Question

In: Economics

The opening vignette in chapter 1 discusses the impact of electric vehicles, though there's certainly been...

The opening vignette in chapter 1 discusses the impact of electric vehicles, though there's certainly been significant recent development in this area. Even here in Weatherford there are two electric charging stations; a Tesla charging station behind Lucille's Restaurant and an Electrify America charging station in the Walmart parking lot. Explain how the decision making process would work for an automobile manufacturer deciding to begin manufacturing electric vehicles. How would the National Society of Professional Engineers Code of Ethics apply in this process? Where could ethical dilemmas arise, and what are some examples of them? What kind of decisions and evaluative criteria would consumers be likely to use in deciding to purchase an electric vehicle rather than a vehicle with an internal combustion engine?

Solutions

Expert Solution

At the time of decision making process of an automobile manufacturer, he needs to ensure that the country is infrastructurally ready to use the electric vehicles. There should be appropriate number of charging points so that the customers do not find any difficulty in charging the vehicles.

Moreover, the mindset of the customers need to be judged whether they are ready to switch from gasoline driven vehicles to electric vehicles. The way they are going to dispose off their current vehicles in use and switch to electric vehicles.

They also need to consider the rules and regulations passed by the government in order to adopt the electric vehicles.If the government has made compulsory, there is no way out to escape away from the regulations.

National Society of Professional Engineers Code of Ethics state that the engineers should involve in manufacturing of certain products which do not cause any harm to the society and to the environment. Thus manufacturing electric vehicles would protect the environment in two ways, not depleting the already scarce natural resource petrol or diesel and no pollution being caused to the environment.

The dilemma arises as the manufacturing electric vehicles incur high expenditure by the manufacturer , so whether the company should manufacture electric vehicle or continue manufacturing petrol or diesel driven vehicles. Their profit margin also depends on the decision and the decision to be taken cautiously. For example, Tesla is highly committed to environment protection and innovation and thus switch to electric vehicles, whereas companies like Maruti being less innovative ahve not even started with electric vehicle manufacturing.

Evaluative criteria used by consumers :

  • Purchase price of new electric vehicles, whether any discount is available or exchange offer to exchange their existing cars with a new electric car
  • Disposing off the existing vehicles
  • Loan facility being offered for purchasing electric vehicles
  • Maintenance cost of electric vehicles, whether it is sufficient enough to substantiate the high cost of purchasing a new vehicle.
  • Value for money in the form of environment friendliness of electric cars.

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