DOCSLIB.ORG

Go Green in the Automotive Industry - Open and Networked Innovation Applied by Tesla Motors and Renault

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Go Green in the Automotive Industry - Open and Networked Innovation Applied by Tesla Motors and Renault Go Green in the Automotive Industry - Open and Networked Innovation applied by Tesla Motors and Renault Authors: Emil Adén Aline Barray Tutor: Dr Sigvald J. Harryson Program: Growth Through Innovation and International Marketing Subject: Business Economics 60 Level and semester : Masterlevel , Spring 200 8 Baltic Business School - ACKNOWLEDGEMENTS - Acknowledgements We would like to start our acknowledgment with expressing our special gratitude towards Dr. Sigvald Harryson, Assistant Professor and Dr. Hans Jansson, Professor at Baltic Business School, for their supervision and advises regarding our thesis. We would also like to thank Sandra Kliknaité that together with Sigvald Harryson conducted the interview for us at Tesla Motors headquarters in Silicon Valley, USA. It gave us valuable and useful information. Furthermore, we would like to express our appreciation to Julie Dumez and Rochelle Chimene at Renault that gave us the opportunity to conduct an interview with them at their office in Paris. We would also like to send a special thank you to Rochelle Chimene for her help after the interview with answering additional questions. We also thank Carina Bärtfors for helping us to get information and literature that we needed during the work with this thesis. Last but not least, we would like to thank you for your interest in our thesis and we also want to thank the persons that we may have forgotten in this acknowledge. Emil Adén Aline Barray II - ABSTRACT - ABSTRACT In today’s economical world, companies realize the importance to build corporate strategies on innovation to sustain a continuous profitability. Innovation is a crucial issue to develop a competitive advantage. In our networked economy, companies can not only rely on in-house activities anymore to raise creative and come up with breakthrough innovations they need to collaborate with actors from the external environment. Firms have to think outside their own boundaries to leverage the complementary resources and capabilities needed to innovate. Partnerships help to ensure firms’ future successes. The purpose of our study is to understand how companies, operating in the automotive industry, integrate ‘Open and Networked Innovation’ concepts in their corporate strategy to enhance their environmental friendly profile. As far as the EV market is concerned, our study will also lead to determine the Key Factors of Success and the barriers that companies have to face when they want to launch an electric car in the market. Various theoretical approaches have been developed over the time about Open Innovation and Networked Innovation. The dilemma of paradoxical organization needs of radical innovation, exposed by Dr Sigvald Harryson, is our theoretical starting-point to analyze company’s ability to find the right equilibrium between exploration and exploitation and absorptive capacity. Further on, we explore the question of absorptive capacity to know how firms identify, acquire, transfer and transform knowledge. Thereafter, the theoretical framework is confronted with empirical data based on a qualitative and abductive approach of two case studies – Tesla and Renault. Interviews with Tesla, located in the Silicon Valley, California, USA, have been conducted. We also met two key employees in Renault’s headquarter, Paris, France. Interpretation and explanation of the data collected is reported in our III - ABSTRACT - analysis of each case as well as in the cross-case analysis. A presentation of our recommendations and conclusions conclude our master thesis. Key words : Open Innovation, Networked Innovation, Absorptive Capacity, Integration and acquisition of knowledge, transfer and transformation of knowledge, co-creation, collaboration, partnerships, complementary resources and capabilities. IV - TABLE OF CONTENTS - TABLE OF CONTENTS 1 INTRODUCTION ................................................................................................ 1 1.1 Background ......................................................................................................................... 1 1.2 Definitions .......................................................................................................................... 2 1.2.1 Open Innovation ........................................................................................................ 2 1.2.2 Networked Innovation ............................................................................................... 2 1.3 Purpose of the thesis ........................................................................................................... 2 1.4 Problem definition .............................................................................................................. 3 1.4.1 Main research question.............................................................................................. 3 1.4.2 Sub-research questions .............................................................................................. 3 1.5 Delimitations ...................................................................................................................... 4 1.6 Overview of our thesis ........................................................................................................ 4 1.7 Introduction about Global Warming .................................................................................. 6 1.8 General Automotive industry .............................................................................................. 8 1.8.1 Political influence at the market ................................................................................ 9 1.8.2 Demographic influence at the market........................................................................ 