Eric Schmidt of Google recently gave a speech at the New America Foundation (a post-partisan think tank) in which he outlined the need for an innovation bailout for the US. Instead of simply bailing out failing institutions, we need to take this opportunity to revolutionize our economy, particularly our energy and transportation infrastructures.
Detroit needs an innovation bailout in the worst kind of way. But innovation doesn’t happen when entrenched interests (such as the UAW and GM executives) are fighting to keep the status quo. As a resident of Michigan I have witnessed the gradual decline of our automotive leadership and we are now at a crossroads. Should we continue to prop up a dying business model, or start fresh with a new one?
With $25 billion in automotive bailout money at stake, we need to think about the future. A quick and well planned bankruptcy would be the best way to initiate the complete overhaul our auto industry requires. We need all aspects of government (federal, local and state), along with private and other public entities, to help with this transition.
The scope of this endeavor is mind boggling. But the importance of hope, that a new direction could bring, cannot be under estimated. It is time for us to regain the upper hand by making a coordinated, well planned, drastic change.
What might this drastic change look like? The Chevy Volt is a good start. It’s all about efficiency — getting from point A to point B safely with the least amount of energy and emissions, saving the most money and reducing impacts on our surroundings. We need to cut total cost of ownership in half and in the process reduce carbon emissions. Build plug ins with smart technology so that drivers can easily discern the most efficient route to travel by providing real time feedback on traffic conditions. Enhance our electrical infrastructure to handle the requirements of charging vehicles away from home. Feed our energy grid with clean sources of efficient, low cost power such as safe nuclear, wind farm, geothermal and solar technology. Make energy efficiency and sustainable manufacturing technology the cornerstone of our automotive infrastructure.
Update (12/10/2008): Tom Friedman seems to agree. He mentions “Better Place”, a new car company startup based in Silicon Valley. Apparently they’ve already inked deals with Japan, Australia, Isreal and Denmark. With the bailout now in place, Detroit has chosen a slow, painful death. Time to go to a better place: http://www.betterplace.com
Interesting, Steve! I’m curious — is the Volt actually more energy efficient? Producing electricity makes pollution too, I’m just wondering if it makes more or less pollution than burning gasoline.
Good question — I don’t really know the specific details on the Volt’s energy consumption and emissions relative to other cars in it’s class. Of course the emissions question depends on the source of the electrical energy. Natural gas is relatively clean, and coal is not. The Volt will run off the existing electrical grid which is a mix of both. Electric cars are basically feeding off a centralized source of energy instead of generating their own via internal combustion, thereby gaining efficiency by sharing from the same source.
But the big win comes with alternative energy inputs as they become integrated with our existing grid. Then your car would be powered by an increasing amount of wind, solar and geothermal via the electrical grid. Clean nuclear, natural gas, and even clean coal can all contribute to the system. The idea is to re-engineer the electrical grid as an open system that can accept input from unlimited sources. Like the internet, it would then become a framework for innovation and ever increasing efficiency.
From the Department of Energy Website:
"According to the Pacific Northwest National Laboratory, existing U.S. power plants could meet the electricity needs of 73% of the nation’s light vehicles (i.e., cars and small trucks) if the vehicles were replaced by plug-ins that recharged at night. Such a shift would reduce oil consumption by 6.2 million barrels per day, eliminating 52% of current imports."
So we are currently wasting all this power at night and a smart grid would enable plug in vehicles to use it. The transition would pay for itself — that much is clear.
It’s frustrating waiting for these better alternatives to happen!