Perhaps this year, more than any other in recent memory, we are seeing more automobile companies that are new to the public. Most likely this is due to the reluctance of Detroit to anticipate changes that have been coming for several years now. Instead of making more fuel efficient, ecologically friendly, and space conscience cars, we have seen larger and more fuel consuming beasts on the road.
In the Wall Street Journal article, "Electric-Car Firms Get Star Investors" by Norihiko Shirouzu and Rebecca Buckman, about the new Fiskar Automotive Karma, they note that the car should be available in the fall of 2009. In other reports, I have seen that GM plans to have a model available to the public in 2010. What this illustrates is what IT and Pharmaceutical companies and start-ups have been doing for years. Let the little guys take the risks and then the big guys buy them up if the product looks like a winner. Shirouzu and Buckman show their misunderstanding:
Big auto makers are rushing to develop their own electric cars, and it would be an embarrassment to them if they are beaten to the market by a start-up. General Motors Corp. has a working prototype of its Concept Chevy Volt and will hype its progress this week. Toyota Motor Corp. will show its plug-in hybrid based on the Prius, while Chrysler LLC will unveil three battery-powered concept cars.It is difficult for big companies to make quick changes internally. There are many people who have a vested interest in things going as they have. This is where top management has to show leadership. They have to see the need for change and convince, or force, those below to see the same vision.
If Fiskar Automotive, or any of the many other firms are successful, they will revolutionize the industry. The insiders who have allowed Detroit to rot will probably complain but as we have seen with steel and so many other industries, progress may be slowed but it will not be stopped. So there is really just one question left for those on the inside:
How do you time the jump, inside a company, from the present to the future?
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