Category: Vehicles

The start of 1920s gave America a new breath in accordance with other developed countries after the World War II. The era of industrial society is still in progress. This is emphasized by the increasing number of scientific inventions and innovations which help people facilitate their work and efforts used for it. As it is seen from the earlier times, beginning with the year 1900 the appearance of cars was a great event and stimulated the market of the United States to extend the production of machines, namely automobiles. Until 1923 the volumes of car use increased greatly in the country. “An insignificant industry in 1900, motor vehicles became by the 1920s the largest in the United States” (McCraw, p. 11). In fact, the American automobile industry was the central as of the volumes of consuming. The group of large businessmen known as “Partnership Elaboration” made great pains in the beginning of 1920s to establish until September 1923 the company “Blazer Vehicles Inc.” which is aimed to produce cars for the middle strata of the American society.

The structure of the company follows the principles of subordination and delegation of authorities, so that to have follow ups in all departments of it. The main part of the company is the board of directors and the group of stakeholders, mainly from the US and state Nevada, in particular. The company is divided into 10 departments with 600 engineers and constructors making out the needs and challenges of an ordinary American when choosing a car. The employees are selected due to the words of Henry Ford, with whose corporation the company collaborates, namely: “build a motor car for the great multitude.., by the best men to be hired” (Cited in McCraw, p. 12).

The business is headquartered in Sacramento, California, and is not large because of low yield of production. There is only one plant and two supplements to serve as technical support for the employees. The competition is great because of such giants as Ford Motor Company and well-known car producers as Walter Chrysler, the Dodge brothers or Alfred P. Sloan Jr. The main resources which are needed in every company are the human ones. Then by means of the board of directors and some stakeholders the initial capital was needed in the sum of two million dollars for building and equipping the plant and for buying metal and other materials. Moreover, the engines the company purchases at Ford Motor Company, as a greatly standardized and developed motor car enterprise. Several agreements were signed before and according to the contract the supply handling were prolonged till the November 1928. The average cost of a car produced will be $290. The automobile row contains three models of cars “Blazer 12”, “Blazer M-3”, and “Blazer Cabriole”. The design of them is the difference. The materials and powers are almost the same.

The consumers can get the information about the company by means of the newspapers and bulletins which are produced by three major publishing houses all around the USA. There are three sales points in California and 5 more in New York, Boston, and Philadelphia. The company maintains its policy under authority of legal considerations and official license. The assets are counted and the declaration of official incomes is considered with appropriate authorities in the state of California and according to the Federal Law.

References

McCraw, T. K. (2000). American Business, 1920-2000: How It Worked. Wheeling, IL: Harlan Davidson.

Cars, the basic mode of transportation have become a necessity in human life especially in America where one cannot imagine moving from one place to another without cars. Public transport is nearly non-existent. All the traveling is done on cars and planes. The highways are well-developed which makes traveling through car easy but the high amount of cars present in the society has caused greater health risks and environmental damage. The rate of road accidents is quite high in the American society. These factors have developed a thought of eliminating cars or reducing the number of cars in the society so as to avoid the critical conditions of health hazards and environmental damage. Banning cars in the society will cause great difficulty in the movement of people from one place to another as discussed below.

If cars are eliminated in US, then the economy of America will go down. The American people highly depend upon cars to reach their destinations since other forms of transportation are expensive in America. There is no prevalent trend of buses and rickshaws for traveling and the taxis are quite expensive which is not affordable for a common man. The tubes are very far away from the residential areas and person needs a car or a taxi to reach the stop. Secondly New Jersey and New York are connected only through road and there are no services of tubes and buses so the resident of New Jersey needs a car to reach New York as 70% business and jobs are set in New York. Another economic problem of banning the cars will be that many people would then become unemployed. As the banning of cars will make taxi drivers or the drivers hired by the public figures of the society will go out of work. Other than this the companies who manufacture cars will run out of business and people working under them would also lose their jobs. Together all this would raise rampant unemployment and create a great depression which will lead to violent aggression causing chaos and disorder in the society.

Many services are carried out through vehicular transportation and food is one of them. The whole food and life cycle would be disturbed if cars are banned because then the hay would not be reached to the farm animals and due to this meat would not be available in the markets as these animals would be dying of hunger. Ultimately no other type of food or basic necessity item would be available in the market as there would not be any transport to bring the products in the market on mass level. All this would be disturbing human setup as it will spread riots and mass level of killing will occur in the society as they will be deprived of food and job. The commodity prices will be skyrocketing since making them available to the consumers will become an expensive business. The traveling agent will charge a large sum of money to carry goods and services.

This will also cause a mammoth migration. People when will not be getting their necessities fulfilled then they would be moving out from the country and seek residence to a place where their needs are fulfilled so that they can lead a content life. This mass migration will lead to the intrusion in other cultures. The culture of every society is different and when the Americans would be moving out they would suffer a little to find a place that would be similar to their life pattern so that they can settle down. If banning cars would be a political stand then the civil war would break to bring down the ruling parties and even the opposition parties as in democratic areas the decisions are taken on mutual basis. This will also change the position of America worldwide since it won’t be remaining the superpower. It would be busy in solving the disturbance caused by the people and for it; he may need to call back his armies from other parts of the world.

On the positive side of the picture it will increase online business and will multiply the opportunities of working online. It will also give rise to the trend of online shopping and product will reach the market through shipment and for an alternate way of traveling bikes and cycles will get a boost. This will also help in protecting the environment. It will decrease the production of carbon dioxide and will reduce the consumption of fuel. This will help the environmentalists and other activists to protect the fuel for the later generation and will give time to the scientist to find an alternative of petrol and gas for moving motor vehicles. This will also save the metal consumed in making the body of the car and will be utilized in other forms. This will help in protecting endangered materials for the next generations.

For moving smoothly, America would need to make proper adjustments for other vehicles like buses, bikes and cycles. It also would need to promote the trend of traveling through boats and would increase the number of stops of the tubes so that traveling through road would be cheap and quick. It may also give boom to the system of covering distances on the backs of animals which will give rise in their prices. They would need to start the trend of traveling through planes. Other than this people will look for the jobs in their own lands rather than going to another state so that traveling won’t become an issue to earn living. For food and grocery items small nearby market will be opened. This would also change the pattern of the society because nearby bazaars and local working will promote more social interaction and this will create a closed society.

This will also stop the recreational activity since car racing would then be banned. This will remove America from the list of top car racers. Most of the cars are manufactured in America and if cars would be banned then their business will affect as they wont be having a market for their product in their homeland and they would be looking for consumers in other markets. They may move to other lands carrying their brand with them so as to produce their goods for that society because if they will produce it in America and then ship it to another country this will affect their profit as they would be paying taxes o the other land also. Secondly it would affect the advertising business also. Advertisement would be designed for the consumers outside America and it will cause loss to the American advertisers and ultimately the channels because Britain or say any other EU country would be hiring their local agency to design ads bringing in the profit to them.

This will also affect the business of car washes, gas stations and petrol pumps as 99% of the American population has 2-3 cars. They heavily rely upon cars as all their basic necessities like market, colleges, offices etc are far from their residential places. At the age of 18 the citizen requires a driving license so that his parents could be free from the duty of picking up and dropping him at his school or colleges, or to the playground because of his soccer or baseball matches.

All in all banning cars in the US or any other country would be nearly impossible because as we grow we become dependent on the new technologies and for us, survival becomes difficult without them. Life prevails even without electricity but for them only who doesn’t know the life with electricity but as we develop we rely on that development and we would dysfunction without them. And for American society car is of so much importance that would be handicapped if they are robbed of it as to reach anywhere they would need a car. Their markets schools colleges and working places are far away from their residence, there is no trend of traveling through buses and hiring cab is very expensive in that society which can not be afforded on daily basis, so for the car is one of the basic requirement to spend a comfortable life. Car is a necessity for all as it provides comforts as well as business and jobs to people. Humans are depending upon it on multi-dimension of which comfort and business are of great prominence.

Tata Nano was the outcome of a life-long dream of India’s highly reputed businessman and Tata Group chairman, Mr. Ratan Tata. This man is at the helm of India’s affairs of business for the last decade had cherished a vision to make a car that would be inexpensive enough to be afforded by the not-so-fortunate common masses of the country. Tata Nano was the culmination of that dream powered by sheer will, hard work; research-based innovation sustained coordination, and firmly fought tough challenges that were barriers in areas of the social and political arena.

