Wednesday, November 12, 2008

SMEs vs. MNCs in automotive industry (partII)



Tesla Company has a rather unusual history since the company has almost no connection to the traditional American auto industry. The founder had no experience in the auto industry when he decided to create the world’s first high performance electric car.(http://auto.howstuffworks.com/tesla-roadster2.htm)


The founder of eBay the billionaire Jeff Skoll, the founder of PayPal Elon Musk and the founders of Google Larry page and Sergey Brin have contributed with $40 million to Tesla motors because they all want to see an electric car becoming the vehicle of the future.
(http://tyler.blogware.com/blog/_archives/2006/6/1/1998229.html)

Martin Eberhard and Marc Tarpenning founded a company based on a portable eBook reader and became frustrated at the mainstream auto industry’s inability to create an effective electric car that could appeal the mass. Therefore made Eberhard a decision to create one himself and instead of creating an entire car from scratch took Eberhard the advantage of outsourcing. The new company therefore chose a design from England-based Lotus (http://tyler.blogware.com/blog/_archives/2006/6/1/1998229.html).

The partnership between Tesla and Lotus works well for many reasons. Lotus factory in England is well suited to produce cars in small runs, which allows Tesla to basically manufacture the cars that is ordered and then avoids spending lots of money to warehouse not jet sold cars. Another reason for using Lotus factory in England is that the Tesla Roadster is based on the Lotus Elise. The car has the same basic chassis and other parts and this result in savings on material costs. (http://tyler.blogware.com/blog/_archives/2006/6/1/1998229.html)

In Tesla’s business plan it is mention that innovative technology is often very expensive and that very rich customers are usually the first to adopt it. First when the prices come down, the technology could be more available at the market. That’s a reason why Tesla’s first car is a exclusive sports car and only made in limited numbers. In 2008 is Tesla planning to release a four door electric sedan. (http://tyler.blogware.com/blog/_archives/2006/6/1/1998229.html)

An electric car will probably always be more expensive then a gasoline car and the savings for the customers come when they look at the fuel costs and how they have an impact in the environment. An electric car will always have zero emissions, but if you count the emissions created when the power is produces then is the electric car more environmental friendly even if the power comes from a coal plant.

Ebhard claims that the energy provided by one gallon of gasoline could be used to drive an electric car 110 miles. Also if the price of gasoline and electricity is compared, you could go 150 miles for the price of one gallon of gasoline. (http://auto.howstuffworks.com/tesla-roadster2.htm)

Musk the CEO of Tesla Motors says that this company has the potential to be one of the greatest car makers of the 21st century. "The starting point is a high performance sports car, but the long term vision is to build cars of all kinds, including low cost family vehicles. Tesla is one of those rare opportunities to change the world in a positive way and build a valuable company in the process." (http://tyler.blogware.com/blog/_archives/2006/6/1/1998229.html)

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