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Introduction With fuel costs rising Alternate Fuel Vehicles AFV are becoming more and more attractive to the consumer After investigation it is the opinion of Team B that Lotus Car Rental Corporation should invest in the purchase of a small fleet of these cars in a test marketing effort This paper discusses the physical advantages and disadvantages of AFV as well as the cost and possible return on investment for Lotus Car Rental Corp Background A wide variety of alternate fuels-fuels excluding gasoline and diesel-for powering vehicles exist Some vehicles can be special ordered from the manufacturer already adapted to accommodate these alternate fuels In the case of hybrid cars no special order is needed as models have been on the market since 1999 and are increasing in popularity In the non-commercial arena hybrid vehicles and 100 electric fuel vehicles are more widely used than other alternate fuel vehicles at this time Commercially Compressed Natural Gas CNG has become very popular especially in the public transportation industry According to the Transit Resource Guide a publication of the American Public Transportation Association As of January 2001 approximately 25 or all new buses on order in the US are natural gas-powered aptacom 2003 Many of those municipalities ordering them are striving for a 100 conversion Compressed natural gas propane methanol and ethanol are growing in popularity as fuel sources as more vehicles are being made that can burn them More stringent clean air laws higher gasoline and diesel prices and a more environmentally minded public are all contributing to the growth of the alternate fuel vehicle industry The industry has struggled for a while in a catch-22 type situation An alternate fuel fueling infrastructure has developed at a snails pace as it has waited for the automobile industry to build more vehicles to use it and the auto industry has been waiting on the development of the fueling infrastructure before it moves ahead with the manufacture of
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