Core77

It used to be that you won wars by getting your guys to kill their guys. The Vikings, the Romans, and you name it knew you either had to get more guys or better weapons.

Then warmakers got crafty and started bombing factories, oil depots and supply lines. If you can't get your truckloads of bullets up to the front, and if you can't gas up your superior jet fighter, it doesn't matter how good your tech is, or how many guys you've got.

What's our point? Logistics matter, and it's how you win.

Just look at electric cars. We've been hearing about them for how long now, and how many of us actually have them? Why are they so expensive and out-of-reach?

The latest company hoping they can finally make electric cars a widespread reality in the U.S. is Scandinavia-based Think Global, who's bringing their product Stateside in '09. They are hoping to succeed based on at least two angles: design and logistics.

Even more than its well-funded sponsors or cutting-edge technology, the Ox's killer app could be its design. To date, most electric cars available in the U.S.--small, unsafe, and underpowered--have been intended strictly for the earliest early adopters and the most faithful green believers. In contrast, Think's senior vice-president for design, Katinka von der Lippe, says the Ox is a "real car, a big step away from the cuteness of [other] electric vehicles."

The company's business model, says James, is similar to that of PC maker Dell (DELL), which fueled its rise by ruthlessly optimizing its manufacturing and supply chain. Think's ultralean manufacturing system lets it build production facilities for about $10 million, compared with the billions invested in new plants by old-line manufacturers. That means more factories closer to customers, further cutting costs.

In addition, factories "could also be the retailers," says James, which would add a unique element to Think's branding. The company, he says, will be profitable if it can sell 10,000 vehicles a year. At 20,000 to 30,000 units in annual sales, Think can cut its component costs in half.

That focus on innovative manufacturing, in addition to the high-tech Ox itself, may ultimately set the company apart from previous attempts--and, Think is betting, finally help jump-start the U.S. market for electric cars.

via businessweek