Tata Nano is an engineering marvel. The car was built with a consumer target segment in small cities and towns and was to cost around 2000 USD, to be the world’s cheapest car. It was compared to Volkswagen Beetle for being the ‘people’s car.’ It was expected to meet consumers’ demands and the world’s attention due to its affordable small price despite the rising material costs and other resource acquisitions. The car gave the competitors sleepless nights as they feared the loss of their market share. The result was the slash of prices of cars after its launch, and many automobile companies entering to make a competitive car of their own or out of collaboration, but not yet successful. This essay aims to evaluate the automobile Tata Nano based on criteria like price, affordability, consumer demands, interior design, cost-cutting characteristics, available model versions, technical specifications, environmental concerns, besides safety standards.

The uniqueness of Tata Nano

Tata Nano was engineered to be exceptional on many terms. But the exclusivity has been its affordability due to a very small price of INR 100,000 or 2000 USD. This price gave the car the ‘world’s cheapest’ tag. The low price allowed the two-vehicle owners to upgrade them by registering in advance for the car. This consumer target segment mainly belonged to rural, semi-urban areas, small towns, and cities. But the consumer psychology or in general market psychology is entirely complex. Consumers want the best for their price. This proved to be true for Tata Nano as well as consumers began evaluating the product on various accounts besides the price. Other factors played an important role in such a perception as the competitors challenged whether the car met all the international safety standards (ConsumerReports.org 2009).

The car’s exterior was designed in Italy. It has 2 cylinder petrol with Bosch Motronic engine management platform, power 37 hp, the compression ratio of 9.5:1, rear-wheel drive, 4-speed manual transmission, turning radius of 4 meters, acceleration from 0-60 kmph in 8 seconds, a maximum speed of 105 kmph, the fuel efficiency of around 25 km per liter, 4 seat belts, trunk capacity of 150 L, 12-inch wheels and ground clearance of 180mm. The cost-cutting characters include the presence of one windscreen wiper, one wing mirror, no power steering, no airbags, only 2 cylinders; air conditioner, radio players to be added as accessories. The materials for assembly were acquired from well-known suppliers, so one can be sure enough that the car was a standard one both in terms of technical specificities obtained through good research and acquisition of good materials (Tata Nano News 2011).

There were three model versions available in the market after the launch. They were Tata Nano Standard at the base price, and the other two had accessories and were a bit expensive over the base model and were called Tata Nano CX and Tata Nano LX. LX version had central locking, fog lamps, air conditioners; tri-spoke steering wheel, and mobile charging capability. The biggest concern was related to the safety standard as there were incidents of fire, and consumer interests declined. Further questions were raised about the increase in pollution, Tata Nano would cause because almost anyone would be able to purchase and the number of cars would increase on the roads to cause traffic jams too. These concerns were mostly manipulative as if the other cars were not contributing to the environmental issues.

The product was brilliant in the automobile sector, and went on to win many awards for its innovative features and bringing the imagination and engineering of the Tata Nano team to the forefront. The product met the requirements for the designated consumer segment in India. Thus Tata Nano was a revelation and a revolution in the automobile industry, paving way for the design and launch of new concepts of cheap cars in the world.

Works Cited

ConsumerReports.org. “Dawn of the $2,000 Car- Tata Nano.” Consumer News.

ConsumerReports.org, 2009. Web.

Tata Nano News. “Amazing Car Nano.” Tata Nano News. Tata Nano News, 2011. Web.

Introduction

The automobile industry in Saudi Arabia is complex. Drivers face diverse risks in their daily operations on the road. A driver’s risks may be related to prospects of something transpiring that may affect his normal operations. They underscore the probability of a driver making either an improvement or damage in the course of his work. A risk may be a consequence or likelihood of uncertainty. The effective management of a vehicle enables a driver to avoid risks and achieve his or her objectives during normal operations (Al-tukhi et al 1).

This paper evaluates the various threats that drivers face in Saudi Arabia. The study explains the levels and different risk management remedies. In addition, it presents several causes of car collisions in the region and the major insurance companies available to provide covers for cars.

Risks

Drivers in Saudi Arabia face a multiplicity of risks. The most outstanding ones relate to overwork. Drivers in the region should not be on the road for a period exceeding 12 hours a day. Drivers need a rest of approximately six to eight hours in a day. In addition, they should only work for about six days a week. These aspects allow them maximum rest and rejuvenation of the body. They provide room for the drivers to refresh and regain energy before embarking on other assignments. Certain drivers in Saudi Arabia overwork themselves and drive fast to meet the objectives of their companies. This fact exposes them to great risks. They desire to deliver goods and services to several destinations within the shortest time possible (Al-tukhi et al 2).

The second notable hazard that Saudi Arabian drivers face is that of a crash. This happening can lead to the death of the driver or passengers or body injuries. Drivers usually get involved in road accidents. Natural disasters may also be veritable threats to the automobile industry in Saudi Arabia. For example, the country is popular in the media for incidences like terrorist attacks and huge MVCs¹. In addition, the country experienced floods and this aspect can threaten the work of drivers. Terrorist attacks comprise other forms of risks that Saudi Arabian drivers face. They can be key challenges in the country as the rise of war and rebel groups is high (Al-tukhi et al 3).

Drivers also subject themselves to the threat of open windows. Studies indicate that drivers who spend a lot of time driving while their windows are open may be vulnerable to developing skin cancer. The researchers reveal that these drivers are most likely to develop left-side cancers.

Drivers may be susceptible to the risk of harmful rays from the sun. Most windscreens constitute glass that can allow UVA² and UVB³ light to penetrate. This aspect aggravates the risk of the drivers to these harmful sun rays. The long-term effects of these rays can be the development of cancer to the victim.

Saudi Arabian drivers may be vulnerable to the carcinogenic impacts of toxic diesel fumes. In most cases, motor vehicles like buses, taxis, and trucks use diesel engines. These engines release toxic fumes that may cause cancer in the human body. Professional drivers may be predisposed to potential exposure to diesel fumes. This aspect may be detrimental to the well-being of the driver. Exhaust fumes have become a cause of public health concern for drivers and cause lung cancer. A large number of professional drivers in Saudi Arabia face this threat of exhaust fumes (Al-Quwain 3).

Levels of risks

Different factors contribute to the risks that Saudi Arabian drivers face. The severity of risk may vary according to the number of its causative factors. The significant agent for risk may be the inexperience of a driver. The lack of adequate experience of the driver may increase the chances of a risk transpiring. For example, a newly licensed driver may have a higher risk of experiencing a crash than an experienced one. Experience helps to combat and reduce chances of a risk arising during driving. The second factor relates to teenage passengers. The presence of children or teenage passengers in the vehicle may increase the prospects of a threat materializing. Teenagers or children passengers often tend to get excited and interfere with the work of the driver. This aspect may lead to the occurrence of an accident. The other circumstance that may aggravate the degree of exposure to risks for drivers involves distractions while driving. Interferences in Saudi Arabia can be in different forms. Drivers must focus their attention on the road to avoid diversions while driving. A number of distractions for drivers may include cell phones, absent mindedness, receiving calls or writing messages while driving. These aspects interfere with the driver’s mind and increase the likelihood of an accident arising.

The other remarkable component that increases the level of exposure to threats for drivers in Saudi Arabia is driving at high speed. Driving at excessive speeds can increase the likelihood of causing an accident. This fact poses a consequential threat to the driver’s life. Drivers may be prone to making unsuitable decisions while driving at high speeds. It becomes easy for them to cause tragedies. Driving while drunk is another risky venture that predisposes drivers to calamities. It causes poor judgement during driving. This fact leads to fatal crashes that may claim the lives of drivers and passengers. In addition, driving at night may have fatal consequences on the driver as visibility may not be clear. This point interferes with the normal driving. That circumstance qualifies to be one of the risk factors for drivers in Saudi Arabia. Studies also report that male teenage drivers cause more accidents than other categories of drivers. Researchers argue that being a male teenage driver is in itself a consequential factor that can trigger the occurrence of a risk. Lately, statistics show that female drivers cause accidents too. Social elements make remarkable contributions to the determination of the degree of subjection to road risks. Risk considerations are a reality in the automobile industry. However, the threats depend on the drivers themselves and the geographical conditions of Saudi Arabia (Al-suwian 3).

