INNOBLOG

The GM Volt blog posted an interview yesterday with Chevrolet brand manager Ed Peper in which he discussed work Innosight is doing with GM for the Volt launch. When asked, Do you have a plan on how to educate the public to understand the car since its so unique in order to make it more readily salable? he answered:

"We're actually doing a lot of work right now to understand in general who the consumer is for this product. We're working with a group that’s based out of Harvard and there a company called Innosight. What their working with us on is developing a jobs-based positioning for Volt. Which means what are the jobs that Volt really needs to handle for the consumers that buy them. On an emotional level, on a social level, on a functional level, what are the jobs that this vehicle must perform and must do well. Were in the process right now. We’ve done a couple of focus groups. We have a lot of data that you and others have provided us. And its going to help us from a marketing standpoint, what things should we talk about, what things shouldn’t we talk about. And how to we best present the category buster. How do we present this in such a way that consumers who are interested will know this is the first of its kind and this will be the best of its kind and it will be the only one of its kind when it hits the market place in 2010."

It is a widely known fact that thousands of people die in car accidents every year. It is more dangerous to drive than to fly, we say. To mitigate this, car manufacturers are investing millions in R&D programs that increase safety in vehicles. Of course, "death prevention" is a noble goal - but taking a step back, are cars overshot on safety?

A recent business week article "Cars That Brake When You Don't", highlights new technologies from Honda Motor Co. that prevent accidents by essentially usurping control of the braking mechanism. These cars sense the imminent safety risk, and initiate braking, tighten safety belts, and alert the driver, all in an effort to avoid the accident. One Toyota GM is quoted as saying "The ultimate aim is to create a car that cannot crash."

Again, I must reiterate that this goal is noble. However, is it necessary? From the rollout plans, it seems these high end safety systems (at a cost of $4300 per vehicle) can only be included in luxury vehicles. While it is unlikely that consumers will turn down safety features, how many would pay extra for them? Evidently, at this price tag, very few.

And, isn't that the mark of an overshot product?

Chapter 10 of The Innovators Dilemma uses the principles of disruptive innovation to discuss the disruptiveness of the electric car to traditional automobile manufacturers. While the current hybrids such as the Toyota Prius are not that disruptive they have gained in popularity and their future is looking bright. This week I received a newsletter from my VW dealership with what could be an even more disruptive product. The article discussed the Bio-Beetle, a car fueled by 100% recycled vegetable oil, also known as bio-diesel. The technology is simple; the fuel consists of recycled animal fats and restaurant greases. Bio-diesel may not be cheaper than gasoline (the industry currently only produces 50 million gallons annually) but it is renewable. The performance certainly is not better than gas-powered cars but probably good enough for non-demanding customers (such as tourists putzing around Maui).

This car is currently only available for rental in Hawaii. Is this something that could pose a threat to car manufacturers? The signs are pointing in that direction. It is unclear whether VW will pursue bio-diesel for mainstream use in their vehicles. Other car manufacturers are bound to ignore this alternate fuel while they concentrate on building better gas-powered and hybrid cars. And, if nothing else, it makes me feel better about ordering fries.