Sustainability rises rapidly up car company priorities - IBM executive survey
Thu 14 August 2008
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Sustainability is now the second most important priority for the automotive industry, after technological progress, according to a survey based on interviews with 125 car company executives in 15 countries, according to a report by the IBM Institute for Business Value. Hybridisation and battery technology are expected to lead the drive towards greater environmental sustainability according to the report.
Sustainability has risen dramatically up the list of car makers priorities according to the report, which is based on the findings of interviews with executives from 85% of the world's top car companies.
The report highlights moves to hybrid and electric vehicles, commenting that micro-, mild- and full-hybridization are currently undergoing extensive development. The study says that most participants believe strongly that by 2020 all new vehicles will have some level of hybridization.
The report, Automotive 2020: Clarity Beyond the Chaos, was introduced at an automotive research event in the United States. Among headline findings it said that executives interviewed painted an unambiguous picture of the vehicle powertrain by 2020. Alternative power will see continued innovation for years beyond 2020 they said. Battery technology will be ubiquitous and lithium-ion technology holds the most promise and will see considerable investment and growth.
Most car industry executives interviewed believe that the all-electric, plug-in battery-powered vehicle will be more widespread by 2020 and will, have a range of 100 miles or more; enough to satisfy the needs of large sections of the population.
Hydrogen fuel-cell vehicles, though a viable alternative, are expected to represent only a small fraction of vehicle production by 2020, due to cost-prohibitive processes and the need for new infrastructure.
The concept of total carbon footprint is increasingly the focus of industry executives and is expected to drive key decisions between now and 2020. Sustainability will be defined and broadly understood as a reflection of total carbon used in manufacturing and distributing across the entire value chain.
Meanwhile, The Financial Times reports that Toyota and Honda are both set to introduce distinctive new models early next year.
Honda has announced that it will introduce a hybrid hatchback which will be smaller and cheaper than the existing Civic hybrid sedan while Toyota is due to unveil a larger version of its popular Prius model.
Meanwhile, the major US car makers are also stepping up their hybrid offerings. Ford, for example, is preparing to launch hybrid versions of its mid-sized Fusion and Mercury Milan sedans next year.
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