Karma automotive is making its second entrance into the automobile market, officially debuting the Revero in a couple weeks time.
Note that the Revero's full specifications haven't been released yet. For the purposes of this analysis I'll assume the Revero is more similar to the Fisker Karma than not. The Revero is likely to improve upon these specifications but from what information has been released about the Revero it doesn't appear that these changes will significantly change the design or cost of the car.
Karma automotive's web marketing is polished and well presented. It is likely to improve Karma's chances at selling the Revero but I wonder if marketing alone can overcome the drawbacks of the Revero when compared to other cars in its market segment.
Cars and car technology have been advancing steadily. Some of these advancements are minor conveniences. Car systems have been electronic for years and yet only in the past several have some manufacturers switched to a push button start system, relieving the driver from having to hold the key to drive the starter and listen for the engine to start. Some advancements have more utility. The ability to start and operate the car without having to insert the key into a slot is a noticeable convenience. Along that same line, automatically unlocking doors are great. Ever forget to lock your car when you walk away? Tesla's Model S and X will lock the doors when you walk away with the key fob. Driver assistance features are advancing rapidly. Lane departure warning systems, distance sensors for parking and backing up, backup cameras, automatic emergency braking, and autosteer are some of the technologies that are helping to make cars safer to operate.
These features are not found across all makes and models. The unevenness of features gives car makers like Karma a considerable amount of opportunity to implement features to differentiate themselves from some portion of their competitors without having the risk of being a first mover in terms of expensive research and development. The 'me too' approach to features may not be a solid long term business plan but it is viable today and could remain so for a number of years given the current landscape of car technology and features. Karma automotive could use these kinds of convenience and safety features to differentiate the Revero. At this point there isn't enough information to know if they've taken this approach.
Electric vehicles are going to see huge market gains over the next several years. It would have been more forward looking for the Revero to take the natural step to become a pure electric vehicle.
At this point it doesn't look like the Revero is bringing enough value to be more than a novelty. We'll find out more in a few weeks when more details are announced!
Summary
Marketing and selling the Revero is going to be tough given the quality, performance, and features of cars on the market today. Given this competition I'm surprised Karma automotive has received funding to continue development of the Fisker Karma, now renamed to the Revero. I'll present a few reasons why the Karma Revero isn't likely to make a noticeable impact on the automotive market as well as some ways they can improve their chances by making changes to the Revero.Note that the Revero's full specifications haven't been released yet. For the purposes of this analysis I'll assume the Revero is more similar to the Fisker Karma than not. The Revero is likely to improve upon these specifications but from what information has been released about the Revero it doesn't appear that these changes will significantly change the design or cost of the car.
Hybrid drivetrain
The Revero has both a battery and a gas fueled engine, currently a 2.0 liter turbocharged engine provided by GM. The drivetrain is a series hybrid configuration. Electric motors powered by the battery drive the wheels, the gas engine powers a generator that charges the battery. The Chevy Volt is a series hybrid. The Toyota Prius and Honda Insight are parallel hybrids, their gas engines can power the wheels directly.
Hybrids have advantages of being able to refuel at gas stations to extend their range while also taking advantage of electric drive for regenerative braking and charging at home. The downsides can be cost, complexity, and efficiency. A hybrid approach means having to account for and design for a gas engine, generator, fuel tank, fuel ,and a way to cool the engine.
The Revero's shortcomings are made more severe because of its hybrid drivetrain. Weight affects efficiency. I'd estimate the weight of the gas engine and the electric generator to be around 500 lbs. There is also the weight of the radiator, coolant, engine oil, starter and alternator that might end up being another 50+ lbs. The cost spent on those components could be used instead to increase the battery size, improving the electric only range.
What about the efficiency when the gas engine is generating electricity to power the car? The Revero gets an EPA estimated 20 mpg when powering the car from the gas engine. This is much lower than a Toyota Prius that gets more than 45 mpg with its hybrid drivetrain.
Hybrids have advantages of being able to refuel at gas stations to extend their range while also taking advantage of electric drive for regenerative braking and charging at home. The downsides can be cost, complexity, and efficiency. A hybrid approach means having to account for and design for a gas engine, generator, fuel tank, fuel ,and a way to cool the engine.
The Revero's shortcomings are made more severe because of its hybrid drivetrain. Weight affects efficiency. I'd estimate the weight of the gas engine and the electric generator to be around 500 lbs. There is also the weight of the radiator, coolant, engine oil, starter and alternator that might end up being another 50+ lbs. The cost spent on those components could be used instead to increase the battery size, improving the electric only range.
