Subject category:
Strategy and General Management
Published in:
2007
Length: 38 minutes
Data source: Field research
Topics:
New technologies for cars; Hydrogen fuel-cell cars; Design and launch of an HFC (hydrogen fuel-cell) city car; Open source design; Disruptive technologies; Zero / low CO2 emission cars; Hydrogen economy; Natural capitalism; New company structures; Limited liability partnership (LLP); New systems for car distribution; Working with and in China; Creating entrepreneurial consortia; Funding high-tech start-up; Automobile
Notes: File size 2.4GB. Click for more information.
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Abstract
This supporting video is to accompany the case. The abstract of the case is as follows: The case describes the early stages of two projects, created by Hugo Spowers, to build hydrogen fuel-cell cars. Both involve consortia of academic and commercial organisations. To date about GBP1.3 million has been raised from government and private investors, about half the total cost of the two projects. The first project, LIFEcar, involves building a fuel-cell powered sports car at the Morgan Car Company. The second involves building a two-seat 'city car', the Hyrban. Prototypes of both cars are expected to be operational by the last quarter of 2007. Hugo's long term goal is to change the automotive industry to one which puts maximising the use of the earth's scarce resources ahead of making profits. He has a range of unconventional ideas about how this could be achieved. He believes in adopting open source (OS) design rather than creating proprietary intellectual property (IP) allowing any organisation to make the car in return for a small royalty fee. By using light-weight composite materials for the body he anticipates that assembly plants can be economically viable with annual output in the 5,000-10,000 unit range per annum thus allowing geographically widely dispersed assembly plants. He would lease the cars rather than sell them, the ownership remaining with the manufacturer who is then encouraged to make the cars as long-lasting and economic in operation as possible. Finally, he wants to create a novel organisation structure based on the limited liability partnership (LLP) concept to allow all stakeholders to benefit from the company's activities. At the end of the case Hugo is preparing a proposal to attract further investment to take the Hyrban project to the next stage which would include providing cars to the Dongtan eco-city in China. The case should be considered in conjunction with the note 'The Automotive Industry in the 21st Century'. The case was written for the European Business Schools Case Competition 2007 organised by The Case Centre and sponsored by Boston Consulting Group (BCG).
About
Abstract
This supporting video is to accompany the case. The abstract of the case is as follows: The case describes the early stages of two projects, created by Hugo Spowers, to build hydrogen fuel-cell cars. Both involve consortia of academic and commercial organisations. To date about GBP1.3 million has been raised from government and private investors, about half the total cost of the two projects. The first project, LIFEcar, involves building a fuel-cell powered sports car at the Morgan Car Company. The second involves building a two-seat 'city car', the Hyrban. Prototypes of both cars are expected to be operational by the last quarter of 2007. Hugo's long term goal is to change the automotive industry to one which puts maximising the use of the earth's scarce resources ahead of making profits. He has a range of unconventional ideas about how this could be achieved. He believes in adopting open source (OS) design rather than creating proprietary intellectual property (IP) allowing any organisation to make the car in return for a small royalty fee. By using light-weight composite materials for the body he anticipates that assembly plants can be economically viable with annual output in the 5,000-10,000 unit range per annum thus allowing geographically widely dispersed assembly plants. He would lease the cars rather than sell them, the ownership remaining with the manufacturer who is then encouraged to make the cars as long-lasting and economic in operation as possible. Finally, he wants to create a novel organisation structure based on the limited liability partnership (LLP) concept to allow all stakeholders to benefit from the company's activities. At the end of the case Hugo is preparing a proposal to attract further investment to take the Hyrban project to the next stage which would include providing cars to the Dongtan eco-city in China. The case should be considered in conjunction with the note 'The Automotive Industry in the 21st Century'. The case was written for the European Business Schools Case Competition 2007 organised by The Case Centre and sponsored by Boston Consulting Group (BCG).