For the first time ever, a major auto maker is launching a new division devoted exclusively to environmentally friendly vehicles. Ford believes the move establishes the company as a leader in environmental protection. But now the question remains: Can an auto maker make a profit selling these kinds of cars? Or do they really want to? The Great Lakes Radio Consortium’s Julie Halpert has more:
Transcript
For the first time ever, a major auto maker is launching a
new division devoted exclusively to environmentally friendly vehicles. Ford
believes the move establishes the company as a leader in environmental
protection. But now the question remains: can an automaker make a profit
selling these kinds of cars? Or do they really want to? The Great Lakes
Radio Consortium’s Julie Halpert has more:
Over the next year, expect to see a new type of transportation making
its way into communities across the country. Tiny electric cars that look like
oversized golf carts. And moped-sized electric bikes. They’re part of a new division at
the Ford Motor Company named Think. John Wallace runs the program.
“We felt that our customer base is becoming increasingly
environmentally sensitive and our company has a major strategy to become a
leader in environmental protection, so one of the things we looked at doing
was establishing a brand that was focused entirely on highly
environmentally responsible products and that’s what Think really is.”
There’s four products in the think line: two electric bikes and two
battery powered cars. The think neighbor goes 25 miles on a charge and is intended for
neighborhood trips. It will retail for about $6,000. The Think
City can go 55 miles on a charge and is designed for longer trips. It will cost
around $25,000. Wallace says that these cars should fill a niche market for
local travel.
“It’s really something that doesn’t exist. It’s a road
vehicle. It’s not a golf cart. It’s a different kind of vehicle that comes in a
variety of sizes and really offers the ability to have cost-effective
transportation with no impact to the environment.”
Those in the fuel efficiency business share Wallace’s enthusiasm. John
Decheeko is with the American Council for an Energy Efficient Economy.
He says Think could teach Ford some valuable lessons.
“Usually they sell products based on the basis of power,
size and luxury, a whole suite of other attributes. In a sense they need to
learn how to sell green and by putting it into the framework of a special
company, I think is a very sensible strategy to test that out and learn how to
do it effectively.”
(sound of highway)
The think isn’t commercially available yet, but there are a few similar models on the market. Here
in Saline, Michigan, Dan Sturgis is an independent automotive enfineer who worked on the Think
project.
Sturgis: “It’s not even to full speed. It gets, I mean, at 25 miles anhour when you’re very open,
it’s actually quite fun.”
Halpert: “The feel reminds
one of a go-cart ride, a little bumpy, but with a lot of pick-up.”
Sturgis: “You can tell it’s kind of quick. I always had fun driving these things.”
Sturgis is delighted that Ford is trying to market these. And he thinks
they’ll have far-reaching benefits.
“I think these vehicles are a step in the right direction in
that they look at more than just air quality. They look at our parking. They
look at congestion issues. They look at the cost of vehicles and the cost of
travel, so that’s the advantage of these vehicles, is the comprehensive approach.”
But some environmentalists are questioning Ford’s motives. Dan
Becker is with the Sierra Club. He says that Ford is best known for its sport
utility vehicles, and that those cars are some of the worst polluters. Becker
wonders why they’re unveiling products that aren’t practical.
“Why they’re doing something completely different that
the American people have never had any experience with raises the question
as to whether they’re serious in wanting to sell this or whether it’s just an
effort to greenscam and claim that they tried to make a green vehicle when
they are actually making something they don’t think will succeed.”
Becker says for these cars to succeed, Ford will need to aggressively
market them. And he’s doubtful that they’ll earmark enough funds.
But Ford’s John Wallace says the company does have a strong
marketing plan.
“It’s a lot more than just image. I’m trying to make a
business that is self-sustained, that is pleasing to customers, that is profitable
to the company, that can meet as many market needs as we can find, that can
have as much volume as we can generate.”
Wallace says that gaining public acceptance will be the biggest
challenge. He admits that while the Think mobiles aren’t for everyone, Ford
only intends to market them to people who drive short distances.
Wallace says this approach speaks to the strengths of the vehicles.
“The neighbor becomes a way of getting transportation
in a way that’s extremely friendly in a low speed environment. People call it
a front porch on wheels because it’s open. It’s pleasant. There’s no noise and
you can refill it just be plugging it into your garage.”
The Think neighbor car will be available this November, while the
Think City is due in late 2001. All of the Think products can be ordered on
the web.
For The Great Lakes Radio Consortium, I’m Julie Halpert
in Ann Arbor, Michigan.