Risk management for drivers in Saudi Arabia

The objective of risk management involves the increment of a driver’s safety and a reduction of the instances of loss. Risks happen when corrective mechanisms are not properly instituted. This paper observes the need to increase the number of low risk drivers who recognize real and prospective risks and reduce the hazards through restructuring speed and communicating to other actors about their actions (Bullen 1).

This assessment examines the need for drivers to adopt procedures of risk mitigation in Saudi Arabia. This element may be vital in curbing and controlling the many hazards the drivers face in their daily operations. Drivers in Saudi Arabia need to create a framework for the management of their risks. The initial step towards developing an efficient structure for risk avoidance is to appreciate and comprehend the qualitative variations between the different categories of risks that drivers and the automobile industry face. The drivers should be aware that risks can be catastrophic to their survival or to the progress of a business enterprise. Risks fall into different categories. The driver should understand these different classifications of threats and take an appropriate insurance cover.

Preventable threats are usually internal hazards that may arise within the driver’s factors, like behaviours or vehicles. They are controllable, and the driver should eliminate or avoid these perils. Examples of the threats may include drinking and driving, taking a phone call or texting while driving or over speeding the vehicle. Drivers may be able to manage these groups of threats and can be avoided through a change of behaviour. The appropriate regulatory mechanism for these risks entails active prevention measures by the driver. This element can be possible through monitoring operational processes of the driver, guiding his actions and decisions while driving. This aspect may guide him, or her to adopt the best road behaviour practices that may eliminate these threats. Drivers need to adopt a culture of best practices in driving to minimize the instances of preventable risks.

The second classification of threats entails strategy risks. A driver can vary certain choices in order to avoid the occurrence of risks. For example, he can follow a dusty route that is shorter and faster than take a proper route that is long. In doing so, the driver may incur the risk of compromising his health due to exposure to dust. However, his choice may result in good returns in terms of speedy delivery of goods or supply of items and time saving. Strategy risks are distinct from preventable ones. This fact is because they may be opportunity risks. The risks may be desirable for the driver or the business organization because of their benefits. This group of threats cannot be managed through structured models. However, the driver can use a risk management structure that decreases the prospects of the assumed risks and improves his or her ability to contain or control the threats. The system for the management of strategy threats does not prevent a driver or an organization from taking risks. It enables the driver to manage the events of the threat and the capacity of taking high risks. He can achieve this goal through the use of a risk management model.

The third category of risks comprises of external hazards. These risks may be above the control capacity of the driver. The causes of these hazards may include the condition of the road, and weather or other road users. Examples of these risks may include flood wash of the vehicle or an accidental crash.

In risk management, it is critical to note that the driver only exercises his or her capabilities. For instance, his decisions and judgement relate to his experiences and mental strengths. Drivers who do not possess sufficient experience and know-how may not make appropriate decisions in their work. The driver’s decisions may also be determined by the surrounding environment. Drivers may use the surrounding environment to make critical resolutions while driving. For instance, drivers observe control signs, traffic lights and police to get significant information while driving. The decisiveness of the driver informs his survival on the road.

A risk management process for Saudi Arabian drivers

Establishment of the context

The drivers must establish and define the context in which they operate in Saudi Arabian regions. They should determine their functions and exposure to risks. This point can be vital in assessing the situations in which threats are likely to affect their operations.

Identification of threats

The second part of the risk management process for the Saudi Arabian drivers involves identification of the different perils they are likely to face during their operations. This point forms one of the crucial parts of the risk management process for the drivers. It may determine how to resolve the different risks that may be identified. The drivers’ risk identification process can be undertaken using a structured format. This element can develop a list of events whose occurrences may pose a significant threat to the drivers. This layout acts as a checklist for discernment of drivers’ threats. Drivers must be able to trace the potential causes of the perils. They must develop the capacity to create a risk matrix that can increase the probability of developing effective remedies for counteraction of the threats.

Risk analysis

The third step in this process denotes risk examination. The drivers must analyze the perils they face in Saudi Arabia. This approach involves the development of an efficient understanding of the pinpointed threats. Risk analysis provides an opportunity for the Saudi Arabian drivers to understand and internalize the nature of risks and how they would affect their operations. This effort helps them to draft measures to manage the impacts of the threats. The objective of this procedure is to establish a deep apprehension of the level and effects of risks and their nature. It may also help the organization to harmonize priorities of risk mitigation plan according to the level of urgency, consequence and probability of threat occurrence (Bullen 2).

Evaluation of the risk

The fourth measure in the risk control process signifies evaluation of the threat. Saudi Arabian drivers should evaluate their perils as part of the management approach. The objective of this procedure is to make a concrete decision on account of the analysis of the risk the driver may face. It should also take into account the priority of treatment or what risk the organization should address in the first rank. Evaluation of the threat enables one to make a decision on the basis of the scientific outcomes of the risk. Saudi Arabian drivers take can employ 4 measures in this procedure. The techniques include avoiding, reducing, mitigating or transferring the risk.

Monitoring, reviewing, communicating and consulting

The fifth stage of the risk control operation is to monitor, review, communicate and consult. Saudi Arabian drivers should adopt this technique because the causes of risks change over time. The drivers need to monitor the development of the risks through a control monitoring initiative to ensure no threats and that risk operations run correctly. The drivers must conduct a quarterly review of all risks that the drivers may encounter. The review step comprises of a critical part of the risk control and treatment process. Drivers must communicate and consult at all stages of the risk management process. This point provides the appropriate coordination for the drivers to understand and overcome the challenges. The procedure requires continuous dialogue among stakeholders of the Saudi Arabian driving sector in order to provide a holistic approach to solutions.

Financial effects of the automobile insurance

All Saudi Arabian drivers must acquire third party insurance. The government legally enshrines this policy as part of the laws of Saudi Arabia. The third party insurance cover may be the cheapest a driver can procure to cover for damages that may be incurred on the road. In addition, all emigrants take a comprehensive insurance cover to cater for damages and other risks like accidents, fire and theft. A number of the financial consequences of the automobile insurance include increased expenditure for drivers under insurance. Saudi Arabia and the overall Gulf region remain the fastest developing insurance markets across the world. For example, Saudi Arabia is the best prospect for policy writers among the GCC⁴ member states. Saudi Arabia increases its insurance premiums every year. However, for the drivers, it implies continued expenditure to achieve comprehensive covers for motor vehicles (Arena 921).

Causes of car collisions in Saudi Arabia

Motor vehicles comprise of the main mode of transport in Saudi Arabia. However, the country is the leading state in the world in accident related deaths. This study outlines several causes of accidents in Saudi Arabia.

Riyadh is one of the most affected regions in Saudi Arabia in terms of accidents. A number of the factors that cause accidents in Saudi Arabia include over speeding of vehicles beyond speed targets. Drivers expose themselves and their passengers to the risk of death when they exceed the set limits. This aspect is a common practice in Saudi Arabia, and it has claimed many lives. For instance, many Saudi teenage drivers race against each other on the road. They ignore traffic lights and stipulated speed limits to drive at high speeds. In most cases, this aspect leads to the occurrence of accidents.

Several activities may divert the attention of Saudi Arabian drivers on the road. These distracters lead to the occurrence of accidents. The culture of eating while driving causes road accidents in Saudi Arabia. The act of eating engages at least one of the driver’s hands and increases the probability of the driver losing control in case of a diversion. The driver may have a high likelihood of losing control of the car and causing a collision.

The other factor may include the driver talking and telling stories with passengers while driving. This point increases the risk of an accident because it interrupts the attention of the driver by talking and driving. It also diverts his attention from the road, and it may lead to an accident.

The other critical factor that causes many accidents in Saudi Arabia includes changing weather conditions. The changes in weather in the region are beyond human control. Most drivers are not sure of the actions to undertake when there are abrupt changes in weather conditions (Sullivan et al 29). Many cities in Saudi Arabia experience periodic sandstorms. These storms may obstruct the vision of the driver and cause instability of the vehicle. This element makes it easy for the driver to lose control of his or her car. The country also experiences foggy weather conditions. These conditions may be similar to sandstorms. However, the two weather conditions may be distinct. Hazards become hard to decipher during foggy weather conditions. In addition, it becomes difficult to estimate distances between vehicles. Therefore, wrong estimations and calculations can lead to the occurrence of an accident. Furthermore, when the vision is not clear during the unfavorable weather instances, accidents may happen. Saudi Arabia also experiences desert conditions. It does not rain in most instances. Most drivers and people may be inexperienced on how to deal with rainy weather circumstances. This aspect makes it risky because drivers lose control of their vehicles and collide with each other during rainy weather. Saudi Arabia experiences many road accidents in a year. Common factors behind these accidents include high speed limits; drunk driving, distractions and changes in weather patterns. These reasons may be responsible for the large numbers of accidents that occur in the region.

