Monday, March 17, 2008

Detroit Electric

Yesterday, I visited the observation deck of Rockefeller Center for the first time after living in NYC for six months. I was fascinated to learn about about John D. Rockefeller Jr. - his actions to erect the building during the depression, his teetotaler lifestyle, and his "Detroit Electric" car.

It appears that history is repeating itself - our economy is experiencing a recession and the "Detroit Electric" name and century-old design is now resurfacing. Although the Anderson Electric Car Company is extinct, the rights were purchased by a joint venture between Zap and China's Youngman Automotive Group. I am sure the new design will get more than 65 miles at 6-25 mph on a single charge as it did in 1917, however, I doubt it will be produced in Detroit this time.

Zap is based in Santa Rosa, California - a state that pushing stringent emissions regulations, has a booming local economy, and now holds a record number of startup car companies. Most of these startups are for specialty vehicles (Zap&Youngman - carriage car, Tesla - sports car, Fisker - sports car) , but as they capture traditionally unattractive portions of the market they will move upstream and may disrupt the larger automakers.

So what about Detroit? Their response? The companies? The economy? The future?

Are they too distracted with their own problems to respond? Will they cede their share to the new entrants? Will the electric motor disrupt the internal combustion engine? More to come...

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