Smart car: An automobile revolution“The Auto Industry has an obligation to be part of the solution, not the problem when it comes to global warming and climate, ” said Toyota Motors North America President Jim Press recently. Changes in the global macro environment Climate change due to global warming is the most serious threat that the planet faces today. The main cause of global warming is uncontrolled and unregulated human activities which have resulted in accumulation of greenhouse gases in the atmosphere. During the 150 years of the industrial age, the atmospheric concentration of carbon dioxide has increased by 31 percent.
It is believed that the automobile sector is responsible in a great way for increasing the carbon burden in the atmosphere. The carbon burden is how much carbon dioxide (CO2) gets put into the atmosphere each year after a car company sells a new group of vehicles. According to John DeCicco, co-author of the report Automakers' Corporate Carbon Burdens: Reframing Public Policy on Automobiles, Oil and Climate, global warming pollution from cars is directly related to the amount of fuel they burn.
The amount of CO2 emissions through transportation accounts for the largest part [one-third] of all CO2 emissions, more than from factories, homes and everything else. United States ranks first as the world’s largest greenhouse gas polluter [contributing a quarter of the world's CO2 emissions]. DeCico’s report talks about how the "big six" automakers for the U. S. market contribute in a big way to global warming and challenges the industry to do what's right for the planet by designing vehicles that improve fuel economy and lower carbon dioxide emissions.
He says that “if a company's carbon burden grows because they are growing their market share, that means the company is not paying enough attention to its responsibility for the environment; in short it's profiting at the expense of the environment. And so the right strategy for a company is to produce competitive products that help them gain or maintain their market share while cutting their carbon burden, and to do that they need to design vehicles with lower carbon CO2 emissions and higher fuel economy. ” Global warming is not the only critical challenge that the global automotive industry faces today.
All is not well with the automobile industry the world over currently with the slowdown that has gripped most of the major economies of the world. The gap between the manufacturing capacity volume and the assembly volume is growing by the day and has the worried the manufacturers. This state of affairs has triggered a lot of cut-throat competition and consolidation in the industry. Cost reduction initiatives have come to be the in thing in the global industry today.
The global automobile sector faces the multi-pronged challenge of designing vehicles that will improve fuel economy, lower carbon dioxide emissions and at the same time are cost effective and innovative. One of their greatest challenges is to create innovative products which would be environment friendly and reduce the impact of transportation on the environment.