GM and Segway Announces "PUMA" (Personal Urban Mobility and Accessibility)

GM and Segway are demonstrating this week their new vehicle model called "PUMA" (Personal Urban Mobility and Accessibility"). This is a two-wheeled, two-seater self-balancing vehicle that can run at up to speeds of 35mph and go on electric charge for up to 35 miles between recharges, using lithium-ion battery.

General Motors says that this vehicle "could allow people to travel around cities more quickly, safely, quietly and cleanly, and at a lower total cost." General Motors says that this "vehicle also enables design creativity, fashion, fun and social networking," according to a press release.

Both companies didn't reveal any hint about the exact pricing, but reports indicate that it could be anywhere between 1/4^th to 1/3^rd the price of a traditional car, which should make us think that the price tag may be in the range of 5000 to 6000 dollars.

Now the questions are:

Would consumers end up buying this vehicle for a price tag of 5000 to 6000 dollars when it can only go at 35mph speed? Would consumers be willing to risk the safety aspect of using this on the roads of US cities, especially busy the ones like New York, Chicago, etc? Would consumers be willing to buy the idea of riding in this only to be surrounded by bigger cars, vans and SUVs, Trucks ,etc and not to mention the famous cabs of New York City? Would consumers be willing to put up with the requirement to recharge every 35 miles?

It should be mentioned that GM may also have some competition from India's Tata Motors who recently released the World's cheapest car at a price tag of $2000. The car currently is tailored to meet the less strict Indian safety standards, but Tata Motors says it is working on a US version of it, and is considering the launch of it by 2011. Let us say Tata Motors comes out with a price tag of this is US version at $3000 to $5000 (double the price of the Indian Version). Then, would US Consumers be more inclined towards buying a Car at the same price of PUMA, a car that can be driven not only in the city roads, but also on the highways too?

The answers to these questions will dictate whether GM will need yet another tax payer bailout of research and manufacturing money spent on this PUMA model OR will PUMA be so successful that GM will be able to pay back a part of the bailout money to the taxpayers?

Only time can answer all these questions. Let us wait and see. We can only hope, in the interest of the tax payers, that GM is making use of bailout money given to it in choosing to manufacture products that will help GM turn profitable..

Sources:

http://www.crunchgear.com/2009/04/07/gm-and-segway-announce-two-wheeled-urban-transport-vehicle/

http://www.motorauthority.com/tata-working-on-nano-for-the-us.html

http://media.gm.com/servlet/GatewayServlet?target=http://image.emerald.gm.com/gmnews/viewpressreldetail.do?domain=827&docid=53538