Wednesday, December 03, 2008

A Better Place than the Volt?

Hybrid cars, range extended electric vehicles or electric vehicles? Who cares it's all about the battery.So yesterday?

It's 2016 and you need a new car. Now, you aren't rich. You're middle, middle class and living paycheck to paycheck. You really like the Chevy Volt, but all the consumer tax credits have been consumed, and the upfront costs are just too much. The new Toyota Prius, on the other hand, costs $10,000 less than the Volt, but skyrocketing gasoline prices mean even the fuel efficiency of hybrid cars might not be enough to save you from serious pump pain.

So, instead you buy a Prius-sized electric vehicle from one of Better Place's partners that not only costs several thousand less than the Prius, but your monthly fees for battery and charging are a third the cost of what you'd pay in monthly gas bills.

And, even if you have to take a few long trips that push you beyond Better Place's range, it would still be far cheaper to rent a Prius on those special occasions.

Seems a bit far-fetched, but the way Better Place keeps inking deals, I'm starting to believe that maybe it's possible. Maybe it isn't car makers that are critical to the future, but rather battery and infrastructure companies. And, maybe that future is closer than we think.

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9 Comments:

Blogger BeyondGreen said...

I have to agree with you totally. I read about this concept in Jeff Wilson's new book The Manhattan Project of 2009 Energy Independence NOW. Loved the idea, the plan. I thought it was a bit futuristic as well. It is thrilling beyond belief to actually see the outlined plans in Wilson's book actually starting to unfold. I love this book and highly recommend it to anyone interested in this subject. www.themanhattanprojectof2009.com. I am a Better Place junkie now. On their web site you can sign up to get news updates and there is even a place to sign a petition to have similar projects come to your area. http://www.betterplace.com/ under the get involved link at the top right hand side of their page.I think it will take individuals taking a stand, and chance and having the courage to take their vision to the next level to change the mess our country is in.

10:37 AM  
Blogger Chad said...

i definitely agree that we can't just leave this up to corporations and government. somehow a grassroots effort seems a critical piece of the puzzle.

3:41 PM  
Blogger alcatholic said...

This post has been removed by the author.

5:52 PM  
Blogger alcatholic said...

Radical innovators are not only definitely needed, but much more likely to succeed as businesses than patched over Detroit dinosaurs. What is wrong with Detroit is not just gas engines and the lack of Hybrids, etc. it is a business model that is completely based upon screwing customers and suppliers, and externalizing as many costs as possible, like pollution, road infrastructure, and soon enough health care and retirement for workers. To be fair, most businesses today have that model, since it has worked.

But consumers are going to have radical choices very soon, and they are going to be much more connected to information and values that will make those choices much more attractive than just buying another SUV.

The only problem I see, is where is the American Better Place!?

6:03 PM  
Blogger Chad said...

Will consumers be willing to make those radical choices?

9:17 AM  
Blogger alcatholic said...

Yes, if consumers

receive information outside of mass marketing (think blogs like this that can compellingly lay out the issues and value of choosing other than a regular car),

Recognize critically important values of the environment, sustainability (again think about blogs that help form communities that do care about those things),

elect national and local leadership that understand the urgency of various energy and environmental problems related to transportation (again we won't have Bush and Cheney begging people to buy Hummers in the name of Patriotism).

For reasons like those and fundamental economic reasons, I would argue that there is a strong possibility that a radical rethinking of the auto industry value chain can succeed relatively quickly. And the transitions to batteries, along with this serious recession, is the strategic opening that will catalyze those changes.

One last point on the fundamental economics I mentioned. Consumers are no longer sheep following mass advertising. Business models that are open to outside innovation and that treat consumers as smart humans and not just flocks of sheep will innovate more quickly and effectively and create more value. Industrial era businesses that only know how to cut costs and establish market power to raise prices will keep on trying the same old things and expect different results. Think Apple vs Dell.

6:20 PM  
Blogger Chad said...

smart consumers are growing in numbers, but they still represent a significant minority.

nonetheless, i think conditions are ripe for a cultural revolution - one that can be significantly driven by a technological revolution. and, when you add in the power of the Internet, which is really the power of the people to communicate outside of the parameters put forth by corporations, etc., the potential for change, and quick change, has probably never been greater.

add a President that appears willing to make this a national focus and the potential is there.

still, this recession is scary, and in tough economic times consumers typically set morality aside for the cheapest prices.

thus, if i had to bet, i'd bet things will get better. progress will be made, but we won't move nearly as fast as either you or i would like, especially if gas prices stay low for a couple of years.

11:14 AM  
Blogger alcatholic said...

Uh, I didn't realize that Better Place was a Palo Alto start up. The US Feds should immediately start investing and signing deals with them.

12:58 PM  
Blogger Dahcredyns said...

well, their technology hasn't been proven just yet. and i don't think it has been proven that their business model is more viable than ranged extended, or plug-in hybrid, vehicles, for instance.

believe me, i find it very interesting, but i'm not sure we want to call winners just yet.

i'd really like to see the government help develop the battery industry in the US, which also happened to be a topic of discussion at today's bailout hearings.

1:45 PM  

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