LICA428 Contemporary Issues in Design: Sustainability Michaelmas Term 2014
Major automobile corporations: Influence in sustainability
Student Names:
First Name
Family Name
Individial Topic Name
Yanqing
Ma
y.ma3@lancaster.ac.uk
Ford
David
PĂŠrez
d.perez@lancaster.ac.uk
Jaguar and Land Rover
Shuwen
Han
s.han@lancaster.ac.uk
Volvo
Jian
Ding
j.ding1@lancaster.ac.uk
Volkswagen Group
Karla
HenrĂquez
henriquk@lancaster.ac.uk
Nissan
Introduction
The Automobile industry is definitely the one of the biggest industries in the world. The products of this industry, are permanently in contact with people, providing mobility (Orsato & Wells, 2007). Furthermore the economic impact that the industry generates is around â‚Ź1.1 trillion per year (Orsato & Wells, 2007), playing in this way a key role in the global economy. These results, also have social impacts. For example only in United States, the automotive industry generates 1, 8 million jobs (United States Department of Labor, 2014). However, on the other hand it is responsible of one of the main problem of the cities, the traffic jams. Nonetheless, the industry produces significant damages to the environment, mainly because it is 96% dependent of petroleum products, which gases as carbon monoxide (CO) and nitrogen oxide (NOx), and volatile organic compounds (VOC) produce among other important aspects, the greenhouse gas(McAuley, 2003). Nowadays, automobile companies have shown a significant commitment in terms of environmental issues, incorporating this topics in its strategic alignment (Mikler, 2009).Operationally this points have treated have treated through the awareness of the product life cycle. In other words from acquisition of raw materials, manufacturing, distribution, use, and end-of-life stages (Joshi, 1999). For example, according to McAuley (2003), almost the 90% of the fuel consumption of the cars is during the “use phaseâ€? of the automobile life cycle. To face this issue, companies are making decision from the design stage, selecting lightweight materials, using new energy source, and so on (Lave, et al., 2000; McAuley, 2003). The purpose of this paper is to evaluate five of the most important automobile companies around the world, whose manufacturing plants are distributed in North America, Europe and Asia. The companies are Ford, Jaguar and Land Rover, Nissan, Volkswagen and Volvo. The evaluation of those companies it will be do it following the principles of sustainability. In other words, examining the organization activities in respect with environmental, social, and economic issues as well as issues of individual wellbeing and personal development. This report will begin analysing the companies, in the following order Ford, Jaguar and Land Rover, Nissan, Volkswagen and Volvo. The remainder of this document will show the conclusions, which will summarise the information presented and will provide the general conclusions and insights found as group.
Critique on Ford Yanqing Ma As a worldwide automotive industry leader, Ford motor company, which is famous as one of “ big three”(the others are General motor and Chrysler) automobile-makers in America, manufacturing and distributing automobiles across six continents, with around 181000 employees and 77 office and plant locations around the world(Ford Motor Company Global,2014) , has sought to reduce the environmental, social and economic impacts in response to the need for corporate responsibility for the sustainability. In order to “greening the products and operations”(Ford sustainability report 2013/14), Ford claimed several sustainable strategies including climate change strategy, water strategy and human rights strategy etc. On one hand, it is lauded for Ford to be tackling this issue so forthrightly. Yet, on the other hand, the real purpose that behind these strategies needs to be deliberated. Ford use product life cycle assessment (LCA) approach to reduce the adverse impact of the products through the stages from extraction of raw materials, manufacturing, transportation, use to end-of-life. It seems that LCA is quite fair-sounding and efficient, however, it is a difficult mission for corporation to carry out in practice (Asiedu 1998), which means, to some extent, although corporations are increasingly involved in sustainability, it does not mean they are practicing sustainability(Reyes, 2013). For example, Ford aim to increase the use of recycled and renewable materials, hence reducing the deprivation of resource from nature and decreasing the harmful impact on the environment. Indeed, the primary goal of recycling is to save resource and find efficient ways to disposal the end-oflife vehicles, but this method could be used for the other reasons such as cutting cost and saving money(Mayyas et al, 2012) just like Ford said, ‘The materials used in a vehicle can also have implications throughout our value chain.’ (Ford sustainability report 2014) it demonstrate that, in reality, there are so many factors that can affect the companies’ strategies. Normally, increasing financial performance is always laying behind the scenes. In fact, things aren't always what they seem, the using of product life cycle assessment, not only mask the subjectivity of the decision-making involved, but also fix our attention on incremental improvements to an inherently problematic system(Walker,2015) Interestingly, in case of fuel consumption, on one hand, in order to achieve greater fuel efficiency, Ford claim that they are focusing on using light materials such as aluminum and plastic which can reduce the costs and weight. On the other hand, by using “ get back out into nature” advertising, Ford make tremendously profit for its simply big, heavy, expensive, and gas-guzzling SUVs which bring in universal anti-ecological outcomes (Luke,2001). In this case, it also can be shown that although Ford try to make their product sustainable, it still give priority to the profitability. In other words, the priority of economic profitability outweigh those of responsible environmental and societal management (Reyes, 2013).
