SUSTAINABLE DEVELOPMENT

THE CONTRIBUTION BY THE AUTOMOTIVE INDUSTRY

Introduction It all started thousands of years ago. Man, animals and the flora combined to make our earth the most beautiful planet in the universe. All three blended well with man and animals making their habitat in the forests and mountains. Natural resources were shared by all. But with some of the animals being at the top of the food chain, others felt threatened by their presence. Physically being weaker than the animals, man had to plan for his survival and that started ‘the development’. As we moved on, we realized how much deforestation had taken place. The forests had been cleaned up to create cities, villages and agricultural land. The result-loss of habitat for wild animals, killings of animals, natural resources being exploited like anything, all round pollutionin water and air. This is what we have got from our development. The question is what we are going to leave for our future generations - the barren lands, vehicles but no petrol, factories with no power to run them, mountains of concrete and jungles of sky touching building? Can it be recognized as development? Is this the development that can be sustained? We all are aware of the negative answer. Wood from forests has been used up to meet the energy requirements or for building houses. The overall result is increase in pollution levels, global warming, depletion of natural resources and ecological imbalances. The sea levels are rising and that is causing a major threat to human survival in the coastal areas. Depletion of ozone layer has added to the woes and can result in many problems. The increased pollution levels are already serious matters of concern. During peak traffic hours, one might see some people wearing pollution masks. This is in contrast to what we felt at mountains. We are responsible for such high levels of pollution in air and in water. Growing pollution has also been a cause of Global Warming. The result- Mountains are becoming snow less; even at North Pole the polar cap has melted. This melted snow is causing rise in sea levels, floods in rivers and catastrophes like Tsunami. Isn't our lopsided development responsible for this? When we disturb the ecological balance by killing animals and cutting down trees, we are destabilizing the food chain cycle and doing a great disservice to humanity. In order to bring things back on track, we need to rely more on renewable energy sources like wind power and solar power. These energies are unlimited and don't create any pollution. Recycling can relieve at least some pressure from our limited resources. Vehicle using non-

conventional energy can reduce the pollution and so can the factories do by following pollution norms. Together, we can script the tomorrow of our planet. For that, we need to aim at development - sustainable development.

Explanation Sustainable Development is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but in the indefinite future. The most often-quoted definition of sustainable development is development that "meets the needs of the present without compromising the ability of future generations to meet their own needs." Sustainable development ties together concern for the carrying capacity of natural systems with the social challenges facing humanity. As early as the 1970s, "sustainability" was employed to describe an economy "in equilibrium with basic ecological support systems". Ecologists have pointed to the “limits of growth” and presented the alternative of a “steady state economy” in order to address environmental concerns. The field of sustainable development can be conceptually broken into three constituent parts: environmental sustainability, economic sustainability and sociopolitical sustainability.

Automobile Industry__________________________________________________________ With the question of sustainable development established as a central concern in developed societies and for all major international institutions, the automobile industry is facing a new economic, technological and political environment. The potential scarcities of future energy resources and escalating fears about climate change have become powerful forces for change in the industry. The world vehicle industry is actively addressing sustainable development in its three main concepts: 1. Environmental protection 2. Economic growth and 3. Social equity.

Environmental Protection Automobile manufacturers have clearly committed themselves to supply the market with ever safer and more environment friendly products and are continuously investing huge R&D resources in further product improvements and in developing radically new propulsion systems. The results clearly show that most road traffic related environmental concerns are in the process of being solved with all studies indicating air quality improvements on their way. For example: The electric car An electric car is a type of alternative fuel car that utilizes electric motors and motor controllers instead of an internal combustion engine. The electric power is usually derived from battery packs in the vehicles. In general terms, an electric car is a re-chargeable battery powered vehicle. The electric car was among the oldest automobile systems upon which the diesel engine and petrol engines were developed. Somewhere down the line, electric cars lost their appeal to faster, meaner, stronger and bigger fuel powered cars. However, today’s scenario of high oil prices and better environmental protection has brought electric cars back in vogue. E.g.: REVA Hybrid cars Vehicles using both electric motors and other types of engine are known as hybrid electric vehicles (HEV) and are not considered pure electric vehicles (EV) because they operate in a charge-sustaining mode. Hybrid vehicles with batteries that can be charged externally to displace are called plug-in hybrid electric vehicles (PHEV). Honda has come up with hybrid versions of their CIVIC and ACCORD models. The impact: a) Fuel Consumption Hybrid vehicles are the best bet to get the most out of each tank of fuel during city driving. Current HEVs reduce petroleum consumption under certain circumstances, compared to otherwise similar conventional vehicles, primarily by using three mechanisms: 1. Reducing wasted energy during idle/low output, generally by turning the internal combustion engine (ICE) off. 2. Recapturing waste energy. 3. Reducing the size and power of the ICE, and hence inefficiencies from under-utilization, by using the added power from the electric motor to compensate for the loss in peak power output from the smaller ICE. Any combination of these three primary hybrid advantages may be used in different vehicles to realize different fuel usage, power, emissions, and weight and cost profiles. The combustion engine in a hybrid vehicle can be smaller, lighter, and more efficient than the one in a