Major car insurance companies in Saudi Arabia

This paper indicates that Saudi Arabia has many car insurance companies. These insurance companies offer diverse covers on various risks that affect cars. A number of the companies include the Allianz Saudi Fransi, ACE Insured Company, the Al Rajhi Company of cooperative insurance, the Al Alamiya Company of cooperative insurance and the American International Group & Arab National Bank Cooperative Insurance Company. Another company includes the Saudi Arabia Car Insurance Company.

References

Al-suwian, Aziz. Potential petrochemical hazards in Saudi Arabia. Riyadh: Division of Planning and Training, 2009.Print.

Al-tukhi et al. Road traffic accidents: statistics and data comparing the Gulf countries and the Ruyadh area. Riyadh:Saudi Med, 2008.Print.

Arena, Marco. “Does Insurance Market Activity Promote Economic Growth.” Journal of Risk & Insurance 75. 4 (2008): 921-946.Print.

Bullen, Pierce. Risk Management. Management Alternatives for Human Resources. 2013. Web.

Sullivan et al. Economics: Principles in Action. New Jersey: Pearson Prentice Hall, 2011.Print.

Footnotes

1. Stands for motor vehicle collisions.
2. Refers to Ultra violet radiations that are manifest in all weather conditions.
3. Refers to Ultra violet radiations that are more prevalent in hot weather.
4. Refers to the Gulf Cooperation Council.

Executive Summary

Car insurance is a cover against losses related to the use of automobiles. These covers vary depending on the needs of the consumers. Car insurance comprises of liability insurance, impact insurance, uninsured/under-insured motorist coverage, and comprehensive insurance among others. The main objective of car insurance is to protect the car owner and the family from financial losses in the event of an accident or any other eventuality. The report is going to explore car insurance in the Kingdom of Saudi Arabia and the U.S. Consequently, comparative analysis of car insurance policies between the two countries is conducted.

Introduction

Car insurance is a cover against losses associated with the use of automobiles. The coverage varies depending on the needs of the consumers. Car insurance comprises of liability insurance, impact insurance, uninsured/under-insured motorist coverage, and comprehensive insurance among others (Goodwin 5). Liability insurance is regarded as the minimum and mandatory insurance cover for all the motorists. Liability insurance protects the car owner from losses in the event of an accident or any other eventuality that requires third party compensation. Collision insurance provides more protection than liability insurance. Collision insurance also covers the car when the owner is responsible for the damage (Sage 1).

Uninsured/under-insured motorist coverage covers the car owner who is involved in the accident but is not insured or partially insured. Lastly, comprehensive insurance covers other damages to the car that are unrelated to accident, for instance, theft, vandalism, natural disasters and fire among others (Goodwin 5). Most insurance companies do provide discounted insurance for individuals who adhere to safety precautions, for example, non-smokers. In addition, car insurance requirements varies from one country to another. For that reason, it is important for individuals to be on familiar terms with the minimum car insurance requirements in their host countries (Awais 1).

To cut a long story short, car insurance protects the car owner and the family from financial losses in case of any eventuality. Car insurance is not only a necessity but also a legal requirement for almost all the car owners across the globe. In other words, individuals who have not insured their car are liable to heavy fines or even jail term (Sage 2).

Report Purpose

The report aims at exploring car insurance in the Kingdom of Saudi Arabia and the US. The report will then compare and contrast car insurance policies between the two countries.

Car Insurance in the Kingdom of Saudi Arabia

Car insurance is compulsory in the Kingdom of Saudi Arabia. This type of insurance comes in two fundamental forms namely: third party insurance and comprehensive insurance. Any individual who owns a car in Saudi Arabia must comply with at least one of the policy. Third party mandatory insurance takes care of the physical injury or damages caused to other individuals involved in the accident. However, this policy does not take care of the owner of the car or the car itself. Third party mandatory insurance was recently replaced by unified compulsory car insurance policy (Awais 1; SAMA 2).

Comprehensive insurance as already been mentioned covers other damages to the car that are not related to the accident. Similar to third party insurance the prices charged for comprehensive insurance varies from one company to another. Therefore, individuals seeking for car insurance services should always ask for referrals from friends and family. In addition, comprehensive insurance can only be bought once in every ten years. This means that individuals who fail to insure their car at the time of purchase can only go for third party mandatory insurance (Awais 1).

Takaful Concept

The insurance policies in Saudi Arabia similar to other Arab States are based on the Islamic law. Auto insurance/car insurance also follows an Islamic insurance instrument principally known as Takaful (Swartz and Coetzer 335). Takaful provides risk protection and savings for its users mainly muslims. However, it is not limited to Muslims alone. Unlike the usual insurance that involves risk elements, gaming and interest, Takaful offers a more reliable protection. This concept originated from Mecca a couple of centuries ago where a community would come to the rescue of its members when faced with unforeseen financial liability (Swartz and Coetzer 336).

According to Takaful concept, people come together and contribute funds that are used to protect members from any form of financial loss or harm. Each member is guaranteed protection or financial help through a pool of funds generated by the entire group. In Saudi Arabia, Takaful is a legally binding agreement and requires all the members to contribute according to the agreement. This scheme is built around the concept of financial donation and the Islamic teachings (Divanna and Shreih 2).

According to Anwar, Takaful concept is “based on mutual cooperation where the insured is also the insurer” (3). The scheme basically exists to spread risks and to ease the financial losses that could face individuals. Other Arab countries that have developed this insurance scheme include Iran, Bahrain, Egypt, Qatar, Kuwait and UAE. Swartz and Coetzer state that the “contributions made under this scheme are converted into risk pool” (339).Funds from this pool are used to cushion members from any financial loss or damage. In case there is a surplus, the amount is shared among the members. On the other hand, shortages are catered for through additional contribution or investment funds. The main objective of the scheme is to protect members from any form of unexpected losses (Swartz and Coetzer 339).

Takaful operations in Saudi Arabia are overseen by an autonomous body known as the Shari’ah Monitoring Council. Besides auto insurance, Takaful has been used to insure property, valuables, health and life. It is also offered to a broad range of industries including construction, real estate, manufacturing, marine, health and many more (Divanna and Shreih 4). The modern Takaful scheme is almost the same as the conventional insurance practice in that contributions are computed and fixed for individuals at a specific age (Swartz and Coetzer 339).

The Unified Mandatory Car Insurance Policy

According to the Royal Decree dated 02/06/1424, the unified mandatory car insurance policy became effective after being approved by the governing council. This policy replaced the third party mandatory car insurance policy (SAMA 2). Under this policy the insurance company is obligated to compensate the third party in the event of a loss or damage to the property as stipulated in the policy. The insurance company is required by the law to compensate the third party for any physical or material damage within or without the car (SAMA 3).

However, article 4 of the policy sets out the coverage limits. According to this article, compensations for any form of loss both physically or materially should not exceed ten million Saudi Riyals. The company can not renounce liability for compensation to the third party because of the negligence or violations committed by the car owner (SAMA 5). The insurance company has the right of recovery from the insured in such scenario but has to compensate the third party.

Examples of cases in which the insurance company has a right of recovery from the insured include violation of the restrictions laid out in the schedule, overloading, over speeding, driving under the influence of drugs, under-age driving, driving in restricted areas, driving a stolen car, and driving using invalid licence. Other cases include false representation, deliberate accident, late notification, and violating other traffic rules (SAMA 6).

Nonetheless, there are cases that are not covered under this policy. They include liabilities arising from war, insurgency, strikes or labour disorder, radioactivity, and natural calamities among others (SAMA 7). Other liabilities not covered under this policy include loss or physical injury to the insured, damaged goods in transit and fines imposed by the authority for violating the law. The surplus of the insurance money after the compensation of the third party is given back to the insured (SAMA 8).

