Tuesday, July 8, 2008

Could a major automaker really phase out fossil fuel cars from its lineup?

Yes! If this story happens to be true, Mercedes' car lineup could consist entirely of alternative-fuel and electric cars by 2015. That is less than 7 years from now. There are some very large implications with such a drastic move by a major automotive company.

The summer of 2008 may informally be known as the year gas guzzlers went the way of the dinosaurs. At least in the US, sales of the once popular SUV and large trucks have tanked, and although fuel efficient cars like the Toyota Camry have taken the lead in vehicle sales, does this all mean that +30 mpg cars are soon to be the norm? Is there really that big a market for an automotive to depend entirely on alternative cars?

It is possible that Mercedes is counting on their traditional market to follow their lead into alternative cars. There are various issues that could keep mainstream drivers away from alternative cars.
  • Price: these cars are not likely to be cheap even by 2015. Battery technology may be getting cheaper, but it still adds cost to cars. This is particularly true of cars that combine batteries with a combustion engine. Fuell cells may not be the solution (at least not by 2015).
  • Reliable source of fuel: hydrogen, ethanol, bio-diesel... all these fuels have one thing in common - there are more easily found in the news than at the gas station. How many cars would it take to warrant more alternative fuel gas stations? How many sources of alternative fuels are necessary to convince the mainstream driver that low cost fuel will always be available?
  • Engine reliability/durability: cars are driven today for 10 up to 20 years. Batteries on the Prius need to be replaced long before the car is ready to kick its tires. Bio-diesel cars need engine modifications to run on traditional diesel engines. How long would cars running on new engine designs/fuels last, and how much will it cost to maintain them?
Of course, early adopters with money to spend would overlook some, if not all, of the previous points. Are there really that many early adopters to warrant a major automaker to completely replace its fleet? Maybe Mercedes has a trick under its sleeve. A sure-fire trick would be low cost alternative cars, but would Mercedes be the company to deliver?