Going green is great but why is saving our oil so expensive?
Why do automakers claim it cost $1,000,000,000
to put digital vehicles into showrooms???
Is it the R&D, testing, regulation, insurance, etc?
Or is it overkill before getting to the showroom?
The first mainstream digital vehicle hit American roads
over 10 years ago but consumers didn't buy enough 70MPG...
Honda discontinued the digital Insight after several hundred million and five years of efforts. Toyota spent over a billion on the Prius and lost money for years until the technology went through generations of cost reductions. GM spent a billion on their infamous EV-1 and another billion on The Hybrid Development Center that led to hybrids like the Escalade.
In the heat of the Great Recession,
after borrowing over $15,000,000,000
from American tax payers,
GM has requested more money!!!
This time around, GM, the automaker born from Ford's 2nd business,
asked American tax payers to lend another $2,600,000,000 so that
Chevrolet could develop three version of the infamous Volt
that should get 100+ MPG.
Do you think a billion per new vehicle
is a feasible business model for the
new era of digital automaking???
Would you loan a digital automaker
to develop a digtal automobile?
Based on the industry standard of
a few thousand in profits per vehicle
how many of those digital widgets
would your investee have to sell
to pay salaries run the factories
and pay you back?
There has to be a cheaper way
to get a digital vehicle on the road...
- ▼ April (6)
- ► 2007 (25)