CPP STS | 3801 West Temple Ave. | 0 Pomona, CA 91768 +1 (626) 848-4354 [email protected] _​View my Research:​ ​AlbertFattal.com​_ Research Thesis EC 441.01 (S18) Industry Studies CRN: 32656; Units: 4 Professor: Anne Bresnock Class Meetings: M, W; 6:00 PM - 7:50 PM Location: Building 1; Room 309 Spring, 2018-06-04 EC 441.01 (S18) Industry Studies - Research Thesis (Electric Vehicles in the Global Industry) Rev.2 Principle Investigator: Dr. Anne Bresnock (The student will write a ten page, single-spaced, typed term paper that targets a specific industry. The paper should begin with a consolidated review of the historical, scientific, technological and economic developments of the particular industry (approx. 1 – 3 pages). The large middle section of the paper should primarily focus on the economic underpinnings of the chosen industry and mesh this economic discussion with coverage of a specific environmental or natural resources issue (approx. 5 – 6 pages). The third section of the paper should contain the public policy and domestic versus international aspects of the industry (approx 1 – 3 pages). The paper must also contain a brief introduction and conclusion that mirror each other (ex. one very good paragraph each), an outline (which should be imbedded in the paper as subtitles), endnotes (NOT footnotes), source citations for all borrowed tables, graphs, etc., and a non-annotated bibliography. All tables, graphs, etc. should be included in an appendix at the end of the paper and be clearly and sequentially labeled, e.g. Table 1 Title of Table 1, Table 2 Title of Table 2, Figure 1 Title of Figure 1, etc. All tables, graphs, etc. included in an appendix must be discussed and referred to by title and number in the text of the paper, or do not include them. Acceptable sources for the paper may be relevant printed material from newsprint to books to refereed journal articles. However, you need a good blend of such sources – meaning you can’t rely much on short, newsprint articles. The paper is due in single-spaced, typed form on June 4st. Due: Saturday, June 04, 2018. -- | 1 Research Thesis ELECTRIC VEHICLES IN THE GLOBAL INDUSTRY ELECTRIC VEHICLES IN THE GLOBAL INDUSTRY | 2 Research Thesis Table of Contents Outline 5 Term Paper 6 Abstract 6 Introduction 7 History of the Electric Vehicle 7 Overview 8 Early Leaders 9 Key Inventions/Innovations 10 Technological Development 10 Externalities/Resource Issues 11 Controversies 11 Market Structure Characteristics 12 Data 12 Market Comparison 13 Barriers to Entry 13 Conduct 14 Price Determination 14 Pricing Strategies 14 Non-Price Competition 14 Marketing 15 Eco-Advantage 15 Performance 15 Profits 15 Efficiencies 16 Changes in Market Share 16 Product Diversity and Innovation 16 Raw Material Sources 16 Eco-Advantages 17 Externalities/Resource Issues 17 Public Policy 17 ELECTRIC VEHICLES IN THE GLOBAL INDUSTRY | 3 Research Thesis Laws 18 Antitrust Actions 18 Controls 18 Protections 18 Conclusion 19 Citations & Appendix References 20 APPENDIX 1 21 Figure 1: Eco-Advantage Playing Field for the EV in the Global Industry. 21 APPENDIX 2 22 Figure 2: Global EV Stock Between 2010-2016 22 APPENDIX 3 23 Figure 3: Strategy Framework for the EV in the Global Industry 23 APPENDIX 4 24 Figure 4: EV sales by country 24 APPENDIX 5 25 Figure 5: EV Revenue Comparison 25 APPENDIX 6 26 Figure 6: Eco-Advantage Toolkit for the EV in the Global Industry. 26 APPENDIX 7 27 Figure 7: AUDIO table analysis for the EV in the Global Industry. 27 APPENDIX 8 28 Figure 8: Policy and EV 28 ELECTRIC VEHICLES IN THE GLOBAL INDUSTRY | 4 Research Thesis Outline I. Abstract II. Introduction III. History A. Brief Overview B. Early Leaders C. Key Inventions/Innovations D. Technological Development E. Externalities/Resource Issues F. Controversies IV. Market Structure Characteristics A. Data B. Market Comparison C. Barriers to Entry V. Conduct A. Price Determination B. Pricing Strategies C. Non-Price Competition D. Marketing E. Eco-Advantage VI. Performance A. Profits B. Efficiencies C. Changes in Market Share D. Product Diversity and Innovation E. Raw Materials Sources F. Eco-Advantages G. Externalities and/or Resource Issues VII. Public Policy A. Laws B. Antitrust Actions C. Controls D. Protections VIII. Conclusion ELECTRIC VEHICLES IN THE GLOBAL INDUSTRY | 5 Research Thesis Term Paper I. Abstract This Paper will examine the historical, sustainability that gas powered vehicles scientific, technological, and economics often lack. development of the electric vehicle industry. There has been an ever growing cultural The paper will additionally cover the change behind the need of the electric environmental and natural resource issues vehicle that has slowly altered the way in presented by electric vehicles throughout