In order to reduce the environment impacts such as energy consumption and CO2 emissions which almost occur in use stage (Mcauley, 2003) , Ford also offer some form of electrified vehicles to customer. Certainly, the implication of these green technology in vehicles will have less bad impacts on environment when driven on the road, however, to charge the battery, the power station will generate more electricity and result in more emissions. Although in 2014,Ford revealed a solar-powered C MAX Energi PHEV concept vehicle which
charge the battery by collecting solar power, however, according to the quadruple bottom line of sustainability(Walker 2011), it is limited for corporation to focus only on the practical meaning of sustainability and just stress the need for advanced technology to solve the environmental impacts because usually, corporations use technology as a solution for the sustainable issue just because it can improve corporations’ competitive edge and accelerate economic growth (Berger et al 2001). In fact, the reason why Ford offer different electric vehicles is, to a large extent, that meeting the customers’ growing demand for electric vehicles and share the market like the strategy by Ford, “Accelerate development of new products our customers want and value”(Ford sustainability report 2014). And this strategy also hint a drive-consumption economic system. As a global company in the highlight, from the 1980s, ford has realized the importance of reduction of the environment impacts and try to make their products and production more sustainable. Nowadays Ford releases an official annual report called sustainability report to show the public the ways they are practicing sustainability. However, the ultimate goal of this report is to define sustainability in a way that satisfies their agendas (Reyes, 2013). It is used as a tool that enable Ford attract customers, maintain their loyalty and build a good reputation (Ihlen 2009). Coming out of an economic shocks, Ford is increasingly aware that sustainable issues can be applied into their business model and improve the financial performance(Levy and Rothenberg 2002 ) just like Ford said ‘We define sustainability as a business model that creates value consistent with the long-term preservation and enhancement of environmental, social and financial capital.’(Ford sustainability report 2014) Indeed, the sustainability is now a key symbol for Ford, but behind this image, a problematic economic system which is want-creation and consumption-based still play an important role in the company and modern society. In conclusion, Ford, as a global company which is embedded within the growth-oriented, consumption-based system, still give priority to economic profitability. Sustainable issues are taken into consideration only when it is benefit for financial performance or there is too much pressure from the public. In other words, Ford just consider sustainability in ways that can benefit their financial bottom line (Reyes, 2013). In order to become true sustainable, Ford should redefine its priorities and it is necessary to take into consideration not just “what is most efficient and profitable, but also concerns about what is meaningful”(Walker,2015).
Jaguar and Land Rover. The sustainability analysis of a British tradition headed by an Indian Company David Pérez Undoubtedly Jaguar and Land Rover (JLR) are two of the most famous British car brands, both with a strong heritage and exceptional design and engineering capabilities. The beginnings of both companies Jaguar and Rover date from 1920’s decade. The first started making motorcycle sidecars, and the second began by developing all terrain cars (Jaguar and Land Rover, 2014). Those companies became in icons of the British automotive industry, and these two brands have lasted on the top of the global car industry. This report aims to examine an organization in relation to sustainability. To do this, it will analyse the company in the following order: economic, social, personal and environmental impact. Finally, this document will provide final conclusions of the analysis. In 2008 those brands were purchased by Tata group from Ford Motor Company for USD 2.3 billion (Timmons, 2008). Furthermore, according to the Annual Report of JLR (2014), from an economic point of view the result has been fruitful, increasing 49,4% the profits for the 2013/14 fiscal year, reaching the sales £ 19,386 million past tax. As result of the above, the company employed around 27,953 people in JLR, maintaining the manufacturing process in the UK. Morgen Witzel (2010) describes that the Tata group company has numerous businesses in several industries and is globally recognized for its values and belief which influence in the strategy, the employees and the stakeholders. These values are: Trust, Reliability and Commitment. Moreover, the company’s reputation has two sides, vision and action, because is a global company but focused in the community development. In addition, the company has been participated actively in diverse educational programmes in the UK, such as “Inspiring Tomorrow’s Engineers Programme”, “University Technical Colleges”, “Young Woman in the Know”, and so on (HM Government, 2013; SMMT, 2014). In view of the above, it shows that Tata group has been transferring its values to JLR, contributing in this way to the social development. However, in social aspects, there are side effects that affect to the quality of life of the people. This is related with the number of cars on the cities and the traffic that they generated. In fact, during the fiscal year 2013/14 the company sold 434,311 cars (SMMT, 2014). This number means a gradual rise in the car fleet, thus there are more conurbations overcrowded by