895 CASE STUDY ROUGH DRAFT

Innovation in the Automobile Industry: Hybrid Growth Strategies






Source: Toyota

John Acheson
San Francisco State University

Richard McCline
San Francisco State University

Murray Silverman
San Francisco State University


INTRODUCTION
“Meaty quote by industry insider like Dr. Lovins”

Introduce U.S. Hybrid Niche
Mention shortages
THE AUTOMOBILE INDUSTRY: A HYBRID PERSPECTIVE
Introduction
A Short History of Hybrids
Size world’s largest mfg. industry and most global
Growth (industry versus niche)
Players (summarize Big 8 major automakers, mention smaller players)
Scope (define industry as cars and light trucks, not industrial and commercial)
Innovation
Hybrid Technology (define as gasoline-electric car or light truck)
What is gasoline technology? Oil based
What is electric technology? Battery based
What was required to have both? Systems integration

Alternative Hybrid Technologies (diesel, fuel cells, etc)
What are diesel-electrics? Trains
What are other hybrids? Diesels and Hydrogen
What are fuel cell vehicles? Define them as hybrids

Clean Air Technologies (Emmissions, cylinder shut down)
What are the hybrid emissions innovations? PZEV and other developments
What are some ICE innovations? Cylinder shut down, lean burn, shut off, etc.

Smart Technologies (Nissan article)
What innovations have been enabled by hybrid systems? Satellite battery control, etc.
Profiles and Strategies of Hybrid Automakers

BMW, “The ultimate driving machine”

“Hydrogen will replace petrol.”[1]

Profile
BMW firmly believed in the hydrogen economy. One paragraph about BMW, a brief hybrid overview
Strategy
One paragraph about BMW’s strategy of bridging the gap to a hydrogen economy
through duel fuel tank vehicles
Projects
Discuss 7 series, 745h

Daimler-Chrysler (hy-wire, autonomy)
Chrysler, Dodge, Jeep, Maybach, Mercedez-Benz (MB), Smart
What is DC’s hybrid profile?
What is DC’s hybrid strategy?
What innovations has DC engineered?
MB A-Class F-Cell (FCV) MB Citaro F-Cell (FCV) MB Sprinter FCV MB F-500 Mind Diesel HEV

MB Vision GST HEV, S-Class Diesel HEV

Fiat
What is Fiat’s hybrid profile?
What is Fiat’s hybrid strategy?
What innovations has Fiat engineered?
Panda Hydrogen
2001 Seicento Elettra H2 Fuel Cell and recent Seicento Hydrogen

Ford, “fuel the enthusiast in you”
Aston Martin, Ford, Jaguar, Land Rover, Lincoln Mazda, Mercury, Volvo
What is Ford’s hybrid profile?
What is Ford’s hybrid strategy?
What innovations has Ford engineered?

Ford Escape HEV Ford Focus FCV-Hybrid
Ford Focus FCV Ford Focus FC5

Ford P2000 Mazda Premacy


General Motors (GM) (trucks)
Buick, Cadillac, Chevrolet, GMC, Hummer, Oldsmobile, Pontiac, Saturn, SAAB
What is GM’s hybrid profile?
What is GM’s hybrid strategy? Grow to be the 1st to sell 1 million FCVs
What innovations has GM engineered?

GM Hybrid Bus GMC Hybrid Truck (GMC Sierra) Saturn VUE Hy-wire
Chevy Silveradro

Hyundai
What is Hyundai’s hybrid profile?
What is Hyundai’s hybrid strategy?
What innovations has Hyundai engineered?


1994 Hydrogen Car 1994 Solar Car Santa Fe FCEV

FGV-1 electric hybrid sport utility vehicle (SUV)

Honda, “The power of dreams”
What is Honda’s hybrid profile?
What is Honda’s hybrid strategy?
What innovations has Honda engineered?
2000 Insight HEV 2003 Civic HEV 2005 Accord HEV
FCX

IMA, “In 1997 the Honda Accord Ultra-Low-Emission Vehicle became the cleanest gasoline-powered vehicle in the world.” http://www.hondacorporate.com/environ_tech/index.html?subsection=lev

Mitsubishi
Nissan
What is Nissan’s hybrid profile?
What is Nissan’s hybrid strategy? Multimodal approach to environmental responsibility
What innovations has Nissan engineered? Licensing all of Toyota’s hybrid technology