the which automotive manufacturers design, global market. market and sell their products. This spans far The electric vehicle industry spans nearly a more than simply on the sales floor, as century, predating the internal combustion educated consumers demand vehicles that motor powered vehicle. While vehicles have are built sustainably while decreasing the changed drastically throughout time, the tremendous environmental impact that need to focus on alternative powered vehicles manufacturing often has. This has vehicles has become an important change become apparent by automotive due to the ever depleting resource of oil and manufacturers using more recyclable the projected increase in oil costs to materials, and parts that are significantly maintain an internal combustion powered more biodegradable. This has lead to vehicle. Among the many motivators of the lighters, stronger and far more efficient Electric Vehicle within the global market, vehicles, all of these attributes necessary to there are many clear influences for this usher in the new emergence of the electric. topic, spanning from positive economic In addition to the raw material used in change due to government reforms through vehicles, these resource consumption issue the EPA, more efficient vehicle began spanning into the manufacturing transportation, and for many - the advantage facilities themselves, adding more windows of a higher performing electric vehicle in to facilities, using less electric and comparison to a comparable internal implementing LEED certifications combustion powered vehicle. The electric throughout the plants. vehicle has had a social influence in its Conventional gas powered vehicles have emerging of the late, with many long been a primary contributor to increased economically conscious consumers pollution, particularly in locations with large demanding for higher mileage cars that vehicle populations such as urban cities and place an importance on the economic the outskirts of most industrial areas that require the commuting of people from their ELECTRIC VEHICLES IN THE GLOBAL INDUSTRY | 6 Research Thesis homes to their jobs. In Los Angeles, nearly consumer plays a leading role into the types half a million workers commute from of vehicles automotive manufacturers design outside counties into the dense urban and build. working industries, according the the US Census, 2013. This leads to very unhealthy II. Introduction levels of smoke that can be physically seen Dawning from the first automobiles that by residents of LA that appears like fog, were built in the early nineteenth century, commonly referred to as “smog”. According electric vehicles (EVs) have had a to an article in the LA Times, It's not tumultuous history. The vehicles use uncommon for air quality to reach unhealthy electrical motor propulsion to reduce levels, especially in the Inland Empire, consumption and emissions from gasoline where the air violates federal health engines. Electric cars promise zero standards on most summer days. emissions, non-reliance on fossil fuels and the possibility of autonomous driving. Their As vehicle designs continued to improve history has, however, been unpromising. from the 1920’s throughout the early 1970’s, After scientists successfully generated efficiency was never a factor taken into motion from electricity in 1827, the first consideration for the majority of vehicles motor was built in 1828. Following this produced. There was never an emphasis on invention, various scientists and using lighter weight materials such as the manufactured embarked on missions to use of magnesium, plastics or carbon fiber, create carriages from the phenomenon. The as the majority of vehicles were made out of electric motor dominated the nineteenth inexpensive steel motors, chassis, and century and by the turn of the twentieth bodies. This lead to inferior gas mileage but century, electric automobiles held the land kept vehicles cheap to produce. Following speed record. The twentieth century saw a the 70’s as the price of gas began to soar, rise in the popularity of gasoline engines, material usage became important and was a sending EVs into obscurity. In recent times, large contributor to the ease setting up the EVs have gained popularity with both successful development of electric vehicles manufacturers and consumers, promising decades to come. With the now lighter improved performance capabilities. This vehicle designs, the internal combustion paper discusses the history, market structure, motor was not necessary to push so much conduct and performance of the global EV weight around and smaller, lighter far more industry. efficient electric motors could be placed into vehicles without losing much of the II. History of the Electric