanypositivefactorsallculminateatonce,whichisunlikely. Thesevehiclesarenow

availableinnumerousmodelsofalldifferentsizes,capableoffillingtherequirementsforsingle

individualsorfamilies. Theyaremoretechnologicallyadvanced,characteristicallytheir

appearanceismoremodernanddesirable,andbecausetherearesomanydifferentmodels

andversionsofthesecarsnow,theyarebettersuitedforawholespectrumofpeoplewith

differentdesiresandpersonalities. Atatimewhengaspricescontinuetoincrease,the

economycontinuestostruggle,andmanyindividualsarebecomingincreasinglyawareof

contaminationofourenvironment,thehybridvehiclehasbecomealluringtomanyasitalso

addresses

these

about

mobility,

travel

attitudes

and

lifestyle.

Hybrid

vehicles

are

an

overall

improvementoverconventionalvehicles,beingmoretechnologicallyadvanced,

characteristicallytheirappearanceismoremodernanddesirable,itisappealingtothosethat

arelookingtosavemoneyonfuel,andisalsotemptingtothoseconcernedwiththe

environmentandthecurrentissuessurroundingglobalwarmingandpollution. Atatimewhen

gaspricescontinuetoincrease,theeconomycontinuestostruggle,andmanyindividualsare

becomingincreasinglyawareofcontaminationofourenvironment,thehybridvehiclehas

become

alluring

to

many.

Duetothesteadilyincreasinggasprices,thepopularityofHybridvehiclesamong

societyhasalsoescalated. Therearemanyreasonsforpurchasingthesenewtechnologically

advancedautomotives;however,oneofthemorecurrentreasonsistheamountofmoney

35Chooetal.2003


30/88

HybridCarsIQP

30

customerssaveonfuel. Thesenewcarsareadvertisedtoachieveexceptionalgasmileage

whencomparedwithconventionalcars. Itissaidthateventhoughtheyaretypicallymore

expensiveinitially,theamountthatyousaveongaseventuallyallowsthepurchasertobreak

evenandsavemoney,withgaspricesrisingevenfurtheritislikelythatyouwillrecoup

thatupfrontpremiuminjustafewshortyears.36

Forexample,theToyotaCamryHybridgets

about31milespergalloninthecityand32milespergallononthehighway,whiletheToyota

CamryV6getsabout21milespergallonand31milespergallonrespectively. Ifanindividual

wastodriveabout15,000milesinayearwithgaspricesatabout$3.20agallon,theperson

wouldsaveapproximately$547.00ayear,takingthreeyearstorecouptheupfrontpremium.37

Anotherissuefacingtheeconomyisglobalwarmingandtheeffectsofpollutiononusandthe

environment. Thosethatbelieveandsupportintheworldgoinggreenlookatthelowerfossilfuel

emissionsofhybridvehiclesasareasontobuythesecars. Withthecombinationofagasolineengine

andanelectricmotor,hybridcarsproducelessemissionswhilebeingdriven,thussavingongasandalso

helpingtheenvironment. Whilemosthybridcarsstillburngasolineinaninternalcombustionengine,

theyalsouseotherformsofmotivepowertohelplimithowmuchgasolinetheyburn.Thismeansthat

hybridcarscausesignificantlylessdamagetotheenvironmentthannormalcars.Itissaidthatevery

gallonoffuelburnedproduces26poundsofcarbondioxidethatisthenreleasedintotheenvironment.

Bydrivingacarthatismorefuelefficient,acarthatgetsabout10milesmorepergallonincomparison

toyour

old

car,

an

individual

can

reduce

the

amount

of

carbon

dioxide

released

into

the

environment

by

about2,500poundseachyear.

Otherthanthepotentialsavingsonfuelandtheopportunitytogivebacktothe

environment,therearealsostateandfederaltaxbenefitstopersuadecustomerstospendthe

additionalmoneyinpurchasinganewhybridvehicle,TheEnergyPolicyActof2005replaced

thecleanfuelburningdeductionwithataxcredit.Ataxcreditissubtracteddirectlyfromthe

totalamountoffederaltaxowed,thusreducingoreveneliminatingthetaxpayerstax

obligation.The

tax

credit

for

hybrid

vehicles

applies

to

vehicles

purchased

or

placed

in

service

onorafterJanuary1,2006. Thecreditisonlyavailabletotheoriginalpurchaserofanew,

qualifyingvehicle.Ifaqualifyingvehicleisleasedtoaconsumer,theleasingcompanymay

36Ransom2008

37Ransom2008


31/88

HybridCarsIQP

31

claimthecredit.38

Therearemanyrulesandrequirementsthatmustbefollowedtomakean

individualeligibleforthesetaxcredits,someofthesebeingthatthehybridmustbepurchased

new,notused,thecarmustbeusedprimarilywithintheUnitedStates,thevehiclemustbe

purchasedwithinacertaintimeperiod,andthedatethatthevehicleisboughtissomewhata

determiningfactorintheamountoftaxcredittheindividualwillreceive. Evenwiththe

restrictionoftheseregulations,therearemanyvehiclesthatareeligibletoreceivethese

federaltaxcredits,seeFigure7:FederalTaxCreditsforHybrids.