Car Insurance in the United States

Car insurance in the US is similar to the Saudi’s conventional insurance in many aspects. US car insurance just like many other countries is designed to cover car owners from financial liability or loss in the event of an accident (Sage 2). In some states it is mandatory for car owners to have at least minimum liability insurance. However, states like Virginia, New Hampshire and Mississippi do not require minimum liability insurance from the car owners. In these states the car owner can pay a fee or bond to the state for the use of uninsured motorcar. Additionally, article 4 of the US Insurance Law safeguards the rights of all the US nationals when travelling across different states (Goodwin 3).

The car owners in the states where minimum level of liability insurance is compulsory normally pays a monthly insurance premium. This can also be in the form of annual lump sum depending on the agreement between the insurer and the insured (Sage 3). The fee charged on insurance premium in US depends on a number of factors and these include the type of car covered, age and gender of the car owner, driving record of the car owner and the locality where the car is largely driven or kept. Insurance discounts are based on the above elements (Goodwin 4).

The US car owners are protected at different levels depending on the type of policy bought. In most US states the car owners are required to have at least a minimum liability insurance to cover the cost of damage or loss to the third party in case of an accident. However, in some states the rules are flexible as long as the car owner provides a proof of financial responsibility (Sage 3). Car insurance (which is also known as the automobile liability insurance) covers the car owner and other users provided that they do not share the same premise with the car owner and are included in the policy. Users living in the same premise with the car owner are required to be covered explicitly in the policy, especially those who have reached a driving age (Goodwin 5).

Car insurance policy does not protect the insured all the time, for instance, when the policyholder drives another individual’s car. However, the country also has a policy that specifically covers non-owners. Non-owner insurance policy ensures that people using cars that do not belong to them are also covered. The policy also covers historical traffic offenders whose licence have been reinstated. Non-owner coverage policy extends to rental cars and premium charges depending on the type of the car used. However, where the rental cars have already been insured non-owner coverage do not apply (Sage 3).

Liability coverage in the US varies from one jurisdiction to another and is only offered when the car owner is culpable for the loss or damage. Whatever the minimum liability insurance required within a given jurisdiction, the car owner can increase the coverage before an accident to cater for additional charges (Sage 3). For instance, in the event that the car owner hits an electricity pole and damages it, the minimum liability coverage only takes care of the damage. However, the car owner may also be liable to additional fines due to service interruption and this varies from state to state. Another example is when the liability coverage only pays for the injury caused to the third party, but the car owner has to bear the legal fees or other court charges (Sage 4).

In the US, an individual can also decide to combine both the property damage and physical injury coverage through a unified single limit insurance policy. The unified single limit policy takes care of the third party’s property (for example a car) and the injury sustained during the accident. However, the two policies can also be bought separately through a split liability insurance policy. In such case, property loss or destruction is covered under property damage coverage, while physical injury is covered under the injury liability insurance (Sage 5).

Bodily injury coverage is further divided into two namely: upper limit per individual and upper limit per accident. For instance, in the state of California the minimum limit per individual is currently fixed at $15000 and $5000 for a property. On the other end, the insurance company can only pay up to a maximum limit of $50000 for an individual hospital bill and $30000 for property damage. Any additional cost has to be incurred by the car owner (Goodwin 6).

Full insurance coverage applies in the US. The term full coverage is used to refer to an all-inclusive coverage which comprises of impact and comprehensive insurance. Impact coverage is a policy that takes care of the total or repairable damage during a collision. On the other hand, a comprehensive coverage takes care of losses or damages caused by other incidents unrelated to the accident (Goodwin 7). However, critics argue that the term full coverage is misinformed since there are other independent and optional coverage that are required by different states. For instance, in the state of Pennsylvania car owners are required to purchase liability coverage in addition to comprehensive and collision coverage (Goodwin 8).

Last but not least, the US car insurance also provides for uninsured or under-insured motorist coverage. This policy takes care of individuals who are not insured or partially insured. In the event of an accident the insurance company takes care of the bills and takes responsibility of the individual at fault. In other words, they take blame on behalf of the guilty party. For instance, during the peak of the global financial crisis most car owners in the state of Colorado (about 30%) had not purchased minimum liability insurance. In such case, they could do with uninsured or underinsured motorist coverage to protect them from any form of financial loss in the event of an accident (Sage 5).

Analysis

Despite of some disparities, the conventional car insurance policies between Saudi Arabia and US are almost the same. It is mandatory for car owners in Saudi Arabia to have minimum liability insurance same as in most American states. However, a number of American states offer flexible policies hence minimum liability insurance is not a must. In addition, the U.S. has more variety of car insurance policies or coverage than Saudi Arabia. In Saudi Arabia, car insurance is predominantly third party mandatory insurance and comprehensive coverage. The former was replaced by unified mandatory car insurance policy.

It is mandatory for every car owner to purchase at least one of the policies in Saudi Arabia. Failure to do so attracts a fine or a jail term. However, in US car insurance policies vary from one state to another. In most states it is mandatory to have at least a minimum liability insurance, while in some states all the car owner need to do is to pay a fee or bond to the state for the use of uninsured motorcar. On top, the US has other liability coverage besides the two fundamental policies found in Saudi Arabia. These include full coverage (which is a combination of comprehensive coverage and collision coverage), collision insurance, and uninsured/under-insured motorist coverage.

However, the most distinct aspect of car insurance between the two countries is the use of Takaful in Saudi Arabia. Takaful concept is based on Islamic principles and law. There are a number of disparities between Takaful and conventional insurance. First, in Takaful the insurer and the insured are more of the same. This concept is basically pooling funds together and sharing the liabilities of each member. Second, Takaful does not involve risk elements, gaming and interest which are against Islamic principles and law. Last but not least, funds pooled together cannot be invested in businesses that engage in speculation and interest.

Conclusion

The conventional car insurance policies between Saudi Arabia and the U.S. have very few disparities. They are all aimed at protecting the car owner from total financial loss in the event of an accident. In Saudi Arabia, car insurance is predominantly third party obligatory insurance and comprehensive coverage. The former was replaced by unified mandatory car insurance policy. However, in US car insurance policies vary from one state to another.

In most states it is mandatory to have at least a minimum liability insurance, while in some states it is not a must. In addition, the US has other liability coverage besides the two fundamental policies found in Saudi Arabia. Nonetheless, the most distinct aspect of insurance between the two countries is Takaful concept. Takaful concept is based on Islamic principles and law. Takaful is basically contributing funds to a common pool and sharing the liabilities of each member.

Works Cited

Anwar, Habiba. Islamic Finance: A Guide for International Business and Investment, London, UK: GMB Publishing Ltd, 2008. Print.

Awais, Yasmine. Car Insurance in Saudi Arabia. 2010. Web.

DiVanna, Joseph and Antoine Shreih. A New Financial Dawn: The Rise of Islamic Finance, United Kingdom: Leonardo and Francis Press Ltd, 2009. Print.

Goodwin, Wayne. Consumer Guide to Automobile Insurance, North Salisbury Street, North Carolina: North Carolina Department of Insurance, 2010. Print.

Sage, Robbie. Car Insurance Requirements: State by state minimum requirements. 2010. Web.

SAMA. The Unified Compulsory Motor Insurance Policy, Riyadh: Saudi Arabia Monetary Policy, 2007. Print.

Swartz, Nico and Pieter Coetzer. “Takaful: An Islamic Insurance Instrument”. Journal of Development and Agricultural Economics 2.10. (2010): 333-339. Print.

Introduction

When we look at the general meaning of the term hybrid, it is a term used in the breeding of both plants and animals. Animals of different species most of which are of greater quality are normally because of crossbreed. The same case applies to plants and in both; the new product is normally referred to as a hybrid. Those who came up with the name a ‘hybrid car’ should have derived the name from the above reasoning but in this case, the cars are not crossbred because they are not living. It involves the crossing of the existing technology to attain the best from them and hence end up with a more efficient vehicle (Peterson, 2012). There are more than two million hybrid vehicles in use by people in the United States of America alone today. Hybrid cars are considered to contribute a lot towards the healthy living of human beings.

Many detrimental health effects are caused by pollution from vehicles that are not hybrid. The pollution from such vehicles causes adverse health effects such as acute problems of respiratory due to the inhalation of gases causing inflammation of the lung tissues (Papyrakis & FitzRoy, 2009).

