About Auto Industry

Everyone has their eyes on the automotive industry lately. BNET Automotive gathers and supplies daily industry trends and news coverage with specific insights for managers and executives, focusing on the major auto companies and parts manufacturers. In addition to detailed auto company trends and profiles, we report on new alliances and partnerships, new models, mergers and acquisitions, labor management, auto unions, investments, and other key issues related to this sector of business.

"Cars for Idiots": Carmakers Get Personal About New Technology

By Jim Motavalli | Sep 8, 2009

Sometimes carmakers take the competition personally, especially when new technology is involved. Toyota executives recently went out of their way to disparage the plug-in hybrid (even though their own company is building one).

Irv Miller, Toyota’s group vice president of environmental and public affairs, told me back in June that after the batteries were depleted on a plug-in hybrid, they became a heavy “boat anchor” until the car plugs in again. “The dog doesn’t hunt,” Miller said. “We may be trying to change the world for a very small part of the market.”

Last week, Audi North American President Johan de Nysschen reportedly called the Chevy Volt a “car for idiots,” though he later denied using that word. He also said the Volt’s potential buyers are part of an “intellectual elite who want to show what enlightened souls they are.”

His point, according to a mea culpa post on Audi’s Facebook page, was “simply one of [the Volt’s] economic feasibility today. The 50 percent or so price increase that the Volt represents over a similar gasoline car cannot be offset through the savings from reduced fuel consumption. The only way to offset the extreme premium for the Volt is through taxpayer-funded subsidies. So I question if that makes economic sense.”

De Nysschen later told GM-Volt.com, “I don’t think the Volt is a car for idiots.” His point instead is that it’s “an idiotic business case.” But then he said, “We might as well have been talking about the Tesla.” Does he think the Tesla fails to make bottom-line sense, then? Seems to me it’s doing fairly well. The company, which at one point was paying more to produce the cars than they were selling for, has since turned around and says it made a profit in July.

German automakers, including Audi and Mercedes, have lately been pointing another finger–at American automakers and consumers who just don’t understand why diesels make more sense, environmentally and financially, than hybrids and Volt-type range extenders. They have charts and graphs.

Everybody has their own list of “cars for idiots.” I’ve got mine, too, but ultimately the marketplace will decide the winners.

Jim Motavalli is the author of Forward Drive: The Race to Build Clean Cars for the Future, among other books. He has been covering the environmental side of the auto industry for more than a decade, and writes regularly on those topics for the New York Times.

BNET User Analysis

Web Buzz:
  • Patent Holder Takes A Second Crack At Toyota Over Hybrid Technology

    TechDirt - 76 days 4 hours 39 minutes ago

    Earlier this year, we wrote about how Toyota had been stockpiling a ton of patents around hybrid vehicle technology, such that almost no other carmaker could make hybrid vehicles without paying up. Of course, there was some history to that story, as Toyota had lost a big lawsuit by a patent holder named Paice a few years back, requiring a...

  • Twitter Used For Social Media Fundraising?

    WebProNews - 264 days 17 hours 23 minutes ago

    As some of you may know, I was recently involved in a tagline competition for The Printed Blog. The prize for the winner was a Nintendo Wii. Despite being way behind after missing a day's worth of voting, I ended up winning the contest, with over 51% of votes. My sincere thanks to everyone who voted for me, from Twitter, Facebook and a...

  • X-Prize logo and name used to fool eBay bidders (and us)

    Auto Blog Green - 281 days 20 hours 16 minutes ago

    We were skeptical of the technology claims , but didn't take the time to double-check another of the "facts" stated in a recent (and now ended) eBay auction for a Chrysler LeBaron convertible. It turns out that while BrocktonEnergyLLC used "Experimental X-prize" in the name of the auction, the folks over at the Progressive Automotive X Prize...

  • If F1 makes no sense to BMW, why do Mercedes, Toyota and Renault bother?

    The Detroit News - 105 days 20 hours 53 minutes ago

    Let's face it; nobody in the history of the world ever went out and bought a new car after a Formula One Grand Prix race, so it's not surprising that BMW is pulling out. It is amazing that Mercedes, Renault and Toyota still want to be involved in this dull, noisy and processional circus, with its over-the-top image of excess and waste, when...

  • Fogless Mirror for Lazy Bachelors

    Wired - 203 days 23 hours 48 minutes ago

    Sometimes simple is good, and when carrying out tiresome personal hygiene chores, simple is even better. Take shaving; do you really need to scrape your face every day over the sink, and then — as if that wasn’t bad enough — clean up afterwards? In my case, the answer is no. I buzz my face with

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement