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Hyper Car
Posted Date: 17 Oct 2007 Resource Type: Articles/Knowledge Sharing Category: Education
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Posted By: Arun Jadhav Member Level: Diamond
Rating:  Points: 5
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Most vehicles today rely on an internal combustion engine (ICE) that burns fossil fuels to generate motive force. While adequate, this system has many unpleasant side effects. The ICE is also a poor fit to the demands of a vehicle. Electric motors are much more suitable because they deliver their maximum torque at low rpm, just when a vehicle needs it most. And when a driver heads downhill or puts on the brakes, an electric motor can double as a generator to recapture that energy and covert it back to electricity for subsequent use.
Unfortunately, the short range and tedious recharging of the 1st generation, battery-powered electric cars have tainted the notion of an electrical vehicle in the public eye. But these problems can be overcome when a fuel cell powers the vehicle's electric motor. A hydrogen tank can be refueled in about five minutes, and has a similar range to a conventional automobile. While handling hydrogen gas requires specific precautions, it is just as safe to fuel your car with hydrogen as with gasoline or natural gas.
Steel cars require such extraordinarily costly tooling and equipment that each model can be a multi-billion-dollar, bet-your-company investment. This creates a distinctive risk profile: high fixed costs and low variable costs, so that profits are utterly at the mercy of sustained high sales volume. Slack demand puts the enterprise instantly awash in red ink. Whenever feast turns to famine, new model development, R&D, and technical innovation are the first parts of the budget to feel the pinch, so obsolete models and tooling get milked even longer, heightening the risk of jaded buyers.
In contrast, the manufacture of advanced-composite, software-dominated, radically simplified hypercar vehicles could yield the opposite risk profile. Their fixed costs should be up to several folds lower, cutting break-even volumes too much safer levels. While variable costs per unit might not be higher nor hypercar vehicles, those variable costs are incurred only for cars and parts that are actually produced, and the volume of production can be better adjusted to match demand.
Low fixed costs encourage small runs of highly differentiated products, diversifying the market-risk portfolio. Extremely short tooling cycles and frequent (but cheaper) tooling replacement or refurbishment foster continuous improvement that helps products evolves to match rapidly shifting market.
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