The critical issue is why the market is not generating vehicles with high mpg if they will yield high net gains for the automobile manufacturers and the car buyers. The NHTSA is puzzled by the refusal of the manufacturers and buyers, who deem these vehicles too expensive to make. NHTSA’s critical issue is resolving this automobile paradox.
Correspondingly, the root challenge is finding the balance between the customers and the automobile manufacturers to achieve NHTSA goals. Notably, the manufacturers are reluctant to make the shift owing to high costs, while customers are concerned about the price and technology of the vehicles.NHTSA must find a solution that would compel both parties to accept the high mpg vehicles.
The strategic recommendation is that the NHTSA ban all vehicles of low mpg after 2035. Given that low mpg cars consume more fuel and pollute the environment, banning their use will force manufacturers to produce high mpg vehicles. Correspondingly, vehicle buyers will have no choice but to embrace the new car models. The ban will promote the manufacture and purchase of high mpg cars.
There are multiple stakeholders in this project. The first stakeholder is the government through its agencies, the NHTSA and EPA. The NHTSA and EPA are keen on preserving the environment and driver safety.As government agencies, these two bodies have a lot of influence over enforcing changes in the industry. Manufacturers are reluctant to make the recommended shift as it would be costlier to make high mpg cars. Similarly, it would reduce their incentive to produce vehicles, hampering competition. Given their role in the country’s economy, they cannot be ignored by the NHTSA as it enforces the recommendation. Equally, vehicle buyers’ preferences must be considered or else the changes will lead to a drop in the sale of vehicles and public outcry. Comparatively, the NHTSA can influence their decision given its powerful position as a government agency.However, the NHTSA does not have a high influence over Big Oil as it partners with the USA concerning trade. Conversely, Big Oil, through trade agreements can alter the policy as the USA must retain good relations with its trade partners.
The NHTSA has several options. Firstly, ban low mpg vehicles. Secondly, it should increase its marketing efforts to educate the public the value of high mpg vehicles. Consequently, the public will be more welcoming of the change and even support it. Thirdly, gasoline tax should be increased. In effect, the price of fuel will increase especially with the use of low mpg cars. Car buyers will thus have an incentive to purchase the new car models. Finally, the government should limit the annual consumption of gasoline per driver. Henceforth, it will minimize the rate of environmental pollution. The options proposed by NHTSA will promote environmental protection and increase high mpg vehicle use.
To evaluate the effectiveness of the policy, the NHTSA will evaluate several areas. The NHTSA will examine whether the environment has improved through low pollution levels after the high mpg vehicles are used. Equally, NHTSA will analyze the level of consumer satisfaction with the vehicles regarding fuel consumption and technology. Manufacturer satisfaction will also be reviewed to understand if they are pleased with the new models, and how it has affected their production process. The Political inertia will be closely monitored especially since the mpg vehicles will consume less fuel, thereby affecting Big Oil’s operations in the USA.
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