9 1.8.3 Economic influence at the market ............................................................................. 9 1.8.4 Technology influence at the market ........................................................................ 10 1.8.5 Sociocultural influence at the market ...................................................................... 10 1.8.6 Competition at the market ....................................................................................... 10 1.9 The electrical vehicle market ............................................................................................ 12 1.9.1 Legislation in California (USA) and France ........................................................... 12 1.9.2 Porter’s five forces .................................................................................................. 13 1.9.2.1 Supplier side .................................................................................................. 16 1.9.2.2 Customer side: end-consumers ...................................................................... 16 1.9.2.3 Potential entrants ........................................................................................... 18 1.9.3 Substitutes ............................................................................................................... 19 1.9.3.1 Hybrid cars .................................................................................................... 20 1.9.3.2 Plug-in hybrid ................................................................................................ 20 1.9.3.3 Ethanol ........................................................................................................... 20 1.9.3.4 Li-ion ............................................................................................................. 20 1.9.3.5 Hydrogen ....................................................................................................... 21 1.10 The Case Study Companies .......................................................................................... 21 1.10.1 Tesla Motors............................................................................................................ 21 1.10.2 Renault .................................................................................................................... 23 1.11 Thesis Disposition ........................................................................................................ 24 2 METHODOLOGY ............................................................................................. 25 2.1 Introduction ...................................................................................................................... 25 2.2 Research Process .............................................................................................................. 25 2.3 Research Strategy ............................................................................................................. 26 2.3.1 Case Study as a Strategy ......................................................................................... 27 2.3.1.1 Advantages and criticism to the case study method....................................... 29 2.3.1.2 Case Study Design ......................................................................................... 30 2.4 Scientific Approach ........................................................................................................... 31 V - TABLE OF CONTENTS - 2.4.1 Qualitative and Quantitative Methodology ............................................................. 31 2.4.2 Induction, deduction and abduction ........................................................................ 31 2.5 Data Collection ................................................................................................................
Load more

Recommended publications
  • System Dynamics Simulation of Income Distribution and Electric Vehicle Diffusion for Electricity Planning in South Africa by Nalini Sooknanan Pillay
    System Dynamics Simulation of Income Distribution and Electric Vehicle Diffusion for 25 JulyElectricity 2016 Planning in South Africa By Nalini Sooknanan Pillay Dissertation presented for the degree of Doctor of Philosophy in the Department of Industrial Engineering at Stellenbosch University Supervisor: Prof AC Brent Co-supervisor: Prof JK Musango Co-supervisor: Prof SS Grobbelaar December 2018 Stellenbosch University https://scholar.sun.ac.za Declaration By submitting this dissertation electronically, I declare that the entirety of the work contained therein is my own, original work, that I am the sole author thereof (save to the extent explicitly otherwise stated); that reproduction and publication thereof by Stellenbosch University will not infringe any third party rights; and that I have not previously, in its entirety or in part, submitted it for obtaining any qualification. Date: December 2018 Copyright © 2018 Stellenbosch University All rights reserved 2 Stellenbosch University https://scholar.sun.ac.za Abstract The electricity generation industry has developed a symbiotic interdependence with the social, environmental, economic and political ecologies in the country, resulting in divergent complexities, which require non-linear model-based planning methodologies. Some of the determinants influencing the power industry include technologies, such as battery electric vehicles (BEVs), which have gained prominence as a possible option to support South Africa’s climate change commitments. This study used an adapted system dynamics modelling process to determine the provincial affordability of BEVs in South Africa so that amended regional forecasts of BEVs could be established to plan for charging infrastructure, environmental impacts in the energy and transport sectors, as well as changes in electricity consumption.
    [Show full text]
  • Why Electromobility and What Is It?
