“Detroit 3” pressures will impact EV startups

[graham]

Another blog from siry:

If The Big Three Die, So Do Electric Car Start-Ups (F, GM, QTWW)

A separate meme has also emerged, especially as it relates to the allocation of DOE grants and loans. This meme is can be summed up as “Silicon Valley vs. Detroit,” but more broadly, it is a debate as to whether taxpayer money is better used to support the struggling traditional automakers or to support the innovative startups (Tesla, Fisker, Aptera, etc.)

What is becoming clear is that these two ecosystems are more linked then many realize, and that the pressures on the traditional automakers and suppliers threaten the viability of the startups as well. Ironically, if GM fails or causes their suppliers to fail, they may inadvertently kill the electric car again.

 

[TEG]

What is becoming clear is that these two ecosystems are more linked then many realize, and that the pressures on the traditional automakers and suppliers threaten the viability of the startups as well. Ironically, if GM fails or causes their suppliers to fail,...

Related:
American Axle gets "going concern" notice

 

[doug]

Original posting here:
Darryl Siry's Blog: “Detroit 3” pressures will impact EV startups


Picked up by CNN Money here:
Next Chapter in the Silicon Valey vs. Detroit Saga: Chapter 11?

 

[doug]

Analysis of the analysis:

EV Statrups like Tesla and Fisker Will Not Survive A Mainsteam Auto - GLG News

Ironically it is the fact that the mass producers of automobiles are not making electrified vehicles that dooms the makers of limited production electrified vehicles, because they do not produce the momentum for the mass production of batteries, motors, and control electronics, which can only be affordable and serviceable in mass production.

 

[SteveF]

Time will tell, but this guy (TIfton) seems too sure of himself about what lies ahead for EV startups if GM and/or Chrysler fail. Ford will likely still be around, not to mention the foreign companies like Toyota that manufacure in the US now too.

Does this guy have any track record for predicting the furture? Or maybe he's got a cyrstal ball.

 

[Tim]

I don't agree with this article at all. For one thing, GM and Ford won't die. If one goes bankrupt, surely it will push the other one in the same direction, but solely because it will have significantly less debt and a better cost structure after reorganization. This is what happened to airline industry and the steel industry and I'm sure countless other ones that suffered the same problems - namely flagging demand in the face of an over-levered balance sheet with a rigid labor structure in a capital intensive business. These aren't fatal flaws. Somehow, these idiots have confused bankruptcy with an atom bomb blast that wipes out every automotive assembly and parts plant from existence.

Furthermore, what components or component manufacturers does Tesla share with any of the aforementioned companies? Vanishingly few, and fewer still that couldn't be sourced to other companies I'm sure.

 

[DaveD]

Furthermore, what components or component manufacturers does Tesla share with any of the aforementioned companies? Vanishingly few, and fewer still that couldn't be sourced to other companies I'm sure.

The Roadster has at least one GM part in it. No joke; when I was at the Menlo Park store taking delivery on my Roadster, they showed me around the final assembly operation, and they pointed out a wiring harness that was sourced by GM.

 

[TEG]

Treasury launches $5 billion auto supplier aid plan | Reuters