Tag: emissions

OM in the News: Polyester Is Driving Up Fashion’s Emissions

Greenhouse gas emissions from clothing companies are mounting, reports The Wall Street Journal (July 24, 2025).  The spike is fueled by supercharged apparel production, as well as a mounting reliance on virgin polyester. Virgin polyester, a material made from fossil fuel-created plastic, is the latest industry trend.

Polyester now makes up 57% of total global fiber production. The market share of recycled polyester used in clothing has recently dropped, pointing out that the material costs more than its virgin counterpart.

Environmental concerns about apparel have proliferated since the arrival of ultrafast fashion companies, which churn out low-cost clothes direct-to-consumer to satiate lightning-quick trend cycles.

Activists hold banners as they gather in front of bags of textile waste delivered in Paris

Recycling clothing can be especially tricky when fibers are woven together, for example cotton and polyester, which are often blended to lower costs and provide stretch in fabric.

But consumers are growing worried about clothing shedding microplastics that could harm human health and the environment. There’s also been concern about “forever chemicals” in textiles used to make workout gear.

New technologies including artificial intelligence are helping brands to get a better handle on their clothing stock, piloting made-to-order methods that significantly reduce waste by producing only what is needed.

Some countries are taking swift action to try and blunt the harms of fast fashion. France recently adopted a bill to tax each fast fashion item €5 ($5.87 ) which will increase to €10 by 2030.

Classroom discussion questions:

  1. Why is fast fashion an OM issue?
  2. How else might AI be used to improve sustainability in the fashion industry?

OM in the News: Going Big on Electric Vehicles

An electric Chrysler Pacifica minivan under assembly in Windsor, Ontario,

Global auto-making giant Stellantis ( from the merger of Fiat Chrysler Peugot) plans to spend more than $35 billion through 2025 to release an array of new plug-in models to compete in the industry’s intensifying electric-vehicle race. Stellantis also plans to get more involved with battery development and sourcing, aiming to drive down costs on one of the most expensive components for an electric car, with the establishment of 5 battery factories in North America and Europe. It aims to offer electrified options under all 14 of its brands, which include Jeep, Ram, Peugeot and Citroën.  Stellantis will offer two kinds of battery chemistries, a high-density option and a nickel cobalt-free alternative by 2024, as well as introduce solid-state battery technology by 2026.

Other major car companies have upped their bets on EVs and pivoting from their century-old model of selling gasoline-powered vehicles. GM just increased its planned spending on EVs to $35 billion through 2025. The increase reflects the addition of two more battery factories, on top of ones already planned for Ohio and Tennessee. Ford also has become more aggressive, unveiling an all-electric version of its bestselling vehicle, the F-150 truck. It plans to invest $30 billion in EVs through 2025. And VW is spending $40 billion through mid-decade on EVs. (That is $150 billion planned expenditures for just these four firms)!

Europe and the U.S are expected to tighten regulations limiting tailpipe emissions in the coming years, putting pressure on auto companies to lessen their reliance on gasoline-powered vehicles. Governments are also offering more incentives to get auto makers to invest in electrics.  The U.S. has called for $174 billion in electric-vehicle-related spending, which includes fresh federal tax credits for purchasing plug-in cars and commercial trucks.

Meanwhile, other car companies are moving quickly to put out EVs and the marketplace is becoming more crowded, with startups such as Rivian and Lucid Motors moving closer to selling their first plug-in models. Tesla continues to expand globally and fortify its grip on the market with growing sales and new-model debuts.

Classroom discussion questions:

  1. You are head of OM for a large auto manufacturer. Conduct a SWOT analysis (see Chapter 2) on the move to EVs.
  2. How will the auto industry look a decade from now compared to today?

 

OM in the News: Volkswagen and Ethics

While VW cheated behind the scenes, it publicly espoused virtue, using the Super Bowl to run a commercial showing its engineers sprouting angel’s wings.
While VW cheated behind the scenes, it publicly espoused virtue, using the Super Bowl to run a commercial showing its engineers sprouting angel’s wings.

Volkswagen just got caught cheating, writes The New York Times (Sept. 27, 2015). The global auto giant finally admitted last week that it had installed software in 11 million diesel cars that misstated emissions tests, allowing the vehicles to spew far more deadly pollutants than regulations allowed. About 500,000 of the cars were sold in the U.S., including Passats made in Chattanooga. Disabling the emissions controls brought major advantages, including much better mileage — a big selling point in the firm’s push here.

In 2013, a nonprofit group proposed testing on-road diesel emissions from cars — something never done before, teaming up with California regulators. It was only by chance that the group’s testing of 3 vehicles began with 2 VWs and a BMW. Researchers hit the road, traveling 5 routes with varying terrain and traffic. Almost immediately, the 2 VWs set themselves apart from the BMW with much higher emissions. It was difficult to know what was going on: When the two VWs were placed on a “car treadmill,” they performed flawlessly.

By 2014, the California regulators alerted the E.P.A., which opened an investigation. VW fired back. “They tried to poke holes in our study and its methods, saying we didn’t know what we were doing,” said a researcher. “They were very aggressive. Meeting after meeting, they would try to explain it away.” For a year VW continued to maintain that there was a problem with the testers.

Then the regulators changed tack, examining the company’s software. Modern cars operate using millions of lines of computer code. The regulators made a startling discovery: A subroutine, or parallel set of instructions, was secretly being sent by the computer to what seemed to be the emissions controls. The revelations were stunning and VW’s push to dominate in America may have collapsed in one big lie.

Classroom discussion questions:

  1. Discuss the ethical implications of this case.
  2. How could so many VW engineers and executives have allowed the cover up to last for so long?