Sanger Automotive Case

Question 1: Using budget data, how many motors would have to be sold for Waltham Motors Division to breakeven?

After this the purchasing decision is derived from Vehicle price, concern’s about travel range, and the size of the car, specifically relating to trunk space. These are all product factors that can only be changed over time as perception of the electric car product is shaped in the consumers mind through a multitude of marketing tactics, something that a small scale dealer like Sanger will never truly have a major influence on. These factors can only go two ways, one is the negative perception of the electric plug-in remains constant as consumers fail to see the benefits of the new product type and the market continues to rely on gas powered vehicles, or consumers view the perceived value of the electric cars as being more beneficial both economically and environmentally. The ladder

Currently, the market for electric vehicles are in its early stages. However, with the growing environmental awareness more people are becoming more accepting and fond of the idea of electric cars. Presently, less than 2% of households have an electric powered vehicle but it is projected that by the year 2045, electric vehicles will account for 35% of the automotive market share.

Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure? [3 points]

The car’s opportunity cost in the decision to keep it for resale is $7,200, but in matching expenses to revenues, the

Despite the numerous benefits that are associated with electric cars, there are some drawbacks that have prevented the popular use of the cars in the current period. Among the drawbacks is the high cost that is associated with buying an electric car. According to Jager et al. most of the electric cars in the market are

In the previous couple of years, purchasers have requested an ever increasing number of autos that are reasonable as well as fuel-proficient. This ascent popular is because of the changing variables in the essence of the purchasers, the ascent in populace, the rising salary, the ascent in costs of substitutes, and the drop in the costs of supplement items and administrations. Honda and Toyota have both made a significant entirety of cash by exploiting the chance of these ascents sought after.

28) Refer to Figure 1. What is the number of practice models sold at breakeven?

Or, you could use multiple data tables to illustrate the search. We conclude that we must sell at least 572 units to break even. Figure 2.8 Data Table Results for One-Variable, Net Cash Flow = $4300

8. A consumer values a car at $30,000 and it cost a producer $20,000 to make the

The electric car is not, by any means, a new concept. The electric car was first introduced in the 19th century, but as oil was more plentiful and much cheaper than electricity, the internal combustion engine came to the forefront of the transportation sector.1 Now, as oil reserves around the globe have reached the lowest since 1973 and gas prices the world over are soaring,1 the world has turned back to the electric car.1 The electric car was endorsed by the United States Government in 2009 as “a promising alternative to petroleum in the transportation sector”, and 2.1 billion dollars has been allocated to subsidies for battery and component manufacturers.3 Despite

The US Auto industry is facing the reality that new generations are not the same generations on which they built their empires. As information and global awareness are more prevalent than ever before, the consumer only wants to do what feels right to them, not what they have been told to want, and statistic show that the things the new consumer is looking for above all, is the lower cost of owning a car, followed fuel efficiency and how environmentally friendly it is.

The first successful electric car made its appearance to the world over one hundred years ago, around 1890 thanks to William Morrison, a chemist who lived in Des Moines, Iowa. His six-passenger vehicle capable of a top speed of 14 miles per hour was little more than an electrified wagon, but it helped spark interest in electric vehicles. (Matulka, 2012) Although their advantages were soon overshadowed by gasoline driven automobiles, they slowly made a return in 2008 thanks to common consumer, Tesla Motors. The electric cars grew and quickly gained popularity due to its energy efficient nature and comparatively lower cost. In addition to the energy efficiency and lower costs, electric vehicles are ecosystem friendly, smoothly driven, quiet, and quick, no tailpipe emissions and last but not least, the electric

From the Model T and the humble sedan, it seems commonplace to own a luxury vehicle or SUV today. Critics claim that Americans have a deep attachment to big trucks, family sedans semis, and other commercial vehicles. The automotive industry is one of the largest in the United States. Since smaller vehicles are seldom imported, there is a ready market for

Although the market is dominated by HEV, the industries’ new car sales in 2015 by 86.1%, there is evidence that the sales of 100% EV have recently experienced particularly strong growth. (Mason, 2017a) Please see appendix A for further details on new registrations of HEV and EV from 2011 to 2016. In this market, EV not only needs to compete with other EV from different manufacturers but also needs to consider HEV as substitute products. EV and HEV belong to ULEV (Ultra Low Emission Vehicles) An analysis of those who are active in the ULEV section of the hybrid and power markets shows how the sector currently competes by a relatively limited number of manufacturers, please figure 1. Specifically, the two most famous companies are Mitsubishi and Nissan, although their new sales share was relatively reduced as