HybridFederalTaxCredit

1 2009CadillacEscaladeHybrid4drSUV(6.0L8cylgas/electrichybrid4A) $2,200

2 2009CadillacEscaladeHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) $1,800

3 2008ChevroletMalibuHybrid4drSedan(2.4L4cylgas/electrichybrid4A) $1,300

4

2009Chevrolet

Malibu

Hybrid

4dr

Sedan

(2.4L

4cyl

gas/electric

hybrid

4A)

$1,550

5 2009ChevroletSilverado1500Hybrid4drCrewCabw/1HYSB(6.0L8cylgas/electric

hybrid4A)

$2,200

6 2009ChevroletSilverado1500Hybrid4drCrewCab4WDw/1HYSB(6.0L8cylgas/electric

hybrid4A)

$2,200

7 2009ChevroletSilverado1500Hybrid4drCrewCabw/2HYSB(6.0L8cylgas/electric

hybrid4A)

$2,200

8 2009ChevroletSilverado1500Hybrid4drCrewCab4WDw/2HYSB(6.0L8cylgas/electric

hybrid4A)

$2,200

9 2008ChevroletTahoeHybrid4drSUV(6.0L8cylgas/electrichybrid4A) $2,200

10 2008ChevroletTahoeHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) $2,200

11

2009

Chevrolet

Tahoe

Hybrid

4dr

SUV

(6.0L

8cyl

gas/electric

hybrid

4A)

$2,20012 2009ChevroletTahoeHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) $2,200

13 2009ChryslerAspenLimitedHEV4drSUV4WD(5.7L8cylgas/electrichybrid4A) $2,200

14 2009DodgeDurangoLimitedHEV4drSUV4WD(5.7L8cylgas/electrichybrid4A) $2,200

15 2008FordEscapeHybrid4drSUV(2.3L4cylgas/electrichybridCVT) $1,500

16 2008FordEscapeHybrid4drSUVAWD(2.3L4cylgas/electrichybridCVT) $1,100

17 2009FordEscapeHybrid4drSUV(2.5L4cylgas/electrichybridCVT) $1,500

18 2009FordEscapeHybrid4drSUVAWD(2.5L4cylgas/electrichybridCVT) $975

19 2009FordEscapeHybridLimited4drSUV(2.5L4cylgas/electrichybridCVT) $1,500

20 2009FordEscapeHybridLimited4drSUVAWD(2.5L4cylgas/electrichybridCVT) $975

21 2010FordFusionHybrid4drSedan(2.5L4cylgas/electrichybridCVT) $1,700

22

2009

GMC

Sierra

1500

Hybrid

4dr

Crew

Cab

w/3HA

SB

(6.0L

8cyl

gas/electric

hybrid

4A)

$2,20023 2009GMCSierra1500Hybrid4drCrewCab4WDw/3HASB(6.0L8cylgas/electrichybrid

4A)

$2,200

24 2009GMCSierra1500Hybrid4drCrewCabw/3HBSB(6.0L8cylgas/electrichybrid4A) $2,200

25 2009GMCSierra1500Hybrid4drCrewCab4WDw/3HBSB(6.0L8cylgas/electrichybrid

4A)

$2,200

38Hudson2010


32/88

HybridCarsIQP

32

26 2008GMCYukonHybrid4drSUV(6.0L8cylgas/electrichybrid4A) $2,200

27 2008GMCYukonHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) $2,200

28 2009GMCYukonHybrid4drSUV(6.0L8cylgas/electrichybrid4A) $2,200

29 2009GMCYukonHybrid4drSUV4WD(6.0L8cylgas/electrichybrid4A) $2,200

30 2008MazdaTributeHybridGrandTouring4drSUV(2.3L4cylgas/electrichybridCVT) $3,000

31

2008

Mazda

Tribute

Hybrid

Grand

Touring

4dr

SUV

AWD

(2.3L

4cyl

gas/electric

hybrid

CVT) $1,950

32 2008MazdaTributeHybridTouring4drSUV(2.3L4cylgas/electrichybridCVT) $3,000

33 2008MazdaTributeHybridTouring4drSUVAWD(2.3L4cylgas/electrichybridCVT) $1,950

34 2009MazdaTributeHybridGrandTouring4drSUV(2.5L4cylgas/electrichybridCVT) $3,000

