In this video, you will learn how automobile companies are making the transition to producing a lot more fuel-efficient vehicles. CEO, Jack W. Plunkett, guides you through the trends that are going to take over one of the world’s most influential industries. 00:00:46,400 – 00:00:51,390 The problem is that within the United States, the industry is forced to make 00:00:51,390 – 00:00:57,440 more investment than it wants to in small highly fuel-efficient cars because 00:00:57,440 – 00:01:03,620 as the years go by, the C-A-F-E, or the required average fuel efficiency rate for each 00:01:03,620 – 00:01:07,689 manufacturer gets higher and higher. Pretty soon, automakers are gonna have 00:01:07,689 – 00:01:12,670 to post more than 50 miles per gallon average per automobile. Now that’s gonna be 00:01:12,670 – 00:01:17,929 hard to do. It’s going to take a lot of engineering. It also takes away from their investments in big 00:01:17,929 – 00:01:23,560 gas-guzzling vehicles. In Europe, automakers are pretty well focused on 00:01:23,560 – 00:01:28,530 selling more fuel-efficient vehicles because fuel prices in Europe are always 00:01:28,530 – 00:01:33,859 so high, where fuel is taxed at a much higher rate per gallon or per liter than it is 00:01:33,859 – 00:01:40,310 in the United States. Finally, in many places in Asia, automakers are working 00:01:40,310 – 00:01:46,689 under the problem that big luxury cars that might be imported, pay huge import tariffs. 00:01:46,689 – 00:01:51,709 While their local manufacturing is more focused for instance in China on smaller 00:01:51,709 – 00:01:54,509 lighter cars and vans. Today, 00:01:54,509 – 00:01:59,450 car-makers are more than ever focused on efficiency, which to them means optimum 00:01:59,450 – 00:02:06,380 lean production, which means relying more and more on their outsourced makers of 00:02:06,380 – 00:02:11,720 parts, components, and assemblies, which the automaker’s then bring into their 00:02:11,720 – 00:02:15,819 own factories and assemble as much as manufacture. They want to rely on 00:03:03,549 – 00:03:08,510 Mexico is absolutely hot in this regard. What’s the long-term future of the 00:03:08,510 – 00:03:12,430 automobile industry? At one time, analysts were thinking of as many as 00:03:12,430 – 00:03:17,939 three billion cars and light trucks on the planet by 2050. Roughly three times 00:03:17,939 – 00:03:25,099 today’s rate. However, the sharing economy may well put a hold on that thought as consumers 00:03:25,099 – 00:03:29,579 around the world more and more are using everything from bike sharing to car sharing 00:03:29,579 – 00:03:35,240 services like Zipcar; eliminating to some extent the need for personally owned 00:03:35,240 – 00:03:40,460 automobiles. Other things for the future that must be considered, are natural 00:03:40,460 – 00:03:44,970 gas-powered vehicles with the world awash in natural gas, particularly in 00:03:44,970 – 00:03:49,330 North America. There will be more reliance on using natural gas for big 00:03:49,330 – 00:03:54,680 transportation, at least things like buses and long range trucks. What about 00:03:54,680 – 00:03:59,190 electric cars? All-electric things like Tesla and hybrid cars like the Prius 00:03:59,190 – 00:04:04,660 still represent a very, very small portion of the total automobile market. For more information, visit us at:

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