Ford

Ford Decides Paying for Ads Is Stupid

Ford

Ford CEO Jim Farley has said he sees little reason for the automaker to bother using traditional advertising campaigns for electric vehicles. Considering how often I see the Ford logo grace whatever screen I happen to be peering into, this would seem to go against everything I’ve been conditioned to accept. However the company believes its EVs practically sell themselves already, with the executive noting that the Mach-E has been sold out for quite some time.

“I’m not convinced we need public advertising for [electric vehicles] if we do our job,” Farley said during Wednesday’s Bernstein Strategic Decisions Conference. 

First reported by Bloomberg, Blue Oval has opted to copy Tesla’s playbook and forego traditional advertising. Farley himself noted that the EV brand saves itself a bundle by circumventing the dealership model (something a lot of legacy manufacturers are now trying in Europe). Ford figures it can help offset some of the $50 billion it plans on spending to develop EVs through 2026 by scaling back its marketing efforts.

The CEO also noted that he envisions the Detroit automaker tweaking its relationship with dealerships in the U.S. to focus on service after the sale. This likewise apes the Tesla model and is broadly in line with some of the sweeping changes the industry is now considering we outlined in a recent article. But the abridged version is that there will be consolidation/vertical integration — and plenty of it.

“Our dealers can do it, but the standards will be brutal,” Farley said. “Their business will change a lot and there will be a lot of winners and losers and, I believe, consolidation.”

From Bloomberg:

Ford is one of the nation’s biggest advertisers, spending $3.1 billion last year promoting its products. But Farley wants to emulate Tesla Inc., which controls the US market for EVs despite not buying traditional advertising. He said Ford hasn’t needed to advertise its new F-150 Lightning plug-in pickup and that it stopped promoting its electric Mustang Mach-E because “it’s sold out for two years.”

“We spend $500 to $600 per vehicle on public advertising. Get rid of all of it,” Farley said. “If you ever see Ford Motor Co. doing a Super Bowl ad on our electric vehicles, sell the stock.”

There are a few ways of looking at this. You can either see Ford noticing that Tesla doesn’t have a marketing budget and manages to trade well due to its hype on social media and the press spending the last few years talking about nothing else, you can suppose it doesn’t make sense to spend money advertising vehicles that aren’t currently available, or you can view this as a retreat from the EV space.

I can’t quite put my finger on it but something tells me that many legacy automakers haven’t been as committed to EVs as originally claimed. The industry has been spending billions on “mobility projects” that have helped get EVs to market. But I would hazard a guess that a large portion of that money went toward building data centers, advancing vehicular connectivity, and purchasing ancillary tech firms manufacturers assumed would explode in value or head the next great breakthrough in self-driving cars. Autonomous vehicles have been promised to us since Firebird II was filmed cruising down a fly-by-wire highway in 1956. But any practical application has always been “a few years away.” Even today, the technology seems a little too finicky to be reliable and the legal implications are so vast that it would probably take lawyers years just to agree upon who is ultimately to blame when something does go wrong.

But this didn’t stop automakers from marketing these technologies before they existed. Nor has it prevented them to promote some of the advanced driving aid systems that emerged as a direct result of the research.

Electric cars have had a better track record overall and were even commonplace as urban runabouts in the early days of the automobile. They’re tangible and can be bought today from an array of brands. But they’ve also cost the industry a lot of money and will continue to because that’s the nature of development. Ford presumably understands this better than anyone and has elected to hedge its bets while it doesn’t yet have the manufacturing capability to flood the United States with EVs.

Viewed from this angle, a lofty advertising budget dedicated to all-electric vehicles seems like a bit of a boondoggle.

Despite EVs having made some serious headway in specific markets, often with the aid of government mandates, the United States is typically at the bottom of the list. Meanwhile, the world is beginning to confront a situation where sourcing the materials necessary for battery production is assumed to get substantially more difficult and expensive. I’m assuming Ford simply sees no upside to marketing EVs until it has another one on offer and simply wanted to make a big deal out of the issue to draw some Tesla-like media coverage for itself. Successfully, I might add.