Renault
What is Renault’s strategy? “To be a key player in sustainable development.” Retrieved October 20, 2004 from http://www.sustainability.renault.com/e/e1.htm
What is VW’s hybrid strategy? Can’t find much
What innovations has VW engineered? 95% recyclable cars, research Kangoo

Toyota, “moving forward”
What is VW’s hybrid profile? World’s leader
What is VW’s hybrid strategy? Continuous deployment
What innovations has VW engineered? Synergy Drive
Prius, Estima, Highlander, EX-400h, Camry

Volkswagen, “go places”
What is VW’s hybrid profile? China’s leading manufacturer
What is VW’s hybrid strategy? Diesel?
What innovations has VW engineered? HYMOTION
162
Sunfuel diesel
2002
Golf IV
Volkswagen
Volkswagen AG
Hybrid (Bio diesel/Battery)

Independent Manufacturers
205
Diesel
2003
CEV3000
CEV
Chargebroad Electric Vehicle Co., Ltd. (CEV)
Hybrid (Diesel/Battery
208
Diesel & Electricity
2004
GZ6110HEV
SCUT (South China Univ. of Tech.)
SCUT (South China Univ. of Tech.)
Hybrid (Diesel/Battery)

Chinese Automakers
206
Diesel
2002
EQ6110HEV
Dongfeng Electric Vehicle Co., Ltd.
Dongfeng Electric Vehicle Co., Ltd.
Hybrid (Diesel/Battery)
209
Diesel
2003
XD 6120
Xiangtan Electric Vehicle Co. Ltd.
Xiangtan Electric Vehicle Co. Ltd.
Hybrid (Diesel/Battery)
210
Diesel
2004
Juying SJ6110CT3
Changsha Unite Electromotion Technology Co., Ltd
Changsha Unite Electromotion Technology Co., Ltd
Hybrid (Diesel/
213
Diesel
2004
CA6110SHH
FAW
China FAW Group Corporation
Hybrid (Diesel/Battery)
147
Gasoline & Electricity
2003
CA7150N
FAW
China FAW Group Corporation
Hybrid (Gasoline/Battery)

Emerging Markets
U.S. Hybrid Niche 750 dirty cars driving around, 15-20 million new units per year, 20-80% projected hybrid segment, 25% sold in CA
China, 1+ billion people, very few cars, little oil based infrastructure, lots of R&D by big 8 there
India, more research or cut this topic
Hybrid Consumers
Summary of who and behavior, more educated, more women, more money, environmentalists, more concerned with emissions and high tech than gas mileage, new segment of male techies coming on after early adopters, in transistion between early adoption and explosive growth phase
JD Power survey confirm above with stats
Oregon survey confirm above with stats
STRATEGIC ISSUES
Financial strategies: lowering costs, China and supply chain logistics
Operational strategies: Shortages and suppliers, automakers have transformed from manufacturers to systems integrators
Marketing strategies: very little market research, this is tough, but we know it’s different for the hybrid niche
Management strategies: use Ford Escape crossover team as basis for discussion, that team had PhD with engineer and high level project manager working without noise, reference the Business 2.0 article
Technological strategies: Mild versus Full versus FCV, discuss broad hybrid strategies
Macro factors
Politics
What are some federal forces? Taxes, grants, incentives, elections post November, Bush $B versus Kerry’s $10B, U.S. Dept of Energy Clean Cities Program Strategy at http://www.eere.energy.gov/cleancities/hevs.html
What are some CA forces? Zero emissions mandates, CA fuel cell partnership, Hydrogen Highway, Governor’s push
What about other states? Need more research

Fuel
Oil: Concise summary of oil relation to automobile industry and hybrids as well as environmental factors focusing on impact of the car
What is Lovins saying? Get off the oil through innovation
What about natural gas? Political power of oil versus natural gas
Methanol and Ethanol?
Discuss the hydrogen conversion (reforming natural gas, etc.)? research infrastructure scenarios, CA hydrogen stations at http://www.fuelcellpartnership.org/fuel-vehl_map.html

Global Warming
What is the relationship between hybrids and global warming?

CONCLUSION
Future

[1] “Switch over: from BMW to BMW,” The International BMW website, Retrieved October 20, 2004, from http://www.bmw.com/bmwe/pulse/enterprise/cleanenergy3/index.html