Electric car update (Part 2): Tesla Roadster

August 31, 2007

News and rumors regarding electric cars have been increasing in these past few months, so I thought I’d do a little research on the most salient models that are being talked about.

Today we’ll cover the very cool Tesla Roadster, of which much has been seen and heard this year..

Tesla Motors Roadster

  • Launch date: Oct or Nov 2007
  • Price: $98,000
  • Tesla RoadsterTop speed: 130 mph (210 km/h)
  • Autonomy: 200 miles (320 kms) between charges
  • Battery life: 100,000 miles (160,000 kms)
  • Battery charge time: 3.5 hours
  • 0-60 MPH (0-100 km/h): 4 seconds
  • Chassis design: Lotus
  • Company HQ: California
  • Founder: Martin Eberhard
  • CEO: Michael Marks
  • Sales estimates: 600 buyers already lined up for October or November launch, will make 1,000 model 2008 units
  • Dealer network: Will not set up a national dealer network for now; will sell cars directly. Stores and service centers are planned for New York, Chicago, and Miami.
  • Website: http://www.teslamotors.com/

Latest news

Tesla’s next model is the WhiteStar, a $50-60,000 sedan sized electric car, made in a new plant in Albuquerque, New Mexico that will employ 400. They are shooting for a 2010 release date.

Also rumored to be looking at manufacturing a lower cost model.

Curious fact

Arnold Schwarzenegger, wife Maria Shriver, and George Clooney are among the initial buyers lined up for the Roadster.

Insightful quote

Referring to the Tesla Roadster, California Gov. Schwarzenegger said, "I test drove this vehicle, and it is hot."

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Electric car update (Part 1): Miles XS 500

August 30, 2007

News and rumors regarding electric cars have been increasing in these past few months, so I thought I’d do a little research on the most salient models that are being talked about.

Today we’ll cover the Miles XS 500, until recently known as the "Javlon". The manufacturer, Miles Automotive, has been pretty hush-hush so far, but now that the launch date for their electric sedan approaches, they’ve been talking a bit about their plans.

Miles Automotive XS 500

  • Launch date: Fall 2007 (estimated)
  • Javlon electric carPrice: $32,000
  • Top speed: 80 mph (128 km/h)
  • Autonomy: 120 miles (192 kms) between charges
  • Battery life: 100,000 miles (160,000 kms)
  • Battery charge time: 8-10 hours.
  • 0-60 MPH (0-100 km/h): 4 seconds
  • Chassis design: Pininfarina
  • Technology partners:

    Chinese-based Tianjin Qingyuan Electric Vehicle Co. and Lishen Battery

  • Company HQ: California
  • Founder: Miles Rubin
  • CEO: Jeff Boyd
  • Sales estimates: 18,000 cars in the first year, and 38,000 in the second
  • Dealer network: Will be sold through a network of 180 dealers throughout the country. Several have already signed up in Colorado.
  • Website: http://www.milesautomotive.com/

The latest news

Unfortunate recent events both in auto and consumer goods safety have stung Chinese quality, so it is important to note that the company says the XS 500 will meet all U.S. National Highway Traffic Safety Administration and EU standards. Tests in the U.S. are underway right now.

Curious fact

The XS 500 is said to be comparable to the Toyota Camry in features and price.

Insightful quote

As a flip side to its low autonomy and high charge time, CEO Jeff Boyd notes that:

"… most Americans commute only about 40 miles a day and that a lot of people have second cars they use only for commuting. We don’t expect this to be most people’s primary car."

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China power from dry air

August 29, 2007

China Great WallChinese scientists say they’ve discovered a new clean energy source: dry air.

The premise?

Dry air absorbs moisture, and as it does it causes the air’s temperature to drop.

Says Jiang Yi, the research project leader at Tsinghua University:

"The breakthrough makes it possible to use dry air, instead of electricity, to cool down the water and the indoor air, and be applied at least to power large-scale air-conditioning equipment in office buildings."

The researchers are working with a company in Xinjiang to produce air-powered air-conditioning equipment that today can keep room temperature between 25 and 28 degrees centigrade. The scientists are working to expand that range.

The process does not produce electricity, but provides a means to allow less reliance on electricity.

Read more here.

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BMW vs. Chinese copycats

August 28, 2007

BMW and Daimler say they will take legal action to defend themselves against Chinese
copies of their models, if in fact the knockoffs appear at the IAA auto show in Frankfurt in September as they are slated to.

These are the accused Chinese cars:

To give you an idea, below are the Smart Fortwo (left) and the Noble (right).

Smart Fortwo     Noble compact China

The CEO SUV and the Noble are made by Shijiazhuang Shuanghuan Automobile Co.

