Upgrade Technology Issue

The importance of information technology is well recognized in the automotive industry. Since the nature of the automotive supply chain is relative easy to implement Electronic Data Interchange (EDI), Big Three automobile manufacturers have strongly encouraged their first-tier suppliers to communicate with them through EDI since the end of 1997. Since Internet provides many cost effective solutions such as EOI (EDI over Internet), it is possible nowadays to extend this B2B (Business-to-Business) relationship from the first-tier suppliers to their suppliers.

Based on the information on web sites, it is known that GM now runs a global network named EDSNET linking more than 30 GM data processing centers with over 2,000 suppliers via EDI. Ford uses a private telecommunication network named Ford Net for establishing EDI connections with its suppliers, and has built up an on-line website, www.fordvehicles.com, to provide build-to-order function that gives customers flexible combination of their needs.

The Greek word ‘hybrid’ means made from combining different varieties or resulting from cross breeding.

A hybrid car is an automobile that has two or more major sources of propulsion power. Most hybrid cars currently marketed to consumers have both conventional gasoline and electric motors, with the ability to power the vehicle by either one independently or in tandem. These vehicles are appropriately termed gas-electric hybrids. Other power sources may include hydrogen, propane, CNG, and solar energy.

The technology used depends on the goals set for the vehicle, whether they be fuel

efficiency, power, driving range, or reduced greenhouse gas emissions. Consumer oriented hybrid cars, which have been on the market for about ten years, are usually tuned for reduced emissions and driving range. Additionally, owners of hybrid vehicles often enjoy social benefits such as prestige and discounted secondary services.

A gasoline-electric hybrid car has one or two auxiliary electric motors that supplement the main gasoline engine. Compared to conventional automobiles, the gasoline engine in a gas-electric hybrid is smaller, less powerful, and more efficient.

Although the gasoline engine alone would be sufficient to power the vehicle under most circumstances, during maneuvers requiring unusually high power the electric motor is used as well. These conditions include passing, hill climbing, and acceleration from a standstill. Some hybrid cars, such as the Toyota Prius, shut down the gasoline engine under conditions in which the electric motor alone would suffice, such as coasting and breaking. In fact, the Toyota Prius has a special electric-only mode designed for stop-and-go traffic. This is made possible by the super heavy-duty electric motor used in the Prius, which is capable of propelling the vehicle from a standstill without the gasoline assist. Thus, in contrast to most other hybrid vehicles, the Prius actually uses the electric motor more than the gasoline engine. Hybrid car companies like Toyota, Honda, Ford and BMW have pulled together to create a movement of Hybrid vehicle sales pushed by Washington lobbyist to lower the worlds emissions and become less reliant on our petroleum consumption.

Toyota Motor Corporation (TMC) announced that as of the end of June in 2013, worldwide cumulative sales of the Prius gasoline-electric hybrid vehicle (generations I, II and III) passed the 3-million mark. (Figure 4.7 is based on worldwide cumulative

sales through the end of May 2013 plus June sales in the US.) Total global Prius nameplate sales (the expanded Prius family) are at 3.436 million units. Since the development of the first-generation Prius, TMC has positioned hybrid technology as a core technology required for the development of various types of environment-friendly vehicles and has placed emphasis on the development and production of core components such as motors, inverters, batteries and electronic control units (ECUs), giving rise to substantial investment in Japan.

Table 4.7: Cumulative Prius Sales

Model Cumulative sales (1000s) Production Status

Model 1 123 Ended Aug 2003

Model 2 1,192 Ended Dec 2011

Model 3 1,688 On-going

Total Prius 3,002

Prius +/Alpha/v 322 On-going

Prius PHV 35 On-going

Prius c 75 On-going

Total nameplate 3,436

Source: Toyota Europe News 2013-07-03

The Toyota Camry is a mid-size car that was produced by Toyota from 2006 to 2011. Known as the "Toyota Camry Hybrid", the gasoline–electric model premiered in January 2006—alongside the non-hybrid car. This latest Toyota Camry Hybrid was redesigned for 2012, as was the conventional Camry. As such, it benefited from the same generational upgrades, such as a much nicer interior and new electronics features. Fuel economy and power are also considerably better than they were with the previous-generation hybrid. Note that these Camry Hybrids lack a few minor updates of the current version, including the addition of the SE Limited Edition trim level, the rearview camera becoming standard across the board and a renaming of the car's infotainment systems.

Many of the technologies found in hybrid vehicles would benefit vehicles of any type, including conventional gasoline automobiles. However, the engineering and manufacturing costs associated with these technologies often would increase the price of the vehicle to the point where the fuel savings are negligible in comparison. Only in tax-subsidized electric and hybrid vehicles are these technologies practical, in which associated cost increases are absorbed by the government instead of the manufacturer or consumer. These technologies include regenerative braking, aerodynamic refinements, and lightweight building materials.

Hybrid vehicle emissions today are getting close to or even lower than the recommended level set by the EPA (Environmental Protection Agency). The recommended levels they suggest for a typical passenger vehicle should be equated to 5.5 metric tons of carbon dioxide. The three most popular hybrid vehicles, Honda Civic, Honda Insight and Toyota Prius, set the standards even higher by producing 4.1, 3.5, and 3.5 tons showing a major improvement in carbon dioxide emissions. Hybrid vehicles can reduce air emissions of smog-forming pollutants by up to 90% and cut

carbon dioxide emissions in half.

Temma Ehrenfeld (2008) explained in an article by Newsweek. Hybrids may be more efficient than many other gasoline motors as far as gasoline consumption is concerned but as far as being green and good for the environment is completely inaccurate. Hybrid car companies have a long time to go if they expect to really go green. According to Harvard business professor Theodore Levitt states "managing products" and "meeting customers' needs", "you must adapt to consumer expectations and anticipation of future desires.