35 2009MazdaTributeHybridGrandTouring4drSUVAWD(2.5L4cylgas/electrichybrid

CVT)

$1,950

36 2009MazdaTributeHybridTouring4drSUV(2.5L4cylgas/electrichybridCVT) $3,000

37 2009MazdaTributeHybridTouring4drSUVAWD(2.5L4cylgas/electrichybridCVT) $1,950

38 2008MercuryMarinerHybrid4drSUV(2.3L4cylgas/electrichybridCVT) $1,500

39 2008MercuryMarinerHybrid4drSUVAWD(2.3L4cylgas/electrichybridCVT) $1,100

40

2009

Mercury

Mariner

Hybrid

4dr

SUV

(2.5L

4cyl

gas/electric

hybrid

CVT)

$1,50041 2009MercuryMarinerHybrid4drSUVAWD(2.5L4cylgas/electrichybridCVT) $975

42 2010MercuryMilanHybrid4drSedan(2.5L4cylgas/electrichybridCVT) $1,700

43 2008NissanAltimaHybrid4drSedan(2.5L4cylgas/electrichybridCVT) $2,350

44 2009NissanAltimaHybrid4drSedan(2.5L4cylgas/electrichybridCVT) $2,350

45 2008SaturnAuraHybridGreenLine4drSedan(2.4L4cylgas/electrichybrid4A) $1,300

46 2009SaturnAuraHybrid4drSedan(2.4L4cylgas/electrichybrid4A) $1,550

47 2008SaturnVUEHybridGreenLine4drSUV(2.4L4cylgas/electrichybrid4A) $1,550

48 2009SaturnVUEHybrid4drSUV(2.4L4cylgas/electrichybrid4A) $1,550

Figure7:FederalTaxCreditsforHybrids39

Whenpurchasinganewvehicle,financesaregreatlyimportant,ifnotthemost

importantaspectwhenthecustomerismakingtheirdecision. Peoplegenerallylookfor

numerouswaysinwhichtheycanreducetheamountofmoneythattheyarespending. The

governmenthascapitalizedonthisandbeganofferingincentivesforindividuals,influencing

themintospendingmoremoneyinitiallytopurchaseahybridvehicleinordertosavemoney

later.Throughonlinesources,articles,anddealerships,thevarietyofincentivesandprograms

canbeanalyzed.Throughinterviewswithbothsalesrepresentativesandcustomers,the

effectivenessofthesegovernmentincentivescanbedetermined. Talkingtoindividualswho

havealreadytakenadvantageofthesemotivationsdeterminesifitwasworthitforthemto

spendtheextramoneyinitially.Speakingwithcustomersthathaventyetmadeacommitment

helpstodetermineiftheincentivesaresuccessfullyinfluencingpeopleintomakingthedecision

39Hudson2009


33/88

HybridCarsIQP

33

tobuyahybridvehicleinsteadofaconventionalcar. Theinterviewswithsalerepresentatives

shouldgiveinsightfulopinionsonwhetherornottheprogramsarebeneficialordeceivingfor

individuals.

Whenhybridvehicleswerefirstintroducedonthemarket,manyassociatedthemwith

theToyotaPrius. SomeindividualswereattractedtothedistinctstyleofthePriusasthey

considereditastatementtosocietythattheywereconcernedaboutthewellbeingofthe

environmentandtheconditionoftheworldinwhichwelive.SincethePrius,much

advancementhavebeenmadeandHybridvehiclesarenowavailableinnumerousdifferent

modelstoappealtoawidevarietystylesandpreferencesofthetargetmarket,One

importantdecisionisthesizeofthevehicle."Ifyoureally,reallyneedanSUVsizedvehicle,

thereareanumberofhybridSUVsthatareonthemarketnoworcomingontothemarket

soon,notesBerman.40

InsteadofthePriusthatdoesntappealtomost,therearenowmore

conventionallookingvehiclesavailableashybridmodels,providingpeopleoptionsand

alternativestochooseacarthatisbestsuitedforthemandtheirlifestyle.