[Image: Ford Motor Co.]

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Impacts of Information Technology on Society in the New Century

In the past few decades there has been a revolution in computing and communications, and all indications are that technological progress and use of information technology will continue at a rapid pace. Accompanying and supporting the dramatic increases in the power and use of new information technologies has been the declining cost of communications as a result of both technological improvements and increased competition. According to Moore’s law the processing power of microchips is doubling every 18 months. These advances present many significant opportunities but also pose major challenges. Today, innovations in information technology are having wide-ranging effects across numerous domains of society, and policy makers are acting on issues involving economic productivity, intellectual property rights, privacy protection, and affordability of and access to information. Choices made now will have long lasting consequences, and attention must be paid to their social and economic impacts.

One of the most significant outcomes of the progress of information technology is probably electronic commerce over the Internet, a new way of conducting business. Though only a few years old, it may radically alter economic activities and the social environment. Already, it affects such large sectors as communications, finance and retail trade and might expand to areas such as education and health services. It implies the seamless application of information and communication technology along the entire value chain of a business that is conducted electronically.

The impacts of information technology and electronic commerce on business models, commerce, market structure, workplace, labour market, education, private life and society as a whole.

1. Business Models, Commerce and Market Structure

One important way in which information technology is affecting work is by reducing the importance of distance. In many industries, the geographic distribution of work is changing significantly. For instance, some software firms have found that they can overcome the tight local market for software engineers by sending projects to India or other nations where the wages are much lower. Furthermore, such arrangements can take advantage of the time differences so that critical projects can be worked on nearly around the clock. Firms can outsource their manufacturing to other nations and rely on telecommunications to keep marketing, R&D, and distribution teams in close contact with the manufacturing groups. Thus the technology can enable a finer division of labour among countries, which in turn affects the relative demand for various skills in each nation. The technology enables various types of work and employment to be decoupled from one another. Firms have greater freedom to locate their economic activities, creating greater competition among regions in infrastructure, labour, capital, and other resource markets. It also opens the door for regulatory arbitrage: firms can increasingly choose which tax authority and other regulations apply.

Computers and communication technologies also promote more market-like forms of production and distribution. An infrastructure of computing and communication technology, providing 24-hour access at low cost to almost any kind of price and product information desired by buyers, will reduce the informational barriers to efficient market operation. This infrastructure might also provide the means for effecting real-time transactions and make intermediaries such as sales clerks, stock brokers and travel agents, whose function is to provide an essential information link between buyers and sellers, redundant. Removal of intermediaries would reduce the costs in the production and distribution value chain. The information technologies have facilitated the evolution of enhanced mail order retailing, in which goods can be ordered quickly by using telephones or computer networks and then dispatched by suppliers through integrated transport companies that rely extensively on computers and communication technologies to control their operations. Nonphysical goods, such as software, can be shipped electronically, eliminating the entire transport channel. Payments can be done in new ways. The result is disintermediation throughout the distribution channel, with cost reduction, lower end-consumer prices, and higher profit margins.

Buick Going EV Only After 2030, Gets New Logo

Buick Going EV Only After 2030, Gets New Logo

On Wednesday, Buick formally committed itself toward an “all-electric portfolio” by 2030 — saying that it would be embarking on a brand transformation that would fundamentally change the company forever. This includes an entirely new horizontally oriented badge that doesn’t stray too far from Buick’s traditional tri-shield design.

“The Buick brand is committed to an all-electric future by the end of this decade,” stated Duncan Aldred, global vice president, Buick and GMC. “Buick’s new logo, use of the Electra naming series and a new design look for our future products will transform the brand.”

