It's good to see the masses finally keying in on the fact that automaking's destiny is digital. Software is a foreign language written in digital known as 1s and 0s to a computer's Central Processing Unit (CPU or engine) which can't really understand anything other than a digital stream of code more commonly known as software.
Did you know that some modern cars have almost 100 small analogue to digital processing units or mini computers already in them???
Why not go electric and eliminate many of those redundant systems and software to save money, create more jobs to help society on a larger scale???
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Showing posts with label Digital Automobiles. Show all posts
Showing posts with label Digital Automobiles. Show all posts
Wednesday, September 16, 2009
Wednesday, August 5, 2009
Shockgun Weddings
Here's a digital ten billion dollar list of
shotgun weddings that will change the
world's largest business forever!!!
Compact Power, Inc. (LG Chem, Ltd.) received $151,400,000 of your tax dollars to produce the lithium-ion polymer battery cells for the Chevy's Volt for GM who will invest $240,000,000 of your tax dollars into batteries
Bosch (BOM) and BMW
Ener1 (HEV) got $118,500,000 of your tax dollars to build batteries for Nissan (NSANY)
Daimler and Tesla Motors
Johnson Controls (JCL) and Ford (F) got $100,000,000 for batteries
GE and A123 who landed $249,100,000 for battery packs and systems preferred by many EV race car drivers
Buffet and BYD
Valence and Segway
Panasonic EV Energy and Toyota (TM)
Sanyo and Ford
Saft and Mercedes
shotgun weddings that will change the
world's largest business forever!!!
Compact Power, Inc. (LG Chem, Ltd.) received $151,400,000 of your tax dollars to produce the lithium-ion polymer battery cells for the Chevy's Volt for GM who will invest $240,000,000 of your tax dollars into batteries
Bosch (BOM) and BMW
Ener1 (HEV) got $118,500,000 of your tax dollars to build batteries for Nissan (NSANY)
Daimler and Tesla Motors
Johnson Controls (JCL) and Ford (F) got $100,000,000 for batteries
GE and A123 who landed $249,100,000 for battery packs and systems preferred by many EV race car drivers
Buffet and BYD
Valence and Segway
Panasonic EV Energy and Toyota (TM)
Sanyo and Ford
Saft and Mercedes
Labels:
Batteries,
Digital Automobiles,
Lithium Automobiles
Sunday, July 26, 2009
Lightning in the Wheels
Tesla let the electric genie out of the bottle
and England/Wales just put Lightning IN THE WHEELS
unleashing 700 digital horsepower wrapped in 007 like lines!!!

This is the beginning of computers quickly invading
the wheels after only a few years of
disrupting drive trains with Lithium...
Add GPS and networking to a digital all wheel drive
and you've got an automobile that should be able
to beat anything with four wheels in theory!!!
Thank you Lightning for upgrading Porsche's in wheel electric concept
that powered his world's first 100+ year old hybrid
to many land speed records and racing wins!!!
It's about time we reinvented all four wheels :)
and England/Wales just put Lightning IN THE WHEELS
unleashing 700 digital horsepower wrapped in 007 like lines!!!

This is the beginning of computers quickly invading
the wheels after only a few years of
disrupting drive trains with Lithium...
Add GPS and networking to a digital all wheel drive
and you've got an automobile that should be able
to beat anything with four wheels in theory!!!
Thank you Lightning for upgrading Porsche's in wheel electric concept
that powered his world's first 100+ year old hybrid
to many land speed records and racing wins!!!
It's about time we reinvented all four wheels :)
Labels:
Digital Automobiles,
electric cars,
Lightning
Thursday, May 28, 2009
The Big Digital 3
with the pending GM bankruptcy as well as Chrysler
and dozens of companies in the 1,000 family of
operational businesses that those giants run
face a new digital dawn it might be time to
predict the new Big D3...
in other words the top 3 companies in terms
of digital units produced...
what is a digital unit??? a car or truck that
incorporates computers in it's drive train which
is the parts from the engine to the wheels...
most hybrids quality, all electrics, all plug-ins,
all fuel-cell vehicles qualify as digital so long
as there's computers saving you energy in the drive train
delivery you more control and performance or efficiency only:
many argues that Toyota is #1 but #2 and #3 are for the taking
and many analysts are saying that Honda is the only company
that will turn a profit this year and by making 20 million
engines with only a few hybrids and fuel-cell vehicles
could this group of 500 companies become #2???
if so, you may want to read our team's report on the multinational
which could be summarized as Japan's black sheep of automaking going global:
Group Project Report: Honda Motor Co., Ltd.
By:
John Acheson
Judy Padilla
Darryl Smith
Instructor:
Michelle Dominguez, MBA
Business 280B
May 10, 2009
Table of Contents
1.0 Introduction ………………………………..…………………………………………………………3
2.0 Business Structure …….…………………………………………………………………………….4
3.0 Overview of Multinational Operation..……………………..………………………………….5
4.0 Legal Environment …………………………………………………………….…………………….7
5.0 Advantages and Disadvantages of Operating Abroad ……………….…………………8
6.0 Recommendations / Conclusions ……………………………………………………………….9
7.0 Bibliography / Works Cited ……………………………………………………………………….11
1.0 Introduction
Honda is headquartered is in Japan and the founder of the company is Mr. Soichiro Honda (1906-1991). He had no formal education and was an apprentice car mechanic at a garage from 1922 until 1928. His father was a blacksmith and his mother a weaver.
At the age of 17 he was the mechanic for car racer Shinichi Sakibahara, who won the Chairman’s trophy at Tsurumi. Mr. Honda started his own auto repair business (Art Shokai) at the age of 22 in 1928. In October of 1946 Honda Technical Research Institute was established and the first product was launched--an auxiliary engine that had been used to power radios for use in powering a bicycle. Subsequently, Honda Motor Co. Ltd. was established on September 24, 1948 and was led and expanded into a multinational by President and CEO, Mr. Tadeo Fukui.
Mr. Honda’s first focus was on building small capacity motorcycle and developed the Super Cub which was similar to a modern moped. Honda stumbled upon a cheap yet valuable vehicle for societies looking for affordable and flexible mobility. Before he knew it, his Super Cub was being exported all over the world, and America was a natural place for the larger bikes and engines Honda moved up to.
Honda's business partner Fujisawa made the call to start with America arguing that if Honda could make it in America, it could make it anywhere. Even though he knew that it would be easier to start with Southeast Asia, which still relies on more motorcycles than cars today, Honda's business head chose America and in 1959 setup a sales office in Southern California with eight employees. This small office was the beginning of Honda’s international business that went on to become a global multinational powerhouse.
By 1960 Honda was an international business. Honda kept tinkering for years working on engines to become a piston ring expert: his mastery of engines started early and was called the “Japanese Henry Ford”. Today Honda produces more engines than any other company, in some years over 20 million units. Most recently, Honda started making airplane engines. As of March 31, 2008 Honda has 178,960 (consolidated) employees and 501 subsidiaries. Its chief products are motorcycle, automobiles, power products, and of course engines. Their main competitors are primarily in the automobile industry (Nissan, Toyota, Ford Motor Co., and General Motors). Services offered by Honda includes: financing, customer service, satisfaction and sales, research & development, and racing.
2.0 Business Structure
Honda’s mission statement is, “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at reasonable price for worldwide customer satisfaction.”
Their basic principle is respect for individuals and the three joys (buying, selling and creating). On Honda’s website this statement is listed that would best describe their business philosophy: “Dreams inspire us to create innovative products that enhance mobility and benefit society. To meet the particular needs of customers in different regions around the world, we base our sales networks, research and development centers and manufacturing facilities in each region. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues.”
Honda Business Structure (www.honda.com/profine/organization/)
On April 28, 2008 Honda commemorated its milestone of a 5 millionth vehicle made in Canada since starting manufacturing vehicles in the country 23 years ago. During this downward economy, Honda has been experiencing worldwide decrease in production since November of 2008 (first time in five years), although production in Asia and China set al-time fiscal records. Honda Fit was the best selling car among new vehicle registration for March 2009. During their press release last month, Honda announced that their consolidated net sales and operating revenue reflected a 41.6% decrease compared to last fiscal year. Projection of return profits to shareholders for 2009’s first two quarters is 22%, 11% for the third quarter and 0% for the fourth quarter.
Honda takes its corporate responsibility very seriously and their key phrase is “Together for Tomorrow” which captures the spirit of Honda. http://world.honda.com/community/
A few of their initiatives are educational, environmental, traffic safety and community, are dedicated to worldwide philanthropic activities. Honda has started a new venture with GS Yuasa in the creating Blue Energy Co., LTD, a company designed for manufacturing, sales, research and development of lithium-ion batteries for hybrid vehicles. Construction started April 2009 and is scheduled to begin production around Fall of 2010. This is part or their commitment to a safer and cleaner environment through exhaust emission reduction and the development of alternative fuels to help ensure harmonious coexistence with host communities. Honda FCX Clarity [hydrogen fuel cell] was named 2009 World Green Car and Honda was recognized for their commitment to environmental leadership. Another of their environmentally friendly cars is the Civic Hybrid. On Earth Day, April 22, 2009, Honda launched its second generation 2010 Honda Insight hybrid electric vehicle (40mpg under $20,000) along with the lightweight CR-Z sports hybrid concept vehicle.
