Automakers are operating in terra incognita as they prepare for the biggest change in the way cars are powered in a century. As they begin to add battery-powered cars to their lineups, they will have to solve some fundamental problems about how the cars are built and sold.
For engineers, the questions include:
Should automakers be technology leaders or fast followers?
Should they develop their own batteries or leave that to specialists?
Should they focus on one technology or hedge their bets with several?
For marketers, the issues are:
Should automakers use existing body styles and model names or create new ones?
Should they start slowly and wait for demand to develop or try to grab market share immediately?
Should they distribute cars through existing dealer networks or start from scratch?
There are few guideposts to follow. The only equivalent parallel in recent history has been the launch of the hybrid gas-electric vehicle, where, arguably, only one company has been successful.
That is Toyota (TM), which unlike most other manufacturers, built a hybrid-specific car, the Prius. The car’s unique character attracted early adopters as well as the environmentally-conscious who wanted to visibly demonstrate their commitment, and Toyota promoted it effectively.
Honda tried to drive the same road with its own hybrid, the Insight. But both the first- and second-generation vehicles sold poorly.
Other automakers installed their gas-electric powertrains in existing models, essentially making the hybrid device an option. The cars lacked a distinctive identity, most have suffered weak sales.
If there lessons to be learned from Prius, they haven’t been reflected in current battery-electric strategies, no two of which seem to be alike.
Two French automakers, for instance, are using sharply different approaches.
Automakers are operating in terra incognita as they prepare for the biggest change in the way cars are powered in a century. As they begin to add battery-powered cars to their lineups, they will have to solve some fundamental problems about how the cars are built and sold.
For engineers, the questions include:
Should automakers be technology leaders or fast followers?
Should they develop their own batteries or leave that to specialists?
Should they focus on one technology or hedge their bets with several?
For marketers, the issues are:
Should automakers use existing body styles and model names or create new ones?
Should they start slowly and wait for demand to develop or try to grab market share immediately?
Should they distribute cars through existing dealer networks or start from scratch?
There are few guideposts to follow. The only equivalent parallel in recent history has been the launch of the hybrid gas-electric vehicle, where, arguably, only one company has been successful.
That is Toyota (TM), which unlike most other manufacturers, built a hybrid-specific car, the Prius. The car’s unique character attracted early adopters as well as the environmentally-conscious who wanted to visibly demonstrate their commitment, and Toyota promoted it effectively.
Honda tried to drive the same road with its own hybrid, the Insight. But both the first- and second-generation vehicles sold poorly.
Other automakers installed their gas-electric powertrains in existing models, essentially making the hybrid device an option. The cars lacked a distinctive identity, most have suffered weak sales.
If there lessons to be learned from Prius, they haven’t been reflected in current battery-electric strategies, no two of which seem to be alike.
Two French automakers, for instance, are using sharply different approaches.