This decision is wholly in line with General Motors’ overarching efforts to become a zero-emissions automaker prioritizing all-electric vehicles and could work particularly well for Buick, which sees the majority of its sales in China. The Chinese Communist Party (CCP) has mandated that the nation ban the sale of all internal-combustion vehicles by 2035 with increasingly stringent emissions requirements being required for preceding model years. Europe, Canada, and the State of California have imposed similar timelines for their gasoline bans. However Chinese automakers have issued self-imposed bans targeting 2030 in anticipation and have been joined by multiple manufacturers based in the West.

The transition for Buick will be particularly swift. Under its current strategy, the automaker does not plan to launch any new internal-combustion vehicles after 2024. This is roughly the time its first EV (the Electra) is scheduled to arrive and will coincide with efforts to gradually remove gasoline-driven vehicles from its North American lineup.

Though the related presentation spent very little time talking about Buick’s product planning to outline changes to branding. In addition to the new logo, Buick is also intent on using new naming conventions, typography, and marketing tactics — saying the swap would take place over the next twelve-to-sixteen months.

From GM:

The new badge, which is the first significant change to the emblem since 1990, will be body-mounted onto the front fascia of Buick products starting next year. No longer a circular logo, the badge incorporates a sleek, horizontally aligned layout that builds upon Buick’s recognizable tri-shield. The redesigned columns of the tri-shield, which have roots in company founder David Dunbar Buick’s ancestral heraldry, incorporate fluid movements that will be found in future vehicle design.

“Our forthcoming products will adopt a new design language that emphasizes a sleek, dynamic and forward-looking appearance,” said Sharon Gauci, executive director, Global Buick and GMC Design. “Our exteriors will incorporate fluid movements that contrast with tension to convey motion. Interiors will balance modern design, new technologies and attention to detail to evoke warmth and a rich sensory experience.”

The brand previewed the Buick Wildcat EV concept (pictured) to help illustrate what the new design language could mean for the streets. However, GM was hesitant to confirm it for assembly, saying instead that aspects of its design would be apparent in the production vehicles going forward. It also plans on using the “Electra naming series” to come up with monikers for all subsequent vehicles — which we were told would be crossovers.

That’s kind of a shame. The Wildcat has a storied history and was arguably one of the company’s better products until it was ruined (like so many other American cars) by the 1970s. Basically indistinguishable from the LeSabre, GM pulled the plug on the model right as the decade started. Regardless of past tragedies, the concept isn’t bad to look at (even if it does resemble a Toyota/Lexus product) and customers will probably be pleased to see future Buick designs offering a little more attitude. There’s just no hope of the vehicle you’re seeing here actually making it into production. The Wildcat EV isn’t even sized in a way that would make it possible to use GM’s Ultium platform. It’s simply a design study designed to hype consumers about Buick’s pending all-electric future without serving as a direct representation of the forthcoming automobiles.

“Our forthcoming products will adopt a new design language that emphasizes a sleek, dynamic and forward-looking appearance,” said Sharon Gauci, executive director, Global Buick and GMC Design. “Our exteriors will incorporate fluid movements that contrast with tension to convey motion. Interiors will balance modern design, new technologies and attention to detail to evoke warmth and a rich sensory experience.”

But there is a potential catch here. Despite the langue indicating that Buick will forego gasoline-powered models entirely by 2030, it has left itself an out by tying EVs to the Electra name. This theoretically would allow the automaker to walk back promises of total electrification by making EVs into their own sub-brand in a manner similar to Cadillac. However, the automaker has not explicitly said this would be the plan, only that all subsequent Buick EVs would use the Electra naming convention. As things currently stand, Buick has famed itself as wholly committed to electric cars.

[Images: Buick]

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The Ford Festiva, a Subcompact and Worldwide Kia by Mazda (Part IV)

The Ford Festiva, a Subcompact and Worldwide Kia by Mazda (Part IV)

We reached a conclusion to the first Ford Festiva (or Kia Pride, Mazda 121, SAIPA, etc.) in our last installment, which saw the little hatchback finalize its Ford duties in 1993 and its Kia responsibilities in 2000. And while it continues life today as a Wallyscar in Tunisia, our coverage here moves on to Ford’s not-so-anticipated follow-up entry to Festiva, another Festiva! It’s an Aspire to you.

