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Electric Cars & The General

Discussion in 'Electric Vehicles' started by tonybelding, Dec 1, 2007.

  1. tonybelding

    tonybelding Active Member

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    General Electric, that is.

    I just got an email from CalCars (they've been sending out a bunch of them here lately) with some fascinating news. Andy Grove, formerly CEO of Intel, is suggesting that GE should get into the electric car business.

    I had never thought of that, but you know. . . He makes a highly compelling case.

    "A successful disrupter of the huge and complex energy industry has to be big, patient, and daring. I think G.E. has these qualities. Carmaker incumbents like General Motors, Ford, and Chrysler, as well as energy providers like Exxon Mobil, Royal Dutch Shell, and BP, seem reluctant to adapt to the needs of our economy, the environment, and our national security. It’s hard to think of a better fit than G.E.

    G.E. Energy, which reported a profit of $3 billion on revenue of $18.8 billion in 2006, would likely benefit from a shift toward electric-powered transportation. It could tackle both an electric car and the construction of the infrastructure that electric vehicles would require. The use of electricity in transportation would allow us to exploit not only oil but also wind, hydro, nuclear, and photovoltaic energy, as well as coal and gas. This is a monumental change, and it is the only way our country can shed its dependence on foreign sources of energy.

    I have no idea how much G.E. should spend on such an effort or how soon the behemoth could expect it to be profitable. But I do know that the needed funds are a match for G.E.’s vast balance sheet. Tesla Motors, a Silicon Valley startup, says it spent less than $105 million to develop its line of superfast electric vehicles. It's exciting that Tesla’s Roadster accelerates faster than most Porsches, but does the tiny carmaker have the resources to take on Detroit and the oil companies? G.E. does. Plus, the company’s name already reflects such a move.
    "

    He also makes a very cogent point that GE is so big, there's no practical way for them to grow their business -- other than muscling into somebody else's turf, like that of the car makers and oil industry.
     
  2. TEG

    TEG TMC Moderator

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  3. Brent

    Brent Member

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    With Martin out, I could see any number of things happening with Tesla Motors. The company is not the first love of its current managers, and a sale becomes more likely, especially at the first sign of trouble. GE would be an ideal buyer. It could provide the money, evidently the number one problem for Whitestar. It has a deep knowledge of electrics, along with a long history of making electric transportation devices (trains, subway cars). It doesn't have a Detroit oil mindset, but does have a deep institutional knowledge of developing large products.

    I think Andy Grove is on to something there.
     
  4. malcolm

    malcolm Active Member

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  5. mt2

    mt2 Member

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    Edison's company buy Tesla Motors? There would be some cosmic irony there.
     
  6. vfx

    vfx Well-Known Member

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    Then let's hope that Jeff Immelt, C.E.O. of General Electric gives Martin a call...
     
  7. TEG

    TEG TMC Moderator

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  8. vfx

    vfx Well-Known Member

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    Whoo Hoo







    !
     
  9. DDB

    DDB Member

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    GE seems to be hedging here, maybe tinkering is a better word. $4m is not that big of an investment, but I'm very glad to see it. I think I'm within 2 years of my EV!
     
  10. Cobos

    Cobos S60 owner since 2013

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    People seem to get hung up in the small size of the 4m investment which is a small size both for Think (which has raised in excess of 100m) and definately for GE. After reading the announcements from the Think CEO it seems he sees GE as a new partner not an investor. The 4m is merely for them to clearly tell everyone that they are serious about the partnership. If this means Think gets first dips on A123s cells (which GE is heavily investing in) or cheap or free access to expertise and patents etc within the GE structure THAT is important. And I get the feeling that is what Think wants as well. The small investment is more a matter of stating it publicly that GE is building up some serious expertise for EVs in general.

    Cobos
     
  11. malcolm

    malcolm Active Member

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    Think eh? Shuts the door on the Tesla Energy Group, but glad to see the GE giant waking up to publicly supporting EVs and not just energy storage.
     
  12. malcolm

    malcolm Active Member

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  13. vfx

    vfx Well-Known Member

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    #13 vfx, Jun 6, 2011
    Last edited by a moderator: Mar 13, 2016
  14. TEG

    TEG TMC Moderator

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    Buy GE's $4.3 Billion Secret Trump Card
     
  15. dpeilow

    dpeilow Moderator

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    Yeah, that was the last one. When are these Volts going to show up in the sales numbers?
     
  16. TEG

    TEG TMC Moderator

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    #18 TEG, Apr 24, 2012
    Last edited: Apr 24, 2012
    GE not backing off electric vehicles | The Detroit News | detroitnews.com
    This whole topic of how many will GE buy of what & when starts to become political...

    GE Behind Record Chevy Volt Sales

    White House First to Say Chevy Volt Not Ready For Prime Time | National Legal and Policy Center
     
  17. ElSupreme

    ElSupreme Model S 03182

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    Considering that GE basically makes everything you need in a EV drivetrain it really makes sense that they are pushing EVs.

    That and they make basically everything you need in a powerplant also.

    I think this is partly symbolic, but also a long term self interest move.
     

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