Craig Eisele on …..

June 22, 2013

Big 3 Auto Makers Fail to Adequately Address Alternative Fuels as Tesla Tries and Tries Again.

Attempts to stimulate the Alternative Fuel Vehicle Markets by GM, Ford, Chrysler (Fiat) and ALL big Automakers are practically non existent because they fail to see the realities of the market and then fail to respond to it. At least Tesla is trying.. but it too missed the mark on its latest try by developing the battery exchange. 

Maybe some of you have seen the recent article this week about Tesla: 

Tesla Introduces Faster ‘Gas Station’ System

It is a system that makes refilling/Recharging the electric battery  fast and efficiently… And by “recharging,” they mean replacing.

REPLACING … as in dropping a Model S’ depleted battery pack — which can weigh half a ton — out from the undercarriage of the vehicle and replacing it with a fully charged one.

Think of it as pulling up to a filling station and instead of sticking a hose into the filler cap and refilling your empty tank, simply replacing the empty gas tank with one that’s full of gas. Only in this case, the gas station is a Tesla Station (a.k.a. a Tesla Supercharger station) and the “gas tank” weighs more than 1,000 pounds.

Tesla previewed the fully automated process at its Hawthorne, Calif., design studio. There are no pumps to pay and the driver never even has to exit the vehicle. Simply pull into the Tesla Station, locate the battery swap spot, follow the on-board prompts, and the battery-swapping machinery takes over from there.

Sitting in a pit in the ground beneath the car is a fully charged battery, which the system prepares for installation as it locates its vehicle’s existing battery pack bolts. The bolts are then unscrewed with the help of “high-precision nut runners,” allowing the existing pack to be lowered into the pit, then the new pack moves into position and is inserted into the car’s body. The bolts are tightened again, and away the car goes.

The whole process takes just over a minute and a half, or about half the time it takes to fill up the average automobile.

You can read the rest of that article here if you want to know a little more…. http://autos.yahoo.com/blogs/motoramic/tesla-launches-battery-swapping-two-minute-recharging-115343291.html

What amazed me in some ways is that it did not reference the Israeli Company called “A Better Place” who was doing this and who went out of business late 2012. 

Referencehttp://singularityhub.com/2013/06/09/electric-car-company-better-place-bankrupt-burns-nearly-1-billion/

AND/OR

http://articles.economictimes.indiatimes.com/2013-05-26/news/39538211_1_israel-corp-car-company-shai-agassi

The concept is a step in the right direction…. but only a step…. and as such I had written this reply below in the comment section  of the article…. BUT for some unknown reason I kept getting error messages and it would not post…. so I am writing it here: 

 From the headline I thought for a moment that Tesla took a new and exciting approach  to making Alternative Fuel vehicles a mass market reality… but nope… this is modeled almost after an Israeli Company the now-defunct “A Better Place” program that went out of business late last year. 

 Sadly BOTH Tesla Electric Vehicles and Traditional Auto Manufactures Ford GM, Nissan, Toyota Chrysler/Fiat who could make Electric, Natural Gas and Hydrogen vehicles viable to the mass market in less than 24 months with a new concept that would provide 100,000+ refueling locations throughout the USA, by changing the current entrenched paradigm by redefining the problems that it BELIEVES it faces or has in this endeavor.

 The myopic mentality of the vehicle manufacturers is more obvious from this issue than any other the industry has faced since the production line innovation of Henry Ford. 

 Anyone want to make a few billion dollars bringing these companies to the table to make alternative fuel vehicles the dominant sales leader in the USA in less than 5 years?? All you have to do is get the manufacturers CEO’s to seriously look at something they have not previouslyconsidered. 

Doing the same thing for 100+ years does not mean it is the only way. SOMETIMES a real change has to occur. But one that will not risk the enterprise itself but allow a rapid change to take place based on infrastructure and demand changes. Current manufactures are not seeing beyond their own methodologies in finding how to be innovative outside the 100 year old structure that fails to adapt to a current world that has the ability to change and modify faster as long as the current paradigm is changed and not destroyed.

Ford, GM and the other traditional manufactures are so far behind this changing world with their old world mentality that I wonder if I will live long enough to see them actually change that demand curve for Alternative duel vehicles in the future.

Telsa has out run the current infrastructure of the country and the TOTAL potential number of households that can “PLUG IN” a vehicle or who can afford low mileage daily usage is led than 20% for EVERYBODY in the electric vehicle market. AND I DO LOVE TESLA and their vehicles.. but I have to face the reality of the current infrastructure and market in their future growth.

The problems are not insurmountable, BUT there has to be accommodation to the viability of a supporting infrastructure. While this battery replacement is a good idea in theory, it fails to take into account the inconvenience and limitations of the ultimate consumer. Tesla is on the right track but it has not taken into account other alternatives that fit better with the Consumer. BUT they are leaps and bounds above the sad and miserable lack luster approach of the big traditional manufactures.

When will someone finally wake up to what I have been proposing for more than 2 years now and take this seriously, and realize there is a huge profit to be made while changing our country to a net exporter of Oil and GAS…. but even more interesting it would allow the company that does what has been suggested the potential to OWN the market. Hence approximately 26 billion in profits from the ancillary products and distribution in less than 10 years.