3.0 Overview of Multinational Operations
Honda, the company, is actually a group of hundreds of companies, so it's difficult to understand the day-to-day operations, without understanding the structures of the different companies across national borders. For example, there are several American Honda Companies that may or may not send products outside of North American borders. This is quite different from other companies that mainly import into America. BMW, Mercedes, and most luxury brands don't have factories in America so they primarily build overseas and import to America.
Honda is very different—in fact, it decided from day one, that it would setup in America, and keep the money made in America, to create more jobs by building more products and factories. Taking a look at Honda's global website at http://world.honda.com/ visitors are immediately blasted with everything but cars, including medical walking devices, flower accepting robots and even brain machine interface technology. So the best way to think about Honda's America's multinational parent Honda Motor Company, Ltd. (Honda Japan) is kind of like a General Electric (GE). GE runs everything from banks to airplane engines to nuclear power plants.
Management Organization of Honda’s Corporate Governance for Decision Making, Execution, Supervision and Others. http://world.honda.com/profile/governance/zoom.html
Honda R&D Americas works ideas into patents, and dozens more including financials like American Honda Finance Corp. and American Honda Receivables Corp. American Honda Finance Corporation dba Honda Financial Services helps customers looking to lease or buy. It represents the financial strength of the brand to Wall St. It operates smaller Honda banks like the one in Canada that loans people money to buy Honda products or the company that leases products. Honda vehicles rank near the top of assets that hold value so Honda's banking operations are strong. American Honda Receivables Corp. works with banks like U.S. Bank, Barclays, Deutsche Bank to turn all those loans that customers owe them for vehicles and other products into big money on Wall St. It's the American part of the Honda Bank described above.
Honda joined 70 of the biggest global multinationals headquartered in Tokyo; so we can assume taxes are low. Honda's tax strategy is much deeper and much more local than a company like Mercedes or VW that simply imports into American and exports our cash without paying all those local taxes from payroll, to the electric bill, to disability or worker's compensation. For example, Honda in Torrance, CA sells Honda cars to dealers in Las Vegas. Those dealers are not Honda—they are exclusive customers of Honda so they pay all the taxes in Nevada. But Honda of Torrance pays gasoline taxes on the trucks, transportation taxes and fuels, taxes on the income and sales, and of course anything related to employees both for the sales and transportation part of it. This doesn't include all the companies from idea to factory to Honda in Torrance. Honda’s American bank manages the money for Honda America whereas other companies send the money back overseas. There is a central bank in both countries to assist with international activities such as obtaining funding. Japan’s central bank has the second largest foreign exchange reserves after China.
4.0 Legal Environment
Honda has a compliance and risk management system. This was established so that each Honda organization, under the lead of the director in charge, can deal with legal compliance issues and risk management in a systematic manner while enabling verification of such situations on a regular basis. The Risk Management Officer oversees the risk management department and the Compliance Officer is responsible for the enforcement of legal compliance. There is also a Business Ethics Committee which is responsible for the deliberation of matters of corporate ethics and legal compliance. Honda has also established an Ethics Proposal Line for suggestions concerning corporate ethics and serve as a link to actual execution of improvements
Their government’s economic liability is the third largest public debt of any nation and this information can be obtained in the World Fact Book under public debt. Zimbabwe has the highest public debt. Japan ended its period of economic expansion in October 2007 and entered a recessionary period in 2008. In 2009 the return on interest rates are near 0%. The economy of Japan had been very solid and was considered the second largest economy in the world after the United States. The current worldwide economic crisis has impacted all nations, including Japan. Japanese workers are highly educated and Japan also has a high level of savings and investment rate. They are highly dependent on imported energy and approximately fifty percent of energy in Japan is from petroleum, one fifth from coal and fourteen percent from natural gas. Japan’s dependency on imported energy has projected Japan’s goal towards fuel economy and more diversification in its sources.
Honda is presently a member of The International Association of Traffic and Safety Sciences; it is also a member of the United Nations (1956), World Trade Organizations (1995), and The World Health Organization.
5.0 Advantages and Disadvantages of Operating Abroad
Honda was the first foreign auto maker to setup foreign operations in the U.S. and is believed to be the first to open factories in the U.S. They also structured the U.S. Honda to keep all of its profits in the U.S. to continue to invest, hire American workers and expand operations. In fact, Honda sales have been dropping in Japan for decades as the company relies more and more on foreign operations.
For the first quarter of 2009, Honda was the only automaker to turn a profit out of the Top 10 including Toyota, VW, GM, Ford, etc. They don't sell the most vehicles but have always made the most profit consistently, kept the money local, and invest more into R&D. For example, Honda has significant research facilities in the US while other companies have smaller or none.
Honda is one of the most diverse automakers because expertise in engine manufacturing took them into many industries! In addition to vehicles of all kinds, the lawnmower, airplanes, cars, trucks, power generators, robots, etc.; and you can find Honda in almost every situation used by almost any nationality or minority. The only area Honda lacks diversity would be in the Japanese companies and especially management. Abroad, Honda has expanded their customer service initiative, enhanced their approach of cooperative ventures with suppliers, ensures diversity in employment, encourages development in staff abilities, builds healthy working environments and enforces occupational health and safety.
Without starting its operations abroad, Honda would have never gone from a small Japanese company to a global international multinational powerhouse of 500 companies operating all over the world making more engines and moving machines that any other company!
6.0 Recommendations/Conclusion
Honda’s advantages definitely outweigh its few disadvantages. Since Honda took globalization seriously from the beginning, they have the ability to be the most flexible multinational in auto making. With local operations in each region, they are the best automaker at adjusting the amount of production. Exporters relying on a few factories cannot change things as quickly as Honda. So in the economic downturn, Honda was able to react faster and more local than all the other automakers. Therefore, Honda is more innovative and profitable than competitors, while delivery quality and value!
The price that Honda has paid is its reputation in a highly educated Japan. Without any formal education, Honda was an outcast and never taken seriously by Japan’s elite and upper class businessmen. Many customers in Japan prefer Toyota, Suzuki, Nissan, Mitsubishi and other brands over Honda. Honda was kind of the black sheep car company in Japan and after World War II; engineers would apply to Nissan and Toyota and if they didn’t get hired they would chose Honda as a last resort. Although things changed by the 80s, Honda has always had to fight for respect in Japan coming from an uneducated blue collar background. The disadvantage has led to a long decline in Japanese market share while the company grew abroad.
So in weighing the advantage of being one of the top global brands and multinationals in the world vs. a declining Japanese presence, it’s pretty obvious that the advantages outweigh the disadvantages because our modern world is becoming more and more global.
Honda’s mission is definitely global with a focus on providing quality to benefit societies around the world while saving customers money. To do so Honda sets up sales, R&D and factories in each region to provide goods and services locally. That’s much different than competitors who produce in one country and export to others. Honda seems to care more about adapting to foreign places and serving diverse customers than other Japanese companies. In fact, not only is Honda the first automaker to setup in America and build a factory, it’s really the only Japanese multinational that operates independently abroad and keeps those earnings in house to invest in each region. The result is that Honda’s benefit to society is more than just products. It’s a way of life providing jobs to Americans for example and reinvesting into each local community.
Clearly, Honda could NOT achieve its mission and goals if it stays in Japan and exports. It may have worked with the simple moped motorcycles, but starting with cars and other complicated products, customer tastes, regulations, rules, and of course costs would prohibit success. It might be possible for Honda to deliver quality from Japan, but they would not be able to achieve their philosophical goals and societal benefits including reasonable prices to customers without having setup in each region. Honda is really the only Japanese automaker that has let go of the importance of its home country’s sales to focus on worldwide success. Interestingly, it was Toyota that followed Honda to American with factories and products like hybrids. Since Honda’s disadvantage is its reputation and declining presence in Japan, the company could improve by investing more at home.
Therefore, some avenues might be an acquisition, such as taking a large position in an automaker like Mazda, or even buying another company outright. A good example might be buying a supplier like Sanyo, which is the world leader in batteries used for mobility. Honda could leverage this technology into its various operations around the world as a steady supply of batteries for products from robots to medical devices to hybrid vehicles—a good way for Honda to add Sanyo’s integrity, history and reputation to help Honda’s presence in Japan.
7.0 Bibliography
Honda Worldwide. 2009. Honda Motor Co., LTD. 4 May 2009 http://world.honda.com/about/
Honda. 2009. Wikipedia. Web.4 May 2009. http://en.wikipedia.org/wiki/Honda#Background
Honda. 2009. Wikipedia. Web.4 May 2009.
Honda Worldwide. 2009. Honda Motor Co., LTD. 4 May 2009 http://world.honda.com/profile/globaloperations/>.
Honda Worldwide. 2009. Honda Motor Co., LTD. 4 May 2009 http://world.honda.com/news/2003/c030421.html
CIA - The World Fact Book. 04232009. Japan. 4 May 2009 https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html#Govt.
