31 May 12 13:31–The Israeli motor vehicles sector has quite a few smart and experienced people who know almost everything there is to know about selling cars to Israelis. The speed dials on their phones include the heads of all the big leasing companies and all the relevant regulators, and they precisely know the companies’ basic needs when buying a new car (big discounts, good financing terms, and protection against depreciation in price). They also know the demands of Israel’s private customers (the same list).
They all know well that customers are as interested in environment friendly as they are interested in garlic peel, and that leasing companies’ customers are as interested in a car’s fuel consumption as they are interested in last winter’s snow.
Company executives and controllers are more interested in current expenses, but their ability to force a particular car on employees is quite limited. Motor vehicle industry executives also know a car’s value creation, both before and after delivery, down to the last cog, and how much money can be extracted from the customer.
But when the conversation in the industry turns to the model of electric car venture Better Place Inc., the knowledgeable voices fall silent. Although no one disputes the company’s achievements in the field, and that it has succeeded in realizing an original technological model, using technology that would not shame high-tech multinationals, and maybe when there is enough money and enough smart people, it is possible to expect such marvels.
Are there aces up the sleeve?
The big question that motor vehicle industry people cannot answer, is how does Better Place intend to make money and profits in the Israeli car market to cover its cumulative $426 million loss and become the cash cow its investors hope for?…Read More>>