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Dan
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Post Number: 459
Registered: 10-2003
Posted on Friday, December 12, 2008 - 12:59 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

While Detroit Slept

By THOMAS L. FRIEDMAN
As I think about our bailing out Detroit, I can’t help but reflect on what, in my view, is the most important rule of business in today’s integrated and digitized global market, where knowledge and innovation tools are so widely distributed. It’s this: Whatever can be done, will be done. The only question is will it be done by you or to you. Just don’t think it won’t be done. If you have an idea in Detroit or Tennessee, promise me that you’ll pursue it, because someone in Denmark or Tel Aviv will do so a second later.

Why do I bring this up? Because someone in the mobility business in Denmark and Tel Aviv is already developing a real-world alternative to Detroit’s business model. I don’t know if this alternative to gasoline-powered cars will work, but I do know that it can be done — and Detroit isn’t doing it. And therefore it will be done, and eventually, I bet, it will be done profitably.

And when it is, our bailout of Detroit will be remembered as the equivalent of pouring billions of dollars of taxpayer money into the mail-order-catalogue business on the eve of the birth of eBay. It will be remembered as pouring billions of dollars into the CD music business on the eve of the birth of the iPod and iTunes. It will be remembered as pouring billions of dollars into a book-store chain on the eve of the birth of Amazon.com and the Kindle. It will be remembered as pouring billions of dollars into improving typewriters on the eve of the birth of the PC and the Internet.

What business model am I talking about? It is Shai Agassi’s electric car network company, called Better Place. Just last week, the company, based in Palo Alto, Calif., announced a partnership with the state of Hawaii to road test its business plan there after already inking similar deals with Israel, Australia, the San Francisco Bay area and, yes, Denmark.

The Better Place electric car charging system involves generating electrons from as much renewable energy — such as wind and solar — as possible and then feeding those clean electrons into a national electric car charging infrastructure. This consists of electricity charging spots with plug-in outlets — the first pilots were opened in Israel this week — plus battery-exchange stations all over the respective country. The whole system is then coordinated by a service control center that integrates and does the billing.

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Johnlodge
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Post Number: 9000
Registered: 10-2003
Posted on Friday, December 12, 2008 - 1:09 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Do not expect this innovation to come out of Detroit. Remember, in 1908, the Ford Model-T got better mileage — 25 miles per gallon — than many Ford, G.M. and Chrysler models made in 2008.



This pretty much shows this author has no knowledge of what he speaks. He thinks mileage isn't improved because of lack of innovation? How about because of forced environmental and safety standards? If cars today had to meet the environmental and safety standards of Henry Ford's day, they'd be getting some great mileage.

Yes, throw away American manufacturing because some start up company which may or may not fail, and has thus far produced nothing, says they have an idea. Sound business sense.
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Mtm
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Post Number: 340
Registered: 06-2006
Posted on Friday, December 12, 2008 - 1:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

WOW!! And everything in the article makes perfect sense. Big 3 have been telling us for ages that they're still years away from truly efficient vehicles, though they are getting in to hybrids. Pity for ALL of us, even non-auto workers, they hadn't been more proactive.
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Goat
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Post Number: 2895
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Posted on Friday, December 12, 2008 - 1:38 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Just wait until all of those so-called "green" cars (electric) start getting plugged in.
Where in the fuck is the electricity going to come from? We have already diverted enough of our rivers to the point of destruction to have more electricity so where will it come from? Nuclear power perhaps?
A better way would be to stop sprawl and unsustainable growth. Isn't that what happened with the housing sector and the banking system? Infrastructure isn't that far behind.
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Wally
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Username: Wally

Post Number: 544
Registered: 12-2003
Posted on Friday, December 12, 2008 - 3:32 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Where in the fuck is the electricity going to come from?

I've always wondered the same thing. Heck, we're already on the verge of brownouts most every the summer just keeping up with air conditioning demand.
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Glowblue
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Username: Glowblue

Post Number: 63
Registered: 09-2008
Posted on Friday, December 12, 2008 - 3:46 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

His premise for the article is idoitic and wrong. Better place does not have a new business model, and they won't even be making cars. Their business model is fundamentally identical to that of a gas station.
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Legodude
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Post Number: 7
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Posted on Friday, December 12, 2008 - 3:48 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

There are substantial benefits to using electricity, even if it is not any less polluting right now: in the future, we can replace power plants and reap widespread benefits. If the generation becomes cleaner, suddenly all electric cars are cleaner. Associated with this increased use in electricity there has to be a modernization of the electric grids. Once this happens, existing dirty plants become magically more efficient. (Although still pollute the same absolute amount) Reduction in usage is of course ideal, but if there has to be use electric is the future.
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Glowblue
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Post Number: 64
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Posted on Friday, December 12, 2008 - 3:59 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Oh, no doubt there are many advantages to using electricity to power automobiles (there are also many disadvantages, which is why we use gasoline). Friedman's article, though, is that Better Place, a company that makes recharging infrastructure for electric cars, somehow makes GM obsolete. The whole article is a non sequitur.
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Retroit
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Username: Retroit

Post Number: 574
Registered: 04-2008
Posted on Friday, December 12, 2008 - 4:00 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Apparently, Mr. Freidman believes that every "good idea" can be turned into a viable product/business.
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Oladub
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Username: Oladub

Post Number: 969
Registered: 08-2006
Posted on Friday, December 12, 2008 - 5:11 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

GM almost has the Volt ready to go but the price is steep. 'Where is the electricity coming from?' is a good question. Sen. Obama campaigned on building wind generators and improving the grid. That's good as far as it goes. 50% of our electricity now comes from coal. He has said he would bankrupt new coal plants with new regulations, carbon taxes, etc.. Obama has shown no support for more oil drilling or opening the Nevada nuclear waste facility. I don't suppose he would favor building hydro-electric dams like his hero FDR either. All in all, it doesn't sound like he has a plan to meet the huge new electrical needs plug in cars will require.

