China’s BYD hybrid on track for 2011 US launch
The other day a new University of Michigan study found that US automakers have perpetually underestimated the importance of fuel efficiency in the American market. However, a robust change towards fuel efficiency could be a huge cash cow for US automakers.
But are US automakers making the right moves?
America’s most notable future product, in terms of fuel efficiency, is the Chevy Volt. Yet, the Volt’s most important piece of technology, the lithium battery, is based on South Korea’s LG Chem chemistry. Interestingly, LG Chem is also developing the cells to power Hyundai hybrids, another Korean company. Yet, if Hyundai has perfected the lithium polymer battery, Hyundai’s battery technology might already be superior to GM’s.
And what of smaller, cheaper cars and hybrids?
Again, there is Hyundai, but also BYD, Mahindra, Tata, and many other emerging automakers that could become very competitive within the next decade. And, many of these automakers – which have far cheaper labor costs – are building their entire business models on cheap, small vehicles and alternative technologies.
Moreover, like Hyundai, BYD has a hometown lithium cell provider, itself. BYD also has far easier access to lithium than does any US company.
Ultimately, I’m certainly not arguing that US automakers cannot compete, especially Ford. However, it seems US automakers need to think far beyond CAFE. If US automakers are to be successful a decade from now, don’t they have to raise and lead the fuel efficiency bar across all automotive segments?
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