The Dyson Car - Is Not Coming
Dyson, maker of hand dryers and vacuum cleaners, is not going to be a maker of electric cars. The company has abandoned its electric car program, because—in the words of founder James Dyson—"we simply can no longer see a way to make it commercially viable." A buyer for the division could not be found. (Fortune)
James Dyson, the British billionaire and inventor best known for his innovative vacuum cleaners, has decided to abandon his effort to build an electric car.
"Though we have tried very hard throughout the development process, we simply can no longer see a way to make it commercially viable," Dyson said in an email to staff. Dyson told employees they had successfully "developed a fantastic car," but the company could not figure out how to make money on it.
Simply, with Chinese players, the electric car-making sub-sector is already over-crowded. Many new Chinese makers are also struggling. Tesla, at $45 billion market valuation, is clearly part of the winning equation. Competing against it and BYD will be hard for new entrants even as traditional car firms re-calibrate.