4.

The plan for Chevy Volt seems to be partly based on the assumption that oil
prices would remain high, and yet in late 2008, oil prices collapsed in the wake of a
sharp global economic slowdown.
b. What do falling oil prices mean for the potential success of the Chevy Volt?
Falling oil prices would unfortunately mean that demand for oil alternatives
would go down. Knowing that Chevy Volt is a vehicle primarily powered by a large
lithium ion battery which is an example of an oil alternative, consumers may not
take advantage of purchasing a vehicle empowered by such since oil prices
collapsed. If we are only to look at oil prices as the main variable of the success of
Chevy Volt, the fall of oil prices could also mean the fall of Chevy Volt. Consumers
may shy away from something new knowing that what is conventional and normal,
like driving an oil powered vehicle is going to be less costly than it was before.
Although many factors and variables are to be examined in order to fully attest on
what is to happen on Chevy Volts fate, falling oil prices would lamentably hinder
Chevy Volts success.