There is definitely a new trend in the automotive industry. This new trend is the switch from oil dependency to renewable ectricity dependence. Just this year, Coulomb Technologies Inc. tripled in value. Coulomb technologies offers large automotive companies like General Motors Inc., Ford Motor Co., with viable means of producing electric motors and efficient batteries. Coulomb's greatest contribution is a software that is "designed to among other things, make it easier for station owners to bill drivers for the electricity they use" (WSJ). A big issue automotive companies have to deal with is how to provide electricity (fuel) to consumers and drivers. Electricity distribution should be easy for drivers to use and practical for companies to rake in profits. Coulomb's software is such a big leap forward in helping to distribute electricity that it expects its sales to rise to $9 million this year from $1 million last year. Their valuation increase can also be attributed to participation in a Department of Energy program to deploy charging station sin nine U.S. cities.
In addition to Coulomb's recent developments, "battery developer Sakti3 Inc. received $3.2 million is Series B funding from General Motors' new venture-capital arm" (WSJ) in hopes that GM will help commercialize Sakti3's business. Currently, they are working on developing a lithium-ion battery designed to extend the range, lifetime and power of batteries both in electric vehicles and consumer electronics. General Motors is planning to test Sakti3's batteries once they are ready. General Motor's investment in Sakti3 reveals a developing trend within automotive industries: the push for alternative fuels. Not just GM but companies like Ford are joining the energy race. Competition is beginning to heat up.
With the recent increased interest in alternative energies, NuvoSun Inc., a maker of thin-film solar cells, has raised $29 million in two founds of financing this year from Dow Chemical Co.. The company based in Palo Alto Calif., says it will use the capital to open its first commercial size factory, in Milpitas, Calif. Mr. Pearce says NuvoSun will be able to make solar modules for less than $1 watt by 2012. At 70 to 75 cents a watt, CIGS would be able to compete with Chinese manufacturers of the more prevalent solar modules based on cyrstalline silicon, he says.
Electric and oil companies alike are all jumping on the energy band wagon as soon as possible. They realize that an early investment now will lead to great returns in the future. The automotive industry is going through a new and exciting trend. No one is really sure what the outcome will look like, but I know for sure that we're taking the right path. Renewable energy will relieve our dependency on Middle Eastern fuel. For companies like GM and Ford, the time to invest and develop is now. For GM this could be particularly be a great time for their comeback. The automotive industry was hit hard during the recession and U.S. automakers did not make out so well, with the exception of Ford. Considering the recession, I feel that GM is planning to lead the electric revolution. GM's investments only indicate their electric intentions. As a consumer, I would invest in the electric market much like the big auto companies of America.
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