Low efficiency
Miles per gallon (mpg) isn't a meaningful number for electric vehicles. Watt-hours per mile, Wh/mi, is used instead as it measures the energy required to travel some distance. The EPA estimates that the Karma takes 65 kW to travel 100 miles which is 650 Wh/mi. My Tesla Model S with a much larger battery gets around 300 Wh/mi in warm weather with an EPA estimate of 236 Wh/mile. This means the Revero consumes almost twice as much energy to travel a mile as a comparable electric vehicle of similar weight. Dropping the gas engine and electric generator would reduce vehicle weight, improving the cars Wh/mile.What about the efficiency when the gas engine is generating electricity to power the car? The Revero gets an EPA estimated 20 mpg when powering the car from the gas engine. This is much lower than a Toyota Prius that gets more than 45 mpg with its hybrid drivetrain.
Limited electric range
The Karma has an ~20kWh lithium ion battery that, combined with the 650 Wh/mi gives the car an EPA estimated range of 32 miles. Karma says that the Revero will have a 50 mile electric range. The fully electric Tesla Model S 60 kWh has an EPA estimated range of 210 miles.Environmental impact
Environmental impact can be a factor used when deciding which car to purchase. The environmental impact of electric vehicles can be difficult to determine. Electric vehicles have no emissions when driven. Their environmental impact is based instead on the environmental impact of the electricity generation used when charging. At the moment this means that where an electric car is charged can determine whether it has more or less environmental impact than a fossil fuel powered car. The advantage with electric vehicles is that their environmental impact can be improved as power generation reduces its environmental impact and as renewable power sources such as solar are increased. To reduced the environmental impact of fossil fuel powered cars this would require both improvements in their efficiency, and internal combustion engines are inherently less efficient than electric motors, and then for older, less efficient cars to be removed from the road, something that can take a number of years.Comparison
Let's compare the Revero with a few similar cars on the market today. In terms of selection criteria the cars are all in the luxury segment and were selected to be similar in terms of performance and cost. One electric and one gas car are included to provide a contrast to the hybrid approach used in the Revero. I'll be surprised if everyone agrees that these are the ideal cars to compare against the Revero. Please let me know in the comments which cars you think might be a better match.
|
|
 |
| Karma Revero | 2016 Tesla Model S 70D | 2016 BMW 550i xDrive |
| ~$100,000 | $72,000 (after incentives) | $72,000 |
| 50 miles electric | 259 miles electric | n/a |
| 650 Wh/mi | 236 Wh/mi | n/a |
| 20 mpg | n/a | 16 city / 25 highway |
| 6.3s 0-60mph | 5.2s 0-60mph | 4.3s 0-60mph |
| California | California | Germany? |
| Seats 4 | Seats 4 | Seats 4 |
Marketing
Karma automotive has put together a nice looking website. It lays out the founding principles of the company including their approach to design, and has a series of very well produced videos with Karma employees discussing the company and the car.
Karma automotive's web marketing is polished and well presented. It is likely to improve Karma's chances at selling the Revero but I wonder if marketing alone can overcome the drawbacks of the Revero when compared to other cars in its market segment.
What could Karma do to make the Revero more successful?
I've always enjoyed cars. I've tended to have jobs that required some amount of commuting and its nice to enjoy the commute. I've been following the quickly developing electric vehicle segment for years, and have drthisiven a BMW i3, Volkswagen e-Golf, owned a Prius Plug-in and now drive a Tesla Model S.Cars and car technology have been advancing steadily. Some of these advancements are minor conveniences. Car systems have been electronic for years and yet only in the past several have some manufacturers switched to a push button start system, relieving the driver from having to hold the key to drive the starter and listen for the engine to start. Some advancements have more utility. The ability to start and operate the car without having to insert the key into a slot is a noticeable convenience. Along that same line, automatically unlocking doors are great. Ever forget to lock your car when you walk away? Tesla's Model S and X will lock the doors when you walk away with the key fob. Driver assistance features are advancing rapidly. Lane departure warning systems, distance sensors for parking and backing up, backup cameras, automatic emergency braking, and autosteer are some of the technologies that are helping to make cars safer to operate.
These features are not found across all makes and models. The unevenness of features gives car makers like Karma a considerable amount of opportunity to implement features to differentiate themselves from some portion of their competitors without having the risk of being a first mover in terms of expensive research and development. The 'me too' approach to features may not be a solid long term business plan but it is viable today and could remain so for a number of years given the current landscape of car technology and features. Karma automotive could use these kinds of convenience and safety features to differentiate the Revero. At this point there isn't enough information to know if they've taken this approach.
Conclusion
What about the Revero could drive customer interest and sales? It seems possible that the car itself will only be produced in limited numbers. Owning one would mean owning a rare car. The car is unique in its styling and construction. The Revero's styling has been praised and the car is constructed of some interesting materials such as recycled wood.Electric vehicles are going to see huge market gains over the next several years. It would have been more forward looking for the Revero to take the natural step to become a pure electric vehicle.
At this point it doesn't look like the Revero is bringing enough value to be more than a novelty. We'll find out more in a few weeks when more details are announced!
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