Posts Tagged by OEMs
Electric Vehicles and the Traditional Automakers
| July 5, 2010 | Posted by Craig Shields under Electric Vehicles |
I want to call readers’ attention to the discussion on what I think is one of the hottest and most important topics in clean energy: the EV adoption curve and the sincerity of the OEMs in building and selling EVs.
If you Google this topic, you’ll find that most of this conversation concerns the consumer. As my friend Brian Wynne (president of Washington DC advocacy group the Electric Drive Transportation Association) likes to say, “The consumer has a vote in this.”
While Brian’s right on this of course, in the absence of adequate supply, it’s going to be a heck of a long time until that vote means anything. People can want EVs all the want (as people in hell want ice water), but it’s rather moot if those EVs are coming off the assembly line at the rate of a few tens of thousands per year, vs. tens of millions of internal combustion engines per year.
Of course, start-ups will get us there eventually. But, as I wrote to frequent commenter Richard Marks, president of low-speed EV start-up EcoVElectric (great company, btw), I believe the OEMs have the backs against the wall here, and are finally forced to build EVs whether they want to or not. Sure, they’re at liberty to drag their heels in EV product releases and production quantities, but if they do, they’ll quickly wither and die as their competitors leap ahead.
Related posts:
Electric Vehicle Start-ups
| May 24, 2010 | Posted by Craig Shields under Electric Vehicles |
Abhishek writes in:
“… electric vehicle startups require large amounts of capital to go into production. The continuous need for large capital infusions makes partnerships with established companies with large balance sheets essential. I think some of these ventures would eventually be absorbed by the Hondas and Toyotas of the world.”
Good points, Abhishek — thanks for writing in. And yes, you’re right that a great deal of consolidation is in the cards. But I guess I always thought there was a place for the start-up EV manufacturer — but so far there has been essentially nothing but carnage.
I’m wondering what’s behind all this failure. I’m reminded of the numerous “Plug In” conferences I’ve attended, expecting a feeling of exuberance in the air — but instead sensing a kind of dread. And that dread is simply what you’re talking about: the fear that the big guys will do this at their leisure — and then crush the start-ups like so many grapes.
Having said this, we need to acknowledge that starting a car business from scratch is a lofty endeavor. I’m amazed to see that CODA just raised $58 million in series-C money. Those are some bold investors, I can tell you that.
If I were giving advice, I’d suggest aiming for a niche. Compete in a space that is well-defined – probably one that is too small to receive the attention of the large OEMs.