Somemaybelievethatthenewhybridvehiclesarenotaspowerfulastheir

counterparts,theirenginesbeingsignificantlysmallerthantheenginesofconventional

vehicles. Whenthehybridwasfirstintroducedthereweresomereportsofthesenewcars

being

somewhat

sluggish,

however,

over

time

as

improvements

have

been

made,

there

are

reportsnowthatsomehybridsarequickerthanconventionalcars,Theengineinthehybridcar

ispowerfulenoughtomovethecaralongonthefreeway,butwhenitneedstogetthecar

movinginahurry,orgoupasteephill,itneedshelp.That"help"comesfromtheelectric

motorandbattery thissystemstepsintoprovidethenecessaryextrapower.41

Witha

smallerlighterengine,fewercylinders,andlighterpistonsandinternalcomponents,thismakes

hybridcarsmorefuelefficient. Alsohelpingbridgethepowergapbetweenhybridcarsand

conventional

cars

are

the

materials

that

the

vehicles

are

constructed

out

of,

some

hybrid

cars

areconstructedwithultralightweightmaterialslikecarbonfiberoraluminum.Hybridcarsare

alsodesignedtobemoreaerodynamicthanmostcars,allowingthemto"slice"throughair

insteadofpushingitoutoftheway.Allthesefactorscombinedequatetoasuperefficientform

40Ransom2009

41Laytonetal.2008


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HybridCarsIQP

34

ofcarthatgetsexcellentfueleconomyandhelpstheenvironmentbycuttingdownon

pollution.42

2.5Widespreadchangetohybrid/electricinsteadofgasoline/diesel

Theadoption

of

hybrid

technology

continues

to

rise,

but

the

pace

is

still

too

minimal

for

anychangesinenvironmentalissuesorfueldemandtobeseen. Themarketforhybridsisstill

lackinginthenumberofvehiclesandmodelsavailable. Manufacturersarestilldevelopingand

improvingonthehybridtechnologythatisstillfairlyrecent. Ittakesapproximatelyfifteen

yearsfortheautomotivefleettoturnoverintheUS.43 Thisextendedperiodoftimemakesfor

agradualchangebeforeasubstantialamountofvehiclesontheroadsarehybrids.

Withsuchamassiveworldpopulationandhighdependencyontransportation,a

significantswitch

to

hybrids

from

gasoline

and

diesel

vehicles

must

be

met

before

any

changes

canbeseen. Infact,weneed5080%ofthecarbuyersworldwideadoptthesenewlow

carbontechnologyautomobilestomakeamaterialdifference.44

Thatnumberfarexceeds

whereweareattoday. Itwilltakemanymoreyearsforadifferencetobeseeninthelarge

scale. Anothergoalofswitchingtohybridsistodecreaseforeigndependenceonoil. However

therealityisthedevelopmentandwidespreaduseoffullhybridvehiclesby2030willonly

reduceworlddemandfortransportfuelby10%.45

Awidespreadchangetohybridsrequiresan

extendedperiod

of

time

and

also

may

not

be

cost

effective.

Many

of

the

outcomes

are

not

worthallthatgoesintogettingtheadvancedtechnologyontheroad.

2.6Conclusion

Throughourresearchonhybridcartechnology,weexploredmanyinterestingtopics.

Fromstudyinginformationaboutenvironmentaleffects,emissions,productionandmarketing

ofhybridswewereabletounderstandalotoftheprosandconsassociatedwiththem,butit

raisedsomequestionsaswell,suchashowhybridsemissionscomparetostandardcombustion

vehicleemissions,andatwhatpointwouldthehybridvehiclesbeworththeextramoney,with

andwithouttheincentivesthatcomewithpurchasingone. Wealsoinvestigatedthetopicof

42Laytonetal.2008

43Khosla2009

44Khosla2009

45Pickett2008


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HybridCarsIQP

35

widespreadchangetodifferenttypesofhybridvehiclesandhowfeasiblethisplanwouldbe.

Ourresearchhasledustolookatthepast,present,andfutureofcarsontheroads,especially

hybrids. Duetothelargevarietyandamountofquestionsthatwecouldaskonthistopicwe

havehadtocutdownourscopeabit. Wehaveselectedafewmainquestionsthatwewould

liketoanswerbytheclosingofthispaper. AtwhatpointdoesaHybridmakeupforitscost?

Whatarepeoplelookingforwhentheyarebuyingacar?Whatkindsofincentivesarepeople

offeredwhenbuyinghybrids?Whatarethedifferencesinemissionvariationsbetween

standardandhybridcars?Whenaretheyrecycled?Whatarethedifferencesinmaterialsused?

Iswidespreadconversionfeasible?


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HybridCarsIQP

36

Chapter 3. MethodologyTheobjectivesofourpaperweretoanalyzetheprocessofmakinghybridcarstoseeif

theirproductionisascleanastheirdailyuse,examinethevariouseconomiceffectsandroutes

forconvertingcombustionenginevehicleswithalternativedesignstoseeifwidespreadchange

isfeasible,andanalyzemarketingtrendsandchangesassociatedwithhybridtechnology. We

usedmanydifferentmethodstogainaccesstotheinformationweneedtofullystudythese

topics. Secondarydata,interviews,focusgroupsandmanyarticlesandonlinesourceshelped

usmakeeducatedconclusionstoourprojectquestions.

