Battery Manufacturing Seen As Essential To Future Auto Industry.
The Los Angeles Times (1/13, Bensinger) reported that "amid all the chatter" at the auto show in Detroit, "an essential business question is emerging," and "many industry experts say it could utterly change the complexion of the auto business: Who makes the battery?" Larry Burns, the "head of research and development and strategic planning at GM," said "that because the battery is the most expensive and high-tech component in an electric car, the companies that make batteries well...could emerge as the most powerful players in the industry." Burns compared the future auto industry to "the computer business, which was once led by hardware makers but now is dominated by software and services." David Cole, chairman of the Center for Automotive Research, agreed, speculating that "batteries will become so crucial that assuring they are produced in the U.S. will become a matter of national security."
Direct Fuel Injection Engines Challenge Hybrids At Detroit Auto Show.The Wall Street Journal (1/14, B1, Dolan) reports on the front-page of its Marketplace section, "Hybrids and electric cars are generating the buzz this week at Detroit's North American International Auto Show. But thanks to new technology, the century-old internal-combustion engine appears poised to make a significant leap in fuel efficiency." While car makers are "showcasing gas-electric hybrids, plug-in hybrids and concept cars powered by fuel-cell batteries, they also are rolling out vehicles with advanced gasoline engines that rely on a technology known as direct fuel injection." Analysts say sales of vehicles with direct fuel engines "will far exceed those of hybrids and electrics for years to come." The Journal adds, "All auto makers are under pressure to boost fuel economy to meet stricter governmental standards. But consumers are fickle when it comes to buying superefficient vehicles."
Tesla To Supply Batteries For Daimler's Electric Smart Car. The Wall Street Journal (1/14, Linebaugh) reports, "Tesla Motors Inc. said it will supply batteries and chargers to Daimler AG for its new electric Smart car, which is slated to come out in the second half of 2010, as the race to get electric vehicles into the market heats up." According to Elon Musk, chief executive of Tesla, the company "will supply battery packs for 1,000 vehicles and that could grow to 'tens of thousands.'" The Journal said, "Smart will launch a limited release in select markets in the second half of 2010 and regular production in 2012. Musk aims to develop similar partnerships with other automakers." Notably, "Tesla also will begin selling its high-end Roadster sport car in June and is in the process of ramping up production from 15 vehicles a week to 30." The Los Angeles Times(1/14, Bensinger) and the AP (1/14, Thomas) also cover the story.
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