The UFO SUV is made by Zhejiang Jonway Automobile Co.

But in hearty glass-half-full fashion, this is all good news for the European importer of the cars.

The seemingly unfazed Karl Schloessl, CEO of China Automobile Deutschland, thinks the controversy will actually help sales of the knockoffs, which will be managed through a 100-dealer network in Germany starting in October.

"This discussion could be useful, as helps put our products on the same shelf with those from BMW and Smart".

Read more at Forbes.

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Air powered car

August 27, 2007

Indian powerhouse Tata Motors is leading the way with the first commercial car to be powered by compressed air, called the City Cat, which will supposedly begin production this year.

The City Cat is based on high performance compressed air technology developed by MDI.

According to Engadget,

City Cat air car"The City Cat runs on nothing but compressed air — which can be refueled at "air stations," and overnight using a built-in compressor — with a not too shabby top speed of 68 MPH (110 km/h) and a range of 125 miles (200 km).

The Air Car designers are working on a hybrid version that can compress air while it’s operating, potentially making cross-India journeys possible.

It’s not completely emissions free travel since the problem of the source of the electricity (usually acquired from fossil fuels) has yet to be solved."

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India auto industry update (Part 9): Toyota in India

August 25, 2007

As a provider of dealer management systems to automobile dealerships in several emerging markets, we closely follow what happens in the auto industry in key regions around the world. I thought it might be interesting to share some of that information.

In the world’s major markets, auto sales are slowing at the same time that competition increases, so global auto manufacturers are setting their sights on big emerging markets like the BRIC countries: China, Russia, Brazil and India.

This series briefly discusses the promising future of the automotive industry in India. We’ve already looked at what GM, VW, Honda, Ford, Renault-Nissan, Hyundai, reigning king Maruti Suzuki, and now we’ll look at world #1…

Toyota in India

Toyota is present in India since 1997 through a joint venture called Toyota Kirloskar Motor Private Limited, in which Toyota Motor owns 89% and local Kirloskar Group of India the remaining 11%.

Toyota moving forwardToday Toyota has a four percent market share in India.

Toyota Kirloskar has a plant near Bangalore that can produce 45,000 units annually, and that is currently running at full capacity. The Corolla and Innova minivan are made there, for local consumption.

Recent news reports have talked about Toyota’s plans for a second plant, near their current one, to be built for some $400 million, but Toyota have replied that they have no concrete plans to do so.

Toyota offers the following models in India:

  • Camry   
  • Corolla
  • Innova minivan
  • Land Cruiser Prado

Toyota’s plans for a compact car in India

Small cars account for over 70 percent of the local car market, where Suzuki-controlled Maruti Udyog reign supreme with over 50% of the market.

But Toyota has not yet decided, or at least made public, their plan for a compact car in India. Recent reports in the news talk about a supposed small car project, saying it is central to Toyota’s goal of reaching a ten percent share of the local auto market by 2010.

For some time there were reports that Toyota would build a new plant with their subsidiary Daihatsu this year, to produce 100,000 compact cars annually, but that never happened.

Toyota has taken an interesting step that could be seen as a prequel to expansion into increased production in India.

Toyota recently opened the Toyota Technical Training Institute (TTTI), a technical training school for middle school graduates, in Bangalore.

This is a vocational training school with a three year curriculum that offers academic classes on engineering and practical training at Toyota’s plant. The training focuses on painting, welding, automobile assembly, and mechatronics.

This is Toyota’s first such school outside Japan.

Other stuff

Toyota and Isuzu Motors (5.9 percent owned by Toyota) have just announced an alliance in small diesel engines, and will start making diesel engines for the European market starting in 2012. Development and production will be mainly carried out by Isuzu.

Toyota Prado          Toyota Camry

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Eleven rules of choosing business management software: Rule 9

August 24, 2007

Continuing with our suggested list of eleven "rules" to help guide small and medium sized companies when they evaluate potential suppliers of business management software…

Rule 9: Discounts can be pyrrhic victories

Pyrrhic victory - burning shipIn general, a sale will always include some space for negotiation, and it is normal that the dealer will want to press the supplier with the hope of receiving a better deal.

But basic economic rules impose limits.

You can be sure that every concession extracted from the DMS supplier will be balanced by a reduction in the services that they provide.

So although a big discount may initially look like a victory for the dealer, it will most likely be detrimental to the overall success of the project.

If we think as the new DMS system as the dealership’s main instrument for recording, managing, controlling and planning business activities, then expect to invest a whole lot of time and effort in this project… not just money.

So surely we can agree that this is a strategic investment.

A quality implementation will have a direct effect on your business, so it is preferable to obtain a credible commitment from the DMS supplier towards a successful deployment, than a few dollars in savings.