Phelps, Mark. "HondaJet Facing Delays; Deliveries Expected by Year End 2011." Article 433 of 444, Web.8 May 2009. http://www.flyingmag.com/news/1512/hondajet-facing-delays-deliveries-expected-by-year-end-2011.html
Sato, Masaaki. The Honda Myth: The Genius and His Wake. First American Edition. Random House, 2006. Print. (Sato 1-480)
and dozens of companies in the 1,000 family of
operational businesses that those giants run
face a new digital dawn it might be time to
predict the new Big D3...
in other words the top 3 companies in terms
of digital units produced...
what is a digital unit??? a car or truck that
incorporates computers in it's drive train which
is the parts from the engine to the wheels...
most hybrids quality, all electrics, all plug-ins,
all fuel-cell vehicles qualify as digital so long
as there's computers saving you energy in the drive train
delivery you more control and performance or efficiency only:
many argues that Toyota is #1 but #2 and #3 are for the taking
and many analysts are saying that Honda is the only company
that will turn a profit this year and by making 20 million
engines with only a few hybrids and fuel-cell vehicles
could this group of 500 companies become #2???
if so, you may want to read our team's report on the multinational
which could be summarized as Japan's black sheep of automaking going global:
Group Project Report: Honda Motor Co., Ltd.
By:
John Acheson
Judy Padilla
Darryl Smith
Instructor:
Michelle Dominguez, MBA
Business 280B
May 10, 2009
Table of Contents
1.0 Introduction ………………………………..…………………………………………………………3
2.0 Business Structure …….…………………………………………………………………………….4
3.0 Overview of Multinational Operation..……………………..………………………………….5
4.0 Legal Environment …………………………………………………………….…………………….7
5.0 Advantages and Disadvantages of Operating Abroad ……………….…………………8
6.0 Recommendations / Conclusions ……………………………………………………………….9
7.0 Bibliography / Works Cited ……………………………………………………………………….11
1.0 Introduction
Honda is headquartered is in Japan and the founder of the company is Mr. Soichiro Honda (1906-1991). He had no formal education and was an apprentice car mechanic at a garage from 1922 until 1928. His father was a blacksmith and his mother a weaver.
At the age of 17 he was the mechanic for car racer Shinichi Sakibahara, who won the Chairman’s trophy at Tsurumi. Mr. Honda started his own auto repair business (Art Shokai) at the age of 22 in 1928. In October of 1946 Honda Technical Research Institute was established and the first product was launched--an auxiliary engine that had been used to power radios for use in powering a bicycle. Subsequently, Honda Motor Co. Ltd. was established on September 24, 1948 and was led and expanded into a multinational by President and CEO, Mr. Tadeo Fukui.
Mr. Honda’s first focus was on building small capacity motorcycle and developed the Super Cub which was similar to a modern moped. Honda stumbled upon a cheap yet valuable vehicle for societies looking for affordable and flexible mobility. Before he knew it, his Super Cub was being exported all over the world, and America was a natural place for the larger bikes and engines Honda moved up to.
Honda's business partner Fujisawa made the call to start with America arguing that if Honda could make it in America, it could make it anywhere. Even though he knew that it would be easier to start with Southeast Asia, which still relies on more motorcycles than cars today, Honda's business head chose America and in 1959 setup a sales office in Southern California with eight employees. This small office was the beginning of Honda’s international business that went on to become a global multinational powerhouse.
By 1960 Honda was an international business. Honda kept tinkering for years working on engines to become a piston ring expert: his mastery of engines started early and was called the “Japanese Henry Ford”. Today Honda produces more engines than any other company, in some years over 20 million units. Most recently, Honda started making airplane engines. As of March 31, 2008 Honda has 178,960 (consolidated) employees and 501 subsidiaries. Its chief products are motorcycle, automobiles, power products, and of course engines. Their main competitors are primarily in the automobile industry (Nissan, Toyota, Ford Motor Co., and General Motors). Services offered by Honda includes: financing, customer service, satisfaction and sales, research & development, and racing.
2.0 Business Structure
Honda’s mission statement is, “Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at reasonable price for worldwide customer satisfaction.”
Their basic principle is respect for individuals and the three joys (buying, selling and creating). On Honda’s website this statement is listed that would best describe their business philosophy: “Dreams inspire us to create innovative products that enhance mobility and benefit society. To meet the particular needs of customers in different regions around the world, we base our sales networks, research and development centers and manufacturing facilities in each region. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues.”
Honda Business Structure (www.honda.com/profine/organization/)
On April 28, 2008 Honda commemorated its milestone of a 5 millionth vehicle made in Canada since starting manufacturing vehicles in the country 23 years ago. During this downward economy, Honda has been experiencing worldwide decrease in production since November of 2008 (first time in five years), although production in Asia and China set al-time fiscal records. Honda Fit was the best selling car among new vehicle registration for March 2009. During their press release last month, Honda announced that their consolidated net sales and operating revenue reflected a 41.6% decrease compared to last fiscal year. Projection of return profits to shareholders for 2009’s first two quarters is 22%, 11% for the third quarter and 0% for the fourth quarter.
Honda takes its corporate responsibility very seriously and their key phrase is “Together for Tomorrow” which captures the spirit of Honda. http://world.honda.com/community/
A few of their initiatives are educational, environmental, traffic safety and community, are dedicated to worldwide philanthropic activities. Honda has started a new venture with GS Yuasa in the creating Blue Energy Co., LTD, a company designed for manufacturing, sales, research and development of lithium-ion batteries for hybrid vehicles. Construction started April 2009 and is scheduled to begin production around Fall of 2010. This is part or their commitment to a safer and cleaner environment through exhaust emission reduction and the development of alternative fuels to help ensure harmonious coexistence with host communities. Honda FCX Clarity [hydrogen fuel cell] was named 2009 World Green Car and Honda was recognized for their commitment to environmental leadership. Another of their environmentally friendly cars is the Civic Hybrid. On Earth Day, April 22, 2009, Honda launched its second generation 2010 Honda Insight hybrid electric vehicle (40mpg under $20,000) along with the lightweight CR-Z sports hybrid concept vehicle.
3.0 Overview of Multinational Operations
Honda, the company, is actually a group of hundreds of companies, so it's difficult to understand the day-to-day operations, without understanding the structures of the different companies across national borders. For example, there are several American Honda Companies that may or may not send products outside of North American borders. This is quite different from other companies that mainly import into America. BMW, Mercedes, and most luxury brands don't have factories in America so they primarily build overseas and import to America.
Honda is very different—in fact, it decided from day one, that it would setup in America, and keep the money made in America, to create more jobs by building more products and factories. Taking a look at Honda's global website at http://world.honda.com/ visitors are immediately blasted with everything but cars, including medical walking devices, flower accepting robots and even brain machine interface technology. So the best way to think about Honda's America's multinational parent Honda Motor Company, Ltd. (Honda Japan) is kind of like a General Electric (GE). GE runs everything from banks to airplane engines to nuclear power plants.
Management Organization of Honda’s Corporate Governance for Decision Making, Execution, Supervision and Others. http://world.honda.com/profile/governance/zoom.html
Honda R&D Americas works ideas into patents, and dozens more including financials like American Honda Finance Corp. and American Honda Receivables Corp. American Honda Finance Corporation dba Honda Financial Services helps customers looking to lease or buy. It represents the financial strength of the brand to Wall St. It operates smaller Honda banks like the one in Canada that loans people money to buy Honda products or the company that leases products. Honda vehicles rank near the top of assets that hold value so Honda's banking operations are strong. American Honda Receivables Corp. works with banks like U.S. Bank, Barclays, Deutsche Bank to turn all those loans that customers owe them for vehicles and other products into big money on Wall St. It's the American part of the Honda Bank described above.
Honda joined 70 of the biggest global multinationals headquartered in Tokyo; so we can assume taxes are low. Honda's tax strategy is much deeper and much more local than a company like Mercedes or VW that simply imports into American and exports our cash without paying all those local taxes from payroll, to the electric bill, to disability or worker's compensation. For example, Honda in Torrance, CA sells Honda cars to dealers in Las Vegas. Those dealers are not Honda—they are exclusive customers of Honda so they pay all the taxes in Nevada. But Honda of Torrance pays gasoline taxes on the trucks, transportation taxes and fuels, taxes on the income and sales, and of course anything related to employees both for the sales and transportation part of it. This doesn't include all the companies from idea to factory to Honda in Torrance. Honda’s American bank manages the money for Honda America whereas other companies send the money back overseas. There is a central bank in both countries to assist with international activities such as obtaining funding. Japan’s central bank has the second largest foreign exchange reserves after China.