3.1QuantitativeDataAnalysis

Hybridvehicles

are

very

complex

machines

that

require

more

materials

and

work

to

construct,comparedtothestandardcombustionenginevehicle,duetothefactthattheyhave

atleasttwosourcesofpower. Thisbeingthecase,onecouldthinkthatitisonlynaturalthat

theconstructionofhybridscreatesmoreharmfulgassesthancombustionenginevehicles,

howeverbywhatmarginisseldombroughtupinmanyrelevantconversationsandstatistics.

WeusedtheMITstudyOntheRoadin2020,whichincludesdataonthesetopics,tohelpus

makesinformeddecisionsaboutthegreennessofhybrids. Usingthisdata,wecompared

amountsof

different

materials

used

in

cars,

the

energy

consumption

and

emission

levels

used

inprocessingthesematerials,andtheemissionlevelsofcars. Seriesofcalculationsweremade

inMicrosoftExcelspreadsheetsinaprecisesequenceinordertoproduceaccurateanalysis.

Thisproducedquantitativeresultsthatwereusedtogenerategraphsandcomprehensive

displays,showingtimelinesonwhenhybridsbecomesgreenerthanaregularICEs.

3.1.1 EnergyConsumptionCalculations

Ourdataincludedwhatmaterialsgointocertaintypesofcars. Thedatagavethemass

ofeach

material

per

car

as

well

as

the

total

weight

of

the

car.

Our

data

also

included

how

much

energy,inmegaJoules,ittakestoprocesseverykilogramoreachmaterial. Withthisdatawe

foundouthowmuchenergyittakestoproduceeachtypeofcar.

Thefirstsetofcalculationswastotakeeachmaterialandmultiplyitsmass/car(kg/car)

byhowmuchenergyittakestoprocesseachkilogramofthatmaterial(MJ/kg). Thisgaveus


37/88

HybridCarsIQP

37

howmuchenergyisusedtoproduceenoughofeachmaterialforonecar. Next,weaddedup

allofthematerialenergyusagestogetatotalamountofenergyusedtomakethecar. Inour

data,weusetwosetsofenergyconsumptionvalues;oneforprocessingnewrawmaterialand

oneforprocessingrecycledmaterials. Calculationsweredoneforallvehiclesinourstudyand

bothsetsofprocessingdatawereused. Bydoingthesecalculationswewereabletocompare

quantitativelyhowmuchenergy,forbothprimaryandsecondaryprocessing,goesintomaking

eachtypeofvehicle. Anexampleofthecalculationspreadsheetusedforeachcarcanbeseen

below.

Vehicle: Current,SIICE,Gasoline,Auto

GivenData CalculatedData

Vehicle

Mass(kg)

EnergyUse,

Primary

(MJ/kg)

EnergyUse,

Secondary

(MJ/kg)

EnergyUse/

vehicle,

Primary(MJ)

EnergyUse/

vehicle,

Secondary(MJ)

FerrousMetals 886 40 30 35440 26580

Aluminum 81 220 40 17820 3240

Glass 35 30 15 1050 525

Magnesium 10 280 27 2800 270

Copper 9 100 45 900 405

Zinc 7 50 16 350 112

Lead 10 40 8 400 80

Plastics

100

90 45 9000 4500

Rubber 54 70 N/A 3780 #VALUE!

Wood,Felt,etc. 64 0 0

Paint,Coatings 5 0 0

Nickel 0 110 110 0 0

Others 9 0 0

Fluids 54 0 0

Total 1324 71540 35712

Figure8:CalculationSpreadsheetforEnergyConsumption

3.1.2 BreakevenCalculations

Intodayscarmarket,manycarshaveastandardICEmodelaswellasahybridmodel.

Inourstudywecomparedmanyofthesevehicles.Breakevencalculationsletyouknowhow

manymilesneedtobedriveninordertomakethepremiumpriceofahybridmodelbeneficial.


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HybridCarsIQP

38

Forthesecalculationsweneededtoknow,forbothmodels,thepriceofthevehicle,itsgas

mileage(bothcityandhighwayvalueswerepreferred),andthenthepriceofgas(whichcanbe

arbitrarilypickedandchangedtomatchthecurrentpricing).