As we learned last time, the Festiva lived its Best Life with a Kia badge on the grille. Produced in South Korea (alongside North American Festivas) and sold in most markets, the Pride continued on through the Nineties as Ford worked up another subcompact hatchback. The new car would occupy the same dealer lots as the Pride in many places but would be sold in other places as a Ford.

Ford noticed the success Kia had with the Pride and enjoyed all the capacity provided by the South Korean manufacturer in which it owned a 17 percent stake. This time, when work started on a Festiva successor Ford didn’t invite Mazda to the meeting. Instead, the Blue Oval worked with Kia directly on a new car, as a joint project.

Ford wanted to save as much cash as possible, so it used the existing Festiva platform as a starting point. Affixed to the ’86 chassis was a more modern-looking body, which wore European-type influences instead of Eighties Japanese econobox cues. First to go was the flat front end with its squared-off bumper, rectangular lamps, and dated tape stripe appliques.

Festiva’s new front end was about as generic as it was before, really. Lamps were more rounded than before, which combined with large indicator lenses to form a loaf of bread shape. The sculpted hood lead to a rectangular grille that was much more modern looking than before, with Ford’s unadorned logo in the center. The bumper was offered in a couple of different styles by trim, and had either an open lower grille or was divided by vertical body-colored segments.

The A-pillar was more relaxed on the second-gen Festiva, which gave the whole hatchback a more aerodynamic shape. Down the side, a smooth fender picked up a firm character line that carried on through the doors and to the rear, as before. The secondary character line under the side windows of the Festiva was softened considerably for the second generation. Simple black dogleg door handles ported over directly to the new car.

Much like the front, the rear of the new Festiva was considerably more rounded, with sportier intentions and less focus on practicality. Gone were the hard edges of the roof and nearly square tailgate. In their place was a much faster C-pillar, and a tailgate with a sloped, larger rear window.

The tailgate was shaped around the new rear lamps, which were larger and more rounded than before. Rear lenses took a horizontal orientation over vertical, and wrapped softly around the rear fender. Below, the new Fiesta’s bumper stuck out further than before and no longer contained a small cut-out for the exhaust.

Unlike the prior Festiva which arrived as a lone three-door initially, Ford was keen to give buyers more choice from the get-go with its new model. The new Festiva debuted with three-, four-, and five-door styles, as hatch, sedan, and larger hatch respectively.

Inside, the Festiva attempted to look more modern on a tight budget. The Mazda gauges, steering wheel, and other components were replaced by parts from Kia. The same basic economy layout was maintained but was softened in keeping with Ford’s styling of the day. To save costs on door panels, models with power windows had their switches placed in the center of the dash above the HVAC. Vents were of course rounded, but in the exact same location as on the old Festiva. Taken as a whole, the new Festiva’s interior looked a lot like an additional layer of rounded plastic was placed directly over the old design.

Though it rode on the same platform, the new Festiva was larger than its predecessor in all dimensions. The wheelbase of the new car increased marginally for three-door examples, from 90.4 to 90.7 inches, and for the first time, the five-door and sedan versions used a longer wheelbase (93.9″).

Width increased notably on the new car, from 63.2 inches to 65.7″. Hatchback versions of the new Festiva lost a bit of height, 56.7 inches over the old car’s 57.5″ given their faster roof design. But the sedan was taller than before with its square roof, at 57.9 inches. As expected, a modernized and larger car weighed more: Festiva’s weight of 1,540 to 1,720 pounds ballooned to between 1,810 and 2,070 in the new car.

The new, larger Festiva upgraded its suspension to MacPherson struts at the front but maintained the same torsion beam rear suspension it had in 1986. To cope with the extra weight, the top engine on the old Festiva became the base engine on the new one. Available in all markets, the 1.3-liter Mazda B3 engine had eight valves, TBI, and made 63 horsepower and 74 torques.