    2 WHY ELECTROMOBILITY AND WHAT IS IT? Anders Grauers Department of Signals and Systems, Chalmers University of Technology* Steven Sarasini Department of Energy and Environment, Chalmers University of Technology** Magnus Karlström Chalmers Industriteknik * Automatic control research group ** Division of Environmental Systems Analysis Chapter reviewer: Björn Sandén, Environmental Systems Analysis, Energy and Environment, Chalmers In this chapter we examine the notion of electromobility and aim to provide a working definition of the term that underpins the analyses presented in the rest of this e-book. We also describe electromobility in technological terms by presenting various technological configurations of electric vehicles, charging infrastructure and energy supply. We then proceed to examine why electromobility is currently supported as a favourable means to transform road transport by discussing drivers and barriers of change in the automotive industry. Whilst electromobility repre- sents a significant technical challenge, it also requires complex social changes. By arguing from different perspectives we hope to illustrate that electromobility is best understood by considering a range of systemic perspectives found in this and later chapters of this e-book. WHAT IS ELECTROMOBILITY? In this e-book we define electromobility as a road transport system based on vehicles that are propelled by electricity. Some road vehicles are equipped with technologies that make them capable of producing their own electricity (e.g. hybrid electric vehicles). Others utilise energy supplied by a source of electricity outside the vehicle – usually the electric grid. This definition works well for battery electric vehicles as well as for vehicles that do not store electrical energy such as trolley busses.
    [Show full text]
  • The California Greenhouse Gas Initiative and Its Implications to the Automotive Industry
    The California Greenhouse Gas Initiative and Its Implications to the Automotive Industry June, 2005 Prepared for The Center for Transportation Research Argonne National Laboratory and the United States Department of Energy by the Center for Automotive Research Ann Arbor, MI 1 Acknowledgements As with any project, this report is the result of many people contributing in many ways. The authors of this report would like to thank Karen Esper and Diana Douglass, who contributed greatly by creating and formatting the document. Their expertise and patience were critical to the project’s success. Chris Gulis and Emilio Brahmst spent many long hours researching, documenting and detailing powertrain technologies and manufacturing processes. Dr. Richard Gerth created, applied, and wrote analysis for the single and multiple Logit statistical models used for forecasting. Dr. Gerth also served as an advisor for the regression modeling, and overall statistical analysis. Jillian Lindsay Gauthier contributed by assisting with the statistical modeling and overall document review. Chris Powers also added document review support. Finally, we would like to thank those in the automotive industry that took time to guide the authors. This topic presents many challenges, not the least of which being the political risks involved in participating in any discussion. The arena of advanced powertrain technology—is a highly controversial and emotional issue. Several industry experts were willing to rise above the fray and offer their time and highly knowledgeable insight into the many challenges of advanced powertrain technology. For this, CAR is greatly appreciative. Brett C. Smith, Assistant Director, Manufacturing Engineering and Technology Raymond T. Miller, Research Assistant 2 Executive Summary Introduction CAR undertook this investigation to better understand the costs and challenges of a local (state) regulation necessitating the implementation of alternative or advanced powertrain technology.
    [Show full text]
  • Electric Drive by '25
    ELECTRIC DRIVE BY ‘25: How California Can Catalyze Mass Adoption of Electric Vehicles by 2025 September 2012 About this Report This policy paper is the tenth in a series of reports on how climate change will create opportunities for specific sectors of the business community and how policy-makers can facilitate those opportunities. Each paper results from one-day workshop discussions that include representatives from key business, academic, and policy sectors of the targeted industries. The workshops and resulting policy papers are sponsored by Bank of America and produced by a partnership of the UCLA School of Law’s Environmental Law Center & Emmett Center on Climate Change and the Environment and UC Berkeley School of Law’s Center for Law, Energy & the Environment. Authorship The author of this policy paper is Ethan N. Elkind, Bank of America Climate Policy Associate for UCLA School of Law’s Environmental Law Center & Emmett Center on Climate Change and the Environment and UC Berkeley School of Law’s Center for Law, Energy & the Environment (CLEE). Additional contributions to the report were made by Sean Hecht and Cara Horowitz of the UCLA School of Law and Steven Weissman of the UC Berkeley School of Law. Acknowledgments The author and organizers are grateful to Bank of America for its generous sponsorship of the workshop series and input into the formulation of both the workshops and the policy paper. We would specifically like to thank Anne Finucane, Global Chief Strategy and Marketing Officer, and Chair of the Bank of America Environmental Council, for her commitment to this work.
    [Show full text]
  • Who Killed the Electric Car?