Tofindthebreakevenpointwehadtosetupanequationthattookintoaccountallof

ourdataatonce. Theequationcomparedgasmileageofthestandardmodeltothatofthe

hybridmodelandcompensatedfortheincreasedprice. Theequationwasthensolvedforthe

mileagevariablewhichwasthesameonbothsidesoftheequation. Thismileagewasthe

minimummileageapersonwouldhavetodrive,inthelifeofthevehicle,tomakeitmonetarily

worthpayingforthemoreexpensivehybrid. Thisequationwasusedwithdifferentvaluesof

gasmileageaswellasthreedifferenttypesofdrivinghabits. Calculationsweredoneforthe

followingstylesofdriving:Strictlyhighway,strictlycity,andaonetooneratioofbothhighway

andcitydriving. Theequationusedcanbeseenbelow.

(Mileage/MPGstandard)*(Gasprice)=(Mileage/MPGhybrid)*(Gasprice)+(PriceDifference)

EquationsolvedforMileagetogivethemileageoftheBreakevenPoint.

Figure9:BreakevenPointEquation

3.2ConsumerAttitudesandSelling

Oneareaofconcerninourhybridresearchinvolvesthesalescharacteristics. We

specificallywantedtoexaminewhatpointsarestressedwhenmarketinghybrids. Salespersons

musthavesometoolsandguidelinesthattheyuseinordertoattemptthesalesofvehicles.

Themarketingcampaignsmaybediversefordifferentmanufacturersandsalesdivisionsand

thatissomethingwehaveconsidered. Mostofthedatausedstemsfrominterviews. These

interviewsweredonewithsalespeopleatcardealerships,aswellasonesconductedwithinour

focusgroups. Aguidelineofquestionswaspreparedinordertomakeeachinterview

successful,providinguswithsubstantialandusefuldata. Throughexaminingthearrayofdata

received,anycommonalitiesinthewaysinwhichsalespeopleanddealershipsmarkettheir

hybridsweredetermined.

Everyindividualbuysacarforareason. Thereareavastamountofdifferentstyles

availableandpeoplebuywhatisappealingtothem. Whatpeoplelookforwhentheyare


39/88

HybridCarsIQP

39

buyingacarisasignificantphaseintheiroveralldecisionmakingprocess. Whetheritisa

hybridoraconventionalinternalcombustionengine,theremustbeareasonforthepurchase.

Datafoundusingourfocusgroupsthatconsistofpeoplewhohaveboughtahybridandthose

whohaverecentlyboughtaninternalcombustionvehiclewascrucialtounderstandingwhat

differentindividualsconsiderthroughouttheirsearch. Onceagain,ourquestionswere

preparedaheadoftime,ensuringourdatastaysconsistentwithregardstothequestionsasked.

Usingthedata,weobservedwhetherornotthosewhobuyhybridshavesimilarreasonsand

whetherornotthosewhobuyinternalcombustionshaveacommontheme.

Ithasbeenstatedearlierthatconvertingtheworldspopulationofcombustionengine

vehiclestohybridvehiclesistheoreticallyillogicalifnotimpossibleduetothelackofresources

andtimeconstraints.However,thisdoesnotmeanthattherearenotareasorgroupsofpeople

thatcannotmakeasignificantimpactontheenvironmentbyswitchingtohybrids.Bystudying

variouspublictransportationstatistics,suchasthedrivingpatternsofdifferenthouseholds,

professions,locations,andenvironmentsfromvarioussources,wedeterminedwherehybrid

carscouldpresentthegreatestefficientenvironmentalimpacts.VehiclessuchasTaxisand

publicbusseswouldbeprimeexamplesofhighimpactvehiclesduetotheirhighmileage.This

way,peoplewhoareswitchingtohybridscantellhowmuchtheyarereducingtheirimpacton

the

environment

compared

to

others

who

are

living

in

different

conditions.

This

would

also

be

anefficientwaytodeterminewheretheoptimalenvironmentalareastosellhybridsare,as

wellasthegeneralnumberthatwouldbeappropriatetosellthere.

3.2.1InterviewwithaCarSalesperson

Valuablemarketinginformationwasgainedthroughpersonalinterviewswithcar

salespeopleandsalerepresentatives. Withnumerousnewmodelsofhybridandnonhybrid

vehiclesavailable,therearemanynewtacticsforsellingcars. Cardealersareexpertsin

understandingtrends

in

car

sales,

whether

they

are

hybrid

or

conventional

vehicles,

changes

andfluctuationsinsalesrates,whichvehiclessuitparticularlifestylesbetterthanothers,

amongstmanyotherimportantdecisionvariables. Theknowledgeandinformationgathered

fromtheseretailerswasessentialinaccuratelyunderstandingthepurchasinghabitsand


40/88

HybridCarsIQP

40

desiresofcustomers. WeinterviewedEdProko,coownerofMillStreetMotorsandlocalused

cardealer,usingasemistructuredinterviewprotocol.