Newly available was a larger 1.5-liter engine, the B5. The B5 had modern electronic fuel injection, 16 valves, and made 88 horsepower and 99 torques. Unfortunately, this more desirable engine was confined to the Asian and Australia/New Zealand markets. Transmissions were similarly segregated: Mazda’s old three-speed auto was the only automatic in North America, offered alongside a five-speed manual. Australian examples also suffered with the three-speed, but other markets had a four-speed automatic from Ford.

When it put the new Festiva on sale in 1994, the new hatchback maintained its identity in most markets. North America was an exception, where Ford wanted to distance itself from an unsuccessful product. The name switched to Aspire, and Ford was sure the new car would be a quick sell. Aspire was offered in three- and five-door variants; the sedan was off-limits.

For its debut year, the three-door hatchback was sold in two trims: Standard for $8,525 ($16,858 adj.), or sporty SE at $9,190 ($18,173 adj.). The five-door had only a standard trim and asked $9,150 ($18,094 adj.). The SE was visibly identified by the presence of a zesty rear spoiler, fog lamps at the front, some nice alloy wheels, a nicer interior, and blue backing for the gauges.

Elsewhere, Ford differentiated the Aspire via safety. It was the first subcompact offered with dual airbags as standard. ABS was an optional extra, too.

The Festiva remained unchanged for its first three years but received a visual refresh for model year 1997. The revisions were mostly limited to the front clip, where Festiva adopted a rounded front end that was more compliant with Ford’s Nineties corporate look. Rounded headlamps blended into clear indicator lenses to form a continuous oval. The oval theme was repeated on the grille, where the Blue Oval sat inside a body-colored oval, within the larger oval grille opening. That’s oval to the third power!

Underneath, the lower bumper valance was another oval, bisected with a thin egg-crate grille that sported two ovoid faux air inlets on either side. The bumper was finished with an amber reflector in front of the front wheel. The new Festiva’s front end was more sloped than the old car, and its hood was sculpted around the headlamps to give some visual interest. Festiva’s rear end received a more rounded bumper but was otherwise unchanged for the facelift.

In North America, the Aspire was not a successful car. The SE model was dropped after 1995, as the two base versions carried on for Aspire’s final years. Facelifted Aspires are rare, as Ford dropped the model from its North American lineup after 1997. Ford went without a subcompact in the market until 2011, with the introduction of the new Fiesta.

Kia put its version of the Festiva on sale in the South Korean market in 1994 and called it Avella. Kia was well-prepared, with the almost unhinged marketing above. South Korean customers could buy all three body styles of the Avella, and the Avella sedan in particular looked a lot like a later Chevy Metro sedan (remember those?) at the back. That body style was important to the South Korean market, as sedans of any size were seen as more desirable and upscale than hatchbacks.

Initial sales of the Avella were promising but dropped off quickly. It carried on in South Korea through 1999 and Kia’s export markets through 2000 and died the very same year as the much more popular Pride upon which it was based. Both the Pride and Avella were effectively replaced by the Rio, under Kia’s new management by Hyundai.

The Festiva was marketed once more as a Ford in the Japanese market, though this time its examples were all produced in South Korea. Festiva was once again unpopular there, and it was dropped in 1996, even prior to North America’s cancellation. Ford wasn’t ready to throw in the towel on the Festiva name in the Japanese market and had a new car ready immediately.

It was the first generation Mazda Demio (1996-2002). The cute, tall hatchback was closer to the idea of the original Festiva and was marketed as the Ford Festiva Mini Wagon. It sold through Ford’s Autorama dealership for Japanese customers who didn’t want their hatchback badged as a Mazda, for whatever reason.

The Demio lived on as a Festiva in Japan through the end of its first generation. Elsewhere it was sold as a new Mazda 121 and was generally popular. For Demio’s replacement in 2003, Mazda began to move away from such boxy styling and transitioned into a more expected tall hatchback shape.

