Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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  1. Chapter 5: Ethics and The Environment (Page: 264)

“The Auto Companies in China”

 

and other health hazards (tuberculosis cases will
severe environmental impacts. Even "clean cars wi
generate carbon dioxide as they burn fuel, thus wors
pollution from so many new cars promised to have
ening the greenhouse effect. Cars also produce ssmo
The Auto Companies in China
n 2000, China's car market began to expand dra-
matically due to the increasing wealth of the coun-
try, the encouragement of the government, and a
growing middle class that wanted the comfort, con-
venience, and pride of car ownership. By 2010 China
had become the largest car market in the world with
over 18 million cars sold that year. With a population
of 1.2 billion people and double-digit growth rates,
China estimated that by 2035 as many as 300 million
cars would be traveling on its highways. Foreign car
companies eagerly flocked to help China expand its
car industry, including Volkswagen, General Motors
(GM), Honda, Toyota, Ford, Citroen, and BMW, who
double; emphysema and lung cancers will rise
China's form of gasoline contains lead, a tovie
Expanding China's car production will increase
consumption, placing heavy pressures on the wot
dwindling oil resources. China's rising oil consum
tion was partly responsible for continuing oil prices
of over $100 a barrel in 2011 (the high price was ai
due to civil unrest in the Middle East) that drove the
price of gas in the U.S. to over $4 a gallon. If car own
ership in China continues to rise, by 2020 China's oil
consumption could be two thirds of the United States
(the U.S. consumes one-fourth of the world's oill, a
level the world's oil supplies probably cannot support.
Some experts claim world oil production peaked in
2010, leaving declining and more expensive oil sup
plies to meet the rising demands of China, the United
together invested more than $20 billion to kick-start
China's auto industry in 2000. In 2011, Volkswagen
announced it had sold 2 million cars in China the pre-
vious year and GM announced it had sold 2.3 million
and would be selling 5 million a year by 2015. Crit-
ics suggested, however, that the overzealous auto
companies unwittingly might be inflicting serious
harms on the global environment. To begin with, the
expand button
Transcribed Image Text:and other health hazards (tuberculosis cases will severe environmental impacts. Even "clean cars wi generate carbon dioxide as they burn fuel, thus wors pollution from so many new cars promised to have ening the greenhouse effect. Cars also produce ssmo The Auto Companies in China n 2000, China's car market began to expand dra- matically due to the increasing wealth of the coun- try, the encouragement of the government, and a growing middle class that wanted the comfort, con- venience, and pride of car ownership. By 2010 China had become the largest car market in the world with over 18 million cars sold that year. With a population of 1.2 billion people and double-digit growth rates, China estimated that by 2035 as many as 300 million cars would be traveling on its highways. Foreign car companies eagerly flocked to help China expand its car industry, including Volkswagen, General Motors (GM), Honda, Toyota, Ford, Citroen, and BMW, who double; emphysema and lung cancers will rise China's form of gasoline contains lead, a tovie Expanding China's car production will increase consumption, placing heavy pressures on the wot dwindling oil resources. China's rising oil consum tion was partly responsible for continuing oil prices of over $100 a barrel in 2011 (the high price was ai due to civil unrest in the Middle East) that drove the price of gas in the U.S. to over $4 a gallon. If car own ership in China continues to rise, by 2020 China's oil consumption could be two thirds of the United States (the U.S. consumes one-fourth of the world's oill, a level the world's oil supplies probably cannot support. Some experts claim world oil production peaked in 2010, leaving declining and more expensive oil sup plies to meet the rising demands of China, the United together invested more than $20 billion to kick-start China's auto industry in 2000. In 2011, Volkswagen announced it had sold 2 million cars in China the pre- vious year and GM announced it had sold 2.3 million and would be selling 5 million a year by 2015. Crit- ics suggested, however, that the overzealous auto companies unwittingly might be inflicting serious harms on the global environment. To begin with, the
stomer checks ont a Cadillae CTS ia Shanahai
Traffie Jam in.Beljing. China says that by 2020 it will triple the number of cars on ite'raads.
States, and the rest of the industrialized world, and
promising future economic disruptions and political
or military conflicts. If China were to substitute elec-
tric vehicles for gas-fueled cars, as it plans to, it will
have to expand its coal powered electric plants which
in turn will increase its carbon dioxide emissions.
1. Was it wrong for the car companies to
help China expand its auto industry?
expand button
Transcribed Image Text:stomer checks ont a Cadillae CTS ia Shanahai Traffie Jam in.Beljing. China says that by 2020 it will triple the number of cars on ite'raads. States, and the rest of the industrialized world, and promising future economic disruptions and political or military conflicts. If China were to substitute elec- tric vehicles for gas-fueled cars, as it plans to, it will have to expand its coal powered electric plants which in turn will increase its carbon dioxide emissions. 1. Was it wrong for the car companies to help China expand its auto industry?
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