cars, clatter and environmental destruction (Basiago, 1996), an also it reduces the space for housing and agriculture (Braungart & McDonough, 2002, p. 179). In simple terms, the profitability of the company also provokes detrimental impacts in the quality of life of the city inhabitants and the environment. At this point it is relevant to analyse the consumption criteria of the people and the corporate behaviour which promote this. Although the individual behaviour and consumption decision of a car purchasing are addressed primary by the practical sense of mobility, JLR bids and puts emphasis on secondary aspects such as “memorability”, innovative technology, and also appealing to the brand legacy (Jaguar and Land Rover, 2014). The latest is driven by the people satisfaction with the possession of beautiful goods, the social distinction and elitism (Walker, 2011, pp. 34-40; Husic & Cicic, 2009), which are
also characteristics of historical antecedents shared by luxury brands as marketing strategy (Nueno & Quelch, 1998). In short, the “meaningful” of the JLR cars is the transferring of subjective perceptions, which positioned the individual as member of the brand experience and part of "historical antecedents", that are stranger and meaningless for him or her. Last but not least is to evaluate the effects with respect to environmental across the life cycle. In detail, in terms of air pollution it is estimated that every single new car has already emitted from 3 to 12 tons of CO2 as result of its manufacturing process (Automotive Recyclers Association, 2009). Furthermore, according with Freyssenet (2009) cited by Vervaeke (2012) the profit model of automotive sector is based on internal combustion, and in this way, the sector is the major contributor to the global air pollution (Cavill & Cavill Associates, 2000). Moreover, the lifecycle of cars also uses a huge quantity of materials, which at the end of this cycle are separated the valuable parts of the toxic ones, and the remaining hulk is shredded and is buried in the landfill site (Funazakia, et al., 2003). As consequence of this, JLR has defined in its Sustainability Report (2013), multiples measurements in order to reduce the environmental impact in the product lifecycle. This measurements include the reduction for tailpipe CO2 emissions, fuel economy, minimization of the impacts over the life cycle for it and its supply chain1 and promoting the responsible car dispose through the “free take back programme”. As it was shown, there are negative environmental impacts through car lifecycle. While the company assumes a position to reduce its impact, the key problem is related with the amount of vehicles (as material objects) and the pollution generated by the use of fuel as energy source. Conclusions In summary, with the purchase of JLR by TATA group, the company have shown a clear interest to contribute to the society and the environment by ensuring the business profitability. However, whilst this interest exists, it is necessary to analyse the company sustainability from a further perspective. Firstly, the profitability of the company allow to the job creation and also it generates a positive impact in the local and national economy. Secondly, following the values and belief of Tata group, JLR creates many opportunities to the people development, mainly through education. However, the car mass manufacturing model, also produces detrimental problems in the quality of life to inhabitants of the cities, as result of traffic jam, with pollution, use of landscape and noise that it produces. Thirdly, with regard to the practicality, the vehicle facilitates the mobility, but also produces harmful effects to the environment, from its manufacturing to its ELV. Finally, JLR sells luxury and all terrain cars under a marketing campaign which alleges meaningless ‘values’ to the individual. Although this study pretended to analyse the company in terms of sustainability, it is necessary to lie beyond in each aspects illustrated above. However, it is possible to conclude that JLR has positives and negatives aspects. Positives, in relation with the favourable impact in the national and local economy, and the social actions that those results allow. However it has negative issues mainly for the use of petroleum in the car Life Cycle, which causes severe environmental damage.
1
Supporting suppliers of raw materials, components, and transport for reducing water and energy usage, manage their waste, and controlling the CO2 emissions.
Critique on Volvo Car Group Shuwen Han Volvo Car Group is a Swedish premium automobile manufacturer, headquartered in Gothenburg. It was founded as a subsidiary company to the ball bearing maker SKF in 1927; the original idea was to create a car that can hold strong in the Swedish climate and terrain. Volvo Cars was owned by AB Volvo until 1999, when it was acquired by the Ford Motor Company. Then in 2010, Geely Holding Group acquired Volvo Cars from Ford. The company now has about 23,500 employees (VOLVO CAR GROUP, 2013a). Cars are produced in Sweden, Belgium, China and Malaysia, and sells in 100 countries around the world. The largest markets of Volvo Cars are the United States, Sweden, China, Germany, the United Kingdom, and Belgium (VOLVO CAR GROUP, 2013b). This report will discuss the issues of Volvo car group in terms of sustainability, specifically in personal, practical, social, and economic impact, as well as providing final comments and conclusion. The human-centric perspective is an essential element of what sustainability means to Volvo Cars (VOLVO CAR GROUP, 2013a). As Assar Gabrielsson and Gustaf Larson, Volvo’s founders, stated in 1936: “Cars are driven by people. Therefore, the guiding principle behind everything we make