Segway and GM's Puma Addresses the Problems of Tomorrow

The Segway/GM Puma was unveiled yesterday to much derision on CNBC, as anchor after anchor made fun and declared they'd never get in one. Unfortunately, they're overlooking the wisdom of the old saying, "anything worth doing is worth doing badly". While there are some problems with the initial prototype (no roof or crash protection gear), this is just the kind of effort that we should be looking for from our leading companies - addressing the problems of tomorrow.

Puma does address the following realities:

1. Rising energy prices;
2. An aging population that will increasingly need assistance getting around;
3. Increased urbanization and population density;
4. Product line extension of the Segway platform;
5. Excess capacity at GM;
6. Improving battery technology;
7. Increased acceptance of electric vehicles - and their quirks.

When the primary criticism of these smaller electric vehicles is their small size compared to "Hummers", perhaps it is time for the US to start seriously considering the future of transportation and how to solve these problems, rather than abdicate these markets and technologies to the many Asian competitors that are arising. And it is probably also wise to remember that America was not built via a perfected central plan or series of royal decrees, but rather through the struggles and solutions that came to millions of people trying to find a better way. While Puma may not take over the road anytime soon, or ever, GM and Segway are to be credited for doing something - something worth doing.

Disclosure: No positions.

Comments

[John Petersen:]

The PUMA may well prove to be the best EV idea in years. All of the others use batteries to move a couple hundred pounds of passenger and a couple thousand pounds of vehicle at highway speeds. With a curb weight of 300 pounds and room for two, the PUMA is an ultra-efficient use of batteries. The manufacturer of the Li-ion batteries used in the PUMA is Valence Technology. For more detail, see my instablog on the PUMA:

seekingalpha.com/autho...

Apr 08 04:16 AM

[Mad Hedge F...:]

You've got to be kidding. General Motors (GM) has 6,500 dealers in the US and Toyota Motors has 2,000, but Toyota (TM) sells more cars than GM. And you want to save this company? Just as only Nixon could go to china, only Obama can dispatch GM. The launch yesterday of its Segway-GM hybrid, the Puma Pod, just highlights how pitiful their efforts have been. The sooner GM goes to corporate Heaven (or Hell), the better.

Apr 08 01:03 PM

[Deweyp:]

Since the report of this hit the news today I have talked to 2 people who would consider this as a vehicle to get around their retirement village. Most of these folks travel less than 35 miles a week and much of that is to neighbors, golf courses or the local grocery store. Even my mother-in-law liked the looks of it, as long as it meets safety requirements and isn't too expensive or difficult to operate. The average CNBC yuppie probably wouldn't consider one, but I'll bet their retired parents would. If I remember my marketing prof correctly, we should not disreguard any new product based on our own preferences. I don't think GM or Segway would develop a vehicle like this without doing a little research first. I know a guy who has a Harley, but his wife hates motorcycles, yet look at how many are sold and owned in this country. This vehicle could provide mobility to many, many people who otherwise wouldn't leave the house. This could very well be a true game changer. Who knows, maybe someone will start a Puma Sports Car Club.


On Apr 08 01:03 PM Mad Hedge Fund Trader wrote:

> You've got to be kidding. General Motors (seekingalpha.com/symbo...)
> has 6,500 dealers in the US and Toyota Motors has 2,000, but Toyota
> (seekingalpha.com/symbo...) sells more cars than GM. And
> you want to save this company? Just as only Nixon could go to china,
> only Obama can dispatch GM. The launch yesterday of its Segway-GM
> hybrid, the Puma Pod, just highlights how pitiful their efforts have
> been. The sooner GM goes to corporate Heaven (or Hell), the better.

Apr 08 02:06 PM

[Richard K:]

I think GM is just innoculating themselves against criticism about ignoring fuel economy issues. They have actually risked very little in this venture so far, and can always point to it as an example of being "out there" in green development.

It's interesting that the company is also being beat up for bringing out a new 30mpg crossover suv, just because it is an suv.

Apr 08 03:23 PM

[rbblum:]

IF PUMA is 'for real' then it has to be at the blessing and direction of the current (new & improved) US Government. HOWEVER, when reviewing the wisdom and track record of the US Congress, the manufacturing and marketing effort of the PUMA endeavor may as well be lead by Buck Rogers in order to be a near-term profitable product for bankrupt-leaning GM.

The PUMA story appears to be what it is: a story reflecting the desparation by Government Motors (GM).

Apr 08 07:30 PM

[Dirk McCoy:]

Thank you for the comments. I didn't mean to imply that PUMA would save GM, as it's certainly rounding error at this point.

Rather, I was making the point that showing an effort to address future transportation needs is the kind of thing our leading companies should be doing. Honda isn't in business because they created Asimo, but you have to admit Japan has taken the lead in robot commercialization in part because Honda won respect for creating a robot that climbs stairs.

We'd be better off in the US if inventors and innovators had more respect than financiers. And while PUMA won't save GM, it is another growth opportunity that someone may pay to own if worse comes to worse.

Apr 08 11:52 PM

[rubo:]

I love the Puma concept, isn't it time we seriously considered a change in that direction? Wake up America! ruben diaz estevez

Apr 09 12:28 PM

[Bobby Blue:]

I would seriously consider one of these -- in bright yellow or orange, with two bike flags on the back. Seriously, I live in a small town and this would be great -- and GREEN -- for running to the store, Wal*Mart, the friends house, etc. My wife and I are both retired and have been thinking about cutting back to a single car. Yet, there are times when I go one way and she goes another. This could be a more economical answer. Also, folks, we gotta do something!

Apr 14 08:41 AM