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Adding Alternative Fuel Vehicles to the Lotus Rental Fleet
BCOMM 215
March 11, 2013
Sharon Bronson-Sheehan

Adding Alternative Fuel Vehicles to a Fleet
This year more than ever, Americans are beginning to be concerned about the use of petroleum, due to the significant cost increase of gasoline and diesel, possibility of global warming, and energy security. Abstract Fossil fuels have been a primary fuel source for the industrial world, for centuries. Fossil fuel costs have been at all-time high and the economy is being burdened with the cost of everyday commuting and traveling expenses. Consumers have been looking for new ways to reduce cost by looking into other means of transportation. In an effort to bring down the gasoline cost for his fleet, Lotus Car's Chief Financial Officer is looking at the possibility of adding alternative fuel vehicles to its fleet.
Types of Alternative Fuel Vehicles:
Today, there is numerous alternative fuel vehicles developed and being developed to compete with fossil fuel usage. According to the U.S. Department of Energy, more than a dozen alternative fuels are in production or under development for the use in alternative fuel vehicles and advanced technology vehicles. (U.S. Department of Energy, 2013) Vehicles are being powered by biodiesel, propane, ethanol, hydrogen, natural gas, and electricity. The most popular alternative fuel vehicles being used in today’s rental car fleets are hybrid, ethanol, and electric vehicles.
Hybrid:
Hybrids have a potential for excellent fuel economy and are capable of running on existing fuel supplies, without any behavioral change. Hybrids (HEVs) are currently more expensive than regular models but over time much of the costs will be recovered through gasoline savings and state incentives. Plug-in-Hybrids (PHEVs) are all electric capable of short commuting distances for many

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