    Who Killed the Electric Car? On Sunday, October 29, The Salt Spring Island Energy Strategy Task Force sponsored a special showing of the documentary film "Who Killed the Electric Car?," followed by a panel discussion. The film was a rivitting case study of why solutions to the energy crisis are so hard to implement. Electric cars seemed a logical part of the energy equation, with lower comsumption than interal combustion engines and no tailpipe emmissions in the bargain. They were made available on a limited basis by the auto industry - primarily in response to a California "Clean Air" regulation, but the industry claimed there was no market for the cars. The car manufacturers pulled them off the roads and ceased production when the regulations were recinded by the California Air Resources Board. The owners of the electric cars fought to keep them, having been sold on their advantages, but in the end the cars were scrapped, "the body was disposed of." In looking at this "Environmental Crime," the film fingers severl suspects: the consumer, the auto industry, the oil industry, the government, the California Air Resources Board, and even the hydrogen fuel cell, touted by the industry as a better alternative. Of these, only the Battery is absolved. Stan and Iris Ovshansky, inventors of the battery technology used in the General Motors EV1 car, had their company bought out by oil company interests. Frustrated in their goal of large scale production for the transportation industry, they now focus on photovoltaic technology. Even though battery technology has improved, electric cars are a rarity.
    [Show full text]
  • Zero Emission Design Paper (PDF)
    Design and Construction of a High-Efficiency Electric Drivetrain for a Zero-Emissions Snowmobile Nick J. Rakovec, Adam R. Schumacher, Kevin R. King Daniel Bocci, Ethan K. Brodsky, Glenn R. Bower University of Wisconsin–Madison Copyright © 2008 SAE International ABSTRACT The University of Wisconsin - Madison Clean INTRODUCTION Snowmobile team has designed and constructed an electric snowmobile with 32 km (20 mi) range and In 2004, the Society of Automotive Engineers (SAE), in acceleration comparable to a 75+ kW (100+ hp) internal- partnership with the National Science Foundation (NSF), combustion-powered snowmobile. Starting with an created an additional event in the Clean Snowmobile Polaris IQ Fusion chassis, a direct-drive chaincase was Competition (CSC) with the goal of encouraging the engineered to couple a General Motors EV1 copper-bar development of zero-emissions utility snowmobiles to rotor AC Induction electric motor to the stock track drive support scientific research. A number of environmental paddle. Eighty-four 28 V, 2.8 A-hr Lithium-Ion battery research projects taking place at locations such as modules supplied by Milwaukee Tool compose a battery Summit Station (Greenland) and South Pole Station pack that stores 6.2 kW-hours of energy at a nominal (Antarctica) involve sampling air and snow for global voltage of 336 V. Power is transmitted to the electric atmospheric pollutants which occur in levels of parts per motor via an Azure Dynamics DMOC445LLC motor billion. Visiting or even approaching these sites with controller. All of the components fit within the original conventional snowmobiles or more generally any sled envelope, leading to a vehicle with conventional internal-combustion powered vehicle can significantly appearance and a total mass of 326 kg (717 lb).
    [Show full text]
  • PHEV-EV Charger Technology Assessment with an Emphasis on V2G Operation
    ORNL/TM-2010/221 PHEV-EV Charger Technology Assessment with an Emphasis on V2G Operation March 2012 Prepared by Mithat C. Kisacikoglu Abdulkadir Bedir Burak Ozpineci Leon M. Tolbert DOCUMENT AVAILABILITY Reports produced after January 1, 1996, are generally available free via the U.S. Department of Energy (DOE) Information Bridge. Web site: http://www.osti.gov/bridge Reports produced before January 1, 1996, may be purchased by members of the public from the following source. National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 Telephone: 703-605-6000 (1-800-553-6847) TDD: 703-487-4639 Fax: 703-605-6900 E-mail: [email protected] Web site: http://www.ntis.gov/support/ordernowabout.htm Reports are available to DOE employees, DOE contractors, Energy Technology Data Exchange (ETDE) representatives, and International Nuclear Information System (INIS) representatives from the following source. Office of Scientific and Technical Information P.O. Box 62 Oak Ridge, TN 37831 Telephone: 865-576-8401 Fax: 865-576-5728 E-mail: [email protected] Web site: http://www.osti.gov/contact.html This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof.
