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Suv End of Term Paper

In:

Submitted By aaisakop
Words 304
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I would not advise this company in getting rid of the suv line as global markets show there is a growing market in emerging markets like the pacific Asia the middle east and some African countries where the terrain and roads are more conduce and the price of fuel has little barring on individuals. Also in these parts of the world an average house hold has six to eight people so in terms of passenger mobility the suv line would serve as the best option as opposed to having multiple smaller cars.

Smaller cars depending on the engine size but I would make the assumption our fuel-efficient cars would compose of a 4-6 cillinder egines would be much more easier to drize on the roads and be more economical on the road. The smaller car also is easier to park around town and the average house hold in terms of insurance and fuel economy and what system we fit in the car is irrelevant as the price would be determined by that.

By phasing out the most profitable arm of the business the company is taking a huge risk of losing its cash from a financial point of view making more fuel efficient cars at the expense of the flagship is a very big gamble I would not recommend. Also in most cases we have to look at the worlds emerging markets who are not ready for hybrid cars. Some companies are taking the approach of making suvs hybrid and this could make the car more eco friendly I would suggest rather than phase out the flagship suv models it would be better to make hybrid more eco friendly cars as they make the same impact as smaller sedans.

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