Fish on hookSo, be wary of suppliers who offer significant discounts or price reductions, especially regarding training and accompaniment during the “go-live” stage.

This kind of concession by the supplier will certainly translate into a reduction of vital services needed to guarantee a successful deployment.

And most likely, you will end up realizing, too late, that you do need those services. But since you’ve already committed so much time, money and effort with this supplier, they can now begin to reel you in.

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Humdinga: amphibious 4WD

August 23, 2007

HumdingaA few posts ago I talked about the cool Aquada, a fast, very-fast, amphibious car.

The company behind the Aquada, Gibbs Technologies, is also responsible for a 4WD version called the Humdinga, a vehicle designed specifically to access remote and hostile terrain.

According to their website:

"The Humdinga transforms from land to water mode at a touch of a button. The wheels retract, the power train switches from the wheels to a jet propulsion system and the vehicle is in amphibious mode. In just a few seconds the driver is planing at a speed of forty miles per hour.

"On land the Humdinga can accelerate from 0-60 in 9.2 seconds and on water can reach the ‘plane’ in less than 10 seconds. It has a curb weight of 2000 kg, has all wheel independent air suspension and runs on regular unleaded petrol. The vehicle is 5400 mm in length, 1850 mm in height and 2000 mm in width."

Humdinga        Humdinga rescue

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Chinese go brand building

August 22, 2007

We’ve been talking about how the number one hurdle facing China’s automakers in their bid to penetrate mature markets like North America and Europe is the lack of recognizable brands.

(Unfortunately, that has been compounded by the recent quality fiasco suffered by Brilliance Auto).

Now, China’s three largest car manufacturers have announced plans to invest a combined $5 billion dollars in a branding and intellectual property rights effort.

They are Shanghai Automotive, First Automobile Works (FAW) and Dongfeng Motor. Together, these three companies own 50 percent of the Chinese domestic market.

First Automobile Works (FAW)

FAW will spend $1.7 billion to develop its proprietary brands. The money will go to product design, new hardware and software, and incorporating primary auto technologies.

FAW First Automobile Works logoBy 2015, First Auto wants to have:

  • Four sedan platforms
  • Fifty different models covering all market segments
  • An annual capacity of one million cars

FAW recently completed designs on their first independently developed sedan engine; it now goes into mass production.

FAW also has plans to list in the stock market.

Shanghai Automotive

Shanghai Automotive will spend some $3.5 billion dollars over the next five years, most of which will go towards designing new engines, designing own-brand sedans, and for building a technical center.

These are the next steps Shanghai Auto has announced:

Roewe 750Step 1: Invest $500 million to develop economy, medium range, and high end cars based on the Rover technology they bought in 2004. Boost output to 120,000 sedans and 170,000 engines.

Step 2: Invest $500 million to expand production capacity of independently-developed sedans, to reach 150,000 cars and 150,000 engines.

Step 3: Invest $130 million to upgrade their SsangYong SUV initiative and reach an annual capacity of 24,000 vehicles.

Shanghai has also agreed with smaller rival Nanjing Automobile to cooperate on their Roewe and MG projects.

Dongfeng Motor

Dongfeng has invested $1.3 billion dollars in their independently developed car program.

Dongfeng MotorThey have just begun construction of a new plant, which will reach an annual capacity of 330,000 sedans.

Dongfeng will also spend $80 million to build an independent R & D facility. Their first independently developed sedan model will come out at the end of 2008, branded as the Shuangyan. It will imitate the Elysee, manufactured by Dongfeng Peugeot Citroen.

So reports China Daily.

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Best brands in the world 2007: The Top 20

August 21, 2007

Coke logo bottleEvery year, Interbrand and Business Week put out a special report detailing the top one hundred global brands.

Here, then are Interbrand’s top twenty most valuable brands in the world:

  1. Coca Cola (7th straight year at #1)
  2. Microsoft
  3. IBM
  4. GE
  5. Nokia
  6. Toyota
  7. Intel
  8. McDonald’s
  9. Disney
  10. Mercedes-Benz
  11. Citi
  12. Hewlett-Packard
  13. BMW
  14. Marlboro
  15. American Express
  16. Gillette
  17. Louis Vitton
  18. Cisco
  19. Honda
  20. Google

Interbrand has stringent rules. To qualify for the list, a brand must derive at least a third
of its earnings outside its home country, be recognizable outside of its base of customers, and have publicly available marketing and financial data. Big brands like Visa and Wal-mart are thus excluded

Also, they only rank the strength of individual brand names, not portfolios of brands (that leaves out huge Procter & Gamble). Airlines and pharmaceutical brands are also ruled out.

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