    [Show full text]
  • Alternative Energy Carriers and Powertrains to Reduce GHG from Transport
    Alternative Energy Carriers and Powertrains to Reduce GHG from Transport Nikolas Hill (Lead Author, AEA) 25 June 2009 - DRAFT Tom Hazeldine (AEA) Johannes von Einem (AEA) Alison Pridmore (AEA) David Wynn (AEA) Alternative Energy Carriers and Powertrains to ReduceAlternative GHG energy carriersfrom and Transport powertrains EU Transport GHG: Routes to 2050? AEA/ED45405/Paper 2 Contract ENV.C.3/SER/2008/0053 Nikolas Hill (Lead Author, AEA) 25 June 2009 - DRAFT Tom Hazeldine (AEA) Alison Pridmore (AEA) Johannes von Einem (AEA) David Wynn (AEA) Suggested citation: Hill, Hazeldine, Pridmore, von Einem and Wynn (2009) Alternative Energy Carriers and Powertrains to Reduce GHG from Transport. Paper produced as part of contract ENV.C.3/SER/2008/0053 between European Commission Directorate-General Environment and AEA Technology plc; see website www.eutransportghg2050.eu ii EU Transport GHG: Routes to 2050? Alternative energy carriers and powertrains Contract ENV.C.3/SER/2008/0053 AEA/ED45405/Paper 2 Table of contents Executive Summary v 1 Introduction 1 1.1 Topic of this paper 1 1.2 Background to project and its objectives 1 1.3 Background and purpose of the paper 1 1.4 Structure of the paper 2 2 General Background for Different Transport Modes 3 2.1 Road Transport 3 2.2 Aviation 3 2.3 Shipping 3 2.4 Rail 4 2.5 References 5 3 Liquid Biofuels and Biogas 6 3.1 Introduction 6 3.2 Overview of options 6 3.3 General 7 3.4 Road transport 8 3.5 Aviation 9 3.6 Shipping 10 3.7 Rail 11 3.8 Gaps in Identified Information 12 3.9 References 13 4 CNG, LNG and
    [Show full text]
  • Electric and Hybrid Cars SECOND EDITION This Page Intentionally Left Blank Electric and Hybrid Cars a History
    Electric and Hybrid Cars SECOND EDITION This page intentionally left blank Electric and Hybrid Cars A History Second Edition CURTIS D. ANDERSON and JUDY ANDERSON McFarland & Company, Inc., Publishers Jefferson, North Carolina, and London LIBRARY OF CONGRESS CATALOGUING-IN-PUBLICATION DATA Anderson, Curtis D. (Curtis Darrel), 1947– Electric and hybrid cars : a history / Curtis D. Anderson and Judy Anderson.—2nd ed. p. cm. Includes bibliographical references and index. ISBN 978-0-7864-3301-8 softcover : 50# alkaline paper 1. Electric automobiles. 2. Hybrid electric cars. I. Anderson, Judy, 1946– II. Title. TL220.A53 2010 629.22'93—dc22 2010004216 British Library cataloguing data are available ©2010 Curtis D. Anderson. All rights reserved No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without permission in writing from the publisher. On the cover: (clockwise from top left) Cutaway of hybrid vehicle (©20¡0 Scott Maxwell/LuMaxArt); ¡892 William Morrison Electric Wagon; 20¡0 Honda Insight; diagram of controller circuits of a recharging motor, ¡900 Manufactured in the United States of America McFarland & Company, Inc., Publishers Box 611, Je›erson, North Carolina 28640 www.mcfarlandpub.com To my family, in gratitude for making car trips such a happy time. (J.A.A.) This page intentionally left blank TABLE OF CONTENTS Acronyms and Initialisms ix Preface 1 Introduction: The Birth of the Automobile Industry 3 1. The Evolution of the Electric Vehicle 21 2. Politics 60 3. Environment 106 4. Technology 138 5.
