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Silicon Valley to become the next Detroit?

Posted on Monday, November 12 2007 @ 04:45:18 CET by

Is Silicon Valley going to become the Detroit of the electric car industry?
Last week's announcement by Shai Agassi, a former SAP executive based in Palo Alto, that he's raised $200 million for a company that will try to revolutionize the electric car industry is the latest sign of this region's growing role in one of the hottest sectors of the automotive industry.

That's no surprise considering California's mandate for cleaner cars, the local enthusiasm for plug-in hybrids, the Silicon Valley fascination with new technology and the number of Bay Area venture firms investing in this industry.

Agassi, who spent months studying his venture, makes an interesting observation about the valley and the Motor City. "Detroit is a car manufacturing center. I think what we're looking at is not something that can be done in a normal way. . . . It needs an Internet approach, a Google approach."

And, he said, this region is well-suited to do that. "In the valley, we know how to do technology disruption. We know how to do business models, how to develop proof of concept and get it adopted around the world," he said.
Others are a bit more sceptic. Read on at Mercury News.



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