4.0 Legal Environment
Honda has a compliance and risk management system. This was established so that each Honda organization, under the lead of the director in charge, can deal with legal compliance issues and risk management in a systematic manner while enabling verification of such situations on a regular basis. The Risk Management Officer oversees the risk management department and the Compliance Officer is responsible for the enforcement of legal compliance. There is also a Business Ethics Committee which is responsible for the deliberation of matters of corporate ethics and legal compliance. Honda has also established an Ethics Proposal Line for suggestions concerning corporate ethics and serve as a link to actual execution of improvements
Their government’s economic liability is the third largest public debt of any nation and this information can be obtained in the World Fact Book under public debt. Zimbabwe has the highest public debt. Japan ended its period of economic expansion in October 2007 and entered a recessionary period in 2008. In 2009 the return on interest rates are near 0%. The economy of Japan had been very solid and was considered the second largest economy in the world after the United States. The current worldwide economic crisis has impacted all nations, including Japan. Japanese workers are highly educated and Japan also has a high level of savings and investment rate. They are highly dependent on imported energy and approximately fifty percent of energy in Japan is from petroleum, one fifth from coal and fourteen percent from natural gas. Japan’s dependency on imported energy has projected Japan’s goal towards fuel economy and more diversification in its sources.
Honda is presently a member of The International Association of Traffic and Safety Sciences; it is also a member of the United Nations (1956), World Trade Organizations (1995), and The World Health Organization.
5.0 Advantages and Disadvantages of Operating Abroad
Honda was the first foreign auto maker to setup foreign operations in the U.S. and is believed to be the first to open factories in the U.S. They also structured the U.S. Honda to keep all of its profits in the U.S. to continue to invest, hire American workers and expand operations. In fact, Honda sales have been dropping in Japan for decades as the company relies more and more on foreign operations.
For the first quarter of 2009, Honda was the only automaker to turn a profit out of the Top 10 including Toyota, VW, GM, Ford, etc. They don't sell the most vehicles but have always made the most profit consistently, kept the money local, and invest more into R&D. For example, Honda has significant research facilities in the US while other companies have smaller or none.
Honda is one of the most diverse automakers because expertise in engine manufacturing took them into many industries! In addition to vehicles of all kinds, the lawnmower, airplanes, cars, trucks, power generators, robots, etc.; and you can find Honda in almost every situation used by almost any nationality or minority. The only area Honda lacks diversity would be in the Japanese companies and especially management. Abroad, Honda has expanded their customer service initiative, enhanced their approach of cooperative ventures with suppliers, ensures diversity in employment, encourages development in staff abilities, builds healthy working environments and enforces occupational health and safety.
Without starting its operations abroad, Honda would have never gone from a small Japanese company to a global international multinational powerhouse of 500 companies operating all over the world making more engines and moving machines that any other company!
6.0 Recommendations/Conclusion
Honda’s advantages definitely outweigh its few disadvantages. Since Honda took globalization seriously from the beginning, they have the ability to be the most flexible multinational in auto making. With local operations in each region, they are the best automaker at adjusting the amount of production. Exporters relying on a few factories cannot change things as quickly as Honda. So in the economic downturn, Honda was able to react faster and more local than all the other automakers. Therefore, Honda is more innovative and profitable than competitors, while delivery quality and value!
The price that Honda has paid is its reputation in a highly educated Japan. Without any formal education, Honda was an outcast and never taken seriously by Japan’s elite and upper class businessmen. Many customers in Japan prefer Toyota, Suzuki, Nissan, Mitsubishi and other brands over Honda. Honda was kind of the black sheep car company in Japan and after World War II; engineers would apply to Nissan and Toyota and if they didn’t get hired they would chose Honda as a last resort. Although things changed by the 80s, Honda has always had to fight for respect in Japan coming from an uneducated blue collar background. The disadvantage has led to a long decline in Japanese market share while the company grew abroad.
So in weighing the advantage of being one of the top global brands and multinationals in the world vs. a declining Japanese presence, it’s pretty obvious that the advantages outweigh the disadvantages because our modern world is becoming more and more global.
Honda’s mission is definitely global with a focus on providing quality to benefit societies around the world while saving customers money. To do so Honda sets up sales, R&D and factories in each region to provide goods and services locally. That’s much different than competitors who produce in one country and export to others. Honda seems to care more about adapting to foreign places and serving diverse customers than other Japanese companies. In fact, not only is Honda the first automaker to setup in America and build a factory, it’s really the only Japanese multinational that operates independently abroad and keeps those earnings in house to invest in each region. The result is that Honda’s benefit to society is more than just products. It’s a way of life providing jobs to Americans for example and reinvesting into each local community.
Clearly, Honda could NOT achieve its mission and goals if it stays in Japan and exports. It may have worked with the simple moped motorcycles, but starting with cars and other complicated products, customer tastes, regulations, rules, and of course costs would prohibit success. It might be possible for Honda to deliver quality from Japan, but they would not be able to achieve their philosophical goals and societal benefits including reasonable prices to customers without having setup in each region. Honda is really the only Japanese automaker that has let go of the importance of its home country’s sales to focus on worldwide success. Interestingly, it was Toyota that followed Honda to American with factories and products like hybrids. Since Honda’s disadvantage is its reputation and declining presence in Japan, the company could improve by investing more at home.
Therefore, some avenues might be an acquisition, such as taking a large position in an automaker like Mazda, or even buying another company outright. A good example might be buying a supplier like Sanyo, which is the world leader in batteries used for mobility. Honda could leverage this technology into its various operations around the world as a steady supply of batteries for products from robots to medical devices to hybrid vehicles—a good way for Honda to add Sanyo’s integrity, history and reputation to help Honda’s presence in Japan.
7.0 Bibliography
Honda Worldwide. 2009. Honda Motor Co., LTD. 4 May 2009 http://world.honda.com/about/
Honda. 2009. Wikipedia. Web.4 May 2009. http://en.wikipedia.org/wiki/Honda#Background
Honda. 2009. Wikipedia. Web.4 May 2009.
Honda Worldwide. 2009. Honda Motor Co., LTD. 4 May 2009 http://world.honda.com/profile/globaloperations/>.
Honda Worldwide. 2009. Honda Motor Co., LTD. 4 May 2009 http://world.honda.com/news/2003/c030421.html
CIA - The World Fact Book. 04232009. Japan. 4 May 2009 https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html#Govt.
Phelps, Mark. "HondaJet Facing Delays; Deliveries Expected by Year End 2011." Article 433 of 444, Web.8 May 2009. http://www.flyingmag.com/news/1512/hondajet-facing-delays-deliveries-expected-by-year-end-2011.html
Sato, Masaaki. The Honda Myth: The Genius and His Wake. First American Edition. Random House, 2006. Print. (Sato 1-480)
Monday, May 18, 2009
Driving Digital's New Dawn
The digital development of automaking will see a new dawn tomorrow
driven by new laws that deem dirty to average cars illegal!
"This is the single biggest step the American government has ever taken..."
What's the number one factor and
number one consumer benefit that
is driving digital automaking?
Many studies and most of the research over the past decade
shows that higher gas prices cause digital cars and trucks
to accelerate in sales as buyers seeks higher MPGs.
Starting tomorrow, the USA MPG bar will move significantly
higher than ever before in American history as
California's green digital screams turn into new laws
on capitol hill; the highest MPG state laws are being
studied to establish a new federal wide standard that
will force digital automaking unto all players
that want to continue to enjoy the most important
car and truck markets in the world.
CA and CAFE's millennial son could become the biggest
stick in the history of digital automaking and I'm
going to place my bets by buying Honda Motor Co., Ltd.
common stock traded on the American markets because
this digital automaker has the highest
mileage fleet being bought in the USA.
These companies also hire tens of thousands of American
workers that are working to make cars and trucks cleaner
so that our precious oil used for everything from shipping
everything you buy at every store to your toothpaste tube
to every toy to your entertainment center and computer
can last longer and we don't have to burn up the rest
running errands and waiting at stoplights.
Remember that all digital vehicles have the ability
to stop burning oil at stoplights and stop signs!!!
INVESTMENT ANALYSIS
Based on the assumption that a new race to 42 MPG
for automaker fleetwide average will take off tomorrow
the following analysis is based on Greenopia's MPG ratings
of 42 automakers from Ferrari at 12 MPG to Smart at 36 MPG
allthough the list does not include brands such as Tesla
that earn well over 100 MPG in gallon of gasoline equivalent
which doesn't matter anyway in terms of investment since we
cannot buy public stock in them. Also note that companies like
MINI or Smart are also not available as stand alone investments,
so the trick is to find the automaker that has the best MPG
AND has enough volume on a stock market to enjoy appreciation.
25 MPG BRANDS: there's only six brands
(Smart, Mini, Scion, Honda, Saturn, Toyota)
that get over 25 MPG and of those
only two are automakers (Honda and Toyota)
as Smart is Daimler, Mini is BMW (20.5) and Scion is Toyota.
How many brands at the bottom of the list are in bankruptcy?
Hummer (15.5 MPG), Cadillac (17.6), GMC (17.8), Jeep (19.1), Dodge (19.2)
and interestingly, none of these brands have launched a successful digital.
In summary, I have decided to buy shares of HMC (Honda Motor Co., Ltd.)
at market open price based on anticipation of the new federal digital race
towards 42 MPG and hope that my investment in the 500 companies that Honda
runs continue to provide us with benefits, utility and future value!!!
driven by new laws that deem dirty to average cars illegal!
"This is the single biggest step the American government has ever taken..."
What's the number one factor and
number one consumer benefit that
is driving digital automaking?
Many studies and most of the research over the past decade
shows that higher gas prices cause digital cars and trucks
to accelerate in sales as buyers seeks higher MPGs.