at Volvo, is – and must remain – safety.” The corporate strategy “Designed Around You”, which was launched in 2011, states the objectives and summarizes the company’s approach to understanding people. The core values of Volvo cars are quality, safety and care for the environment. Volvo is trying to provide a perfect driving experience as well as reduce the impact to the environment. Survey shows approximately 1.2 million people die each year in motor vehicle collisions worldwide, and countless others are injured (Peden et al., 2004). However, it has maintained a strategy of improving the car, not seeking alternatives to it (Conley & McLaren, 2009). In Volvo’s case, by pushing technological boundaries, the risk of being hurt in an accident when in a Volvo is cut down by 50% since 2000 (VOLVO CAR GROUP, 2013a). At the same time, environmentalists accuse cars of their contribution to global climate change and air and water pollution, their depletion of non-renewable resources, especially oil, and their land use impacts (Conley & McLaren, 2009). Hence, a number of large companies professed to behave in environmentally responsible ways and provided reports and data from selfaudits to demonstrate their commitment (Gutowski, T. et al., 2005), Volvo is in this list, having developed the Environmental Priority System. It has developed low-emission engines that make better use of natural resources. Volvo is now engaging to the research and development of self-driving cars, which is claimed to help reduce stress for customers and congestion on roads, at the same time less fuel—up to up to 50 per cent in certain situations is required. But since the self-driving cars are not applied on a large scale, the fact is yet to see. However, what has been proved is that Volvo’s Drive-E powertrains, which are small and lightweight, offer as much power as larger ones with far better fuel consumption. Besides, working with Cartakeback.com Ltd, the UK's leading scrap car recycling service provider, Volvo UK ensures that owners of its cars have free access to the national network of scrap car recycling centres (Authorised Treatment Facilities) which depollute and recycle cars to high environmental standards, when finally scrapping their cars. Automobile industry is considered as a source of well-paying jobs (Paterson, 2007), a sign of modernity and a source of national pride (Edensor, 2004). By December 2013, Volvo Car
Group employed about 23,500 people and had 2,300 dealers around the world. The company has been developing various methods of interacting with key stakeholders over several years. It conducts one-to-one interviews and anonymous survey among employees and dealers, to get to know their needs and idea. Work teams get resources and responsibilities for safety and quality control, and work together to identify and correct inefficiencies and reduce hazards (Sandberg, 1995). Thus, rather than being slotted into specific simple jobs, where they can easily be replaced, employees are trained to have multiple roles that enable them to maintain flexibility and switch roles as necessary (Erez, 2010). Volvo also holds trainings and open days for suppliers, to show how the company operates in order to improve supply chain. It runs project cooperation with academia, universities and local community, to extend existing lines and explore new items. It builds survey system towards customers, to understand their experience and expectations. It has dialogues with government and public authorities as well as investors, to follow the policies of anti-corruption, anit-trust and fair competition and make sure that the company gets the best environment for research and development. It also interacts with NGOs, environmental associations, human rights organisations, to get informed of the latest ethical context and laws, and make contribution to the society. The production and consumption of automobiles has been considered as an engine of economic growth (Paterson, 2007). However, although Volvo had ranked in the world’s most successful automobile industries for a long time and took lead in business in Northern Europe, the sales kept plunging ever since it was acquired by Ford Motor Company. As the international financial crisis is spreading in 2008, Volvo lost severely, becoming a huge burden for Ford. Then it came resource wasting and staff reducing, which forced Volvo and its parent Ford, to seek new ways of survival. Finally, Zhejiang Geely Holding Group acquired Volvo Cars for $1.8 billion in 2010. Although Volvo cars continues to operate independently, choosing Geely, which means choosing China, a country where stably car market exists even during the financial crisis, will be a wonderful move. As is stated in its sustainability reports every year, we can see the efforts Volvo Car Group made in sustainability. The most impressive achievements are in utility, Volvo cars are always been regarded as car of quality and safety. Consequently, by sharing the core value with customers, Volvo cars provide their owners premium personal identity. Meanwhile, the company also does well in employee satisfaction, advanced supply chain and good public image. However, as an automobile corporation, environmental issues are always essential. Cars function with fuels and create pollutions indeed, but the innovations in design and manufacturing will never stop making a difference. Volvo car group is actively engaging in research and development, aiming to make more sustainable products and cleaner factories. As for economic aspect, Volvo Cars’ long-term objective is to deliver sustainable top car industry profitability. Only by skilful management and sound implementation, can a corporation drive mass consumption and become truly sustainable.