Secondly, the immune system of the body is impaired because of inhalation of the gases. In addition, the level of oxygen reaching the body tissues is also reduced leading to the death of some of the most critical body cells. Moreover, outdoor pollution from vehicles can also increase the risk factors, which lead to the development of cancer tissues. The invention of hybrid cars, which do not use fossil fuels, has helped to reduce some of the detrimental health effects. Although electric cars have their disadvantages, their benefits outweigh them to a great extent. The future of the vehicle industry thus lies in the use of hybrid cars.

Hybrid Car Models

There are many models of a hybrid car. All these models are designed to make the environment more friendly in terms of health. They include muscle hybrids, full hybrids, mild hybrids, and plug-in hybrids. Nevertheless, some models are better than others are. Types such as the plug-in and the full hybrids can provide power for the car during normal driving conditions for a reasonable amount of distance using an electric engine without the assistance of gasoline fuel. Some of the companies that have come up with quality hybrid cars include, Toyota, which has made the ‘Toyota Prius and the Toyota Camry, the Honda Accord, the Honda Insight, and the Honda civic.

Other examples of hybrid cars in the market include the Lexus ct 200, the Lexus Hs 250h, the Ford fusion, the Mercedes ML 450, The Volkswagen Touareg, the Chevrolet Tahoe just to mention a few (Bitsche & Gutmann, 2004). “One of the upcoming modern plugs in hybrid is the Chevy Volt, which can recharge very powerful batteries using a common household electric socket, while at the same time maintaining a small gasoline engine resulting to a longer driving range” (Granovskii & Rosen, 2006).

Benefits of Hybrid Cars

Unlike cars that burn fossil fuels, hybrid cars such as electric and solar cars produce fewer gases do not pollute the environment. Cars that use fossil fuels produce gases, which affect the lungs of an individual. The emissions are very dangerous because they affect the respiratory system and can even lead to the development of cancer tissues, which can lead to death. Some of the respiratory infections, caused by fossil fuels include pneumonia, cancer, and even bronchitis. The good news about hybrid cars is that they do not produce harmful gases (Peterson, 2012).

It is important to note that hybrid cars use electricity, which can be produced using artificial means. This helps reduce wastage, making the car very convenient. In addition, the car does not have noise pollution because it is a silent car. This is because the car uses electricity and does not require the burning of gases for it to produce energy. It is thus important to ensure that every person buys electric cars to avoid environmental pollution. The car is also safe it may not cause deaths when left undriven. The car also works with battery technology and can be used by individuals allergic to fossil fuels (Granovskii & Rosen, 2006).

One of the benefits of using a hybrid car is that it reduces the detrimental health effects caused by the use of fossil fuels. The car uses magnetic batteries charged with electricity. In addition, the cars also contain nickel batteries, which help reduce the effects of pollution. People who have active cancer cells are advised to avoid all the risk factors, which can lead to their death (Lave, Hendrickson & McMichael, 1995).

Due to the fuel economy and lack of emission of carbon gases, hybrid cars are the best health companions for individuals (Krzyzanowski & Kuna-Dibbert, 2005). Given the fact that the cars have been mounted with electric batteries and chargers, they do not any the harmful gases. Hybrid cars are also efficient for the environment in that they do not cause pollution of any sort. Automakers also argue that hybrid cars are cheaper to maintain than other cars.

Health Risks of a Hybrid Car

There are also health risks caused by the continued use of electric cars. This is because the car operates using an electromagnetic field thus producing EMFs, which are harmful to the human body. The cars have the potential of producing EMF due to the electric flow of current. It is also very difficult to avoid the electromagnetic fields and currents, which are placed near the driver of an electric car. Drivers and people who spent long periods in electric cars face the risk of exposure to electric cars. Arguably, hybrid cars are indispensable for the conservation of the environment. However; if they pose health risks to the users, they should not be used (Lave, Hendrickson & McMichael, 1995).

Studies show that it is very difficult to get an accurate measure of EMF produced by electric cars. The trifled meter is one of the instruments, which have been developed to test the EMF production in a vehicle. However, EMF levels cannot be detected immediately by the meters. The radio magnetic frequencies, which are produced by EMFs, are very dangerous and are known to damage the cells of the body. Secondly, the EMF can also lead to the damage of the cell structure thus leading to its destruction. This can also cause the development of cells, which are abnormal thus leading to a risk of getting cancer cells. Cancer cells do not have the treatment and this may lead to the death of an individual (Peterson, 2012).

Some of the minor side effects of a car that has an EMF production are having minor headaches and other minor allergic reactions, which occur simultaneously. Exposure to magnetic fields is also known to cause other infections and diseases, which can be managed. Studies have proven that increased exposure of the actual EMF field to pregnant mothers and children can lead to the development of leukemia and other cancer-related infections. Pregnant women are thus advised not to drive in electric cars due to the dangers, which put both the mother and the unborn baby at risk. EMFs have also been proven to cause changes in the body mass of an unborn, hence should be completely avoided by pregnant women (Lave, Hendrickson & McMichael, 1995).

It is also important to note that research has proven that electric cars are made from nickel, which is a harmful substance. After nickel has been used by the electric car it becomes useless and cannot be beneficial. Many people usually dump the nickel batteries into landfills. These landfills produce harmful gases because nickel is made from fossil fuel. The gases produced from landfills are harmful to human beings because they destroy the lungs of the human body. One of the detrimental health effects caused by the destruction of the lungs is bronchitis. This is a dangerous disease, which destroys the respiratory cavity thus leading to the death of the cells of the body. It is also proven that it can lead to the death of an individual if not diagnosed early enough (Peterson, 2012).

Research undertaken by the American National Cancer Institute shows that exposure to magnetic fields cannot be avoided in electric cars. This is because electric cables are tied close to the seats and the drivers hence very difficult to avoid them. Research on the health risks of hybrid cars should be carried out to ensure that people are prevented from being exposed to the effects, which could lead to death after long exposure.

Legitimate scientific research by Harvard University students has proved beyond reasonable doubt that electromagnetic fields do not only cause cancer but can also lead to instances of a heart attack. It is also evident that individuals who have prolonged use of electric cars normally find themselves sleeping after a long drive of the cars. The reason for the sleep is the fact that the electricity generated by electric cars can lead to heart tremors and worse still, lead to damage of the heart tissues. This is due to increased blood pressure, which is caused by the exposure of an individual to electromagnetic fields.

Conclusion

From the previously mentioned facts within this report, it is evident that hybrid cars will assist a lot in the mitigation of ailments brought about by fossil emissions (Lave, Hendrickson & McMichael, 1995). People should not only turn to them to evade the ever-increasing gas prices but because of the health benefits associated with them. Moreover, mitigating environmental hazards such as global warming will bring to an end phenomena such as acid rain which hurts the health of individuals. Various researches have revealed that continued use of green energy will lead to a significant reduction of the health ailments associated with over-dependence on fossil fuels.

In addition, the process of obtaining fossil fuels is associated with environmental degradation. Therefore, the relative drop in the dependence on fossil fuels will lead to improved environmental conditions which are the prerequisite for a healthy leaving. It is thus of vital significance for the public to be sensitized about the need to welcome the idea of shifting from fossil fuel-run cars to hybrid cars.

From another different perspective, hybrid cars are considered to make use of little space as compared to gasoline-powered vehicles. In that regard, the majority of the urban roads will be able to accommodate more cycle lanes which will allow the urban people to shift from the high reliance on cars to cycling. At present, the majority of urban people make use of cars as a result of lack of enough, as well as, secure cycling space. With the presence of cycle lanes, such people will be more willing to cycle than drive because much awareness has been done on the benefits of cycling. Cycling is associated with several health benefits. This is mostly because it involves a lot of exercising of the body, which is healthy for the body.

Reference List

Bitsche, O., & Gutmann, G. (2004). Systems for hybrid cars. Journal of power sources, 127(1), 8-15.

Granovskii, M. and Rosen, P. (2006). Economic and environmental comparison of conventional, hybrid, electric, and hydrogen fuel cell vehicles. Journal of Power Sources, 159(2), 1186-1193.

Krzyzanowski, M., & Kuna-Dibbert, B. (2005). Health effects of transport-related air pollution. Geneva: World Health Organization.

Lave, L. & Hendrickson, C. & McMichael, F. (1995). Environmental implications of electric cars. Science (Washington), 26(1), 993-995.

