The endemic traffic jams of London underscore the other opportunity for manufacturers who might come up with unique urban vehicles. One possibility is the PUMA, short for Personal Urban Mobility and Accessibility vehicle -- which was unveiled at this year's New York Auto Show. Barely half the size of the already miniscule Smart fortwo, PUMA looks like a rickshaw, though a production version would look more like something you'd expect to see in a sci-fi flick. "I told my team that if it looks like a conventional automobile, they haven't stretched far enough," said Dave Rand, GM's director of advanced design.
Significantly, GM turned to another transportation start-up for help in developing PUMA, Segway, best known for its one-person Personal Transporter. The firm supplied the running gear for the two-seater, including the unique stability system that let PUMA ride on just two wheels.
Co-opting the competition may be critical to survival, suggests Joe Phillippi, an automotive consultant and founder of AutoTrends.
On the other hand, forming tie-ups with the industry's established players may be critical for the start-ups, cautions AutoPacific's Brinley. "It's absolutely not as easy" as they all seem to think, she says, especially those who believe they can simply transfer the Silicon Valley business model to the world of bending metal. Tesla learned the hard way when it ran through three different suppliers before coming up with a working transmission. While it's now producing Roadsters, the program is well behind schedule and the company has had some serious cash issues of its own.
"The capitalization needs are huge," warns Brinley, "and I don't think these start-ups understand how much it takes to support their business."
On the other hand, the savviest of the new players are learning ways to shave other costs, especially marketing. Tesla and Fisker have effectively relied on the Internet, on Twitter, Facebook and Google to get the word out to potential buyers and acolytes alike.
The real question is whether the public will embrace electrification. If they do, the anticipated slow ramp-up of battery power should give the start-ups plenty of time to chisel away at the established order. If not, they could have very short lives, and leave the spoils for the traditional manufacturers who have long dominated the automotive world.
The real question is whether the public will embrace electrification. If they do, the anticipated slow ramp-up of battery power should give the start-ups plenty of time to chisel away at the established order. If not, they could have very short lives, and leave the spoils for the traditional manufacturers who have long dominated the automotive world.
source: motortrend