Volkswagen Aktiengesellschaft Jian Ding Volkswagen Aktiengesellschaft (Volkswagen AG),also as known as Volkswagen Group, is one of the world’s leading automobile manufacturers and has maintained the largest market share in Europe for over two decades. It is headquartered in Wolfsburg, Germany and owns twelve brands from seven European countries (Volkswagen AG, 2013). Moreover, like other organisations in automotive industry, Volkswagen Group creates its own product system that relates to economic wealth creation and impacts on the environment, social development and personal meaning along all stages of the product’s life cycle (Koplin et al., 2006). Therefore, as a major automaker, Volkswagen AG plays an important role for the world in terms of sustainability. This document will discuss the impacts of the company’s strategies in different stages of its product’s life cycle on sustainability from different perspectives which includes environmental, personal, social as well as economic issues. Paterson (2007) argued that there are a variety of factors such as public policy, market change, changes in consumer behaviour and technological innovation which contribute to a ‘greening’ of automobility. Thus, automakers have to respond to increasing strict government regulation and environmental and social expectations through applying management strategies (Commission of the European Communities, 2002). In order to meet this challenge, Volkswagen AG launched a series sustainable strategies that can be concluded as “The Group Strategy 2018”, which is throughout at every stage of product’s life cycle including design and innovation, manufacturing, selling and end-of -life processes (Volkswagen AG, 2013). The crucial environment issue of climate change has the direct relationship between CO 2 emissions and fuel economy. As a result, the major automobile companies are taking initiatives aimed at reducing CO2 emissions and using the other energies to replace fuel of their passenger cars (Mikler 2009, p.64). Volkswagen group also identifies climate change and resource conservation as its central challenges and has took actions to respond it such as investing in research and development (R&D) (Volkswagen AG, 2013). Specifically, the company invested €10.2 billion in R&D during 2013 and claimed that it would put more investment into new technologies and eco-friendly production at 2015 (Volkswagen AG, 2013). An example in this case is ‘the e-up!’ which is the first production electric car of the Volkswagen brand launched in 2013. The company claimed that this product has a zero carbon footprint along the entire energy chain (Volkswagen AG, 2013). However, the battery life of electric vehicles is limited and the electricity would reduce during lifetime use of the battery (Zackrisson et al., 2010). Besides, due to the new recycling technology needed for the battery is not yet commercially available (Zackrisson et al., 2010), the recycling of the battery should be concerned. In fact, research shows that high volumes of wasted composition of the batteries (e.g. lead) end up in landfills (Lave, 1995). Furthermore, although electric vehicles are seen as the main way to minimize the transport sector’s problems, the commercial impact of such vehicles has been minimal because the limitation of the technology, customers’ trust and the relevant service (e.g. Lack of Charging station)(Mikler, 2009 ; Zackrisson et al., 2010). Volkswagen Group has a global manufacturing process, undertaking with 106 manufacturing plants across Europe, America, Asia and Africa, and sells its vehicles worldwide (Volkswagen
AG, 2013). The strategy that integrates itself into globalisation brings a huge economic success for the company and the local economy. The group’s profit after tax was €9145 million in 2013(Volkswagen AG, 2013). And the strategy also has some good impacts on other countries, for example, creating new jobs and bringing advanced technologies and managing experience to developing countries (Volkswagen AG, 2013; Archibugi & Pietrobelli, 2003). However, under the circumstance of globalization, the company faces the fierce competition from those automakers of emerging economies and its traditional competitors from Japan, Western Europe and North America (Sturgeon & Florida, 2000). Thus, the company has to constantly produce and sell new products in order to meet this challenge and achieve more and more profits (Sturgeon & Florida, 2000). As a result, negative influences would be exerted. Firstly, although the greenhouse gas emission of single car has been reduced because new technologies and sustainable life cycle strategies, the overall volume of the emissions and resource consumption is still huge and will continue to increase due to sharp rising number of cars (Volkswagen AG, 2013). Secondly, the way that the company responds would contribute to car dependency and frequent car use which are also reasons of global warming and current energy situation. Apart from the environmental issues, using cars makes people’s life convenient while change individuals’ behaviours quietly at the same time. Specifically, people tend to cannot survive without cars because many activities in modern societies are hardly possible without using a car (Jeekel, 2013). Furthermore, high quantity of cars being produced and selling to worldwide also bring disappointing influences on the quality of people’ life in terms of living and health conditions. The automobile is the major source of toxic air and water pollution and a main reason of health problems such as lung disease and obesity (Conley and McLaren 2009, p. 183-185). As for the end-of-life treatment, since Volkswagen Group launched the “Genuine Remanufactured Parts Program” back to 1940s, 7.9 million engines, 2.9 million gearboxes and more than 78 million other vehicle components have been given a new lease of life. And now the company promise that 85% of each new vehicle can be recycled and new Volkswagen vehicles would contain around one third recycled material (Volkswagen AG, 2013). The data seems quite well but things would be different when it compares with the number of cars sold by the company. According to the company’s report (2013), there were 9.73 million vehicles delivered to consumers in 2013. Therefore, Volkswagen Group should also take responsibility to reducing land pollution because high quantity of remaining part that not be recycled would be shredded and buried in the landfill site (Funazakia, et al., 2003). In conclusion, Volkswagen Group has realised the importance of sustainability for its long term development and tried to take actions into it. Indeed, those strategies has exerted some positive influences on sustainability mainly in terms of environmental protection such as reducing greenhouse gas emissions and energy consumption with using new technologies and recycling strategy. And there is without saying that the company has achieved a huge economic success. However, the company has little consideration into other elements of sustainability except practical meaning and economic means. Moreover, because of constantly producing of new vehicles and the priority of the profit, the company has its limitations for the planning and implementing of the strategies and also contributes to environmental and social problems.
