Hybrid Porshe on the Horizon

According to a report from Auto briefs in the Friday edition of the Detroit News (page 4C). Porsche is currently developing a new prototype SUV hybrid based on the hot-selling Cayenne. They claim that it will be capable of cruising at speeds up to 70 miles an hour on the electric engine alone. That is faster than any hybrid currently selling on the market today according to CNN Money (CNN Money (http://money.cnn.com/2007/07/24/autos/porsche_hybrid/index.htm).

The non-hybrid Porsche Cayenne.

They foresee the hybrid version of Cayenne to be on showroom floors within the next two or three years as per the article. The SUV will not be able to reach 70 miles per hour without the traditional engine like some of the smaller hybrid cars. However once it accelerates to a cruising speed of 70 it won’t need for it’s gasoline engine. At that point the electric motor will sufficiently propel the vehicle to cruise at that speed. The CNN article also states that the end product is an SUV that is said to be “25 percent more efficient than current models and can cruise considerably faster than the current 40 mph top cruising speed of the hybrid Toyota Camry.”

“If Porsche was going to do a hybrid, it makes sense to do it from a performance standpoint,” said company spokesman Tony Fouladpour according to the CNN article. This is the first Hybrid hailing from the pure performance-minded niche automaker. It seems they are following in the footsteps of luxury carmaker Lexus. They currently have 3 models that have hybrid technology. Although Lexus uses it for boosting the performance of their vehicles, this in turn makes a V-8 engine as powerful as a V-12.

Porshe is sticking close to their hedgehog (and heritage) and pursuing this from a performance first direction. Needless to say I am happy that another automaker is taking a step towards becoming greener while not abandoning who they are. It’s expected to be in the same general price range as the basic Cayenne, which starts at $44,000.

www.detnews.com

www.cnnmoney.com

Computers for the Small Business in mind

Dell is releasing a line of laptop/notebook and desktop PCs specifically for the small businesses according to an article from CNN Money. Vostro, which is the name of the new line, will have a host of subscription-based services. Vostro means yours in Latin. Vostro is aimed at companies that have up to 25 employees. Dell has hung their hats on creating, marketing and building mass customized computers for different users.

Dell sells multiple lines of computers aimed at different users and their need. The Inspiron for the average family who might just use it to download music and photos and occasionally do papers. The Latitude and Optiplex are aimed at servicing largers firms and corporations (Ford and Quicken use these lines of products). The XPS has all the bells and whistles and is aimed at gamers.

Within the past 2 years Dell has hit hard times. I often wonder is part of their slide due to the poor customer service issues they have. At one time Dell was once synonymous with excellence in quality and service. Service was their hedgehog and they decided to sell-off the division. Basically selling what made them a strong brand. Well it sounds as if they are trying to get back on track. Dell has committed 6,500 employees specifically for tech support issues. This is definitely a step in the right direction.

www.cnnmoney.com

http://blogs.techrepublic.com.com/tech-news/?p=831

Fair Food Foundation

Oran Hesterman is the CEO of Fair Food Foundation visited our class last week.  He talked to us about his humble beginnings.  He explained how he became a part of the effort to take on food desserts in major cities like Detroit and Chicago. Oran is a native Californian and attended University of California in Santa Cruz.  He was undecided as to what major he wanted to pursue. Then early in his college career he had a class learning how to farm organic foods. He researched and found that it was not a big field. He instantly recounts his thoughts of that it could be the basis of a business.

 

He soon started to research the local restaurants to get a feel for what foods that they may need and what they (the school) could supply them with.  Restaurants wanted alfalfa sprouts and no one grew it in the area. He started a sprout farm out of mayonnaise jars. The business soon grew to selling 9 tons a month.  He then developed a system to grow, to market and ship these sprouts. After realizing that there was no infrastructure in place to make and sell food locally he then saw a bigger opportunity. So he decided to sell the business in pursuit of something greater.

 

His next move was going back to school. He eventually received his Ph D from MSU in plant and soil science. After working in the program thereafter he began to work with Miguel from Kellogg Foundation to pursue grants. Fair Foods Foundation was created as a trust for philanthropic funding of localized food businesses. The mission is to encourage local business development in the food industry.  By either supporting local farmers to sell existing businesses.  Also supporting the creation of new businesses is the aim as well.

 

The foundation has a very sound idea. I feel that education about organic food should be an area of concentration for them. Organic food consumers make a very small percentage of the food market. It is increasing in popularity but the cost associated with organic foods is very high compared to food you could purchase at your local grocer. Oran did point out that stores like Whole Foods charge a lot more just because there are no true competitors. The cost of non-organic and organic is closer than one would be lead to believe.

Which obviously means there is money to be made.