Papyrakis, E., & FitzRoy, F. (2009). An introduction to climate change economics and policy. London: Earthscan.

Peterson, J. (2012). How Electric Cars and Hybrids Affect Your Health: Planet Green. Web.

Source Evaluation Sheet

Features and attributes

Dependability is the user’s level of trust in a system which reflects the level at which the user is confident to operate a machine without any form of failure. Dependability is a measure of reliability, availability, maintainability, and in some cases, characterized by safety and security. In accessing the car’s dependability, there are prevalent but helpful features that one has to consider. Some of the features are heat and air conditioning; a lot of people want to be comfortable while driving regardless of the weather. The other important feature is the engine type which contributes to the fuel consumption and the power of the vehicle (Dhanabalan, p. 18). The less the car consumes fuel, the better because it will save the driver much fuel. The last important feature is the automatic and manual transmission. Many people prefer automatic cars, but the manual car is better because it is easy to maintain and they are cheap to buy. The manual car’s transmission is inexpensive to repair; also, the driver is more engaged in the journey.

Warrant, safety, and price are some of the attributes people check in the vehicle. The buyer needs to be assured what they are buying is covered in case of any faultiness. The user’s interest in knowing the vehicle’s safety history is critical because it will help understand the car’s worthiness. Some people who buy used vehicles should be cautious because one can get a car that had an accident and marked wanted. Pricing is another critical attribute because one cannot buy what they cannot afford. The higher the price, the safer one is on the road; if one buys a new car and the other buys a used one, the one with a brand new car is safer and more comfortable. When quantifying a warranty, it is important to understand the car’s value. If the car is worth the warrant, then it is important to consider the repairing cost in case an accident happens (Dhanabalan, p. 28). When it comes to warrants, insurance should be a key consideration. There are insurance packages that cover third-party objects and persons. In terms of safety quantification, it is good to consider accident-free vehicles. Otherwise, the other vehicles might have hidden faults such as leaking carburetors or fuel tanks. This minor fault might blow the car while traveling, and one burns inside. Quantifying these attributes means considering the impact they would have on the vehicle if not considered. The analysis of the impact has been done based on each attribute.

Ways to achieve dependability

Dependability can be achieved by taking full ownership of the operation of the system. For example, if it is a car, the driver should feel empowered while driving. The driver is in control of moving the vehicle, and the passengers depend on them. If he or she is not in control, the car can easily get into an accident which means a significant loss. The drivers are trained to fix problems that might occur while on the way quickly. In my own opinion, dependability can be achieved when we give full ownership and accountability to people and not departments or organizations (Dhanabalan, p. 31). Depending on department and organization does not result in world-class reliability and operation. To have a reliable and efficient operation, individuals must take the initiative. Organizations can be dependable if they operate as a process. However, the bottom line is that taking ownership is the only way users can trust the system.

Work cited

Dhanabalan, T., et al. “Factors influencing consumers’ car purchasing decision in Indian automobile industry.” International Journal of Mechanical Engineering and Technology 9.10 (2018): 53-63.

Among the five determinants of product adoption rate, relative advantage and compatibility are two factors that would increase the speed of adoption. Airless tires have a relative advantage over regular tires since they cannot be punctured, and customers value this benefit. Moreover, they are innovative and satisfy the compatibility criteria, effectively increasing the speed of adoption (Solomon et al., 2018). On the other hand, complexity, trialability, and observability delay the adoption rate since airless tires are relatively complex and expensive. Ultimately, they lack accessibility, and it is challenging for customers to test them due to low trialability.

Airless tires are puncture-proof, which is their primary relative advantage over regular tires. Moreover, airless tires are environment-friendly and technologically advanced, meeting contemporary trends and consumers’ expectations. One of the disadvantages is relatively little accessibility due to high costs and manufacturing limitations. The possible marketing solution to the problem is to advertise the product as a highly innovative technology that would attract tech-savvy people, creating a niche in the market.

I would target innovators and early adopters who are generally technology-oriented. If airless tires become more relevant in the market due to the initial attention, car manufacturers might change their construction designs, mitigating some of the additional disadvantages. Moreover, Michelin intends to utilize airless tires primarily on electric cars, and the owners of such vehicles generally prefer technology-oriented products despite potential drawbacks in cost-effectiveness. Therefore, I believe focusing on innovators and early adopters is the most appropriate choice.

I think airless tires belong to the category of dynamically continuous innovation. Solomon et al. (2018, p. 243) identify this concept as a “change in an existing product that requires a moderate amount of learning.” As mentioned in the article, people would have to adapt to the new ways of driving since airless tires are not bouncy and provide different feedback to the driver. Ultimately, driving with airless tires has a slight learning curve, and customers will have to adjust to it.

Reference

Solomon, G. W., Marshall, G. W., & Stuart, E. W. (2018). Marketing: Real people, real choices. Pearson Education.

Abstract

Since the United Kingdom voted to exit the European Union (EU), immense pressure has been placed upon the manufacturing of cars in the UK. It has impacted access to raw materials, factory location decisions, sales, pricing, and general business strategy, to name a few. This paper explores the automobile industry in the UK and Europe, focusing on trade between the UK and Europe. It also touches on the UK’s challenges following the United Kingdom’s decision to quit the European Union (EU). Further analysis drawn from the challenges and issues highlighted is then made to draw a clear picture of the effect of the decision made by the UK. The United Kingdom is among the largest automobile markets in Europe and globally. In an article published in 2019 by Mathilde Carlier, the UK ranked as one of the biggest markets in Europe for automobiles.

UK Automobile Industry

According to the report, the UK ranks as Europe’s second-largest market. The automobile industry in the UK accounts for over 10% of the country’s exports and makes up over 10% of the country’s GDP (Hawes, 2021, 5). In 2020, more than half of the cars manufactured in the UK will be exported. The Society of Motor Manufacturers and Traders reported that America and Asia were the largest markets for these vehicles (Hawes, M, 2020, 1). Europe is a dominant market for the UK’s automobiles and components. The UK imports most of its light vehicles from Europe. The report suggests that around 80% of the cars imported by the UK were from Europe (Hawes, M, 2021, 12). The automobile sector employs many people within the region.

The sector boasts of being among the best developing sectors in the region and a significant employer with many car manufacturers. The industry is stretched with commercial vehicle manufacturers and several suppliers. In 2019, the country manufactured over a million vehicles, where 80% of these were exported. However, this was a decline in production compared to 2018 (Hawes, M, 2020, 3). A further reduction was observed in the rise of the COVID-19 pandemic. The industry was hit by numerous setbacks, such as lockdowns, resulting in many vehicle showrooms worldwide.

Europe Automobile Market

The automobile industry has pushed growth in Europe in recent years. The automobile industry is among the largest in the world. According to Renub Research, the market is expected to grow further in the coming years due to significant advancements in the industry (Renub Research 2021, 1). The press release by Renub stipulates that the automobile industry in Europe is one of the fastest-growing manufacturing branches in recent times. With the fast growth in the market, the demand for vehicles is growing. The manufacturers have been pursuing these demands by developing advanced technologies. The European market incorporates many manufacturers from different regions, such as the UK, which constantly compete to edge each other.

UK – Europe Trade

As earlier discussed, Europe is one of the largest markets for the UK’s manufacturing industry. Being one of the major players in the European market, the UK manufacturing sector has boosted the country’s economy exponentially. Trade between Europe and the UK has faced several challenges since 2020 when COVID-19 hit the global markets, crippling every current economy (Ward, M, 2021, 7). According to Mathew Ward, trade between the UK and Europe has reduced due to the pandemic. Exports from the UK declined significantly, affecting its economy and status in the European market. Due to the coronavirus pandemic’s disruptions to international trade, the worth of UK trade with the EU (and the UK trade value in general) fell dramatically in 2020, a trend that has continued into 2021 (Ward, M, 2021, 5). Covid-related delays are ongoing, as are interruptions in the UK-EU relationship.

Issues arising from the Brexit transition

The Brexit transition will pronounce a downfall in the EU-UK trade. The defeat means a decline in the country’s economy and stability in the market. The automobile sector was greatly affected by the decrease in the EU-UK trade in 2020 (Ward, M, 2021, 7). The industry is one of the country’s key players in economic growth. With the UK exiting the European Union (EU), trade between the UK and Europe is stipulated to hit a downfall, affecting both the UK and Europe. However, the manufacturing sector in the UK would receive the most significant setback as Europe consolidates several countries with big industries, such as Germany. Therefore, the European market wouldn’t accept a downfall of the same magnitude.

