Image Source: FrankH, Flickr CC

Ever since Henry Ford used the assembly line to introduce the Model T in 1908, cars have been the poster child for mass manufacturing. At the same time, consumers have become used to a great deal of choice when if comes to cars.

Cars are differentiated along several lines: make (compact, sedan, SUV, pick-up, stationwagon, etc.), price range, fuel efficiency, and power are among the most notable.

The young electric vehicle (EV) market hasn’t reached the point of either mass production or deep market segmentation yet, but it’s not too early to start planning the industry’s future. Consulting giant McKinsey offers some advice to the EV industry in a recent article featured in the McKinsey Quarterly.

Electric Commuter & ‘Around Towner’ Options

The central message offered by authors Nick Hodson and John Newman is that two distinct segments dominate the personal vehicle market–commuters and around towners–and that the EV industry can better serve its customers by creating specific products for each segment.

A major difference between an EV and a traditional gas vehicle is that a major cost driver for EVs is energy storage. For pure EVs, the authors conclude that driving around town requires roughly 1/3 the battery capacity of commuting, due largely to increased driving speeds on highways used for commuting.

For plug-in hybrid electric vehicles (PHEVs), the optimal all-electric range for driving around town (16 miles) is considered less than 1/2 of that for commuting (38). People who use their EV to drive around town will be overpaying for a commuting model.

What Does This Mean for You?

For the consumer, the implication is that a household may need two vehicles with two distinct uses (of course, public and/or self-powered transport are viable options in many cases). Many households already have two or more vehicles, and may already use them for slightly different purposes. Others may have a lifestyle that demands two multi-use vehicles.

Although the EV industry is still in its early stages, it has naturally grown up a bit around the incentive structure Hodson and Newman describe: neighborhood electric vehicles (NEVs) are low-speed and good for getting around town, while many EV and PHEV manufacturers–like GM with the Volt–are focused largely on consumers’ commuting needs.

More from ecomii:

• Pros and cons of vegetable oil as fuel
• How does a hybrid work?
• What is your carbon footprint?
• Fuel efficient luxury cars
• What is a cap and trade system?

2009 Fisker Karma

Fisker Automotive will begin deploying its government loan designated to spur U.S. production of fuel-efficient vehicles by buying and restoring an out-of-use GM plant in Delaware. Fisker paid only $18 million for the idle plant, but plans to spend an additional $175 million on refurbishing it. This Wilmington plant will be the manufacturing site for the company’s second model, a plug-in hybrid (PHEV) sedan.

The factory–originally built by GM in 1947–will reach full production capacity of 75,000-100,000 vehicles a year by 2014. By that point Fisker estimates that reopening the plant will create 2,000 factory jobs. The automaker expects production from this plant will create an additional 3,000 vendor and supplier jobs. …read more of Fisker Starts Putting Government Loan to Use here

The status quo isn’t a problem for big oil companies, who seem to be constantly breaking their own record profits. However, these corporations know that they must also look to the future and sustain their competitive edge.

The competitive landscape of the future is not clear for the oil industry, with financial, political, and environmental considerations coming into play.

The technologies and processes behind various renewable energy sources are improving, and may eventually lead to a renewable product that is cost competitive with oil. …read more of Oil Majors Warming to Biofuels here

The energy department has begun to dole out $25 billion in loans designated for the development of fuel-efficient vehicles. The program is designed to grease the wheels for technological innovation that will drive the auto industry of tomorrow to occur here in the United States.

After decades of job cuts in the US auto industry, the federal government is hoping that innovation can revitalize the sector and create employment.

The first $8 billion was handed out back in July, with Fisker being announced as a loan recipient just this week. GM and Chrysler have been excluded from this program to date, since they do not meet the economic viability standard for loan recipients. …read more of Energy Department Money Going To Big And Small Carmakers here

The man behind some of the most iconic sports cars of recent vintage has gone green. Henrik Fisker built his reputation designing the BMW Z8 and Aston Martin DB9 & V8 Vantage. The Z8 and the V8 Vantage both have the well earned distinction of being Bond cars: appearing as the ultra-classy 007’s tricked out rides in the James Bond films.

Fisker has since decided to venture out on his own and bring exquisite luxury design to environmentally friendly vehicles. Fisker Automotive is a joint venture that combines Henrik’s world-class vehicle design talent with Quantum Technologies‘ plug-in hybrid electric propulsion systems. The result is amazing karma…

The Karma is Fisker Automotive’s first model, set to be released  in the summer of 2010. It’s a plug-in hybrid electric vehicle (PHEV) with a wide, low stance and a 50 mile all-electric range before the traditional gas engine kicks in. This green car packs a punch, though, doing 0-to-60 in under 6 seconds and reaching 125 miles per hour. …read more of Good Karma here