Starting tomorrow, the USA MPG bar will move significantly
higher than ever before in American history as
California's green digital screams turn into new laws
on capitol hill; the highest MPG state laws are being
studied to establish a new federal wide standard that
will force digital automaking unto all players
that want to continue to enjoy the most important
car and truck markets in the world.
CA and CAFE's millennial son could become the biggest
stick in the history of digital automaking and I'm
going to place my bets by buying Honda Motor Co., Ltd.
common stock traded on the American markets because
this digital automaker has the highest
mileage fleet being bought in the USA.
These companies also hire tens of thousands of American
workers that are working to make cars and trucks cleaner
so that our precious oil used for everything from shipping
everything you buy at every store to your toothpaste tube
to every toy to your entertainment center and computer
can last longer and we don't have to burn up the rest
running errands and waiting at stoplights.
Remember that all digital vehicles have the ability
to stop burning oil at stoplights and stop signs!!!
INVESTMENT ANALYSIS
Based on the assumption that a new race to 42 MPG
for automaker fleetwide average will take off tomorrow
the following analysis is based on Greenopia's MPG ratings
of 42 automakers from Ferrari at 12 MPG to Smart at 36 MPG
allthough the list does not include brands such as Tesla
that earn well over 100 MPG in gallon of gasoline equivalent
which doesn't matter anyway in terms of investment since we
cannot buy public stock in them. Also note that companies like
MINI or Smart are also not available as stand alone investments,
so the trick is to find the automaker that has the best MPG
AND has enough volume on a stock market to enjoy appreciation.
25 MPG BRANDS: there's only six brands
(Smart, Mini, Scion, Honda, Saturn, Toyota)
that get over 25 MPG and of those
only two are automakers (Honda and Toyota)
as Smart is Daimler, Mini is BMW (20.5) and Scion is Toyota.
How many brands at the bottom of the list are in bankruptcy?
Hummer (15.5 MPG), Cadillac (17.6), GMC (17.8), Jeep (19.1), Dodge (19.2)
and interestingly, none of these brands have launched a successful digital.
In summary, I have decided to buy shares of HMC (Honda Motor Co., Ltd.)
at market open price based on anticipation of the new federal digital race
towards 42 MPG and hope that my investment in the 500 companies that Honda
runs continue to provide us with benefits, utility and future value!!!
Labels:
Digital Automobiles,
GM,
Honda,
Hummer,
Toyota
Wednesday, April 22, 2009
Digital Delivery
Monday, April 20, 2009
Fill erv Up with Digital Fuel
Why does the last few meters of the World Wide Web
still run over analogue copper wires???
Could it be that a ubiquitous or commonly adopted standard
is just too embedded into society to change that quickly...
The European digital automaking world would disagree
in terms of the future of filling up on digital fuel.
Rather quickly and quietly, they have standardized
the future gas station as 3 prongs filling 400 volts.
That's kind of like gas station decades ago
deciding on the same size nozzle and octane.
For all you digital automaking enthusiasts out there,
start your 400V motors, controllers and transformers.
All those proprietary designs that R&D has spent billions on
over the past few decades will probably be replaced by a few
common ubiquitous simple yet heavy duty versions of the household plug.
Think twice before you install a special charger at home
like the ones designed for the EV-1, RAV4-EV, Honda EV, Think or Tesla.
Or who knows, maybe we'll see an alphabet soup of adapters,
cords, transformers and converters at the local Radio Shack
so you can plug in your collectible early model digital car
into the new standard just announced???
Here's the relative news links:
Agreement reached on common plug for electric cars
BERLIN (AFP) — Leading automotive and energy companies have reached agreement on a common "plug" to recharge electric cars, a spokeswoman for German energy ...
Car Companies Standardize Plug for Electric Vehicles
Caroline Reichert, a spokeswoman for the Germany energy company RWE, said leading automotive and energy companies have reached an agreement for a ...
E-car industry agrees on one plug to rule them all
Berlin - Electric car makers and power companies are to unveil this week a standard Europe-wide power plug to recharge the batteries of electric vehicles, ...
still run over analogue copper wires???
Could it be that a ubiquitous or commonly adopted standard
is just too embedded into society to change that quickly...
The European digital automaking world would disagree
in terms of the future of filling up on digital fuel.
Rather quickly and quietly, they have standardized
the future gas station as 3 prongs filling 400 volts.
That's kind of like gas station decades ago
deciding on the same size nozzle and octane.
For all you digital automaking enthusiasts out there,
start your 400V motors, controllers and transformers.
All those proprietary designs that R&D has spent billions on
over the past few decades will probably be replaced by a few
common ubiquitous simple yet heavy duty versions of the household plug.
Think twice before you install a special charger at home
like the ones designed for the EV-1, RAV4-EV, Honda EV, Think or Tesla.
Or who knows, maybe we'll see an alphabet soup of adapters,
cords, transformers and converters at the local Radio Shack
so you can plug in your collectible early model digital car
into the new standard just announced???
Here's the relative news links:
Agreement reached on common plug for electric cars
BERLIN (AFP) — Leading automotive and energy companies have reached agreement on a common "plug" to recharge electric cars, a spokeswoman for German energy ...
Car Companies Standardize Plug for Electric Vehicles
Caroline Reichert, a spokeswoman for the Germany energy company RWE, said leading automotive and energy companies have reached an agreement for a ...
E-car industry agrees on one plug to rule them all
Berlin - Electric car makers and power companies are to unveil this week a standard Europe-wide power plug to recharge the batteries of electric vehicles, ...
Friday, April 10, 2009
Digital Tires
I went out to the truck the other day, and it looked pretty low on one side...
The front left tire was flat so I changed the tire and checked the odometer...
The Original Equipment (OE) tires were beyond their life at over
70,000 miles which meant that I drove very carefully and
constantly exceeded the EPA MPG rating...
Even though I didn't have the digital version of the vehicle.
In the gasoline Ranger rated at around 20 MPG avg,
I've been able to get 24 MPG around town and up to 38 MPG on the highway
which is almost doubling mileage or 40% OFF your $1,000 to $5,000 gas bill/yr.
For a higher mileage car,
doubling mileage would mean going from 30 to 60 MPG
or 40 to 80 MPG or even 50 to 100 MPG for advanced users.
In my last digital car with the tires pumped up on the highway behind a semi truck
it was easy to get mileage over 100 MPG for a few minutes at a time by lowering
resistance, both air and tire.
So let's take a look at digital tiremaking:
Some studies show tires eating up to 20% of your fuel energy!
One of the most expensive solutions is reported as Michelin's $43,000,000+
investment into the "Energy Saver" series of tire release in Europe
that for some unknown reason is being dumbed down as "Primacy" for the USA.
So here's a list of tires on digital vehicles installed by manufacturers
on to stock digital vehicles that were developed with mileage in mind.
"Bridgestones" - Toyota RAV-4 EV
Bridgestone Potenza - Honda Insight Hybrid USA
Continental ContiTrac EcoPlus - Ford Escape Hybrid USA
Dunlop SP31A - 2010 Honda Insight Revenge
Goodyear FuelMax (an extra mile) - 2011 Chevrolet Volt
Michelin Energy LX4 - 2007 Toyota Highlander Hybrid
Michelin Energy Saver - Toyota Prius EURO
Michelin HXV4 - Toyota Prius USA
Michelin MXV4 (215/60R 16 95H)- Honda FCX
Michelin Pilot HX MXM4 (215/45R17 87V) - 2010 Prius Hybrid USA
Michelin Proxima RR (175/65R14, self-sealing tires, tire pressure warning indicator) - Saturn EV-1
Yokohama ADVAN A10F (160/A/A) - Lexus GS450h
Yokohama ADVAN Neova - 2006 Tesla Roadster
Yokohama AVS E100 Radial (195/80R16 at 44 psi) - 1996 Toyota RAV-4 EV
Yokohama E105 (205/60R15 91H) - 2004-2007 Honda FCX Fuel Cell Vehicle
This list is a work in progress as OEM tire research
is much more difficult than expected.
The front left tire was flat so I changed the tire and checked the odometer...
The Original Equipment (OE) tires were beyond their life at over
70,000 miles which meant that I drove very carefully and
constantly exceeded the EPA MPG rating...
Even though I didn't have the digital version of the vehicle.
In the gasoline Ranger rated at around 20 MPG avg,
I've been able to get 24 MPG around town and up to 38 MPG on the highway
which is almost doubling mileage or 40% OFF your $1,000 to $5,000 gas bill/yr.
For a higher mileage car,
doubling mileage would mean going from 30 to 60 MPG
or 40 to 80 MPG or even 50 to 100 MPG for advanced users.
In my last digital car with the tires pumped up on the highway behind a semi truck
it was easy to get mileage over 100 MPG for a few minutes at a time by lowering
resistance, both air and tire.
So let's take a look at digital tiremaking:
Some studies show tires eating up to 20% of your fuel energy!
One of the most expensive solutions is reported as Michelin's $43,000,000+
investment into the "Energy Saver" series of tire release in Europe
that for some unknown reason is being dumbed down as "Primacy" for the USA.
