Auto Transportation

Posts Tagged ‘alternative’

Rising fuel prices, unstable financial markets and taxation changes with the apparent aim of getting us to use our cars less often (or at least pay more to use them) have been just some of the issues that have affected the automotive industry in the past 12 months. This article looks at what 2008 may hold for the automotive industry and road users in general.

The US economy and the resulting weakness of the dollar looks like it may well contribute to the price of crude oil continuing to rise as investors have been holding the commodity instead of dollars. This means that as the cost of a barrel of crude oil comes close to the $100 figure then so fuel prices have also continued to rise.

So do higher fuel costs mean we are likely to buy or use cars, vans and Lorries less in 2008? Well seemingly not based on a latest poll of motorists. Despite fuel prices increasing at alarming rates a whopping 79 percent of motorists questioned said they had not changed their petrol and fuel buying habits and had no plans to do so. In fact the motorists questioned said petrol prices would have to increase at even more alarming rates to stop them from filling up.

Environmental issues would it seem not be as important as governments throughout the world as over 1 in 3 motorists confirmed they had no plans to replace their vehicles for more environmentally friendly cars before 2010.

And so if motorists are seemingly unaffected by rising fuel costs and are prepared to continue driving despite increased road tax and the impact on the environment surely positive times are ahead for the industry in 2008?

Well before car manufacturers and dealers start doing cartwheels, caution would certainly be advised as whilst General Motors can seen promising performance in emerging markets they have seen big losses in both American and European markets.

And with the world economy in such an uncertain state as 2007 draws to a close 2008 could well see new car sales fall with used car sales increasing. Car sales and indeed sales of all types are also likely to increase via the internet in 2008 so car dealers (new and used) without an internet presence should really be looking at establishing themselves in this emerging marketplace.

And what of the actual motorist, what does 2008 have in store for us? Well how about further increases in vehicle tax, more toll roads, increased congestion charges and still a seeming lack of a viable alternative to road use through reliable, clean and safe public transport.

The good news for some motorists on one front is that whilst the government is seemingly do all they can to penalise the motorist, insurance premiums including car insurance, van insurance and motor trade insurance are pretty stable. In fact with such competition in the insurance industry the cost of insurance like combined motor trade insurance could even fall and savings could be made.

And motor traders who are looking to make savings on their motor trade insurance premiums in 2008 using a specialist insurance broker could well be the route to take to make sure they get the protection they need at a price that is right.

It is no surprise that amidst the increasingly larger hikes in fuel prices driven by the fact that the planet’s supply of petroleum is dissipating, the automotive industry is feeling the pinch more than any other. With many companies falling or are already fallen, the surviving ones are now wisely channeling their resources in developing vehicles which run on alternative fuel and the most popular choice is clearly the hybrid.

Hybrids are the first forms of cars to battle the ongoing fuel crisis. Evidently, the name which pops up anywhere across the world when the term hybrid is brought up is the Toyota Prius. This is mainly because the Prius was the first hybrid vehicle to be built in masses as they have proven among all the other alternative fuel concepts during the late 90s and early years of the new millennium to be the most practical and applicable in real world situations. Basically, hybrids are cars which run on the usual gasoline with the difference being the addition of an extra fuel supply, most commonly in the form of electricity which gets supplied from battery cells. While the Prius has been dominating over all these years, many other hybrids are available on the road today but one of the most notable cars in this segment is the upcoming second generation of Honda’s Insight, a hybrid car designed and engineered specifically to go up against the Prius in a blatant one on one.

While the idea of electric cars have always been a point of discussion but not so in application due to cost and practicality issues, they are hitting the roads lately and one of the one model swarming roads the most across the globe is possibly the Reva G-Whiz. Being under lots of controversy in the automotive industry due to its minimalist nature which is considered unsafe and not up to the standards of being a car, this tiny two-seater from India is in fact labeled as a quadtricycle in markets like the UK’s. On a more fast and furious note, the Tesla Roadster, an electric sports car borrowing the body of Lotus’ well-proven Elise’. While this car is earning rave reviews for its performance despite its electric underpinnings, many are expressing their doubts over the durability and sustainability of the electric cells that power not only the Tesla, but other electric vehicles alike.

Over the years, there have been debates about hybrids not being as good as people are made to think and the technology of electric cars as yet being simply impractical for normal usage. Diesel cars have gained in popularity due to this combined with rising prices at the pumps as cars such as Volkswagen’s entry level green car, the Polo Bluemotion, has on many tests and occasions proved that it can easily dwarf the mpg ratings of a Toyota Prius. Electric vehicles cannot be considered as economical or environmental either as most of our electricity supply comes from plants which burn petroleum to generate the electricity as well.

With ever changing takes on alternative fuel, Honda has made a breakthrough of late, introducing the Honda FCX Clarity, a car which runs of hydrogen and with the debates still going strong on alternative fuel vehicles, the technology Honda is implementing here might be the most significant yet in this battle as hydrogen is unlike the rest, an element which is never likely to run out. Only the world of tomorrow shall tell.