Last week’s post on BYD motors out of China detailed the company’s attempt to produce electric cars using cheap Chinese labor and batteries that aim to be 100% recyclable. Another recent post looked at the effect of the massive Chinese labor force’s impact on the clean energy economy. According to an NPR story from last week’s Shanghai Auto Show, Chinese automaker Geely unveiled “The Ig, a new concept car . . .  a three-seater microcar that has a single door and is powered by electricity and solar panels. It will cost $3,000 to $4,000 and is expected to go on sale within three years.” The auxiliary rooftop solar panel charges the storage battery. Wei Xiaobo, Geely’s prototyping division director, states that the concept car will be the company’s cheapest car and will go on sale in two to three years.

Lighter, smaller vehicles require less fuel, making them more efficient. However, the question remains: will consumers buy ultra-compact vehicles? In the United States, SmartUSA , a subsidiary of Daimler AG and producer of the Smart Car, officially began selling their cars in the first quarter of 2008. In Europe, Smart has been manufacturing and selling for years, while Japanese consumers can purchase the “kei car“, an ultra compact car. As reported in The New York Times, crash test results revealed that “crash dummies in all three models tested — the Honda Fit, the Toyota Yaris and the Smart Fortwo — fared poorly in the collisions.” Whether it is because safety concerns are lower in China or the $3-4,000 price tag is attractive enough to bring in buyers, the Chinese market may be the first place that small, efficient cars like the Ig take hold. BYD and Geely’s ability to reach across the Pacific and conquer the market in the United States will depend on the efficiency and reliability of their cars and to what extent Detroit bounces back (or fails to do so). Innovation and ingenuity, generally considered a strength of the American automotive industry, may instead point the way forward for these fledgling Chinese car makers.

- Eric Wilson

[image source: NPR]