InterviewQuestions:

DoyoudefaulttotryingtosellICEsuntilsomeoneasksabouthybridtechnology? Arethesalesratesofhybridschangingasmoreandmoremodelsofhybridsarebeing

produced?

WhataretheratiosofhybridssoldtoICEssoldinthepastcoupleofyears? Aretheyearlyratioschanging?

Arepeoplestartingtotradeinhybrids? DoyouhavedifferentmarketingstrategiesforsellinghybridsversusICEs? Whatmodelsofcarsarecurrentlysellingthemost? Whatdepreciationrateshaveyounoticedondifferentvehicles,whetherhybridorICE? Howdoyouanticipatewhattypeofvehiclestostockyourcarlotwith?3.3FocusGroups

Thereasonswhypeopledoanddontpurchasehybridvehiclesareasdiverseasthe

numberofcarsontheroad.Forourresearch,itwasimperativethatwesortedoutwhatthe

mostprominentofthesereasonsweresothatwegainedabetterunderstandingofthe

marketingofhybrids.Inordertobeginobtainingthenecessaryinformationweorganizedtwo

eightpersonfocusgroups. Onegroupconsistedofindividualswhopurchasedahybridvehicle

withinthelast12months,andtheotherconsistedofthosewhopurchasedanonhybridinthe

sametimeperiod.Tomakesurethatthingsprogressedassmoothlyaspossible,ourIQPgroup

workedinconjunctionwithanothergroupwhowasalsofocusingonhybridvehicles.

Inordertogatherparticipantsforourfocusgroups,wesentoutanemailtothefaculty

andstudentsofWPI,lookingforthosewhofitthecriteriaofourdesiredcategorieswithan

incentivetodojoinbeinga$25AmericanExpress giftcard.Thosewhowereinterestedinour

groupswere requiredtosendusareplyemailwithsomebasicinformationaboutthemselves

includingthebrandofcartheypurchased,whentheyboughtit,theirname,age,andcontact

information.Aftergoingthroughallthereplies,weselectedpeoplethatwebelievedwouldbe

themostbeneficialtoourstudy.49


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HybridCarsIQP

41

Themeetingslastedroughlyoneandahalfhours,eachonemanagedandsupervisedby

membersfromeachIQPgroup.Uponfirstarrivalatthemeeting,wegreetedthevisitorsand

explainedtothemthepurposeofthemeetings.Eachgroupwasaskedasetofquestions

regardingtheirchoiceofpurchase,whattheirinitialchoiceofvehiclewasatthetime,what

theirdrivinghabitsarelike,andwhattheywerelookingforwhentheystartedcarshopping.

Thehybridownerswouldbeaskedabouttheircars,theimpactsithasorhasnotmadeintheir

drivinglifestyles,andwhattheythinkaresomeofthedifferencesbetweenhybridsand

combustionengines.Thenonhybridownersontheotherhandwouldbeaskedasimilarsetof

questiongearedtowardswhytheychoseanICEcaroverahybrid.

3.3.1People

who

bought

ahybrid

in

the

past

year.

1. Howmuch,onaveragedoyoudriveayear?Whatisyourdailycommutelike?City/Highway/Offroad.

2. Howmuchdoyouspendongasperweek/month/year?3. Howmuchdidthecarcost?Howmuchwasthelastcarpurchased?4. Howlongdoyoukeepyourcar?Howdidyougoaboutgettingridofit?

a. Junk,Sold,TradeIn.5. Whatfactorsgointomakingadecisiontobuyacar,hybridornot?

a. Howdidtheinteriorsize/comfortfactoraffectyourdecision?b. Howdoesoutputperformance(acceleration)affectyourdecision?c. Howdoesyourlifestyle/geographiclocationaffectyourdecision?

i. Forinstance,doyouneedatruckfortowingpurposes,4WDforwinterreasons?

6. Wasthereanythingabouthybridsthatmayhavehadacriticalinfluenceonyoudecisionmaking?

7. HowdoestheeconomicallyunstablefoundationoftheGMCompanyaffectyourdecisionmaking?

3.3.2Peoplewhoboughtanewcar(non-hybrid)inthepastyear.

8. Howmuch,onaveragedoyoudriveayear?Whatisyourdailycommutelike?City/Highway/Offroad.

9. Howmuchdoyouspendongasperweek/month/year?10.Whattypeofcardidyoubuy?Ifthereisacomparablehybridonthemarket,didyou

considerpurchasingit?


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HybridCarsIQP

42

11.Howmuchdidthecarcost?Howmuchwasthelastcarpurchased?Whendidyoupurchaseitanddidyoueverconsiderbuyingahybridthen?

12.Howlongdoyoukeepyourcar?Howdidyougoaboutgettingridofit?b. Junk,Sold,TradeIn.

