Anheuser-Busch Tanks Up With Tesla

Anheuser-Busch Tanks Up With Tesla

December 20, 2017

Article Title: Anheuser-Busch Turns to Tesla for Huge Semi-Truck Order

Author of Article: Chris Morris

Date of article: December 7, 2017

Source URL: http://fortune.com/2017/12/07/anheuser-busch-tesla-semi-trucks/

Anheuser-Busch has placed an order for 40 Tesla semi-trucks.  AB is the second company reported to place such a large order; trucking company J.B. Hunt also placed a pre-order for as many as 40 trucks.

What is unique is that the semi-truck is all electric with a 500 mile range, and offers autonomous driving.  Anheuser-Busch plans to keep the driver in the truck, primarily to unload the beer.

Discussion Questions
1. Why would Anheuser-Busch pre-order the new Tesla semi-truck?

Guidance: You can begin with reducing their carbon footprint.  As the article mentions, they have a goal of reducing their carbon footprint by 30% by 2025.  It also offers many advanced safety features, and promises a 20% reduction in cost over the standard diesel truck.  With the autonomous driving feature, the driver might be eliminated in the future–further reducing costs.

2. Should the driver be eliminated at some point in the future as the autonomous driving technology matures?

Guidance:  At some point, the technology will make the Continue reading

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Canadian Sand in LA Highrises

Canadian Sand in LA Highrises

Article Title: Why Builders of Big L.A. Projects Are Making Concrete with Gravel and Sand Shipped from Canada

Author of Article: J. R. Koren

Date of article: November 4, 2017

Source URL: http://www.latimes.com/business/la-fi-canadian-gravel-20171104-htmlstory.html

For construction projects in the Los Angeles area, it is now cheaper to import the gravel and sand – known as aggregate – from Canada than to ship it from local quarries.

The aggregate travels one mile on conveyor belts from a quarry in Vancouver Island to a floating terminal on the coast. Ships then carry the materials 1,450 miles away to the Port of Long Beach. The materials are transported to a terminal on a conveyor belt. From there, they will be loaded into trucks to reach the construction sites.

The transportation cost is $16 compared to the $22.75 it would cost to truck a ton of materials from a local quarry to downtown L.A. These lower transportation costs, better quality of materials, and local residents’ reluctance to have quarry-related work and traffic nearby have contributed to increasing imports despite an abundant domestic supply.

Discussion Questions
1. Why is it cheaper to import the aggregate from Canada?

Guidance: Discuss the lower Continue reading

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