Showing posts with label Volt. Show all posts
Showing posts with label Volt. Show all posts

Innovative Business Models and New Partnerships are Driving the Automotive Sector

There is a new competitive environment emerging in the hybrid-electric automotive market. International partnerships are powering new automotive innovations. A host of unique business models are powering new battery car startups and new partnerships are enhancing their competitive positioning.

Fleet sales are key to the strategy of many of new hybrid-electric vehicles. These new vehicles are capable of meeting the daily driving requirements of most fleets they can also reduce fuel costs, proactively respond to emissions regulation and provide add to their marketing allure.

General Electric has announced that it will switch to battery power for half its huge sales and service fleet. General Motors alone stands to pick up orders for at least 12,000 Volt plug-in hybrids.

According to Robbie Diamond, CEO of a trade group known as the Electrification Coalition. Fleet buyers are helping to provide the momentum needed by EV and hybrid producers to reach critical mass. “Fleet owners and operators can lead the way in this transformation…to accelerate the development of electric vehicles.“

Canada’s Azure Dynamics is focusing on fleet sales by converting light and medium-duty trucks, such as the Ford Transit Connect Electric. the firm’s close relationship with Ford Motor Co., which is providing the Transit Connect gliders that are being converted to battery power

Competition is growing with new car companies like Amp, Aptera, Fisker, Tesla, Think, Wheego and others are taking on the behemoths who have long dominated the automotive market.

“It’s the first time where that’s been possible in more than a half-century,” said Jim Taylor, a former General Motors executive who has served as general manager of both the Cadillac and Hummer and is now a board member for Amp.

Amp has a modified version of the Chevrolet Equinox that replaces its fossil fuel engine with its proprietary lithium-powered drive train. Rather than going head to head with the automotive giants, companies like Amp are seeking to exploit the larger SUV niche.

Others like Atlanta-based Wheego, are competing directly with the big boys, while limiting the size of its internal development team by partnering with outside contractors to hold down costs. The name Wheego refers to the ferrous-based lithium-ion batteries that power the car.

Wheego has engaged a small Chinese automaker to provide the unpowered body (glider) for Wheego’s new LiFE.

According to some, traditional automakers may not be sufficiently agile to adopt to such a low-cost business strategy. “This is a market sector that is very much contingent on new technology, unlike the combustion engine segment, where there hasn’t been a truly significant breakthrough in half a century," says Wheego’s firm’s CEO, Mike McQuary.

Tesla Motors, initially came to market with a low-volume, high-priced sports car, the Tesla Roadster. However, starting in 2012, Tesla plans to move more mainstream with the Model S sedan. Tesla is forming a series of alliances including Daimler AG (Mercedes-Benz and Smart car brands) and Toyota. These new partnerships, will help to make Tesla much more viable over the long-term.


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Electric Vehicles Will Drive Demand for Lithium

Lithium is a key ingredient in the power plants of electric vehicles, prompting Public Broadcasting (PBS) to say that, "Lithium is a metal which may soon make our old-fashioned, oil-dependent vehicle obsolete." Technology Review has said that,"Lithium batteries are driving a renaissance in electric vehicle development."

Lithium battery powered electric vehicles come in a range of sizes and configurations from tiny unicycles to large transport trucks. Toyota's Prius is a well known hybrid vehicle that has been a commerical success for years followed by Honda's Insight. Nissan recently inaugurated an affordable vehicle called the Leaf and most car makers have already released hybrids in a range of classes from subcompact to SUV.

After investing one billion dollars, General Motors is coming out with the highly anticipated electric car called the Volt. With the help of lithium batteries, GM estimates that the Volt can get 230 miles per gallon.

BusinessWeek magazine says, "Large and niche automotive makers are declaring the electric car the vehicle of the future..." The Financial Post reports, "people are realizing there are going to be an awful lot of lithium batteries used in electric vehicles."

The Wharton Business School raves about the electric car saying "the global impact would be enormous." As reported by the BBC, Mitsubishi expects that the demand for lithium will outstrip supply.

The coming explosion in electric vehicles makes lithium a sound investment.
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