So here's a list of tires on digital vehicles installed by manufacturers
on to stock digital vehicles that were developed with mileage in mind.
"Bridgestones" - Toyota RAV-4 EV
Bridgestone Potenza - Honda Insight Hybrid USA
Continental ContiTrac EcoPlus - Ford Escape Hybrid USA
Dunlop SP31A - 2010 Honda Insight Revenge
Goodyear FuelMax (an extra mile) - 2011 Chevrolet Volt
Michelin Energy LX4 - 2007 Toyota Highlander Hybrid
Michelin Energy Saver - Toyota Prius EURO
Michelin HXV4 - Toyota Prius USA
Michelin MXV4 (215/60R 16 95H)- Honda FCX
Michelin Pilot HX MXM4 (215/45R17 87V) - 2010 Prius Hybrid USA
Michelin Proxima RR (175/65R14, self-sealing tires, tire pressure warning indicator) - Saturn EV-1
Yokohama ADVAN A10F (160/A/A) - Lexus GS450h
Yokohama ADVAN Neova - 2006 Tesla Roadster
Yokohama AVS E100 Radial (195/80R16 at 44 psi) - 1996 Toyota RAV-4 EV
Yokohama E105 (205/60R15 91H) - 2004-2007 Honda FCX Fuel Cell Vehicle
This list is a work in progress as OEM tire research
is much more difficult than expected.
Sunday, April 5, 2009
3 Digital Cars Cost $2,600,000,000???
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
$1,000,000,000
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...
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
$1,000,000,000
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...
Ford's Digital Double Down
Following Honda's Insight Digital Revenge and Prius Fighter,
Ford has announced some big digital numbers to look forward to:
170MPG!!!
Did you know that the Digital Insight and Prius
were rated in Japan at about 94MPG over 10 years ago???
So why are we driving cars and trucks in the 20MPG range???
Do you remember your first computer???
How much did it cost and how fast was the engine???
My first laptop cost over $3K with a Pentium 2 only 10 years ago
and today you can buy a faster better and bigger laptop for 1/5 the price.
So every few years we should expect either
1) twice as much mileage
or
2) half the price
So why have cars been going the wrong way???
Ford's Model T on a good day got over 30MPG,
what do you get today in your analogue car???
I'm guessing you paid 5 times Ford's game changer
AND you get LESS mileage...
Ford's Digital Double Down may finally change the
analogue game to digital because once we take
100MPG for granted we can start talking about
making oil last 200 years or more instead of
the century that is currently projected.
Unless we start taking numbers like Ford's 170MPG
we will burn up the rest of our oil in a short century.
Do you want to leave any oil for your great grand children???
Oil to make jet fuel and diesel
that delivers everything
you use and consume
from food to household items to clothes
to almost anything in every store...
Or should we burn it all up running errands and waiting at stoplights???
Even 170MPG won't leave enough for 7 generations
so write a letter and encourage digital automaking innovation
like Ford's bold step to leap frog the inevitable 100MPG goal line :)
Ford has announced some big digital numbers to look forward to:
170MPG!!!
Did you know that the Digital Insight and Prius
were rated in Japan at about 94MPG over 10 years ago???
So why are we driving cars and trucks in the 20MPG range???
Do you remember your first computer???
How much did it cost and how fast was the engine???
My first laptop cost over $3K with a Pentium 2 only 10 years ago
and today you can buy a faster better and bigger laptop for 1/5 the price.
So every few years we should expect either
1) twice as much mileage
or
2) half the price
So why have cars been going the wrong way???
Ford's Model T on a good day got over 30MPG,
what do you get today in your analogue car???
I'm guessing you paid 5 times Ford's game changer
AND you get LESS mileage...
Ford's Digital Double Down may finally change the
analogue game to digital because once we take
100MPG for granted we can start talking about
making oil last 200 years or more instead of
the century that is currently projected.
Unless we start taking numbers like Ford's 170MPG
we will burn up the rest of our oil in a short century.
Do you want to leave any oil for your great grand children???
Oil to make jet fuel and diesel
that delivers everything
you use and consume
from food to household items to clothes
to almost anything in every store...
Or should we burn it all up running errands and waiting at stoplights???
Even 170MPG won't leave enough for 7 generations
so write a letter and encourage digital automaking innovation
like Ford's bold step to leap frog the inevitable 100MPG goal line :)
Tuesday, March 10, 2009
Digital Insight & Revenge
http://world.honda.com/Geneva2009/INSIGHT/video02/
Honda on the other hand, has Thought long and hard
about the most innovative digital release in automaking history,
that was unfortunately, followed by a gigantic business loss,
joining the EV-1, RAV-4 EV and Honda EV in terms of profits,
BUT the Honda engineers employed kaizen or continuous improvement
and will be releasing the Insight Revenge on Earth Day.
The 1st Generation Insight still holds the American Record for MPG at 70 miles per gallon for a mass-production vehicle, but in reality it was hand-built by Honda's best engineers and probably sold for half the build costs including all the engineering. Even so, only a few thousand of the world's best marathoner sold for the few short years that the Insight invited the Prius over from Japan to change automaking forever. The Insight project was shut down just like GM's EV-1, Toyota's Rav-4 EV and Honda's EV because the Insight business was bleeding to much.
The 2nd Generation Insight (5 minute video avail at link above) will release to America on Earth day and has pre-sold out around the world. Initial production was targeted at 10x the 1st Generation Insight and if Honda sells over 100,000 of these digital Prius fighers, I would have to declare digital automaking beyond the start-up phase.
Honda on the other hand, has Thought long and hard
about the most innovative digital release in automaking history,
that was unfortunately, followed by a gigantic business loss,
joining the EV-1, RAV-4 EV and Honda EV in terms of profits,
BUT the Honda engineers employed kaizen or continuous improvement
and will be releasing the Insight Revenge on Earth Day.
The 1st Generation Insight still holds the American Record for MPG at 70 miles per gallon for a mass-production vehicle, but in reality it was hand-built by Honda's best engineers and probably sold for half the build costs including all the engineering. Even so, only a few thousand of the world's best marathoner sold for the few short years that the Insight invited the Prius over from Japan to change automaking forever. The Insight project was shut down just like GM's EV-1, Toyota's Rav-4 EV and Honda's EV because the Insight business was bleeding to much.
The 2nd Generation Insight (5 minute video avail at link above) will release to America on Earth day and has pre-sold out around the world. Initial production was targeted at 10x the 1st Generation Insight and if Honda sells over 100,000 of these digital Prius fighers, I would have to declare digital automaking beyond the start-up phase.
Saturday, March 7, 2009
Nissan's Old School Analogue New School Digital Marraige
Nissan shows one way to get to digital! WOW! Marry old school analogue diesel explosions to the next generation of smooth motors for a ride that can go forever... Diesels don't break and electric motors have two moving parts so expect this Infiniti to live up to it's name when a derivative shows up at your dealership next decade...
Labels:
Digital Automobiles,
hybrids,
lithium,
Lithium Automobiles,
Nissan
Sunday, February 1, 2009
How fast would Edison think?
computers filled buildings with glass tubes to punch holes in dead trees!
The era of analogue supercomputers also spawned the greatest American genre of automaking: "musclecars!"
Right before Silicon Valley delivered the first personal computer born in a wooden box to two hippies in the 60s (Steve Jobs and Steve Wozniak genius billionaires) Detroit's motor city was pumping out masterpiece after masterpiece: from the 1st through 3rd gen Camaros, Corvettes, Mustangs, Firebirds, Trans Ams, Barracudas, Challengers, Chargers
to those famous components like "six-pack" "double-barrel" "4 on the floor"
the 60s and 70s were arguable the pinnacle of
American Automaking genius!!!
Then came the the Oil Embargo (1973) followed by Jobs and Woz rocking our world with the Personal Computer (PC) on April Fools, 1976!
Analogue American Automaking had a stroke as the stork delivered Digital Computers changing life on Earth forever.
Since the mid-70s American Automaking has been falling and Digital Computermaking has skyrocketed into every industry including automaking which buys 10 times more
computers than Silicon Valley type companies and develops many more digital patents than computer geeks themselves.
CAN THE HORSEPOWER BUSINESS MODEL SURVIVE???
The obvious answer is "horsepower" or "horses" which has been the basic business model ever
since Edison pounded his fist on the desk of his electric company encouraging Ford to
develop his stinky loud 4 wheel bike because it could travel beyond the electric grid.
Yes, the world's most famous electrician was the root
responsible party for 100 years of internal combustion engine
development driven by the quest for more horsepower...
Well, looking back to those beautiful 60s and 70s American Masterpieces of analogue automaking
one couldn't blame them for demanding more and more oil to feed the horsepower business model.
Unfortunately, the model broke first in the 70s killing every world class American design
except maybe the Corvette and Mustang and the engine blew in the 2000s requiring
funny money intravenous injections!!!
Shelby Hitches Electric Horsepower to World's Fastest Coach!!!
has brought the "horsepower" business model back from
the dead by attaching a major Defibrillator to
the "musclecars!"
taking the cake over yesterday's kids
and even the automaking veteran Fisker.
