BUS 895: PRELIMINARY PROJECT PROPOSAL PITCH
HYDRIVE: A FEASIBILITY ANALYSIS FOR A SUSTAINABLE AUTOMAKER.
President Bush (2004) recently initiated over $8 billion in grants and tax incentives, lasting through 2009, spurring clean technologies including hybrid and fuel-cell vehicles. Presidential candidate John Kerry proposed $10 billion in grant monies to build green auto-making factories to stimulate American jobs. California Governor Arnold Schwarzenegger just signed a bill to allow solo driven hybrids in commuter lanes and a few months earlier debuted the Hydrogen Highway project to make California first in zero emission infrastructure. Following an oil war clean energy vehicles are very strong political drivers of macro business initiatives.
Today, over 700 million vehicles drive around Earth. Toyota’s CEO Hiroshi Okuda (2003) projects 1 billion by 2010. Of the six major manufacturers two are American. Populations and markets are projected to continue growing in the US where Okuda (2003) projected an 18-20 million unit market by 2010. Hakim (2004) wrote that according to R.L. Polk, the No.1 American market segment for hybrids is Los Angeles. “Californians, who buy about 20 percent of the nation's automobiles, account for 28 percent of hybrid purchases nationwide.” JD Power projected that the upper limit of the hybrid market segment at 3% while other more optimistic analysts foresee 10% (Hakim, 2003). Gordon Wangers of Automotive Marketing Consultants is one of the optimists that forecasted the California hybrid market at 10% of all new-car sales by 2006 (Motor Trend, 2004).
Based on these projections, the overall US market for hybrids alone is projected at 600,000 to 2,000,000 units over the next five years. At an assumed 25% at $20,000 each, the CA market segment could spend over $3-10 trillion on new hybrids by 2010. The only form of hybrid electric vehicles that satisfy California’s stringent zero emissions requirements are hydrogen powered fuel cell vehicles.
Hydrive Motor Company will manufacture innovative and efficient vehicles for socially responsible consumers. Through worldwide partnerships, we’ll help our customers build to order. By bringing together transportation technologies from China, Japan and the Americas, our customers will experience sustainable solutions offering convenience, style and performance. Hydrive will build our brand through forms of socially responsible media and deliver our product directly to the customer. We’ll service our products door to door through a network of dealers.
Preliminary research has identified a growing trillion dollar “changing, chaotic and confusing” (McCline, 2003) market “greening (Silverman?)” across several value chains. Sustainable automaking hybrids including zero emissions hydrogen fuel cell vehicles have begun to fill the socially responsible vacuum for advanced transportation solutions. The hydrogen economy will be massive and the opportunity for Hydrive to help grow a budding industry is big.
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