Comments on: Video: Detroit, watch out for this Karma
The Karma is scheduled to become the first plug-in hybrid on the road late next year, well ahead of Chevy's Volt.
The Karma is scheduled to become the first plug-in hybrid on the road late next year, well ahead of Chevy's Volt.
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Should the government be giving them some of the money?"
The U.S. rescue package proposes loans to the large car-makers because (1) they employ huge numbers of people; (2) have a vast economic impact through supply purchases, research expenditures, etc.; and (3) are taking an especially hard short-term hit from consumers' reluctance to spend on big-ticket items. (European governments are making loans to their car makers for the same reasons.)
None of this applies to Fisker, which (1) doesn't have a large payroll; (2) isn't a significant spender in the auto-industry segment; and (3) isn't affected by the sales downturn because it DOESN'T HAVE A PRODUCT ON SALE.
In view of that, why is the reporter even asking the question? The purpose of the "rescue package" is to mitigate large-scale economic damage, not reward the generators of cool-looking vaporware. Oh, I forgot, this is C-Net; we're all about cool-looking vaporware here...
Time and again it has been proved if a company "knows the market" and produces innovative products that that market wants and needs, and provides "perceived value", (what you get for what you pay) they will be successful.
The margins are small in center market (where most are) and they have to be very innovative to distinguish their product from the rest, and production efficient so that they can be price competitive and still have a reasonable margin.
That is the "center market" and it is hard to compete there, but if they concede "center" then they lost the market. Detroit took the lazy easy route, and went to the "market edges" with "high margin" luxury SUV and pick-up truck type vehicles etc. Not really innovative, and also small market segment. The problem is that for the others who can compete in "center market", competing at the market edges is easy, and they can squeeze out the competition.
If you don't believe about "knowing the market demand" and providing matching product, look at the I-pod and the I-phone, and then look at the Zune. Look at Wii and then look at the X-box. Just because MS is big, arrogant, and monopolistic, that is not what gets market share, or in the long run even keeps market share. Detroit is only the first in a long list of dinosaurs.
Fisker all well and good also, but lets see the product when they claim before running an article already claiming that they have beaten everyone to the punch. At $80,000 is not a car for the purchasing public...for that matter the Volt won't be either.
If this car was just a regular gas vehicle, it would be lucky to price out around $40K and that is being generous.
So, there is a premium of about $40K which, even at $5/gal would buy 8,000 gals of gas. Now, they are claiming around 100 mpg, and let's again be generous, accept that and say the comparable gas vehicle would be around 25 mpg, so we have a differential of 75 mpg.
This means you would have to drive the car 266K miles just to break even on the gas. Now, I have driven some great cars over the years, but after 100K, they started showing their age and I have not been able to keep one past 150K. Also, I didn't include any other maintenance costs specific to the vehicle (batteries, chargers, solar cells, regenerative braking systems, etc.). And this is a first generation, very tech laden product.
What are the odds, I would even get close to 250K out of it? Not much.
So, if you have the money and feel the need to make a statement, go for it, but like it's other cousins like Tesla, I will pass.
- by Holly Klug November 25, 2008 10:53 PM PST
- The obvious question is what happens to the price of batteries if these were to become popular?
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(6 Comments)I think the peak oil people hit the nail on the head when they ask what is the energy returned on the energy invested?
Rich people will pay big money for an unusual car. Will the US railroads pay to electrify? Probably not. Will the Honda Civic ever be replaced by an electric? If fuel costs skyrocket again, it is much more likely we will all be driving a lot less, as we are now, bringing the consumption down to what can be comfortably be pumped out of the ground. Bicycles will be rediscovered by the 1st world.