NOT ONLY could Jerod's Digital Masterpiece
be "World's Fastest Digital Automobile"
thanks to Jobs and Wozniak and not Edison
blowing by Tesla challenging the old adage
of "first mover" with "faster mover"
enforcing that MADE IN USA DIGITAL AUTOMAKING
is accelerating world-class status leading the global mobility revolution!!!
enjoy this moment in the quest to become one of the
few automakers who survives the analogue to digital energy shakeout...
Wednesday, February 13, 2008
Who's making Lithium autos?
I've been putting together this list of automakers for quite awhile now. When possible I like to link directly to an automaker's Lithium technology that's on or closest to the road, but if not available, I provide a link to some news about the technology.
Also, there's a possibility of having to go to an overseas website, like Toyota for example, that has been selling small Lithium light hybrids in Tokyo for quite awhile now. Those are called Vitz aka Yaris hatchbacks with options called the Intelligent Package. These are marketed at urban women and Toyota has quietly been selling about 10 Lithium autos per month to be the first automaker on the road.
Li Automakers
AC Propulsion
Azure Dynamics
Aptera
BYD Auto
Chrylser
Commuter Cars
Daimler
Electrovaya
Falcon
Fisker
Ford
Fuji
GM
Honda
Hybrid Technolgies
JR East
Lightening Car
Loremo AG
Miles
Mitsubishi
Phoenix
Pininfarina
Nissan
Renault
Roth Motors
Saturn
Segway
Subaru
Think
Toyota
Universal
Velozzi
Venturi
Venture Vehicles
Visionary Vehicles
Volvo
VW
Wrightspeed
Zenn
ZAP
Also, there's a possibility of having to go to an overseas website, like Toyota for example, that has been selling small Lithium light hybrids in Tokyo for quite awhile now. Those are called Vitz aka Yaris hatchbacks with options called the Intelligent Package. These are marketed at urban women and Toyota has quietly been selling about 10 Lithium autos per month to be the first automaker on the road.
Li Automakers
AC Propulsion
Azure Dynamics
Aptera
BYD Auto
Chrylser
Commuter Cars
Daimler
Electrovaya
Falcon
Fisker
Ford
Fuji
GM
Honda
Hybrid Technolgies
JR East
Lightening Car
Loremo AG
Miles
Mitsubishi
Phoenix
Pininfarina
Nissan
Renault
Roth Motors
Saturn
Segway
Subaru
Think
Toyota
Universal
Velozzi
Venturi
Venture Vehicles
Visionary Vehicles
Volvo
VW
Wrightspeed
Zenn
ZAP
Labels:
Auto Biz,
Digital Automobiles,
Lithium Automobiles
Thursday, January 31, 2008
Start Your Digital Engines!!!
Influenced by the founder of Tesla's story here:
http://teslafounders.wordpress.com/about/#comment-1030
I wrote this short piece about why the digital car
and not the electric or gasoline or diesel is what matters:
RE About Tesla's Founder
This is a beautiful story in progress, but I would like to politely disagree with one thing.
There have been many theories about why the electric car failed. But did it?
Through the period of the car's invention and growth, the electric and steam hybrids dominated the analogue market. Kind of like AOL dominating the .com boom over copper wires.
What happened?
The internet went digital (broadband) just like record became CDs quickly replaced by the digital iPod that really took off when Jobs lowered the price of flash memory for the world in one deal (nano).
Now imagine if some startup halved the price of Lithium or nano-Lithium or crystal Lithium batteries with one order.
Why would they be making that order?
Because the car went digital, not electric!
Why did it take 10 years from CD to iPod or dial-up to broadband or Walkman to Zune or Tube to Flat Screen or book to Kindle?
Because in between the industrial age (analogue) and the information age (digital), there has to be a analogue to digital converter for the masses.
A dial-up compatible website to plug into your Kindle or TV Guide to run your device or a free cable box for broad band or free iTunes software compatible with any computer OR a hybrid compatible with any gas station.
There has to be an analogue bridge for what I estimate a 10 year period followed by a swift takeover of the analogue industry, it's players and technologies.
The electric car was never killed or came back to life!!! The analogue cars, ie steam hybrids, jet powered, hover crafts, air hybrids, fuel and tube powered electrics have been dying for 110 years.
The analogue car is dying a long awaited slow death and the digital car is accelerating out of the information revolution's garage.
The digital conversion requires a critical mass as well as followers than can safely have one foot in the analogue world and one foot in the digital world.
With 1,000,000,000 million hybrid-electrics (each of these has 300-650 digital patents involved) owners having paid extra to straddle this digital divide, the time is now for several digital organizations to fight to become the standard (like Apple and iPod) as well as many analogue giants to fall (like Zenith at worst or Pixar owning Disney at best).
Start your digital engines!!!
http://teslafounders.wordpress.com/about/#comment-1030
I wrote this short piece about why the digital car
and not the electric or gasoline or diesel is what matters:
RE About Tesla's Founder
This is a beautiful story in progress, but I would like to politely disagree with one thing.
There have been many theories about why the electric car failed. But did it?
Through the period of the car's invention and growth, the electric and steam hybrids dominated the analogue market. Kind of like AOL dominating the .com boom over copper wires.
What happened?
The internet went digital (broadband) just like record became CDs quickly replaced by the digital iPod that really took off when Jobs lowered the price of flash memory for the world in one deal (nano).
Now imagine if some startup halved the price of Lithium or nano-Lithium or crystal Lithium batteries with one order.
Why would they be making that order?
Because the car went digital, not electric!
Why did it take 10 years from CD to iPod or dial-up to broadband or Walkman to Zune or Tube to Flat Screen or book to Kindle?
Because in between the industrial age (analogue) and the information age (digital), there has to be a analogue to digital converter for the masses.
A dial-up compatible website to plug into your Kindle or TV Guide to run your device or a free cable box for broad band or free iTunes software compatible with any computer OR a hybrid compatible with any gas station.
There has to be an analogue bridge for what I estimate a 10 year period followed by a swift takeover of the analogue industry, it's players and technologies.
The electric car was never killed or came back to life!!! The analogue cars, ie steam hybrids, jet powered, hover crafts, air hybrids, fuel and tube powered electrics have been dying for 110 years.
The analogue car is dying a long awaited slow death and the digital car is accelerating out of the information revolution's garage.
The digital conversion requires a critical mass as well as followers than can safely have one foot in the analogue world and one foot in the digital world.
With 1,000,000,000 million hybrid-electrics (each of these has 300-650 digital patents involved) owners having paid extra to straddle this digital divide, the time is now for several digital organizations to fight to become the standard (like Apple and iPod) as well as many analogue giants to fall (like Zenith at worst or Pixar owning Disney at best).
Start your digital engines!!!
Wednesday, January 30, 2008
Innovation Hacker Stanford Golfers?
I couldn't help but praise the gifted
Gary Hamel
on his piece at Harvard Business titled
Innovation Hacker
http://discussionleader.hbsp.com/hamel/2008/01/innovation_hacker.html
A few days later, I walked into my office and discovered an elongated box propped up in one corner. “Oh crap,” were the first words out of my mouth when a shiny set of Wilson irons tumbled out of the package. Nevertheless, within a few days I was down at the Stanford University driving range with a bucket of balls at my feet and a 7-iron in my hand. My first swing slammed into the ground a foot behind the ball, sending an electric shock up my arms. Another hideous spasm and the golf ball was whizzing sideways, provoking startled stares from my fellow range rats. “Dear-mother-of-all-things-absurdly-difficult,” I thought, “this is hard.” And then, ten, or twenty, or fifty lunges later, I connected—and with a whizzing sound sweeter than the air intake on a Ferrari F430, that little white orb started to soar. Up it went, suspended in the sparkling autumn sky. And then, 160-yards downrange, it returned to earth, bouncing softly on the grass...
Gary,
You are an amazing gifted and entertaining while enriching writer! The business community is lucky to have you and American is unfortunate to have lost you... Keep up the great work and maybe I'll see on the Stanford links. If I get into a PhD program I applied for, you've inspired me to get my grandfather's golf bag out of the closet and hit up the driving range a 9 iron away from CarLab the center of innovation in the world's largest business that I hope will jump start the automotive industry's struggle to transform from an analogue based to digital industry.
Gary Hamel
on his piece at Harvard Business titled
Innovation Hacker
http://discussionleader.hbsp.com/hamel/2008/01/innovation_hacker.html
A few days later, I walked into my office and discovered an elongated box propped up in one corner. “Oh crap,” were the first words out of my mouth when a shiny set of Wilson irons tumbled out of the package. Nevertheless, within a few days I was down at the Stanford University driving range with a bucket of balls at my feet and a 7-iron in my hand. My first swing slammed into the ground a foot behind the ball, sending an electric shock up my arms. Another hideous spasm and the golf ball was whizzing sideways, provoking startled stares from my fellow range rats. “Dear-mother-of-all-things-absurdly-difficult,” I thought, “this is hard.” And then, ten, or twenty, or fifty lunges later, I connected—and with a whizzing sound sweeter than the air intake on a Ferrari F430, that little white orb started to soar. Up it went, suspended in the sparkling autumn sky. And then, 160-yards downrange, it returned to earth, bouncing softly on the grass...