    [Show full text]
  • Aerovironment's EVS26 Booth to Feature Historic GM EV1
    May 4, 2012 AeroVironment's EVS26 Booth to Feature Historic GM EV1 AeroVironment exhibiting and participating in Ride, Drive & Charge at the largest conference and exhibit for the electric vehicles industry AeroVironment: EV1 - Courtesy of the Nethercutt Collection WHAT: Visit AeroVironment's booth during EVS26 and learn about the company's rich history and its decades of electric vehicle innovation. Experts, chargers and the groundbreaking General Motors EV1 car will be present to illustrate AeroVironment's historical and current innovations. WHO: AeroVironment is a technology solutions provider that designs, develops, produces, operates and supports an advanced portfolio of electric transportation solutions. AeroVironment's comprehensive EV charging solutions include EV home charging, public charging, fast charging, data collection, grid- integrated communications and complete installation, training and support services for consumers, automakers, utilities, government agencies and businesses. WHEN: Sunday, May 6 — Wednesday, May 9, 2012 Sunday — Exposition and Ride, Drive & Charge: 9 a.m. to 5 p.m. Monday — Exposition and Ride, Drive & Charge: 11 a.m. to 6 p.m. Tuesday — Exposition and Ride, Drive & Charge: 9:30 a.m. to 6 p.m. Wednesday — Conference: 8 a.m. to 11:30 a.m. WHERE: Booth #1515 Los Angeles Convention Center 1201 South Figueroa Street Los Angeles, CA 90015 OPPORTUNITIES: AeroVironment special guest at the booth: the General Motors EV1, the first commercially available electric car that resulted from the company's co-development of the GM Impact with General Motors in 1989. Additionally, AeroVironment is supporting the Ride, Drive & Charge by providing a Level-3 DC fast charger, which can fully charge an EV in as little as 20 minutes, as well as six Level-2 chargers.
    [Show full text]
  • Better Place: Shifting Paradigms in the Automotive Industry
    oikos free case collection Global Case Writing Competition 2011 Social Entrepreneurship Track 1st Place Better Place: Shifting Paradigms in the Automotive Industry Free Online Copy Dror Etzion and Jeroen Struben, McGill University, Canada This is a free Online Copy. This work is licensed under the Creative Commons Attribution-NoDerivs 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nd/3.0/ The authors are thankful for any feedback and suggestions to further develop this case. Please contact the authors directly at [email protected] and [email protected]. Copyright © 2011 by the Authors. This case was prepared by Dror Etzion and Jeroen Struben as a basis for class discussion rather than to illustrate the effective or ineffective handling of an administrative situation. oikos free case collection Etzion / Struben Better Place: Shifting Paradigms in the Automotive Industry 1 http://www.oikos-international.org/academic/case-collection/free-cases oikos free case collection In February 2010, Better Place opened its first demonstration center in Israel, constructed inside a refurbished industrial oil storage tank, with a 1.5km test track allowing visitors to drive an electric car. The demonstration center showcased Better Place’s ambitious plan to challenge the status quo in a complex and rigid industry. Its opening was the latest milestone in the company’s three-year history, during which it had established partnerships with Israel’s national electric utility, venture capital firms, battery companies, car manufacturers, corporate clients and the Israeli government to launch a nationwide network of electric vehicles.
    [Show full text]
  • Israel Is Set to Promote the Use of Electric Cars
    January 21, 2008 Israel Is Set to Promote the Use of Electric Cars By STEVEN ERLANGER JERUSALEM — Israel, tiny and bereft of oil, has decided to embrace the electric car. On Monday, the Israeli government will announce its support for a broad effort to promote the use of electric cars, embracing a joint venture between an American-Israeli entrepreneur and Renault and its partner, Nissan Motor Company. Prime Minister Ehud Olmert, with the active support of President Shimon Peres, intends to make Israel a laboratory to test the practicality of an environmentally clean electric car. The state will offer tax incentives to purchasers, and the new company, with a $200 million investment to start, will begin construction of facilities to recharge the cars and replace empty batteries quickly. The idea, said Shai Agassi, 39, the software entrepreneur behind the new company, is to sell electric car transportation on the model of the cellphone. Purchasers get subsidized hardware — the car — and pay a monthly fee for expected mileage, like minutes on a cellphone plan, eliminating concerns about the fluctuating price of gasoline. Mr. Agassi and his investors are convinced that the cost of running such a car will be significantly cheaper than a model using gasoline (currently $6.28 a gallon here.) “With $100 a barrel oil, we’ve crossed a historic threshold where electricity and batteries provide a cheaper alternative for consumers,” Mr. Agassi said. “You buy a car to go an infinite distance, and we need to create the same feeling for an electric car — that you can fill it up when you stop or sleep and go an infinite distance.” Mr.
    [Show full text]