Nissan Karla Henríquez The international automobile manufacturer company called Nissan was funded in 1928 by Yoshisuke Aikawa, their principal office and operating base is in Nishi-ku, Yokohama, Japan (Nissan, 2014). The vision of the company is "enriching people's lives" the also declares that they want to achieve a sustainable growth, for that reason they posses a very solid and well based management strategy, the strategies are come from the highest level of the company, the executive commit realise monthly periodic reunions to analysed and created the strategies that allow the company achieve the contribution of the social responsibility goals and at the same time balance the sustainable development and the company profits. For this propose they created an internal initiative call “Blue citizenship” which objective is know and achieve the Social responsibility goals of the society and traduce these in real measures and strategies in the company, they used difference methods to collect information of the different skateholders, but the most used is the direct contact and reunions, with these periodic feedback they try to improved the services and built trust and confidence with their users, that is the principal objective of the brand nowadays (Nissan sustainability report, 2014). The company is making multiple efforts in different axes to achieved the “sustainable development” all of them will be review separately in this critique in the following section: The first one is the economic issue,Nissan have numerous strategic alliances, the first one dating from its foundation, and was with DAT Jidosha Seizo and Tobata Casting one of the first developer car companies in Japan, but the most important alliance is with Renault this partnership strategy was sign in 1990 and was a complete success and allow Nissan position in the world market , but maintaining the own brands identities. Other interesting alliance is with the company Mitsubishi Motors which objective is shared technology and products to improved these and created new ones, all the strategies look for expands the market and open new business opportunities.The strategic alliances are a logic response to the new economy where the globalisation offer the opportunity to run in a big competitive race with other multinationals opening new markets, and also give them the possibility to response faster to changes in the economy and technology (L. Doz, Hamel, 1998) Environmental Issue: Nissan makes most efforts and measures in this ambit, within this ambit the most important measures are the fuel efficient vehicle expansion, the footprint minimisation and the green technology development. 1.The Nissan fuel efficient vehicles are develop with the most high technology that maximise the overall energy of the internal combustion and improves the emissions of CO2, they developed a new line called Pure Drive with less emission but the same velocity and style of a normal car, making more attractive drive a ecologic car, also they have Hybrid vehicles with recharges batteries similar to electric motors. 2.In terms of Footprint minimisation Nissan wants to reduce the Co2 emissions of global corporate activities for the 2014 by 20% , including all the activities as manufacturing, logistics, offices and dealers.
3.Finally in development of Green technology the most famous and successful product is the NISSAN LEAF is considered the most sold electric vehicle in 2013, the automobile has Lithium-ion battery technology and electric motor with no Co2 emissions, the most noteworthy of this is the potential of the batteries had to storage energy of other renewable sources as wind or solar. This Lithium-ion battery have a large cycle life even more than the vehicles, for that reason the company is exploring the recycling and used to storage solar energy, the first application of this technology is in Japan park towel in the smart houses (Nissan, 2014). But this are just path measures and they are not looking for a change in the user's behaviours, they are grounded in reductions of energy consumed and in produce a money saving in the user, this is traduce in selfish satisfaction and this interest is directly connected with hedonism values above the the common good and the preservation of the planet. The universalism and benevolence values are those in which should be focus when we want to engaged the people and generate change in their behaviour in term of sustainability and caring of the environment. (Holmes, Blackmore, Hawkins, Wakeford, 2011) If we do not do that this green initiate are complete useless and without sense, are just a empty facade of a company to look better and “sustainableâ€?. The next Issue is the Personal meaning in this sense the company have the mission to offer a product of quality and achieved the costumers expectations, in this sense Nissan offers: Safety: The last year in UK a total of 8560 drivers were killed or seriously injured in traffic accidents (reported road causalities, 2013) , the company aware of this consumers necessity of security they make studies about car accidents and their causes and based of that analysis they develop and improved technologies to reduces the fatalities and serious injures in the vehicles, some of the systems created with this propose are the Back up collision intervention that consist in a radar and sonar that can detect the side and back of the vehicle and then alert to the driver of a possible collision, and the Arrow view monitor with a 360 Âş virtual view and objects moving detection, thanks to this devices the Nissan's cars are considered one of the most Safe in the market, but even with all this technology the public transport is 10 times more secure than drive a car and the statistics shows that the traffic decline as transit ridership increases (publictransport, 2014) in countries as United Stated and Canada the National Safety Council that details that the passengers on the bus and rail are 40 times less involved in a fatal accident, and 10 times less involved in an accident with injured consequences. (Pubtrantravel, 2010). Quality: Nissan makes analysis of the feedbacks of the clients about the cars and creates they own quality and satisfaction ranks to improved their products constantly. The next issue is Social: Employs Generations: Nissan is part of the World Business Council for sustainability development which objective is create sustainable future for business, environment and society, for the same reason Nissan declare that they respected the human right the company principles is guiding for the U.N Global Compact and the national laws of the countries where the manufacturing plants are located, however all the manufacturing plants are located in countries with high inequality and poverty as China,Thailand and Brazil, exporting the manufacturing process is an economic model that allow the companies
