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Thursday, August 7, 2003 |
Baseline. The Dell of the auto industry? Introducing: BTO.
'At this site, the company he chairs plans to build highly customized vehicles starting at $35,000, by outsourcing just about all aspects of their construction to suppliers whom he consolidates on this spot. If successful, BTO can post net profit margins he estimates at between 15% and 20%, unheard of in an industry where the bottom-line margin ranges from zero to 3%. BTO will have 400 employees, excluding suppliers.'
Interesting. The standard specs, modular OEM construction, and integrated supply systems the auto industry is using to reduce costs may prove to be their undoing. Agile micro custom assemblers that leverage these new capabilities could eat their lunch.
IF (this is a big if) this is true, the only way out for the car industry is to continue to focus on brand in the short term (and all that means: local service, etc.). As the big brands crumble, the best defense may be to focus on the car of the future's microprocessor heart: the fuel cell fly-by-wire chasis (more) -- which will be important within the decade. The huge R&D budgets necessary for this will keep small players at arms length. Unfortunately, this will also likely mean there is only one winner in the end. The market for these chasis, given the expense of producing them may yeild a natural monopoly. [John Robb's Weblog]
Or, the car-by-systems-integrator strategy (which Amory Lovins touted in his early hypercar papers) may be able to give the 'natural monopoly a run for its money, on account of greater agility and [much] smaller economies of scale.
10:46:24 PM 
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Continuing the 'no nothing' strategy of under-funding schools, shutting down public data, and stopping science that doesn't agree:
Suit Challenges Climate Change Report by U.S.. An antiregulatory group sued the Bush administration to force it to stop distributing a report on climate change that the group contends is inaccurate and biased. By Andrew C. Revkin. [New York Times: Science]
Interestingly, the 'other side' isn't happy either:
Bush Misuses Science Data, Report Says. The Bush administration persistently manipulates scientific data to serve its ideology and protect the interests of its political supporters, according to a House committee report. By Christopher Marquis. [New York Times: Science]
And '...the people now running our country won't take yes for an answer.'
Salt of the Earth. On environmental issues from ozone to methyl bromide, America's ruling party is pursuing a strategy of denial and deception. By Paul Krugman. [New York Times: Opinion]
10:17:01 PM
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[Design Council]: About: Sustainability
Sustainable design is everything good design ought to be, delivering the best (social, environmental and economic) performance or result for the least (social, environmental and economic) cost. It is the strategic use of design to meet and integrate current and future human needs without compromising the environment. It includes (re)design of products, processes, services or systems to tackle imbalances or trade-offs between the demands of society, the environment and the economy and requires the holistic consideration of the impact of products or services in these three areas, now and in the future. Where possible, it also includes restoration of damage already done.
Bingo.
9:58:58 PM
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Whiskey Bar: The Economic Limits of Empire
If the California recall circus hasn't depressed you enough (yes, it's entertaining on the surface, but just you wait), have a look at these essays on the looming future facing the US economy.
The threat I'm talking about is economic. Like the British Empire in the years after World War I, the American Empire is marching toward global domination on increasingly shaky financial legs.
8:10:10 PM
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© Copyright 2006 Gil Friend.
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