Green operations strategy of a luxury car manufacturer

This paper investigates the strategic environmental decisions of a luxury car manufacturer. Through case study research, the investigation sheds light on why and how the company is adopting green technologies. Being pressured by different stakeholders to become greener, luxury car manufacturers carry significant opportunities for environmental improvement given the nature of their manufacturing processes and products. Because of their low-volume production, manufacturers may be able to increase output and still reduce overall emissions when compared to high-volume manufacturers. In the case study company this was found to be possible only because of new ideas brought by a change in ownership. Luxury manufacturers may also be a test-bed for the development and experimentation of green technologies as part of a strategic approach to environmental initiatives. This paper contributes to the fields of green technology adoption and operations strategy in automotive manufacturing groups. Sustainability of the Automotive Industry In the UK, a car manufacturer brings significant contributions to the regional economy by creating jobs and enhancing exports (SMMT, 2009). But in contrast to the socioeconomic benefits, there are significant negative environmental impacts from car production, distribution, use, and end-of-life. Due to its topicality and perceived environmental burden, the sustainability of the automotive industry has been studied by The sustainability of car manufacturers is scrutinised continuously given their high vulnerability to economic instability, overcapacity of industrial systems, impact on traffic congestion and urban air pollution, and finally, deaths from accidents. Several authors have attempted to conceptualise what a sustainable car industry would be. For many, it could be described as " a provider of clean solutions for effective personal mobility ". Such a change of 'philosophy' would impact dramatically on manufacturer's strategic environmental initiatives and the way cars are built, run, and disposed of. The industry's strategic agenda includes use of lighter and less toxic materials, alternative fuels, and integration of information technology in product design. However, it will depend on innovative manufacturing systems to reduce cost and make cars safe and reliable when seeking higher environmental performance. All these issues are emerging at a time when there are new entrants to the industry, with Google's driverless car and Tesla's electric roadster being among the future competitors without any automotive heritage. This paper discusses the environmental initiatives in manufacturing operations of a luxury car manufacturer based in the UK. There has been little work in exploring the strategic importance of greening luxury brands …