minimising the cost because the labour is cheaper and they pay just a fee to the fabric. (Feenstra, Hanson, 2003) Philanthropy: Coherently with the image that The company wants to show and the goal of contribute with the sustainable development of society, the company constantly contributes with ONG, educational and socials institutes. Finally the issue is the Practical and utility: Comfort: The people use the car instead of public transportation because is more comfortable, save time and allow them follow their own time, but due the dramatic increase of cars on the streets and the well now and hate traffic jam driving in a big city as London is far to be a pleasurable experience. An study of the CBI UK show that in 2010 the average per every mile a driver lost 19.2 seconds also projects than in 2035 this number will rise at 32.3 seconds per mile, this is an increase of congestion 68% in today’s levels.(CBI:UK, 2014). Efficiency: Another benefit of make more efficient cars besides of the environmental is the affordability , Nissan in their compromised with the social sustainability declares that the want to make affordable cars for all the population, so using less fuel they short the gap for the people that cant afford, nevertheless the public transportation remains to be the cheapest way to translate because the cost of using the bus in one week is approximately £20.20 and in the same time the cost of drive your own car is £95.52 according to an investigation of the Londonist journal (The Londonist, 2014), in addition the affordability is contradictory with the first quality comfort because the increased of the cars in circulations inversely with the time spend and quality of the travel of the drivers for obvious reason, more cars more congestion more time lost trapped in traffic jams and more fuel lost in that situation,in that context is certainly doubtful the efficiency and utility of this measure, after all the problem is not how much oil spend. In conclusion were details the different effort of the company for reach a sustainable profile, however those effort just response to a marketing strategy to position the brand more than real intentions to improve or contribute to the sustainability development, because all the measures are superficial and do not take care of the real problems. Even more Nissan recognise the development of green technology as an opportunity to expand the market business creating new lines and products which only objective is economical, in this sense the company want to sell more an more car and reviewing the last issue the real problem is the quantity of cars and their consequences in term of congestion and contamination, for that reasons is more convenient to travel in the public transport instead of using their own car, because the time that the user spend driving and in the traffics jam stressful can be used in the public transport to rest, relax and enjoy reading, playing , etc. , also is important to remember the social and economics benefits of the public transports as creation and maintaining of employs, which is translate in people consuming goods in the country where they live and using the public transport contributing in that way to the economy and building a positive cycle.Other alternative is cycling this option is free and also allow the user to exercise and have a healthier life style. Clearly the scenario for the cars in the future is not encouraging because is based in a model that is close to collapse, the space and the planet are not infinite to keeping thinking in sell cars indefinitely, this is the real challenge that Nissan have to analyse to truly be a sustainable company.
Conclusions
The car industry is dominated by multinational corporations(MNCs) and major automakers have strong links with sustainability in terms of environmental, social, and economic issues as well as issues of individual wellbeing and personal development (Mikler, 2009; Paterson, 2007; Conley & McLaren, 2009). Given five strong examples which includes Ford, Jaguar and Land Rover, Nissan, Volkswagen and Volvo, this document discussed the impacts of major automobile organisations on sustainability from four perspectives: practical (environment and utility), personal, social meaning and the economic means. Stuart (2014) defines practical meaning as objects and activities for human benefits, along with their environmental consequences or impacts and presents that practical meaning has two parts which are utility and environmental issues. In terms of utility, the major factor is transportation, people feel comfortable and convenient by using cars and they can save time. But nowadays the big automobile congestion and traffic jams are a problem that the drivers have to face, the CBI UK studies shows that a driver lost 19.2 second per mile (CBI:UK, 2014; Jeekel, 2013). Another important point is the safety, just in the year 2013 a total of 185540 reported road casualties in UK by the national statistics report of road casualties, moreover approximately 1.2 million people die each year in motor vehicle collisions worldwide, and countless others are injured (Peden et al.,2004). The automobile companies are conscious of this problem and Nissan created special devices to make feel more safe to their consumers as the back up collision intervention which technology alert to the driver of possible collisions (Department of Transport, 2013). The final point is the development of the technology to serve and give a better experience to users, the companies invested in scientific research and technological innovation underpin sustainable development because it improves a business’s competitive advantage and fosters economic growth by mitigating emissions along the supply chain while fostering greater resource efficiency (Reyes, 2013). Given the perspective of utility, there are also a wide range of evidences of the environmental damage caused by cars. Specifically, cars are regarded as major reason of global climate change and air, water and land pollution as well as the depletion of nonrenewable resources (Mikler,2009; Conley & McLaren, 2009). Facing the crucial environment challenge, the major companies in automobile industry has took actions to response it. Firstly, initiatives aimed at reducing the CO2 emissions and using the other energies to replace fuel of their passenger cars has been conducted (Mikler, 2009). For example, Volvo, the Volkswagen Group and Ford have increased their investment in R&D and started to invest green technologies in vehicles such as electric cars. In addition, automobile organisations has realised the importance of ELV treatment. Volkswagen and Jaguar and Land Rover establish the ELV treatment system or program to recycle valuable parts (e.g. Engine and oil). Other companies of the examples above also have recycling strategies. For instance, working with Cartakeback.com Ltd,Volvo built a high environmental standards recycling centres for its car owners. However, those strategies have a variety of limitations. For example, the new model of cars such as electric cars is not widely accepted by customers and does not work well in terms of protection of environment at least in short time because the limitation of technology, customers’ trust and the relevant service. Apart
