Friday, November 23, 2007

Use less gasoline or fight more wars!

Recently, I started getting notices that the major car manufacturers are coming out with hydrogen concept cars (see example URL below) and further that they will be ready for customers in mid 2008. They will be leased. Interesting that they are using this lease system again, just like they did with electric cars.

A monthly leasing fee, while not cheap, is still a more sellable amount than the $103,000 price of a new hydro car. That is understandable. During the leasing period, manufacturers get important feedback on the car and the whole system. What will be interesting is to see if they will scrap the cars at the end of the leasing period like they did with electric care. It is easy to get the feeling that car manfacturers are testing the market to see which type of fuel and matching car takes off among the public while still assuring the kinds of profit margins they were used to with petrolium vehicles. A lot of their profit has come from repairs and if hydrogen cars have fewer moving parts, it could take a bite out of their parts and repair businesses. Have a look at this article for more detail.

http://www.ft.com/cms/s/0/8139d758-92e0-11dc-ad39-0000779fd2ac.html

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