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Sat, November 22, 2008

GM Should Open Up, to Save the Automobile Industry

Although some say it's too little too late to save GM, the Chevy Volt does seem like an interesting car. Unlike the Toyota Prius which has a hybrid drive train that uses both gas engines and electric motors for propulsion, the Volt only uses electric motors to turn those wheels. The E Flex Platform which the Volt is built around, seems to have a nice simple, modular design. You have electric motors to turn the wheels, batteries to power the motors, and a generator to charge the batteries. It even has the word "platform" in its name, and almost seems worthy of that label. But they're not shipping for 2 more years? Having worked on a hail mary platform myself, I have this suspicion that GM is putting so much pressure on the Volt that they're killing it with scope creep. They're trying to do too much, trying to get it too perfect, and wasting too much time. They need to get it out now.

Instead, GM should take the IBM PC route (or perhaps, the more profitable iPod accessory route). They should just define the specifications and baseline requirements for the motors, batteries and generators, and ship the Volt half baked (as far as the drive train goes... obviously safety features will need to be fully baked). Who cares if it gets less than 100MPG and has a short range? Other companies can then compete to build compatible batteries, motors and generators, which could spawn a thriving industry to absorb at least some of those workers the automobile industry will shed (or has). GM can charge license fees and charge for "Volt Compatible(TM)" labels, which should be more profitable than having to do R&D + production themselves. We'll get the Volt sooner, better, and probably cheaper. I'd even support a nice big government bailout if GM would commit to something like that.

I can't say for sure that such an Open Automobile Platform would be good for the Big 3. But then, I'm not even certain it's good that we have a Big 3 in the first place, instead of Small And Medium 1001. At the very least, I think the industry should be comprised of Big 3 And A Bunch of Little Uns, more or less like our beloved internet industry. You get more innovation, more competition, more jobs and when the shit hits the fan, you don't have to worry about an entire industry going poof (just most of it). An Open E Flex Platform might just be what we need for such a change.


Footnotes:
1 I do realize that once upon a time, there were more automobile companies, the same way there used to be more airplane manufacturers. Consolidation over time may be an unavoidable consequence in Capitalism, but it also seems like more competition from smaller companies would be viable if cars were made with standardized/commoditized parts, like PCs.




bailout

I agree that a bailout makes sense if it is put towards energy efficient vehicles. If that isn't a stipulation of the bailout the big 3 will continue to not be competitive and they'll just need another bailout in the future.
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Ryo Chijiiwa

I'm a biologically Japanese, culturally American, Germany-raised, socially liberal, politically independent, gun-totin', code writin' dude. My life is currently sponsored by Google.
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