Summary

Boeing is holding up the rollout of its next generation fuel efficient "Dreamliner" because it isn't yet a fully integrated system; i.e., some of the parts are not yet finalized. They have been designed, delivered, and installed, but they didn't perform as requested, so they have been sent back for redesign, redelivery, and restesting in actual conditions. General Motors, as if by contrast, took the word of a few academic battery researchers, just a couple of years ago, that, since theoretically a battery based on lithium ion chemistry should outperform all other battery technologies based on higher atomic weight elements such as nickel and lead, they should simply announce that such a battery "would" be built and installed in a car made by them. It, the theoretical construct, would then become a game changer. No one at Boeing could possibly be dumb enough to bet their company on such airy-fairy nonsense. It took a GM to do that. Ford is now doing as Boeing would do.

Analysis

An airframe maker, such as Alan Mulally's former base of operations, Boeing, would never dream of offering for sale even one unit of a product with an untested power plant.

Yet General Motors is not only on the road to doing so it is even telling us that this product with a power train that is untested in real time and real driving conditions is a "game changer." Let's hope that this isn't the change for GM to the endgame.

In sharp contrast Ford will give its interested customers an opportunity to test drive in real time a variety of passenger car types using the best battery based so-called plug-in hybrid technology Ford can deliver in 2011 or 12.

Intriguingly but not too surprisingly Ford has chosen the loser in the GM supply race for such a device, the strategic alliance between long established and successful Johnson Controls International and France's long established and successful SAFT. The JCI/SAFT s/a most likely lost out to Korea's LG for the GM contract, because they told GM the truth. Their best offering for road testing in the 2010 model year (GM calls this product introduction, but, in fact, it is a high roller's road test) would get 30 miles on a charge reliably, the number that Ford is talking about for its 2012 plug-in hybrid Escape based "road test" by customers.

It is not necessary anymore due to the economic slowdown, the growing skepticism about the impact, or existence, of global warming, and the glut of oil to rush into green before its time.

GM, obviously, felt the sting of short sighted decisions about vehicle electrification as it watched its market share in every type of vehicle slip away to a Toyota that made only 3% of its vehicles with a hybrid power train but got a green reputation across its entire line of gasoline and diesel burring cars and trucks.

GM then dived into the deep end of the pool before passing its swimming safety test.

GM needs a new lifeguard not a "game changing" technological fix.

Please, Messrs Wagoner, Lutz, Henderson, Cowger, and Andersson just go away.

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.