Posts Tagged by Bob Lutz
Electric Vehicles and the "David and Goliath” Metaphor
| August 25, 2010 | Posted by Craig Shields under Electric Vehicles |
We certainly see a great deal of the old “David and Goliath” metaphor in our conversations in this industry – especially in electric transportation. Though a number of EV start-ups have gone belly-up over the past few years, there are still many such Davids, feverishly ramping up to take on the Goliaths of Nissan, GM, and the other traditional automakers.
Bob Lutz, former co-chairman of GM, said on CBS’s 60 Minutes about a year ago that only experienced carmakers have the background to deliver electric vehicles. Horse hockey. That’s self-serving garbage, and he knows it. Obviously they have an advantage – especially since they’re approaching the problem with $85 billion of your (taxpayers’) money. But we’re about to see exactly what a whole slew of nimble companies with good ideas and cutting-edge technology can do, in competition against the stodgy behemoths.
I know I’m not alone in wishing that this weren’t the worst period in history for capital formation since the Great Depression. But even in their hamstrung condition, we’re about to enter some exciting times in the electric vehicle market. In addition to Tesla – a company that garners an astonishing amount of ink each week, we have Phoenix Motorcars, Coda, BYD, Fisker, and many others right behind them.
I’m wondering what effect this new, competitive environment – and a true paradigm shift in driving – will have on the GM IPO. What’s investors’ forecast for a company like GM, selling into an auto consumer base that doesn’t think or act like the baby boomer generation? Where will the modern car-buyer go who wants a high-quality automobile that doesn’t make him a slave to the oil companies? I guess we’ll see shortly – but I see another rock to the head coming for Goliath.
Peak Oil
| January 25, 2010 | Posted by Craig Shields under Renewables - Business |
I’m hoping that readers of my upcoming book on renewables will enjoy my conversation with Matt Simmons, arguably the loudest voice on the issue of peak oil. And, although the subject remains controversial, it’s probably a good deal less so today that it was last week, now that two extremely senior automotive industry executives have come out with statements that support it.
In particular, note the recent comments of GM’s Bob Lutz, global climate change skeptic, who is nonetheless a strong proponent of the Volt and the electrification of the automobile. Lutz argues that continued dependence on oil as demand inevitably increases will simply exacerbate boom and bust economic cycles. He notes that, in 20 years the China auto market will equal the rest of the world combined and adds, “At that point we have to have alternative drive systems, which to me have to be electric.”
And check out the remarks of Jim Lentz, President and COO of Toyota Motor Sales. He apparently stunned his interviewer during a recent Commonwealth Club event, in which he stated unequivocally that Toyota believes that peak oil will occur sometime in the later half of this decade.
Peak oil – just one of the many reasons for the rapid migration to renewable energy.
