Hybrids and the end of the American car
Karma: Is this really the path towards efficiency for the masses?For decades the US has driven the world's auto industry. If an automaker could make it here, they could make it anywhere. But, is America still that important?
Recently, China topped the US in auto sales, yet the Chinese auto market has barely been scratched. Likewise, add in the potential of all 4 BRIC countries, let alone the rest of the emerging markets, and the importance of the US market could be significantly marginalized in just a decade or two.
Even more interesting, by 2030, according to a plethora of research, hybrid cars and EVs - the proverbially future of the US market - will achieve, in a best case scenario, a combined 30 percent share in the US. Yet, in the developing world, share will probably be significantly lower as most research suggests emerging markets will embrace far cheaper forms of transportation than US-like products.
Thus, just how important is the battery to auto industry success?
When Henry Ford, for example, revolutionized the US auto industry, his success was driven by efficiency. Efficient scalability, or cost-effective solutions for the greatest numbers, powered the US auto industry for decades. Then, of course, the market saturated and maximized quarterly profits, rather than increased efficiency, took over the US auto market.
But the automotive world is quickly changing. New and huge, yet totally un-American markets are quickly emerging. While American autos might be cost-effective for some early adopters in some emerging markets, will they be cost-effective for the masses? Will adding batteries to American autos make them more cost-effective, or less cost-effective, for the masses?
If Henry Ford's efficient scalability is the key to the future of auto industry success, doesn't the US market have to become more worldly? Moreover, can the world market, ultimately, be based on anything other than the cheapest and safest efficiency possible, whether that includes batteries or not?
Labels: Hybrid Vehicles, plug-in hybrid vehicles
posted by Dahcredyns at
9:59 AM
7 Comments:
A hybrid vehicle is a vehicle that uses two or more distinct power sources to move the vehicle. If the automotive market is diverting towards the making of these hybrid vehicle, then the market for the American car's future will not be so long... as people generally getting to know the advantages of the hybrid cars..
semi trucks
Nice one! So informative, keep it up! Will surely follow through your posts! Thanks!
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If you take a good look at it historically, you will see that we are in the early stages of a revolution in the automobile industry.
For the past 100 years, 100% of the engines driving our vehicles were internal combustion engines. The revolution started with the Prius, which is the first successful vehicle driven (in part) by something other than an ICE engine.
In this revolution, there is no guarantee that the dominant players in the ICE world will remain the dominant players in the alternative energy world. This revolution opens the door for new players, including Fisker.
Just as new companies like Apple & Dell became major players when computers transitioned from main frames to PC's, new auto companies will become major players as we transition away from ICE power vehicles.
Which ones???? Only time will tell.
Very insightful and thought provoking article. Too bad most Americans could give a hoot about the rest of the world. Boy, will that come back and bite them/us. Whether the majority of Americans like it or not, there is a paradigm shift starting to take place and it's going to leave most of us middle class Americans in a much lower economic class.
This post is really something to think about. Nice job!
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