For at least the last half-century, the auto industry has effectively been a closed shop in terms of opportunity for new automakers, particularly on these shores.
The industry was so vertically integrated, not to mention so capital intensive, that it was virtually impossible for a new firm to break into it. But the revival of the electric vehicle (EV) is changing that scenario. For a number of reasons.
For one, almost all the players are starting from near the same starting point in terms of electric drive systems. So newcomers don’t have a century of technological development in the internal combustion (IC) engine to catch up on.
For another, the automotive supplier industry no longer just builds what the OEMs tell it to. Individual suppliers design and engineer their own products and systems, often leading their automaker clients in terms of innovation.
Then there’s the matter of electronics, which may be the most vital componentry in any vehicle, but especially in electric vehicles. And there’s as much or more expertise in that discipline outside the industry as within it.
So the climate has seldom been better suited to the entry of new automakers. At least a couple appear to have the potential for success, Tesla and Fisker.
Tesla
The driving force behind California-based Tesla Motors is its CEO, Elon Musk, who earned his reputation and fortune as the founder of X.com, subsequently renamed PayPal. Coming at the project with the perspective of his Silicon Valley background, he has beaten the odds against an automotive startup, creating an almost cult-like market for the all-electric Tesla Roadster – a high-priced, high-performance roadster derived from a Lotus Elise.
Tesla has a more ambitious project underway. The Tesla Model S all-electric luxury sedan – built in the former GM/Toyota NUMMI plant in Fremont, California – is set to launch in mid-2012.
Fisker
Equally interesting, is the Fisker Karma, also a luxury sedan but with a plug-in, extended-range, series hybrid powertrain, similar in concept to that of the Chevrolet Volt.
Fisker Automotive, which was founded in 2007, is now close to coming to market (tentatively by the end of this year) with the Karma, which has been substantially engineered and is being assembled by Valmet in Finland, the same company that built the Saab 9-3 convertible as well as the Porsche Boxster and Cayman.
![](https://canadianautodealer.ca/wp-content/uploads/2021/12/EV-Renaissance-Gerry-Malloy-1.jpg)