Baby iPhone…aka Mini-me

 

 

According to a report on CNN Apple is bringing out a cheaper version of the iPhone in the fourth quarter. Probably around the holiday season I would suspect. It is said that the phone might be based off the iPod Nano architecture, which is a smaller thinner form of the iPod. The iPhone began sales on June 29. There were long lines and waits for many first movers trying to get their hand on this new contraption. It was estimated that about 700,000 iPhones were sold the weekend of their release.

The iPhone, a mobile phone with iTunes (music player), camera, gps and Web browser. It seems that Apple has created a product that has a few of the characteristics of a PDA phone. However it provides it’s user with a lot more usability for the common person. The iPhone sells for $500 (4gb) and $600 (8gb). It has been found that Apple filed a patent application document dated July 5 that refers to a multi -functional handheld device with a circular touch pad control, similar to the Nano’s scroll wheel.

This proposed Nano phone would priced probably around $300 which would meet a demand for a iPhone that is more obtainable price-wise. I personally would love an iPhone. Although I find it hard to pay for a phone that does not have a new contract discount like other competing PDA phones. I don’t know whether this is Apple or AT&T’s doing. Whoever it may be, both firms are seeming to do well with this partnership.

www.cnnmoney.com

Ford trying to “Plug Along”

In a recent report from CNN Ford’s CEO Alan Mulally is committed to selling plug-in hybrids in five to 10 years.

 

 

Currently there is testing of the Ford Escape Hybrids in San Francisco and New York. “Within five to 10 years we will start to see this technology in our hands,” Mulally had commented while holding a marketing event to announce the alliance between Ford and Southern California Edison . They plan to use 20 rechargeable test cars. This info came about the U.S. automaker was reported on CNN.

In my personal opinion 5 to 10 years from now Ford might not exist. Ford is currently the No. 4 car maker in the world. The once No. 2 automaker is still dealing with losses from operations and funding their “Way Forward” plan. The plan entails plant closings and buy-outs in an effort to get Ford out of the red. Speaking from the viewpoint of a former employee of what I have seen and experienced Ford will fail unless their culture changes. Ford seems to always be lagging behind the industry in terms of getting technology and good cars to the market.

Recently they have released a few niche vehicles that have garnered some success. Only time will tell whether these autos will make a significant difference to the bottom line. I don’t really see them digging themselves out of the hole they are in. There are still major losses in the U.S. and European operation. Labor and health care costs are the bane of all the big 3. As for the culture, it is imperative that Ford change to survive.

At a glance I would dare say that Ford could very well go bankrupt. They have borrowed money to float some of these changes that are being made. It appears that Ford is putting all of their eggs in one basket. However in order to pay these expenses you must make money.

It has been speculated amongst some of my friends that still are employed with Ford that they may push to become private. Why? Ford has never been a wall street darling. This is due to the Ford family owning a large percentage of the stock and control of the company. Personally this might be the best option for them. Ford could therefore slide from under the media microscope and focus on making good cars and not making wall street happy.

http://www.autobloggreen.com/2007/03/13/quantum-announces-2-1-million-plug-in-hybrid-deal-with-californ/

www.cnnmoney.com

Art of the Hustle

Being an entrepreneur was definitely in the genes of Bruce Schwartz. His dad was a pool shark back in the late 1960’s and early 1970’s from Pittsburgh. His father used to hustle all the pool halls and after beating one particular opponent the man in turn offered him a job. Luckily it wasn’t anything illegal, it was the opportunity to sell pots and pans. After accepting the offer the family moved to Detroit in 1971. Bruce was in the 3^rd grade when they moved.

His Father came to Detroit to sell pots and pans traveling city to city, state to state. He would go door to door in neighborhoods as well as setting-up in front of office buildings.  He told us as to how hid father would send workers into office buildings.  They would then create a buzz inside these business establishments telling them someone had great deals on items right outside the building. 

At the age of 8 ,when school was out for the summer, Bruce would travel with his father and worked with him. He would watch his dad would go to businesses spreading word what they were selling. His worked with his father until he was 12.  Bruce would have different hustles during his years through high school.  After attending high school Bruce did one year of community college. His parents moved down to Florida and ended up working with his father again.

These are some of the following hustles (jobs) that Bruce has had:

• video game repairman
• betting assistance service
• home repair
• real estate investor
• loan officer

One thing is evident, Bruce has gotten where he is in life because he is not afraid to get his hands dirty. He pointed out to us that you have to be willing to work. Success does not come for free. All his accomplishments have come to him because of his willingness to work hard no matter whether he did well or failed. You have to learn not to be afraid to fail. There is no success without failing. However you must be willing to keep going – that is what makes you a success.