Gary,
You are an amazing gifted and entertaining while enriching writer! The business community is lucky to have you and American is unfortunate to have lost you... Keep up the great work and maybe I'll see on the Stanford links. If I get into a PhD program I applied for, you've inspired me to get my grandfather's golf bag out of the closet and hit up the driving range a 9 iron away from CarLab the center of innovation in the world's largest business that I hope will jump start the automotive industry's struggle to transform from an analogue based to digital industry.
Tuesday, January 29, 2008
Digital Doom and 0 Days Inventory
In reponse to
Backseat Driver
Riders Of The Storm
Jerry Flint 01.29.08, 6:00 AM ET
In this industry, preparing for bad times means reducing inventories of unsold cars and trucks and cutting production. If manufacturers are not overstocked, they can ride out the bad months without losing as much money in sales incentives to lower those stocks. Having fewer cars and trucks to sell when business falls is that "ounce of prevention" mother used to talk about.
Overall stocks are lower for some automakers, and not in bad shape for a few others.
The days’ supply number is the inventory divided by the daily sales rate from the previous month. When things are worrisome, lower is better. As a rule, manufacturers don't fret too much about inventories if the supply on a vehicle is 60 days or lower.
I left the following post at Forbes.com
Comments for Comments 1-2 of 2
Riders Of The Storm
Jerry Flint
When a hurricane comes, we board up the windows and batten down the hatches. The same goes for Detroit.
Posted by johnmba | 01/29/08 11:16 PM EST
Excellent metric to focus in on Flint! In fact, most digital industries have thrown out inventory all together. Think of oil LPs vs. plastic CDs vs. bits on an iPod with a waiting list and no inventory. As the auto industry struggles just like every other industry (consumer electronics, TVs, radios, media, music, etc.) facing a digital transformation, inventory will continue to go away as JIT or the Dell or should we say Prius or Tesla pre-order model takes place. How much profits are earned from 0 days of inventory?
I've read that Dell has its supplier's trucks backed up to it's warehouse and almost through the door and then sells you a computer and finally puts things like the CPU into inventory for only during the assembly process. Now if the auto industry can narrow things down to a commuter car and light truck platform just like a desktop and laptop plastic case with everything inside customized for the end user, the digital transformation will finally turn pain into profits.
The bottom line is, "did Hollywood save music and movies with an iPod?" Nope, a hi-tech company from a related industry...
In other words, "will the digital iPod for the auto industry come out of Detroit's hurricane?" Probably not... I imagine after many startups and failures, we might see the digital car with the new interface come out of the West and/or Asia.
Detroit might want to study the demise of companies like Zenith in TVs and the slew of bankruptcy in Hollywood as music and movies went digital...
at
http://rate.forbes.com/comments/CommentServlet?op=cpage&sourcename=story&StoryURI=2008/01/24/autos-inventory-vehicles-oped-cx_jf_0129flint.html
Backseat Driver
Riders Of The Storm
Jerry Flint 01.29.08, 6:00 AM ET
In this industry, preparing for bad times means reducing inventories of unsold cars and trucks and cutting production. If manufacturers are not overstocked, they can ride out the bad months without losing as much money in sales incentives to lower those stocks. Having fewer cars and trucks to sell when business falls is that "ounce of prevention" mother used to talk about.
Overall stocks are lower for some automakers, and not in bad shape for a few others.
The days’ supply number is the inventory divided by the daily sales rate from the previous month. When things are worrisome, lower is better. As a rule, manufacturers don't fret too much about inventories if the supply on a vehicle is 60 days or lower.
I left the following post at Forbes.com
Comments for Comments 1-2 of 2
Riders Of The Storm
Jerry Flint
When a hurricane comes, we board up the windows and batten down the hatches. The same goes for Detroit.
Posted by johnmba | 01/29/08 11:16 PM EST
Excellent metric to focus in on Flint! In fact, most digital industries have thrown out inventory all together. Think of oil LPs vs. plastic CDs vs. bits on an iPod with a waiting list and no inventory. As the auto industry struggles just like every other industry (consumer electronics, TVs, radios, media, music, etc.) facing a digital transformation, inventory will continue to go away as JIT or the Dell or should we say Prius or Tesla pre-order model takes place. How much profits are earned from 0 days of inventory?
I've read that Dell has its supplier's trucks backed up to it's warehouse and almost through the door and then sells you a computer and finally puts things like the CPU into inventory for only during the assembly process. Now if the auto industry can narrow things down to a commuter car and light truck platform just like a desktop and laptop plastic case with everything inside customized for the end user, the digital transformation will finally turn pain into profits.
The bottom line is, "did Hollywood save music and movies with an iPod?" Nope, a hi-tech company from a related industry...
In other words, "will the digital iPod for the auto industry come out of Detroit's hurricane?" Probably not... I imagine after many startups and failures, we might see the digital car with the new interface come out of the West and/or Asia.
Detroit might want to study the demise of companies like Zenith in TVs and the slew of bankruptcy in Hollywood as music and movies went digital...
at
http://rate.forbes.com/comments/CommentServlet?op=cpage&sourcename=story&StoryURI=2008/01/24/autos-inventory-vehicles-oped-cx_jf_0129flint.html
Wednesday, January 23, 2008
It's DIGITAL Product, Smart Guys!
In response to It Is The Product, Smart Guys!
by Jerry Flint at Forbes
http://rate.forbes.com/comments/CommentServlet?op=save&sourcename=story&StoryURI=2008/01/18/chrysler-dodge-jeep-biz-cz_jf_0122flint.html
I wrote the following comment that parallels
today's auto industry struggle to the music
industry as it went from LP to CD to iPod.
In other words, a analogue to digital conversion
that kills SEVERAL companies, creates mergers,
and only the BEST digital leaders rule!!!
Posted by johnmba | 01/23/08 04:39 AM EST
Jerry, another brutally honest article backed by behind the scenes people problems! Great work aiming the problems at management, you're right! More head will probably roll and there might not be enough heads that make sense to take the last of the Big 3 to the digital frontier. Every car company is facing the same thing the movie and music companies faced when Napster and the iPod came along. Analogue Vinyl records (made from oil) might foreshadow today's Hemi V-8s. Analogue diesels and analogue-electric hybrids might be yesterday's CDs and CD players. The question is who's gonna make the digital iPod for the world's largest business? Remember that Apple failed years ago with the digital Newton and even after Napster gathered more customers than have bought the world's #1 selling car and truck, it went belly up! Do you see any cheap MP3 players (ie Chinese electric cars from Dr. Seuss) on the market? On the other hand, is Fisker and Tesla working on the iPod? It's gonna take a lot of failed products and something really special (a digital car with new interface) to create that iPod for the auto industry. And who was responsible for the iPod? One of the greatest digital leaders and managers of all time. In fact, he pulled off a digital over analgoue conversion by becoming the largest shareholder of the holy grail of music and media (Disney) in a $7.5B so called merger and suddenly the manager is the most hallowed media company's largest stockholder. This would be similar to a great digital automobile manager and technology firm merging with GM, Ford or Chrysler to become the majority shareholder. Now which manager could pull that off? Tiny profitable Porsche will be the first to try as it takes over VW, that company that invented the 45 record.
Tags: digital automobile
by Jerry Flint at Forbes
http://rate.forbes.com/comments/CommentServlet?op=save&sourcename=story&StoryURI=2008/01/18/chrysler-dodge-jeep-biz-cz_jf_0122flint.html
I wrote the following comment that parallels
today's auto industry struggle to the music
industry as it went from LP to CD to iPod.
In other words, a analogue to digital conversion
that kills SEVERAL companies, creates mergers,
and only the BEST digital leaders rule!!!
Posted by johnmba | 01/23/08 04:39 AM EST
Jerry, another brutally honest article backed by behind the scenes people problems! Great work aiming the problems at management, you're right! More head will probably roll and there might not be enough heads that make sense to take the last of the Big 3 to the digital frontier. Every car company is facing the same thing the movie and music companies faced when Napster and the iPod came along. Analogue Vinyl records (made from oil) might foreshadow today's Hemi V-8s. Analogue diesels and analogue-electric hybrids might be yesterday's CDs and CD players. The question is who's gonna make the digital iPod for the world's largest business? Remember that Apple failed years ago with the digital Newton and even after Napster gathered more customers than have bought the world's #1 selling car and truck, it went belly up! Do you see any cheap MP3 players (ie Chinese electric cars from Dr. Seuss) on the market? On the other hand, is Fisker and Tesla working on the iPod? It's gonna take a lot of failed products and something really special (a digital car with new interface) to create that iPod for the auto industry. And who was responsible for the iPod? One of the greatest digital leaders and managers of all time. In fact, he pulled off a digital over analgoue conversion by becoming the largest shareholder of the holy grail of music and media (Disney) in a $7.5B so called merger and suddenly the manager is the most hallowed media company's largest stockholder. This would be similar to a great digital automobile manager and technology firm merging with GM, Ford or Chrysler to become the majority shareholder. Now which manager could pull that off? Tiny profitable Porsche will be the first to try as it takes over VW, that company that invented the 45 record.
Tags: digital automobile
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