"NEW" Car Compaies

Kinja'd!!! "Groagun" (groagun)
09/06/2014 at 15:44 • Filed to: None

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You all know who these companies are and there's a %99.99 chance that right now you're using at least one of their products to view this very post. I'm wondering, what if one of these or any company you can think of, that hasn't been in the car manufacturing business before, decided today that it wanted to be in said market/business?

The reason I put "New" in quotes should be obvious to you now. The reasons why companies like these haven't designed, built and sold you cars yet is(has been) plentiful. Cost of market entry is number one!

To design, build, test, certify, market and then sell just one new car, for one new car company, a company with the sales expectations in the 10's to 100' s of thousands, not dozens like small boutique hyper car makers, would require a budget of $1.5 to $2 billion dollars, at least. All that with no guarantees and lengthy liability.

On the liability front: ask any car manufacturer what it costs to do business, especially in America from a legal and governmental stand point, and your eyes will water.

The 'no guarantees' part is referring to the notion that it's possible that given all the capital and time in the world, it's entirely possible that no one will like what your are offering and you will have a total flop on your hands.

One of the other stumbling blocks, in America, has had the light shown upon it these past few years with Tesla entering the market: Franchise Law in the USA prohibits manufacturers from being retailers as well, hence the independent and separate dealer networks. This does vary state to state but has been such a stumbling block that I know it did stop one of the companies above from doing exactly what I'm talking about.

That company spent a few million dollars researching the market to see if it's customers were receptive to this very idea and they were, enough to get the tentative 'go ahead' to move to the next stage. That stage was to look at the industry and find out how and what they could produce and sell, engineering work included.

They went so far as to approach one of the old traditional manufacturers and form a plan to sell a version of one of their models on site. The manufacturing process was so fraught with difficulties and the company could not get exactly what they wanted and to top it all off, the dealer association got all up in arms because according to Franchise Law, selling that badge in the territory of the established dealer was a 'no no' and violated the dealer agreement. That's hard to argue with.

I've just skimmed the surface on this whole notion and it boils down to this: would you put your hard earned dollars down to buy a cars manufactured and sold by Apple, Google, Microsoft, BestBuy, Walmart or any other 'Non Traditional' car company.

Given that I believe and know in some cases that the product and engineering behind it was/is even better than established car companies today, I think it would be a matter of mind and perception over anything else. What do you think?

I add this little YouTube video for your enjoyment. It's from Anthony Jannarelly who I've worked with and respect very much, he is very talented. This is his Apple concept from a few years a go. It was not endorsed by Apple in any way, this was just a school project he did: don't get your hopes up. !!!error: Indecipherable SUB-paragraph formatting!!!


DISCUSSION (13)


Kinja'd!!! Denver Is Stuck In The 90s > Groagun
09/06/2014 at 15:50

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I'm using my Macbook Pro (Apple) bought at Best Buy hooked up to a Dell Monitor (Microsoft), with harman kardon speakers Hooked up through a Belkin Audio Splitter (bought at Walmart) to read this post. Damnit


Kinja'd!!! Formula4speed > Groagun
09/06/2014 at 16:07

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what.


Kinja'd!!! GhostZ > Denver Is Stuck In The 90s
09/06/2014 at 16:40

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How is a Dell Monitor related to microsoft? Or has Dell put a MS OS on it as a smart monitor? (Legit question, I'm actually interested).


Kinja'd!!! Denver Is Stuck In The 90s > GhostZ
09/06/2014 at 16:41

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Not a smart monitor but, Have you ever seen a dell computer run OSX or linux from the factory?


Kinja'd!!! GhostZ > Groagun
09/06/2014 at 16:42

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The biggest problem is manufacturing. Every plant capable of assembling a car, a workforce to manage it, is going to be bought and sold cheaper to an existing auto company than a new one. It's because it costs FAR more to re-utilize that plant if the 'new' company goes under (even a month without use could tank its value) than if it is used reliably for years by a company that isn't going anywhere. A new company is going to find that NO ONE wants to help them build this car without tons and tons of money to hedge their risk.


Kinja'd!!! GhostZ > Denver Is Stuck In The 90s
09/06/2014 at 16:47

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I've seen wholesale Dells ran with linux that was put on by the computer store as a way to save money, but that was years ago.

But yeah, Dell has a pretty airtight deal with microsoft about using their software in stuff. I think even their mice use Microsoft's Intellipoint software (or at least, did at one time).


Kinja'd!!! Denver Is Stuck In The 90s > GhostZ
09/06/2014 at 16:49

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My point, you got it


Kinja'd!!! Groagun > GhostZ
09/06/2014 at 17:47

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True under existing build practices and processes. That's why they are exploring new ways of manufacturing.


Kinja'd!!! MTY19855 > Groagun
09/07/2014 at 17:50

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YOU'RE using. Sorry, I have a hard time taking articles seriously that have mistakes in the very first sentence.


Kinja'd!!! Groagun > MTY19855
09/07/2014 at 19:21

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Happy now Mr. Perfect?


Kinja'd!!! MTY19855 > Groagun
09/08/2014 at 10:40

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Butthurt, much? YOU'RE (not your) a journalist. Learn to read and write in English for fuck's sake.


Kinja'd!!! Groagun > MTY19855
09/08/2014 at 17:56

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I don't think you should worry if I get but hurt, I think you should worry more about yourself and the asshole you are. It clearly affects the people, relationships and situations in your own life. Have a good one now.


Kinja'd!!! MTY19855 > Groagun
09/08/2014 at 18:30

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You can thank me for pointing out your poor writing later.