Electric Car Adoption: Not Why You Think

In the past, I’ve written about both the lack of innovation in the auto industry and Tesla Motors. Researching Tesla revealed many things. The physical, technical, and practical advantages of electric versus internal combustion cars are plentiful and amazing.

Yes, I’m convinced that the transition to fully electric cars is indeed inevitable. But it won’t happen for the reasons most people think—and it has nothing to do with helping the environment, running out of oil, or making the world a better place. While those are valid arguments that are well-and-good for the media and proponents of such voltage-based transport tech, they will have little to do with the inevitable success of all-electric personal transportation in the United States.

nissan leaf for linkedinMuscle cars are among the least efficient, loudest, and most smog-producing vehicles on the road. Despite this, they remain the most popular and revered of all cars ever made. I’d kill for a 1963 C2 Corvette or a 1967 Camaro. I watch Supernatural with my daughters just so I can hear the hunky 1967 Chevy Impala’s modified engine through my home theater’s subwoofer.

I can understand muscle car fans wincing at the prospect of driving across town in a nearly silent all-electric vehicle. On the surface, it doesn’t sound tough or cool—which runs counter to the 20th century-spawned notion that cars help define our personalities and, ironically, individuality (think James Dean, Steve McQueen, and Vin Diesel).

Let Me Count the Reasons

Advocates of electric vehicles, often tree-hugging environmentalists, new age hippies, and science geeks, give us countless reasons why electric cars will replace their fossil fuel-guzzling predecessors (not the least of which is the inevitable disappearance of oil). Melting ice caps, serious long-term health ramifications, and the prosperity of our children and our children’s children are all used to make us feel guilty about driving our noisy, sluggish, gas-guzzling sedans and SUVs.

But let’s not fool ourselves. Consumers will decide if electric cars replace internal combustion models, not governments, advocacy groups, or even the media. Because for consumers, it’s all about cost. We might be concerned about rising carbon dioxide levels and climate change, but if an exhaust-emitting internal combustion car is less expensive than a clean all-electric model, consumers—especially middle class consumers—will almost always opt for the cheaper model. At least if we want to take a vacation now and again or send our kids to college.

When Tesla Motors releases its much-anticipated Model 3 in 2017 or 2018—assuming they can actually sell it for $35,000—Americas will do some basic math and realize that they can have a car with decent range (200-250 miles per charge), significantly more storage, zero internally produced noise, Porsche performance (the current Model S sedan is literally faster than a Porsche 911), and the satisfaction of knowing they aren’t creating greenhouse gasses in their own back yard. For about the cost of a nicely optioned Ford Taurus or Nissan Altima, folks will realize they can have so much more.

Huge Savings on Consumables

But that’s the hedonistic car lover’s side of the equation. It’s after they do the consumables math, i.e., add up the costs of fuel and maintenance, that Americans will flock to electric cars in droves. This is primarily because, by selling a $35,000 high-performance all-electric car, Tesla (and any other manufacturer) doesn’t simply match the price of a gasoline-powered vehicle in the short term. It beats it in the long term—by a wide margin. Unlike fossil fuel-powered vehicles, the more you drive an electric car, the cheaper it is to own.

No oil changes, only a few bucks to charge the batteries (instead of the $50-120 required to fill the tanks of conventional piston-pumping vehicles), and no more standing in 10 degree F weather to fill their tanks at gas stations will convince consumers that electric cars aren’t only cheaper, but that they’re also more convenient. And convenience is what Americans are all about. There’s a McDonald’s on every corner and even Pizza Hut has a drive-thru window for a reason.

tesla model s replacement for blogA Tesla Model S owner in Wisconsin reported that he “barely even noticed” any increase in his electric bill when analyzing it to calculate how much it was costing him on a monthly basis to recharge his sleek all-electric sedan. I realize that’s a somewhat ambiguous statement, but the next time you “barely notice” the monthly accumulated gasoline bills for your car, let me know. Significantly less expensive fuel, combined with almost non-existent maintenance costs, dramatically change the overall cost of ownership of an all-electric car like the Nissan Leaf or any of Tesla’s models.

As one Model S owner commented, you simply charge it at night and replace the tires.

Car Dealerships Suck

Despite America’s love of cars, for the average consumer, a visit to a car dealership is like a trip to the dentist or an IRS audit. We don’t like it, and for good reason. It’s a smarmy, hawksterish zone where contention runs high and trust runs low. It’s populated by clueless salespeople, gaudy signage, and loud, obnoxious commercials. Most car dealers are a cheesy exercise in financial obfuscation, cheap and predatory sales tactics, and—all too often—a gross lack of professionalism and honesty. Yes, Lexus, BMW, and others luxury brands have done a lot to counter the mostly skanky state of the dealership industry, especially those representing the big middle class brands like Chevy, Ford, Toyota, Honda, Nissan, Chrysler, and Hyundai. But conventional car dealerships still suck.

During the next few years, two things will happen in the auto industry. First, a company like Tesla will produce an affordable, attractive, and performance-oriented all-electric vehicle with an acceptable range. Obviously, others will follow. Second, Americans will begin to perceive that they can save money by owning an all-electric vehicle.

