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Technology Stocks : Automobile technology and business management
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From: Arthur Tang6/30/2008 3:12:56 PM
of 44
 
The latest technology of automobiles were plastic parts or plastic car. The weight is lighter but fuel consumption did not improve by much.

The electronics technology however did improve outside of car industry. Namely mass produced cheap accelerometer, use in Apple iphone touch screen.

The accelerometer made of silicon can be used with engine computer, to enable coasting more efficiently. If you are running small engine on big cars, you can run at 3500-4000 rpm. When you coast the car, your engine will be running at 700 rpm idling speed. The engine computer will idle, when you car coasts, and run at 3500-4000 rpm when you accelerate again. This approach is very good in saving fuel.

But big car has to use small engine. Big car with big V8 engine will be running at 2000 rpm, and not much savings when the engine coast at 700 rpm. But there will be savings anyway, just not as much.

American cars built this way will meet federal fuel consumption standards. And silicon technology is ready to be used with smaller engines for coasting by momentum of weight of car and passengers. Car aerodynamics and narrow tire treads will help to save fuel, even more.

So, GM and Ford may be on the wrong business planning now. The future is not impossible, but rather bright if consumers are for big cars with smaller engine(100 hp), not getting caught dead in smaller cars.
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