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Emerging automobile companies


Burt
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I was a bit torn about whether to put this here or in the Cantina. Apologies if in the wrong spot.

 

To say the last few years have been unkind to the American automobile industry is an understatement. In the wake of bail-outs and GM's death traps, it's hard to want to give any of those people a dime. I'm a year away from being in the market for another vehicle, and I loathe the idea of buying a foreign car. It is immensely frustrating how expensive it is becoming to maintain vehicles, and I'm sure it's by design to jack up repair profits at the dealerships. The keys alone are just garbage. It's $100 to get a spare key with these newer vehicles, which is just ludicrous. If someone feels like they need that extra security, make it an add-on, but the majority of people don't need or want that hassle. Don't even get me started about OnStar.

 

I had a discussion with a few friends that if a company made a bare-bones, economic yet safe vehicle, there is definitely a decent-sized niche market. Minimize the plastic and gadgets, and just put a good engine in a safe frame. Saturn did this really well in the 90s, but they're defunct now. Some of the emerging electric cars are intriguing. I searched, but couldn't find any company taking that approach. Does such a company and/or vehicle exist? Are the big companies and government interests keeping emerging car companies down?

 

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The big companies always have had a stranglehold on the automotive industry and that dates back before WWII.

 

Plus anytime a new innovation happens it gets patented and restrictions result in the spreading of the technology.

 

I like your idea but the cards are stacked against the little guy in this case from the raw materials, to the capital and labor. Then the distribution of the product and marketing cost.

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Tesla is doing something unheard of and instead of patenting their technology is making it open source to do what Burt is hoping for.

 

"According to a June 12 company blog post from CEO Elon Musk, Tesla has made their patents — all several hundred of them — “open source,” meaning other car companies now have access to Tesla patents and can use their technology as long as it’s “in good faith.” The reasons: to advance electric vehicle technology, reduce competition from the “flood” of gasoline cars, and promote a “common, rapidly-evolving technology platform” for the world’s benefit."

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However, for now, Teslas are crazy expensive.

I think that's part of the reason they did it. They will have the luxury market already cornered, and others benefit from their technology and they don't have to slum it-- but will still get credit for the revolution.

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I think people do not want those types of cars. There's an Indian company who has a basic bare-bones car called the Tata Nano but they can't come here! Because we have restrictions concerning safety features, insurance costs and other things such as people would rather go into debt buying that American Dream car instead of practical. It's why Saturn/Geo are defunct brands and Smart cars are struggling.

 

The Tata Nano 2600$ car!

 

 

Toyota has this really cool three wheel motorcycle like electric car I'd buy in a heart beat!

 

toyotairoadtop.jpg

 

I recently paid off my car and was thinking of buying a Vespa scooter for getting around.

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However, for now, Teslas are crazy expensive.

I think that's part of the reason they did it. They will have the luxury market already cornered, and others benefit from their technology and they don't have to slum it-- but will still get credit for the revolution.
That's the optimistic side, and I think Musk cares more about technology development than getting even more filthy rich. On the other hand, it could be that the technology is so ridiculously expensive that they know no one will be able to undercut them for price.

 

Not going to lie, my husband wants a Model S so bad it hurts. He settled for a Volvo.

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  • 2 months later...

I saw a Tesla in Oklahoma City today, kind of blew me away. I don't think we have any Tesla charging stations, so I imagine they're on their own. It still feels like mass-produced cars of that kind are still a decade away though, at least for those of us who can't drop $60k on a vehicle.

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You see, a Tata would be ideal for my needs. It might actually force me to clean my car occasionally too. It is so rare that I have more than one other passenger. Maybe not when I had my kid, but with him not in the picture, I pretty much have a car for one that rarely ever transports anyone else.

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I've heard stories of Smartypants Ohh! Ah! Smartypants giving up on the industry and just making their own green car. I'm not talking about Top Gear, but that's a fun show. The car of choice seems to be the Beetle, an old one. Not so old that Adolf drove it, more like Disease-Ridden Hippies drove it. So you get the Beetle then you gut it, maybe spray the seats with some peroxide and put electrical things with panels, wires and stuff like that in it. I dunno exactly. It's above my pay grade. For transparency I should explain I don't get paid anything, being a homemaker. Maybe if I was a carmaker this post would not be a waste of time.

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Guest El Chalupacabra

The big companies always have had a stranglehold on the automotive industry and that dates back before WWII.

 

Plus anytime a new innovation happens it gets patented and restrictions result in the spreading of the technology.

 

I like your idea but the cards are stacked against the little guy in this case from the raw materials, to the capital and labor. Then the distribution of the product and marketing cost.

Which is why the US needs to start allowing Chinese auto manufacturers to sell in the US market. I mean sure manufacturers like SAIC, Dongfeng, BYD, Chang'an, etc have long produced cars for other companies like Toyota, Honda, VW, and even GM for sales overseas (and I think some have even come to the US), and are often the makers of replacement OEM parts for many auto makers, but as I understand it the current trade law is that Chinese auto makers are barred from selling directly as their own company in the US. Sure, it may suck for companies like GM if Chinese auto makers start selling directly in the US, but honestly, I don't think I will ever own another GM product, EVER, so if they went under, I wouldn't care. I think this would create more competition and drive the prices down for better vehicles and create more innovation in vehicles. For example, want more hybrids/electric cars? Well, guess where all the hybrid/electric car batteries are made: China. Besides, after a while, just like Toyota, Honda, and Hyundai before them, if the US was opened up to the Chinese auto makers, it wouldn't be long before they move plants to the US and actually create jobs. So even if GM went under, those auto makers would be able to get jobs at a Chinese auto plant in the US. Might not be a UNION job where they get paid $100/hour for turning 4 screws on an assembly line, but that is what's killing the US auto industry, anyway.

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They're not emerging in any sense of the word, but I am the proud owner of roughly 100 shares of Ford stock. I was pleased that during the collapse of the American automotive industry, Ford was the one domestic company to not get bailed out. That was probably due to fortuitous refinancing of debt more than anything, but I am still proud of that fact. I've owned a number of Fords and have never been seriously disappointed. Were I to buy a new car today, it would probably be a Ford.

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Ford is the only American car I would consider, but even then, I'd probably lean towards a Japanese or European car. I come from a very loyal Chrysler/Dodge family. We've all converted to Japanese cars. I love my Toyota and would gladly buy another one. 6 years and not a single problem with it. We're pretty happy with our Volvo, too, but it's probably a little early to make the call on that one. Very comfortable and very safe cars, though.

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Destiny, Alan Mulally was a phenomenal CEO! I don't know what his business background was prior to Ford, but he navigated that company through a very rough economic patch and was able to transform it into a more lean and competitive company for the future. He was voted best American CEO by some business poll thing I read about a year or two ago. He will be missed by me, and I'm sure by a lot of other shareholders.

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