Dramatically reduced fuel and maintenance costs will motivate consumers to jump on the electric bandwagon—sports car-like performance and gee-whiz technology will simply be the icing on the cake. Once consumers are buying electric cars as fast as they’ve been purchasing iPhones and iPads for the past few years, all auto manufacturers will embrace the approach. Electric sales will soon after outpace those of old school piston bangers with tail pipes.

In the end, it will be the savings and convenience that will convince Americans to get in bed with electric vehicles, not rescuing the environment or even the amazing performance. And if we get to avoid a trip to the dentist in the form of negotiating with sleazy dealership dorks who we despise—and don’t trust—all the better.

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Curt Robbins


Curt Robbins is author of the following books from Amazon Kindle:

You can follow him on Twitter at @CurtARobbins, read his AV-related blog posts at rAVe Publications, and view his photos on Flickr.

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Innovation: Not a Purple Pencil

Companies today are obsessed with innovation. As they should be. Call it a “paradigm shift,” “disruption,” or simply a “new age.” It’s all the same. If publish or perish is the mantra of academics, then smart companies should be preaching “disrupt or die.”

Marketing efforts prevail, however. Middle class consumers are continually told that the companies from which they purchase goods and services are innovative. But innovation isn’t a #2 pencil on which a company slaps a coat of purple instead of yellow paint. Innovation is a mechanical pencil you can re-use forever, simply purchasing new lead (especially when we’re running out of trees).

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Innovation isn’t a slightly better something, it’s a new something. True innovation from companies is customer-centric. It isn’t the Chevy Volt, with a battery pack cozying up to an internal combustion engine. It’s a fully electric Tesla Model S or a Nissan Leaf, with zero engine noise, more storage space, and connectivity to your smartphone. Disruption isn’t Comcast or Time Warner Cable offering on-demand video streaming or more digital channels. It’s Netflix and Vudu turning the industry upside down and encouraging cord cutting. Improving things for consumers isn’t Hewlett-Packard or Dell cranking out laptops with faster chips and higher resolution screens. It’s Apple, Samsung, and Google producing leading-edge mobile devices and wearables—and making them interactive with our homes and vehicles.

Innovation comes from companies like Netflix, Tesla Motors, Apple, and USAA. It was USAA, the financial services company serving primarily military customers, that introduced taking a photo of a cheque to deposit it. Why was it the little guy, USAA, that developed this consumer-friendly and extremely practical “technology”? Where were Bank of America and Citibank, with their voluminous resources? Probably on the golf course or lobbying in D.C., not forming research labs to produce such consumer-friendly and competition-smashing tech.

In a recent blog post, I discussed the lack of innovation in the auto industry. The proof? Nearly all cars seem the same. Most people I know can ride to lunch with a friend and, after returning, not be able to tell you the brand of car in which they were transported. Yet we can identify an iPad from across the street. While standardization is important, especially for safety, this reflects laziness among the executive ranks of so many companies. For the auto industry specifically, it seems they’d rather play copy cat than focus on real innovation. Innovation isn’t marketing BS. It’s customers and owners telling their co-workers and neighbors “You gotta get one of these!” When was the last time someone told you that regarding their car, lawn mower, or laptop computer?

tesla model s replacement for blog

The Fremont, California manufacturing facility now occupied by Tesla Motors was previously a GM/Toyota partnership. This is wonderfully symbolic of the changes we’re about to witness in the auto industry. If you think disruption is just Pandora and Snapchat, think again. Let competitors partner on bland products that motivate consumers to say meh and dread the experience of a visit to their local car dealership or Best Buy. Meanwhile, companies like Tesla Motors, Netflix, Apple, and Google will build the new world atop the boneyard of the old dinosaurs. It’s the phoenix from the ashes, and it’s happening right in front of us.

Don’t partner with your competitors—defeat them. Innovate, disrupt, and blow the other guys away. Yes, there are valid opportunities for “coopetition.” Industry consortiums and standards groups are sometimes essential to progress in the marketplace and the interoperability of products and services from different companies. But allowing the accountants to navigate the ship, relying on economies of scale and rationalized partnerships with your enemies is short-term, borderline desperate thinking.

In today’s world, true innovation is disruptive, sustainable, and genuinely enticing to consumers. The only reason most of us aren’t parking a Tesla Model S in our garage is because of the relatively high cost (a topic about which co-founder and CEO Elon Musk has been very honest). But what about 2017, when Tesla introduces it’s roughly $35,000 Model 3? What about when Nissan gets the Leaf to crank out more than 200 miles from a single charge? What? You don’t want a car that produces virtually no sound, features more storage, produces no harmful exhaust, is super-sporty and fast, and costs a fraction of what’s required for gas-powered vehicles to fuel and maintain? Please forgive my cavalier attitude, but I’d say you’re freaking nuts.

If the company for which you work desires to survive and thrive in the 21st century, it must embrace this spirit of ultra-competitive and reality-based innovation. If it doesn’t, the new guys are going to be purchasing your office building or manufacturing facility to produce what middle class consumers really want—and your company will be relegated to nothing more than an obscure Wikipedia entry.

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Curt Robbins


Curt Robbins is author of the following books from Amazon Kindle:

You can follow him on Twitter at @CurtARobbins, read his AV-related blog posts at rAVe Publications, and view his photos on Flickr.