Insert photo caption or credit here
In part I, we viewed the history of startups and in part II we saw how Fisker Automotive wants to make a difference by outsourcing. In Part III we conclude what this could mean for the car industry.
The gist is that right now is the perfect time to set up the car company of the future and those who have already been working on the electric drive will have a clear advance tomorrow. What Fisker Automotive wants to do could revolutionize the industry.
Work On The Fundamentals. What is striking about the Fisker business model is that out of the 750 people working on the plug-in hybrid, PHEV Karma, fewer than 100 are on staff. This leaves the "car maker" to concentrate of design and what attracts people to cars in the first place.
To the question why not buy a GM Volt, the answers are many. The Fisker Karma is a PHEV, much as the E-REV Volt is but will be more expensive for different reasons. The Karma is a performance car with a light aluminum chassis while the Volt is aiming more for family sedan market. Does this justify twice the price? Henrik Fisker certainly hopes so and time will tell.
What Does This All Mean? Henrik Fisker has one of the most interesting and comprehensive business model based around the electric drive. While it is clearly obvious that designing a car from scratch and commercializing it takes important resources, Fisker leaves the manufacturing part to a few companies whose sole business is running factories, two of which being Valmet Automotive for the body work and Magna International for the interior.
.jpg)
This sort of business model could the forerunner of what is to come in the industry. As more and more startups make indents on the traditional car making business, it will give part makers and components integrator a greater industrial role. Ford is already starting to work with Magna, which is in talks to buy Opel. Adding more companies working on specifics will eventually lower costs and allow for more innovation, a starch contrast to how the automobile industry operated these last few decades.
Rapid Transit 2009
Leave the car at home and let someone else do the driving this summer. Examiner.com's national network of Transportation Examiners have local and regional transportation covered. Stop sitting in traffic, already.
Comments
If Henrik Fisker believes those of us contemplating a Chevy Volt will instead opt for a PHEV Karma simply because it's prettier, sportier, or better performing, I'd say he's smoking whatever the Detroit 3 were smoking back when they were on their SUV high.
The Tesla S, at $57K, is a little closer to affordable, but it's still gonna run $50K with the government subsidy.
The Chrysler Town and Country EV (a series hybrid plugin) is the vehicle I'm most likely to buy when I go to replace my '05 Saturn Relay minivan. Hybrid minivans don't yet exist, other than in Japan, and the Toyota Highlander is the most affordable (starting at $37K) 7 passenger hybrid vehicle out there.
Yes, the Fisker will sell, but the target audience won't be would-be Volt owners.
Hi Ken,
I don't think he is after the Volt market. It's twice as expensive for one thing and he clearly is aiming for a different market, according to where he is positioning his dealerships.
As a side note, I think Chrysler would do a fantastic job at putting out a PHEV minivan and riding on their rich history in this department.
Thanks, Nick
But what about the warranty? It seems that having all of these subcontractors could make for a liability or warranty nightmare if something goes wrong and Fisker needs to back up its products. Being slimly run and capitalized means that if they get a larger-than-expected number of warranty claims they may have trouble standing by them.
Hi Nathanvt,
This system would work better. Consider the components in cars today come from countless OEMs. We still have warranty problems, on top of predictable failures. By letting smaller companies specialize in one specific are, they can take care of quality. It's in everyone's interest the final product works well.
The old, and present system relies on components failing so that we come in for "servicing". Auto makers have made much money this way. The new system will be harder for anyone to double dip. We'll see how Fisker tackles its warranty. So far, Tesla Motors has done a good job, for a Lotus problem.
You can see how Apple gets great reviews on its products, that outlast its PC competitors. They also re-brand but make sure they get the best quality.
I feel the Fisker model will be implemented by many more. It just makes sense. If warranty is your concern, then specializing companies will take care of it.
Thanks for your comment, Nick
Thanks for another great piece, Nick. The Karma is not intended to compete with the Volt, but with luxury cars like the BMW 7-Series, Mercedes CLS and Audi A8, to name a few. Yes, the price is high, like any new technology. But, just as flat-screen TV's are now relatively inexpensive, so too will be PHEV/EVs. And the more they sell, the faster prices will come down. As for warranty, Fisker will have a very competitive one. Hope this helps. Learn more at www.fiskerautomotive.com
Hi Russel,
Thanks for your comments. Yes, the Karma is not in the same league as the Volt and it is obvious in the performance department. I think it is the new BMW or Alfa Romeo of the new industry.
As far as high price, everything can be boiled down to pay now or later. I buy Apple computers which are more expensive but last longer and less operational costs in the end. So it works out.
Good point about the more built, the lower the costs. The next sedan should be interesting. I look forward to learning more about the warranty point.
Ultimately, any steps in the right direction is worthy of mentioning.
Nick
August cover of Car and Driver had the Chevy Volt, Fisker Karma, Dodge Circuit, and Mini E on the cover. Pretty good read on all four. Nice to see EVs and PHEVs starting to get the attention of the Auto Rag world.
Hi Ken,
I can't wait till they have road test comparisons on all these cars. It would be fun to see.
Got something to say?
Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!