By the way, a Chevy Volt powered with coal generated electricity would produce only one-third as many hydrocarbons as today's fuel efficient cars - but he wants to tighten the screws on coal anyway.

Once plug ins are on the road in substantial numbers, a new tax would have to be instituted to replace the gas tax. Oregon is experimenting with with a tax based on annual odometer readings
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Johnlodge
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Post Number: 9018
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Posted on Friday, December 12, 2008 - 5:17 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

It's conceivable that if plug-ins really took off, and did produce only on-third the hydrocarbons, the energy situation would have to be re-evaluated. He seems to have the sense to change his position when new facts or situations call for it. Let's hope so.
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Funaho
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Username: Funaho

Post Number: 97
Registered: 11-2007
Posted on Friday, December 12, 2008 - 5:44 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I'm still waiting for someone to figure out how someone with curbside parking and no garage is going to charge a plug-in car...am I supposed to run a power cord out my front door all night?

Speaking of overnight, if most people recharged overnight they'd be drawing power when grid demand is low, so it would probably not be as big of an impact as you might think. That and demand would ramp up over many years, so there would (theoretically) be time to ramp up production to match. Pebble bed reactors and some of the new small self-contained reactors that are coming out could be useful in this regard.
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Mikem
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Post Number: 1875
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Posted on Friday, December 12, 2008 - 5:59 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Speaking of overnight, if most people recharged overnight they'd be drawing power when grid demand is low, so it would probably not be as big of an impact as you might think.

That would help electricty producers tremendously. Generators and power plants have to be built to handle peak loads which only occur a few hours a day, during daylight hours; the rest of the day they are being used inefficiently. The construction of a national grid over the past half-century has helped moderate the demand on local generators but has produced other unintended consequences (2003 blackout). Evening the demand curve would help boost the efficiency of power producing utilities.
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Mwilbert
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Post Number: 470
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Posted on Friday, December 12, 2008 - 8:04 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Friedman routinely achieves a level of pontification that mere mortals can never hope to attain. However, if you have a ubiquitous charging infrastructure, the cars don't need their batteries to be as large, because they can charge whenever they are at rest.

Building the charging infrastructure enlarges the market segment that electrics can address even with current technology; good for both plug-in hybrids and pure electrics. I would guess that it would be a lot easier to create such an infrastructure in tiny places like Israel, Denmark, or Hawaii than in the US as a whole.
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Johnlodge
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Post Number: 9020
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Posted on Friday, December 12, 2008 - 8:07 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

That would help electricty producers tremendously. Generators and power plants have to be built to handle peak loads which only occur a few hours a day, during daylight hours; the rest of the day they are being used inefficiently. The construction of a national grid over the past half-century has helped moderate the demand on local generators but has produced other unintended consequences (2003 blackout). Evening the demand curve would help boost the efficiency of power producing utilities.



Especially if the grid could take from sufficiently charged cars during peak hours. Basically, giving the grid an enourmous battery so it (along with our cars) charge during off peak hours, and supply during peak hours.

This is something the utility companies are already interested in. There is talk of them offering to install charging stations in parking lots at no cost, because of the benefit they'd receive.
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Lilpup
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Post Number: 5007
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Posted on Friday, December 12, 2008 - 8:24 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I pointed out in the NY Times comments that Granholm has been to the Middle East and met with the Better Place people and that Friedman, despite an open invitation from GM, hasn't bothered to come out and see what's going on here, but my comment didn't get posted :-)

Friedman was also bloviating on one of the Sunday morning news shows that the automakers had never before taken a stand on or showed support for health care reform and were only doing it now to defend asking for funds, which is also a load of bs.
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Bigb23
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Username: Bigb23

Post Number: 2792
Registered: 11-2007
Posted on Friday, December 12, 2008 - 9:16 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Yeah - These startups know how to do it. A different plan then the Big Three Two.

quote:

The Tesla Roadster is an electric car that goes fast, looks sensational and excites envy. But the seductive appearance, Randall Stross writes in The New York Times, obscures some inconvenient truths: its all-electric technology remains woefully immature and don�t-even-ask expensive.

Despite all this, Tesla Motors is requesting $400 million in low-interest federal loans as part of the $25 billion loan package for the auto industry passed by Congress last year.

If enough billionaires step forward to inject additional capital to keep Tesla�s doors open, then fine, says Mr. Stross.

But, he asks, if investors pass up the opportunity, however, why should taxpayers fork over the capital that Tesla needs? The Roadster, Mr. Stross says, is not much more than a functioning concept car that sells for $109,000.



Tesla-NYTIMES

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