Comments on: GM’s Bob Lutz Pokes Holes in Better Place Model http://earth2tech.com/2008/10/02/gms-bob-lutz-pokes-holes-in-better-place-model/ Helping the Earth with Technology Mon, 23 Nov 2009 05:01:52 +0000 http://wordpress.com/ hourly 1 By: Best of Bob Lutz, the Chevy Volt Frontman Retiring at End of ‘09 « Earth2Tech http://earth2tech.com/2008/10/02/gms-bob-lutz-pokes-holes-in-better-place-model/#comment-25112 Best of Bob Lutz, the Chevy Volt Frontman Retiring at End of ‘09 « Earth2Tech Mon, 09 Feb 2009 21:31:16 +0000 http://earth2tech.com/?p=10876#comment-25112 <p>[...] On the Better Place Model: Lutz has a lot of reasons to dislike the Better Place business model, and he’s happy to share. He told the Toronto Star’s Tyler Hamilton that GM’s batteries are purpose-built for the vehicle (not standardized), and the company can’t afford to wait for Agassi to standardize batteries. He also says he’s worried about the risks of Better Places’ networks. And then there’s this juicy quote — a Lutz classic: I’m also somewhat troubled by the situation where a company becomes the equivalent of a cellular provider, and here is Mr. Agassi, who buys the electricity in bulk and resells it to you at a tremendous profit in the form of charged batteries. And he would have to charge a lot, because when you start thinking about the upfront investment in a dense network of charging stations all over the country . . . I don’t see how the business equation could possibly work. Unless he resells it to you at a tremendous mark-up. Which wouldn’t be profiteering. [...]</p> [...] On the Better Place Model: Lutz has a lot of reasons to dislike the Better Place business model, and he’s happy to share. He told the Toronto Star’s Tyler Hamilton that GM’s batteries are purpose-built for the vehicle (not standardized), and the company can’t afford to wait for Agassi to standardize batteries. He also says he’s worried about the risks of Better Places’ networks. And then there’s this juicy quote — a Lutz classic: I’m also somewhat troubled by the situation where a company becomes the equivalent of a cellular provider, and here is Mr. Agassi, who buys the electricity in bulk and resells it to you at a tremendous profit in the form of charged batteries. And he would have to charge a lot, because when you start thinking about the upfront investment in a dense network of charging stations all over the country . . . I don’t see how the business equation could possibly work. Unless he resells it to you at a tremendous mark-up. Which wouldn’t be profiteering. [...]

]]> By: Governor Of Michigan Meets With Better Place In Israel : tinyComb http://earth2tech.com/2008/10/02/gms-bob-lutz-pokes-holes-in-better-place-model/#comment-20976 Governor Of Michigan Meets With Better Place In Israel : tinyComb Thu, 20 Nov 2008 00:02:42 +0000 http://earth2tech.com/?p=10876#comment-20976 <p>[...] trip considering vice chairmen of GM, Bob Lutz, has been trash talking the project for a while [...]</p> [...] trip considering vice chairmen of GM, Bob Lutz, has been trash talking the project for a while [...]

]]> By: Ronpierre http://earth2tech.com/2008/10/02/gms-bob-lutz-pokes-holes-in-better-place-model/#comment-20925 Ronpierre Tue, 18 Nov 2008 23:48:38 +0000 http://earth2tech.com/?p=10876#comment-20925 <p>Analysts at Deutsch bank would beg to differ with Mr (C)Lutz. It is easy to make off the cuff critical statements, but if you look at what they are based on there has been no analysis done by Lutz. The business plan put forward by better place involves a number of facets including smoothing out electricity supplies to renewable energy providers, sale of vehicles (through long term leasing contracts) , sale of electricity through contracts and leasing costs of the batteries - all wrapped up in an easy monthly payment for the consumer. The information and report is available to anyone that really wanted to look, but I guess it is easier to make ill informed off the cuff remarks.</p> Analysts at Deutsch bank would beg to differ with Mr (C)Lutz. It is easy to make off the cuff critical statements, but if you look at what they are based on there has been no analysis done by Lutz. The business plan put forward by better place involves a number of facets including smoothing out electricity supplies to renewable energy providers, sale of vehicles (through long term leasing contracts) , sale of electricity through contracts and leasing costs of the batteries – all wrapped up in an easy monthly payment for the consumer. The information and report is available to anyone that really wanted to look, but I guess it is easier to make ill informed off the cuff remarks.

]]> By: Michigan Governor Looking for A Better Detroit? « Earth2Tech http://earth2tech.com/2008/10/02/gms-bob-lutz-pokes-holes-in-better-place-model/#comment-20907 Michigan Governor Looking for A Better Detroit? « Earth2Tech Tue, 18 Nov 2008 15:30:52 +0000 http://earth2tech.com/?p=10876#comment-20907 <p>[...] The big auto industries aren’t that keen on the idea of Better Place, either — with General Motor’s vice chairman Bob Lutz actively making negative comments about the startup. So, we’re not sure traditional Detroit [...]</p> [...] The big auto industries aren’t that keen on the idea of Better Place, either — with General Motor’s vice chairman Bob Lutz actively making negative comments about the startup. So, we’re not sure traditional Detroit [...]

]]> By: Jim http://earth2tech.com/2008/10/02/gms-bob-lutz-pokes-holes-in-better-place-model/#comment-18196 Jim Fri, 03 Oct 2008 14:36:48 +0000 http://earth2tech.com/?p=10876#comment-18196 <p>I sort of agree with Lutz here. PBP doesn't make much sense economically. And if PBP charges a markup for charging, wouldn't consumers get their own 3rd party chargers (for home use) to duck the charges? People will be people.</p> <p>On the other hand, the GM Volt may end up being a flawed strategy. The serial hybrid strategy may require too much of the batteries in terms of power compared with a parallel hybrid design. Time will tell.</p> I sort of agree with Lutz here. PBP doesn’t make much sense economically. And if PBP charges a markup for charging, wouldn’t consumers get their own 3rd party chargers (for home use) to duck the charges? People will be people.

On the other hand, the GM Volt may end up being a flawed strategy. The serial hybrid strategy may require too much of the batteries in terms of power compared with a parallel hybrid design. Time will tell.

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