Think of the same story that made Microsoft what it is today. From a garage to the giant and for the longest time it was never a manufacture of hardware.. only the software necessary to make the critical hardware run. THIS is what can be accomplished is the right people want to make an impact on society AND make money at the same time.

THIS is the kind of Innovation and paradigm changes that the Auto industry needs today but is to afraid to embrace. Boon Pickens was on the path but has chosen the slow growth and failed to really partner with the manufactures. Such failure is gut wrenching to watch… but watch I do until the real innovators take control … after I am dead I presume.

I was trying not to promote myself too much on the article… but in all honestly I HAVE designed the necessary distribution  system for refueling and have developed the strategy as to  HOW to develop those 100,000 PLUS fueling stations.  The technology is not very sophisticated I must admit, BUT the ability to see beyond the current  narrow minded thinking of General Motors (GM), Ford, Chrysler (Fiat) , Honda, Toyota, and Nissan and the others  is something I do quite well and in all humility with a certain “je ne se quois”  or Panache’.
Those who know me remember I have done this type of Strategic Planning in many of the 72 countries I have visited… I have had many successes and met with many leaders of countries and even religions as well as Ministers and CEO’s of NON USA Companies…. yet try to get an American Company  to even acknowledge me let alone to see that while I do not have specific intimate knowledge of the industry  (hence an industry insider)  that I have unique abilities to work cross industry to find solutions to problems and challenges NOT currently adopted by the industry. (yea I know it is called outside the box but I HATE that term …. NO ONE should ever think INSIDE of a box….  it is stifling in there)  Corporate executives need to take off the blinders, break the pattern of myopic vision and explore and see there are so many other things that can be done and better if they ONLY LOOKED.
My Mantra has always been “If you cannot solve the problem you are facing than you are facing the wrong problem. Change the definition of the problem and find solutions that fit .” It is the ART of changing the definition that  gives most people the real challenge…. and believe me it is an art worth more than any sculpture or painting by any old world master if it is done  in a creative and innovative way. this is what is  known in jargon as CHANGING THE PARADIGM.  Changing the way in which things are done. THIS is how I was able to find a way to allow US manufactures the ability to develop Natural Gas and Hydrogen Fuel Cell vehicles  and bring a new dimension to the electric vehicle market as well. and  then developing so many fueling stations in such as short time
The figure mentioned above is fairly accurate depending on the number of units and the  cost/price construct of the technology…. but 26 Billion dollars in gross revenue can be achieved on an annual basis within 10 years if this project was ever given the opportunity it deserves….  and 26 billion dollars in profits could easily be recognized over the first 10 years as well.
THIS IS MY BLOG…. and I have every right to promote myself here…  and if that makes be a blowhard or obnoxious  than hey  so what…. my blog my rules…. that is life… LOL …. and what makes this so great for me is that I stand by my claim as reasonable and realistic and not some pie in the sky fantasy…. this is real and  can be implemented if even GM. Exxon and one company that I will not mention can all sit down at one table with me and agree that this is the future and should be pursued and developing an implementation agreement and schedule…. and if all were in agreement this project would not require ANY money from GM or Exxon to get it started and operational unless they wanted to share in the company.. but their money is not required or even requested. This project has the potential to be a great private placement  for Goldman or Morgan Stanley or other group that is interested in healthy returns.
I may sound to some to be full of something or other.. but I  have been working on and off  on this for 10 years.. Since Jack Kemp and some of  my associates and myself wanted to buy Citgo from Venezuela (Chavez) and they decided instead to try and do a SPR (Strategic Petroleum Reserve)(aka Strategic oil reserve) deal with the US Government.. and than everything fell apart because of greed.
This project  of facilitating the development of mass marketing of Alternative Fuel Vehicles has been one of several dream projects of mine… it was always complicated by the HOW part of implementation and then about 9 months ago when I pulled it out again and rethought the project  I was FINALLY able to figure out the missing pieces and how to bring them to fit together to make it work for everybody. The only part left is the most difficult and that is getting someone like a CEO to honestly take a look at the project. Maybe after I am dead someone will decide to do it then…
POST NOTE: Yes this project can make me and others very wealthy… It may surprise those of you who do NOT know me… but this project is not about the money to me… in fact I will not personally keep much of the money at all… I have found that excessive wealth is in effect TOO MUCH  (and TOO MUCH is a tautology  ~ for TOO MUCH by definition is not good.) It can ruin a person and destroy families .. I want to walk the mall and be invisible except for the person I have always been.. so know my net worth.. most do not.. and it is better that way… for what  good does it do a person to be able to afford anything only to have nothing of real meaning… I want to do good.. to bring change.. not to drive a Bentley or try and wear a new Rolex every day.. I don’t need 6 homes or  whatever else uber-wealthy people are supposed to have… I want t leave a better world more than I want to leave wealth and or assets . And I want REAL relationships based on who I am inside not what is inside of my wallet. MONEY in my pocket is not the driving force for me…. it is the “accomplishment” and the results and those will bring the  financial benefits that I can use to make the world slightly better.
I write the above paragraph  first because it is the truth, but second to let anyone that wants to do this project know that while I am not greedy I am not a fool. This project has a value.. a real monetary value  and it is my intention to get that monetary out and be able to use it for others… hence no personal greed but I am no fool either. Also for  those that know me… I have no intention of changing my lifestyle much from what I have lived in the past…  I am and always will be the same man.

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