The European automobile sector continues to be a major success due to its increased efficiency, safety, and affordability. The automobile industry is critical to Europe’s economic growth. The development and production of automobiles in Europe have a lengthy history. Its distinguishing characteristics include an undeniably high degree of technology, a focus on safety, and heightened environmental awareness. Over the previous decade, Europe’s automaker has been one of the quickest branches of the manufacturing sector (Renub Research, 2021, 1). However, according to Rebecca Fagan, Brexit will negatively impact the automotive industry due to skills shortage. She argues that a fall in sales has pushed people into unemployment. Most of the sector’s income comes from exports, and exiting the European Union spells disaster for the industry (Fagan, R, 2018, 1). Importation of finished vehicles will reduce if the trade ties between the UK and other European countries break. The sector will have to depend on non-EU markets, which might be hard to penetrate. Many manufacturers in the non-EU markets follow different standards from those of the EU, making it hard for the UK to adopt, especially during this decade where technology is fast growing.

The UK has been facing a decline in imports since the COVID-19 pandemic hit. The Brexit transition would spell further downfall as many manufacturers would withhold stocks. This might force manufacturers who rely on imported components to close business or downscale operations. The manufacturing sector in the industry will be crippled and might take time to recover. The automobile industry in the UK employs a wide variety of professions across Europe (Hawes, 2020, 5). With the Brexit transition, the workforce sourced from Europe may reduce since the relationship between the UK and Europe is uncertain. Hostility among the outsourced labor force may cause the country to lose workers who migrated to the automobile sector.

With the fast-growing technology in countries such as Japan, the automobile industry may lose its status in the world markets as it will lack backing from the European Union. The European Union is like an umbrella covering countries and offering support in world markets (Carlier, M, 2022, 1). Without this support, the UK lacks enough power to penetrate other markets. Other regions have treaties and agreements that protect them from external interferences. These are some of the challenges the UK automobile will face if it ventures without backing a body with power (Hawes, M, 2021, 3). Another challenge that the automobile industry will have to face is currency collapse. Without the European Union, the British currency will lose its strength against other currencies, such as the dollar, used in most countries outside Europe, making it more robust than the British Pound in those markets. Due to this, major foreign manufacturing companies may pull out of the UK market.

Mike Hawes, in his report, states that the UK has left the European Union but not the European automobile sector. However, the industry will require maintaining trade agreements with the European Union for its sustainability (Hawes, M, 2021, 3). This suggests that the country’s automobile sector depends on the European market. The UK relies on other European countries such as Austria for raw materials for its automobile industry. Leaving the European Union may force the government to seek alternatives for raw materials. Leaving means excluding themselves from all agreements signed within the union. Without raw materials such as oil for the automotive sector, the industry will crumble down and might take time to recover. The industry has been declining, and a further decline could be catastrophic.

Sales in the automobile industry have reduced since the COVID-19 pandemic. According to Mike Hawes, sales in the automobile industry dropped drastically in 2020 due to the COVID-19 pandemic (Hawes, M, 2021, 7). It depicts that the sector can be easily affected by certain events and circumstances. The industry will decline in sales as many of the showrooms selling UK-made vehicles will cut off the supply and seek alternatives from other manufacturers. It will hurt the automobile industry because manufacturers will have to scale down operations.

Although many challenges are connected to the Brexit transition, its resilience allows it to cope with some of these challenges. Hawes suggests that the government maintain its trade agreement with the European Union to protect the automobile industry (Hawes, M, 2021, 3). The UK is determined to negotiate removing non-tariff barriers to ensure the industry’s sustainability at global levels. This strategy might help uphold the industry’s position in the European market.

Discussion

Following the UK’s decision to leave the European Union (EU), immense pressure has been placed upon the manufacturing of cars in the UK. It has impacted access to raw materials, factory location decisions, sales, pricing, and general business strategy, to name a few. Leaving the European Union has its benefits and disadvantages that cannot be ignored. As discussed in the previous section of the paper, Brexit transition impacts are also felt in the automobile industry. The industry is among the largest and fastest-growing sectors in the UK and Europe.

Many experts have given suggestions, and reports have been prepared to show the industry’s status in the economic growth of the UK. However, the industry has been on the verge of collapsing since the UK left the European Union, as many vehicle manufacturers across the globe have intensified production and technology in this industry. The paper accounts for the industry’s possible and existing challenges due to the Brexit transition. The paper analyses the issues and challenges the decision might cause to the industry and the economy.

This section highlights some possible solutions to the issues discussed in the previous quarter and their effectiveness in maintaining the industry’s status in the world market. According to Hawes, it is crucial to keep the relationship between the UK and the European Union for trade to remain solid (Hawes, M, 2021, 3). This argument gives the basis of all solutions that may be developed to protect the automobile industry from collapse.

The UK may enter into agreements with other countries to source raw materials for its industries, substituting what they acquire from the European Union. This might help reduce the lack of enough raw materials and provide a backup whenever the relations with European countries collapse. The UK can advance its technology and compete with the automobile manufacturing giants such as Japan and Germany. Growing automobile technology will help the industry keep up with the fast-changing automotive manufacturing world. Recently, the world has witnessed the birth of hybrid vehicles that have reduced carbon footprints. With the UK adopting the zero-emissions campaign, its automobile industry will compete at the same level as the other countries. The technology has not yet had widespread acknowledgment, which might give the industry a chance to rise back. Taking advantage of this and pushing for advanced technologies in the industry will provide the UK with its lost glory.

Although the industry is faced with many challenges, there is still the chance to trade fairly with the other markets outside Europe and develop strong bonds with potential partners. Collaborations with countries such as China and others that have advanced technologies in the industry also will help the country compete with the European Union and reduce the effects of the Brexit transition.

Reference List

Carlier M, (2022) ‘The automotive industry in the United Kingdom’, Statistics & Facts. United Kingdom. Web.

Fagan R, (2018) How Will Brexit Affect the UK Automotive Industry. Web.

Hawes M, (2020) UK automotive at a glance. SMMT Motor industry facts 2020 pp 1-41.

Hawes M, (2021) Driving global Britain. UK Automotive Trade Report 2021, pp 1-40.

Renub Research, (2021) The Europe Automotive vehicle market is expected to reach 21.59 million units by 2030, propelled by Electric and Mild Hybrid vehicle Growth. Web.

Ward M, (2021) Statistics on UK-EU trade. House of Commons Library, pp.5-26.

Modern advancements in technology reached a point where electric vehicles (EVs) are considered a viable alternative to gasoline cars. The invention of electric vehicles brings both advantages and disadvantages to the world because it addresses the problem of air pollution caused by internal combustion engine vehicles (ICEV). Thus, EVs can become a superior alternative to ICEVs, but the former’s negative implications must also be acknowledged.

The key difference between EVs and ICEVs is a source of fuel where an electric car utilizes electricity, but a gasoline vehicle uses fossil fuel derivatives. EV uses a high-voltage battery, which provides electric energy to be turned into mechanical energy, but ICEV uses internal combustion from fossil fuel derivatives, which are burned to compress the air inside the engine (Upadhyay et al. p. 5). The result is that there are no emissions of greenhouse gases by EVs, whereas the combustion process in ICEVs contributes to air pollution. However, they are similar in terms of their polluting impact during the car manufacturing process. An EV generates a higher degree of carbon pollution than production of ICEV due to an extra energy requirement for EV high voltage battery manufacturing (U.S. Environmental Protection Agency par. 13). Thus, both EVs and ICEVs are harmful to the environment.

In conclusion, EVs do not cause pollution during their operations, while IVEVs are combusting fossil fuels, but both are damaging to the environment during the manufacturing stage. As a form of transportation, the level of technological advancement is as such that EVs have no major drawbacks compared to ICEVs functionally. Therefore, it is important to ensure that EV production is made environmentally friendly and that electricity comes from renewable sources before advocating their adoption as a superior alternative.

Works Cited

U.S. Environmental Protection Agency. Electric Vehicle Myths. United States Federal Government, 2021. Web.

Upadhyay, Abhishek, et al. “Electric Vehicles over Contemporary Combustion Engines.” IOP Conference Series: Earth and Environmental Science, vol. 635, pp. 1-12.