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How might we restore vibrancy in cities and regions facing economic decline? Read the challenge brief

Inspiration

Mission #5 Surprise Us Find out more...

Electric! Smart.

Detroit used to helm the automotive world, and there is little reason for it to stop doing so! One important step could be for Detroit to advance up the automobile value chain, and this means advances into the electric vehicle and smart grid space.

Detroit used to helm the automotive world, and there is little reason for it to stop doing so! Instead of attempting to redefine the roots of this great American city, one important step to take for progress is for Detroit to continue to advance up the automobile value chain and this means a bold step into anything electric-vehicle (EV) related!

The $400mil which the DOE pumped into various Michigan battery projects back in 2009 was a start, and this sunk cost should be maximized!

The idea to "electrify" Detroit is to turn the city into an electric vehicle test-bedding area. By establishing a network of public charging stations, Detroit could be the very first city for EV-companies to test out usage potential, patterns and possibilities. This infrastructure could promote usage and allow further research into areas such as user-insights and creating models to optimize inner city EV drives. What this ultimately does is to revitalize the roots of this great American auto-city by coupling test-bedding opportunities with research, and allowing successful solutions to be exported to other cities for EV systems. The multiplier effect could be tremendous; be inviting collaboration not only from industry but stakeholders active in the EV field such as MIT's Media Lab, the city will slowly be able to attract the right talent to revitalize itself.

The EV value chain does not stop there. With a robust EV infrastructure, further R&D opportunities exist for vehicle-to-grid (V2G) interactions and this could attract the likes of companies conducting research into "smart cities" , such as GE and Siemens.

From a broader perspective, cities should look to maximize their existing potential by moving up the value chain in whichever area of expertise/mastery. By turning problems into solutions, cities in decline will be able to create new opportunities. Taking reference from the city of Singapore which turned its problem of water scarcity into an opportunity to become the world's leading water management mega-city, Detroit could turn their problem of a declining auto-city to a revitalized EV-city of the future from which other cities can take reference.




Mission #5 Surprise Us Find out more...

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December 06, 2011, 08:06AM
I like the idea of turning Detroit into an EV hub, thanks for sharing it.

One conclusion in my market research on the transport and automotive industry this year was that the only country who has a real chance of establishing itself as a leading provider of EV technology is China. This is very much in line with what industry analysts say and the reasons for this are that:
- Western vehicle manufacturers have a big legacy of non-EV products, processes and mindset which will be hard to erase while the lots of Chinese vehicle brands established these days don't have this problem.
- An important force to help the EV industry in China is the massive subsidies the government gives to the EV industry, which you said is also present in Detroit, but what really can make the whole thing fly in China is that they can afford to give giant price reductions to EV car buyers, so they can actually make people buy those cars. I'm afraid this is something that Western countries cannot afford, but even if they could China is a bit ahead because of the amount of control and influence the government has on its people (5-year-plans, central control)
- China has a big enough internal automotive market to test and develop these cars and get rid of the baby problems they will have which opportunity is lacking in the Western world, so in the end China will be able to go global with its EV technology while the West won't.

So I think overall Detroit does not have a very big chance of making it in the EV area unless they establish collaboration with the central government of China. This could be done through the Chinese JVs of automotive players present in Detroit. So for instance Volkswagen to be able to operate in China (manufacture and sell vehicles) has a JV with the Chinese FAW company, and perhaps the ties between the two companies could be used assuming that Volskwagen is present in Detroit.

What do you think? Could this be a way to make Detroit a vital hub for EV development?
Terence Yeo's reply to Szilvia Varga's comment
December 06, 2011, 11:51AM
Thanks Szilvia for your note. China is everywhere today, and some sort of collaboration work with them may make sense on many fronts.

However, I would like to explain that while I have outlined a short strategy for Detroit to build on its auto experience, I need to re-emphasize on the idea of turning Detroit into a test-bed for EVs. What this requires is a substantial upfront investment in EV-related infrastructure such as charging stations and monitoring systems, in order to create a "laboratory" for interested corporations to come and plug into the Detroit EV network.

What this idea builds upon is not for EV manufacturing per se (cost competitiveness may not be ideal), but for Detroit to become a lab for EV players to enter and study aspects such as system stability and user-insights. By using Detroit as a living EV lab, companies will be able to obtain live data and insights, and export these solutions (IP-protected) to other cities globally.

From there, the limits for development are boundless. The lab can eventualy grow upstream into areas such as "smart cities", once the right talent and corporate investments start flowing in.

It will be a rough start; but instead of putting millions of dollars into specific companies, the money could be better off used to invest in infrastructure which could literally transform the city into an EV lab for high-end research and development work.
Terence Yeo's reply to Szilvia Varga's comment
December 06, 2011, 11:53AM
and of course, we need to couple this with effective and targeted marketing to get the EV players interested to work in this "lab". Boulder city in Colorado is a good case in point!
Szilvia Varga's reply to Szilvia Varga's comment
December 06, 2011, 03:21PM
I understand that you would like to transform Detroit to a lab for testing EV. And I think in order to do this we need to come up with what competitive advantage Detroit has compared to other cities in the world, why it could be the best place to create such a lab.

You said that it's Detroit's long history in automotive that is it's competitive advantage. I guess what I said is that industry analysts say that that is exactly its disadvantage when it comes to moving into such a radically new area as EV even if we only talk about setting up an EV lab.

I think China does have a much better chance at setting up such a lab, because if you set one up in Detroit, well, China has the money to set up a bigger one and drain all the brains from Detroit to that Chinese city. So I don't think you can directly compete with China in this but what we can do is collaborate with them, so convince them to invest both in Detroit and a city in China.
So instead of putting millions of dollars into Detroit try convince the Chinese transport minister to put millions of RMB into Detroit and another city in China.

On another note you should also consider that the future growth in the automotive industry (be it EV or else) will be coming from emerging economis like for instance China. Most cars are sold in China, and most EV cars will be sold in China in future. So Western and Chinese companies are all targeting the Chinese market, hence setting up a test lab in Detroit might have another disadvantage, i.e. it will not give these companies insight on how Chinese consumers behave. But perhaps you could pick a city in China that is in the Western rural area and has a similar situation as Detroit, i.e. people are moving away from there to the Eastern industrialized part of China and you could turn that place into an EV lab.

What do you think?
December 05, 2011, 06:58AM
Interesting Terence. Tip – formatting needs be added using the rich text formatting bar above the Description field. To update your entry, hit the Update Entry button on the right of your post. Given some errant code has crept in, you'll need to cut & past the text, then add & remove coding from there.
Terence Yeo's reply to Szilvia Varga's comment
December 06, 2011, 11:38AM
thanks Meena !
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