from that, the life cycle of cars uses huge quantity of materials and in the end of this cycle materials are separated the valuable parts of the toxic ones, and the remaining part would be shredded buried in the landfill site (Funazakia, et al., 2003). From the individual perspective, the automobiles are more than a means of transport, because it also have symbolic meaning (Riesman & Larrabee, 1964). Further still, the legacy and quality are used as brand strategy (Nueno & Quelch, 1998), and automobile brands know it. The utilitarianism of the car is exploited to a socio-cultural and individual perceptions of socio-positioning, safety, luxury, eco-friendly, etc., become as a key element of the value proposition of brands. As proof of this, JLR offer “memorability”, innovative technology, while Volvo uses the phrase “Designing around you” as title of its strategy. In other words the intangible assessment of cars lie beyond of the sense of connectivity provided by the mobility. However, those perceptions also produce a material dependence of cars for the individual, in which those “values” get a position equally important than the utility of displacement. The critical point is when brand messages have the same importance than practical meaning, or further still, when the individual decision depend of meaningless values for him or her. As for the social meaning, automobile industry is considered as a source of well-paying jobs (Paterson, 2007), a sign of modernity and a source of national pride (Edensor, 2004). Carrabine and Longhurst (2002) point out that consumption for cars is not based on a desire for objects to fulfil specific functions, but on a desire for difference, a desire for “social meaning”. And absence of the car can clearly lead to feelings of social exclusion (Carrabine & Longhurst, 2002). But the increasing car fleet and conurbations overcrowded produced by cars are bringing severe problems. Road traffic jam has become one of the major problems in the cities, obliging both the developing and developed economies to take measures to control traffic (Jain, et al., 2012). Nevertheless, enhanced traffic management can only improve traffic flows, and these will be subsequently overwhelmed by greater traffic volume (Martin, 2009). As global major corporations is manufacturing and marketing at a world level, knowledge sharing is also important within social aspect. Volkswagen’s strategy of integrating itself into globalisation has brought advanced technologies and management experience to developing countries. However, the globalization of automobile industry is unevenly. For example, Nissan claims to take the responsibility of generating business opportunities and local employment while they set all the manufacturing plants in countries with high inequality such as China, Thailand and Brazil (Feenstra & Hanson, 2003). The socalled responsibility is actually an economic strategy that allows the company minimizing the cost by hiring cheap skilled labour. Unfortunately, few technological interventions are able to address the problems of land conversion, deterioration of public transit, isolation and inequalities of social groups. Last but not least, there is no doubt that automobile industry has been a driver of economic growth and has contributed to the job creation. For example, the employed people by ford is 181000 in 2013 and ford will also add 11000 jobs in 2014 in the U.S. and Asia combined. It is also the good news that nowadays, more and more automobile corporations including Ford, Nissan, Volvo, Volkswagen and JLR are increasingly involved in sustainable issues such as reducing air emissions, the production of green automobiles and supply chains. Indeed, from the 1980s, most automakers have realized the importance of reduction of the environment impacts and try to make their products production more sustainable, however, the main reason for this shift is, to large extent, disappointing: the incorporation of
sustainable principles makes business sense (Orsato & Wells, 2007). For example, in order to to show the public the ways in which corporations are practicing sustainability, many automakers including five examples in this document launch sustainability reports every year, which consist of three fundamental parts: economic, environment and social. It is lauded for those companies to do this, but according to Ihlen (2009), the corporation sustainability reports are took advantage as a tool to attract customers, maintain their loyalty and build a good reputation. Indeed, most large corporations try to define the sustainability in the way that satisfies their financial wealth and identify the sustainable development can improve their financial performance while reducing the environmental and social impacts (Reyes, 2013; Levy & Rothenberg, 2002). For example, ford said ‘We define sustainability as a business model that creates value consistent with the long-term preservation and enhancement of environmental, social and financial capital’, and also in the report of Volvo, it said ‘Staying focused on environmental, human and societal dimensions helps support economic sustainability and long-term profitability’ It can be shown that, to large extent, the profit should always be the priority in corporations’ strategy and management. In case of Nissan, in order to minimizing the cost of labour, all the manufacturing plants are located in countries with high inequality and poverty such as China and Thailand and Brazil(Feenstra & Hanson, 2003), which inevitably resulting in the social issues.
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