conventional vehicle, because the combustion engine can be sized for slightly above average power demand rather than peak power demand. The power curve of electric motors is better suited to variable speeds and can provide substantially greater torque at low speeds compared with internal-combustion engines. The greater fuel economy of HEVs has implication for reduced petroleum consumption and vehicular air pollution worldwide. b) Pollution Reduced air pollution emissions, due to lower fuel consumption, lead to improved human health with regard to respiratory problems and other illnesses. Pollution reduction in urban environments may be particularly significant. Battery toxicity is a concern, Toyota and Honda say that they will recycle dead batteries and that disposal will pose no toxic hazards. Honda puts a phone number on each battery, and they pay a "bounty" for each battery to help ensure that it will be properly recycled. Then there are the emissions standards. They are sets of requirements defining the acceptable limits for exhaust emissions of new vehicles sold. They are basically requirements that set specific limits to the amount of pollutants that can be released into the environment. Many emissions standards focus on regulating pollutants released by automobiles (motor cars) and other powered vehicles but they can also regulate emissions from industry, power plants, small equipment such as lawn mowers and diesel generators. E.g.: Hyundai have introduced euro 4 version of cars. (European emission standards) Remarkable results, owing to vehicle and fuel improvements, can equally be obtained in other less developed regions by ensuring that vehicles and fuels meet at least some minimum requirements. The vehicle industry strongly supports the concept of promoting the technology which is best available in terms of efficiency and affordability.

Economic Growth In terms of economic growth, it should be recalled that road transport is inherently linked to economic development. The vehicle industry plays a key role in developing economies. Massive investments in production facilities all over the world ensure steady economic growth, Create employment; enable developing economies to play a role in the ever increasing globalization and to fully participate in the International trade. These vehicle production facilities act as a magnet, inducing a positive economic spiral by attracting suppliers and a whole vehicle distribution network. As per automobile plan 2006-2016 there is to be an increase in turnover to $145 billion by 2016 from present $35 billion. Provide employment to an additional 25 million people by 2016. By 2016 the automobile sector is expected to contribute 10% of countries GDP and 30-35% of the industry. The automotive industry is a major industrial and economic force worldwide. Despite problems with overcapacity and low profitability, the automotive industry retains strong influence and importance. It makes 60 million cars and trucks a year, and they are responsible for almost half

the world's consumption of oil. The industry employs 4 million people directly, and many more indirectly. The industry also provides well-paying jobs with good benefits, has heavy linkages with supplier industries (which gives it an oversized role in economic development), and has a strong political influence. The power of linkages is given by the following example of forecasted economic impacts of a proposed automotive assembly plant: Direct, Indirect And Induced Impacts 2006 Employment Personal Income* 189 2007 3,583 2008 7,800 2009 10,611 561,168 81,399 2010 12,240 684,180 99,242 2011 12,242 735,696 106,714

7,114 141,912 368,820

Revenue, State Government* 1,032 20,585 53,498

Sales* 16,620 318,492 1,405,080 3,024,000 3,792,960 3,864,240 (*000 of 2002 dollars) Source: CHLG Study Assumptions: Plant employment-2,000; Investment-$845 million The industry’s contribution on a macro-economic level also yields positive micro-economy. Thus allowing a growing number of individuals and their families to benefit from a stable income.

Social Equity Social equity is the result of, among others, the internal manufacturers' policies of equal opportunities for all employees and of continuous improvement processes. Manufacturers devote huge amounts in employee training, not least because of the ever increasing complexity of the products and their production processes. Throughout the industry, this initiative is the process of creating and maintaining an environment that naturally enables employees, dealers, suppliers and communities to achieve their fullest potential. It’s widely recognized that managing diversity includes race and gender as well as the broader aspects of age, education level, family status, language, military status, physical abilities, religion, sexual orientation, union representation, and years of service. Workforce diversity adds to competitive advantage. Working with a diverse group of individuals with differing backgrounds and perspectives, creates and maintains competitive advantage and assists in achieving global success. Many car manufacturers seek to create an environment that optimizes the contributions of their diverse work force, suppliers, customers and the communities where they work. This initiative often results in a highly qualified workforce with manufacturers setting up their own educational systems for all. It includes:

• • • • • • • • • • •

Philanthropy Memberships, Sponsorships, and Contributions Health and Safety Performance Supplier Management Employee and Job Satisfaction Wages and Benefits Equal Opportunities and Diversity Human Rights and Labor standards Training and Education Security Philanthropy Performance and Initiatives

Conclusion____________________________________________________________________ In conclusion, it is clear that the vehicle industry is actively committed towards sustainable development. It is of course equally clear that much remains to be done, which is why support from all stakeholders is strongly needed. The vehicle manufacturers need stable and economically sound policies, following the rules of open markets, such that ongoing and future investment strategies can be sustained.

Aditya Avasare MET, Bandra Pgdm (e-biz)

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