The car industry: who will clean up?

Citation

Bremner, R. (2008), "The car industry: who will clean up?", Strategic Direction, Vol. 24 No. 6. https://doi.org/10.1108/sd.2008.05624fad.005

The car industry: who will clean up?

Article Type: Abstracts From: Strategic Direction, Volume 24, Issue 6.

Bremner R. Management Today, October 2007, Start page: 50, No. of pages: 4

Purpose to consider the enormity of the challenge that climate change is having for the motor manufacturing industry. Design/methodology/approach considers the need for the automotive industry to provide increased mobility to new markets, while reducing the impact of the automobile on the environment, and its need to address the fragmentation of the market and disaggregation of scale. Assesses the cost burden of model proliferation, over-capacity, static markets, the declining price of cars and the R&D challenge of global warming. Concentrating on global warming, discusses the extent to which environmental pressures are driving the industry in relation to R&D spend, and the realities of the EU looking for a continuous improvement regarding CO2 emissions. Looks at the particular environmental/emission related problems being faced by Ford, General Motors and Chrysler, and how their Japanese competitors Toyota and Honda in contrast are enjoying legendary profitability. Examines the less than rosy prospects for the premium brands of Audi, BMW, Mercedes, Jaguar and Rover as they try to hit the 130 g/km CO2 emission target, and the expensive options of making smaller cars or developing hybrid technology. Relates the view of the motor manufacturers that reducing its carbon footprint will stay at the top of the industry’s to-do list for some time, and suggests that despite vast sums of research expenditure over several decades true clean-car technology has yet to appear on the streets. Discusses the progress being made, or hindered, in the areas of hydrogen fuel cell-powered electric cars, plug-in hybrids, and bio fuels. Observes that while Ford, GM and Chrysler may be moving towards collapse, under the threat of global warming, the worldwide popularity of the car is actually growing, driven by Brazil, Russia, India and China. Originality/value paints a demoralizing picture of the motor car industry’s failure to accommodate the challenges of global warming.ISSN: 0025-1925Reference: 37AC740

Keywords: Automotive industry, Emission, Global warming, Marketing strategy, Product development