13.Whatfactorsgointomakingadecisiontobuyacar,hybridornot?d. Howdidtheinteriorsize/comfortfactoraffectyourdecision?e. Howdoesoutputperformance(acceleration)affectyourdecision?f. Howdoesyourlifestyle/geographiclocationaffectyourdecision?

ii. Forinstance,doyouneedatruckfortowingpurposes,4WDforwinterreasons?

14.Wasthereanythingabouthybridsthatmayhavehadacriticalinfluenceonyoudecisionmaking?

15.Howdoesthereputationofthecarcompanyaffectyourdecision?


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HybridCarsIQP

43

Chapter 4. FindingsWeusedmanydifferentmethodstogainaccesstotheinformationwerequiredtofully

studyandanswerthequestionsthatwechose. Secondarydata,interviews,focusgroupsand

manyarticles

and

online

sources

helped

us

make

educated

conclusions

to

our

project

questions.Asweprogressedthroughourresearch,ouranswersbecamemoreapparent,clear

andcertainuntilwewereconfidentwiththeresultsthatwehadobtained.

4.1EmissionsandEfficiency

Afterlookingatmanydifferenttypesofcars,theircomponents,andhowtheyaremade

wesawthateverycarisnotequal. Theyallvaryinhowmuchenergygoesintomakingthem,

howmuchpollutantsareproducedwhilemakingthemandhowefficienttheyactuallyare

whendriving.

4.1.1EnergyConsumptionforManufacturingVehicles

Afterallthecalculationsforenergyconsumptionhadbeenmade,thevalueswere

graphedasameansofcomparison,seeFigure10. Thegraphshowsthat,forprimarymaterial

use,allofthehybridcarsstudiedconsumedmoreenergyintheirmanufacturingprocesses. In

somecasethehybridsconsumed40%moreenergythanthebaselineICE. Thisisbecauseof

the

high

amounts

of

energy

needed

to

process

larger

amounts

of

materials

such

as

aluminum,

copperandthingsthatwouldfallintotheOthercategory. Itakesfiveandahalftimesthe

energytoprocessaluminumcomparedtosteel. ThesteeltoaluminumratioforanICEis

almost11:1,whilesomehybridshavea1:1ratio,leadingtoveryhighenergyconsumption.

Higheramountsofmagnesiumandnickelinhybridsalsoaddtotheincreasedlevelsofenergy

needed.


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HybridCarsIQP

44

Figure10:EnergyConsumptionforManufacturingVehicles

Thegraphshowsthattheuseofrecycledmaterialsisamuchmorefeasiblewaytomake

hybrids

efficiently.

If

possible,

using

100%

recycled

materials

would

lead

to

all

of

the

cars

studiedbeingclosetoequalinenergyconsumption.Thisismainlyduetothefactthatallofthe

mainenergyconsumingprocesseswhichcausedhybridtousesomuchenergyaremuchmore

efficientwhenusingsecondarymaterial.Forexample,secondaryprocessingofmagnesiumonly

consumes10%oftheenergyneededforprimaryprocessing.

4.1.2CO2EmissionsResultingManufacturingVehicles

TheamountofCO2emissionsassociatedwithvehiclemanufacturingisdirectlyrelated

tohow

much

energy

is

consumed

during

their

production.

Many

of

the

primary

ways

of

producingenergyemitlargeamountsofCO2intotheatmosphere. Again,theuseofsecondary

materialsprovestobemuchbetterfortheenvironmentwhencomparedtousingfreshraw

material. Figure11,below,showstheCO2emissionsrelatedtomanufacturingvehicles. Note

thesimilaritiestoFigure10intheprevioussection.

0

20000

40000

60000

80000

100000

120000

140000

EnergyConsumption(M

J/car)

TypeofCar

EnergyConsumptionforManufacturingVehicles

Useof

Primary

MaterialOnly

UseofSecondary

MaterialOnly


45/88

HybridCarsIQP

45

Figure11:CO2EmissionsResultingManufacturingVehicles

4.4.3BreakEvenPoints

Thebreakevenpointcalculationsforthreeoftodayspopularcarstoldusalotabout

boththeir

efficiency

and

their

consumer

value.

The

data

shows

that

the

best

performing

car

was2010FordFusionHybrid,however,wearenotcomparingthiscartoothers,buttoanon

hybridmodelofitself,seeFigure12below.

0

500

1000

1500

2000

2500

CO2Emission(KgC)/Car

TypeofCar

CO2 EmissionsResultingfromtheProductionof

AutomobileComponents

UseofPrimary

MaterialOnly

Useof

Secondary

MaterialOnly

Hybrid Cars Marketing

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