With the new shape, it also wore a new model name in many markets: Mazda 2. You’d eventually know the 2 first as the Mazda2, then the Scion iA, then Yaris iA, then Yaris Sedan. Today, the Mazda2 just entered its most recent generation as a rebadge of the Toyota Yaris.

And so the tale of Festiva and Festiva (Aspire) comes to its conclusion. Ford’s primary takeaway might’ve been that no matter if designed by Mazda or Kia, a Ford-branded subcompact hatchback was a hard sell the Eighties or Nineties.

[Images: Ford, Kia, Mazda]

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Some Information About Automobile Engineering

Automotive engineering is the field of engineering that deals with the production, manufacture, design, research and development pertaining to vehicles such as cars, trucks, etc. The career field for this section of engineering is broken up into three broad categories, namely – production, development and manufacturing. The production field deals with the designing and testing of the engines, transmission related parts and other portions that will help to assure safety, reliability and performance. The development field deals with the coordination of the overall design and the setting of the specifications of various individual parts is done in this specialization category. The manufacturing of various parts as well as the final assembly of the entire machine is done in the manufacturing field.

There are two paths that you can take if you want to be an automotive engineer – mechanical engineering and automotive engineering technology. Since the result of both the courses is more or less the same the basic requirements for both the courses are not too different from each other. You are required to have a background of physics, chemistry and mathematics in your early academic career but, since automotive engineering does require computer usage in the form of Computer Assisted Design and Modeling you will have to incorporate computer courses in your educationally formative years.

If you are looking into the production field and want to be a production engineer then you will need to take up courses in BSc in automotive engineering technology. This degree will help you to work on the designing and testing of specific components and safety measures. The study course will give most importance to applied design and testing. The schools with the best records for this degree are the Ferris State University in Michigan and the Arizona State University. The schools are also known to give internship programs that allow you to learn while on the job.

Getting a BSc degree in mechanical engineering will provide you with work related to the broader dimensions in terms of the design and manufacture of automobiles. The basic courses will give due credence to physics, chemistry and mathematics as they are the backbone courses of any engineering degree. Apart from this the school will also provide courses in analysis, design and the theory of the engineering involved by means of extensive laboratory work. Along this path you will find that the specialization in this field will be quite limited at the undergraduate level. Aspirants for automotive engineering have been known to basically focus on the preparation for graduate school. At the Master’s level most courses are focused on the study of electrical and mechanical engineering aspects that are applicable to vehicles, the systems design and methods of analysis on an advanced level. The course generally takes approximately two years and in most universities like the one in Michigan the courses that are offered require about 30 semester hours of study time.

At the end of the courses you will need certification and the certification exams will be offered by certain organizations like the Society of Automobile Engineers and the American Society for Mechanical Engineers.

What Is the Relevance of Technology?

“Technology in the long-run is irrelevant”. That is what a customer of mine told me when I made a presentation to him about a new product. I had been talking about the product’s features and benefits and listed “state-of-the-art technology” or something to that effect, as one of them. That is when he made his statement. I realized later that he was correct, at least within the context of how I used “Technology” in my presentation. But I began thinking about whether he could be right in other contexts as well.

What is Technology?

Merriam-Webster defines it as:

1

a: the practical application of knowledge especially in a particular area: engineering 2 <medical technology>

b: a capability given by the practical application of knowledge <a car’s fuel-saving technology>

2

: a manner of accomplishing a task especially using technical processes, methods, or knowledge

3

: the specialized aspects of a particular field of endeavor <educational technology>

Wikipedia defines it as:

Technology (from Greek τέχνη, techne, “art, skill, cunning of hand”; and -λογία, -logia[1]) is the making, modification, usage, and knowledge of tools, machines, techniques, crafts, systems, and methods of organization, in order to solve a problem, improve a preexisting solution to a problem, achieve a goal, handle an applied input/output relation or perform a specific function. It can also refer to the collection of such tools, including machinery, modifications, arrangements and procedures. Technologies significantly affect human as well as other animal species’ ability to control and adapt to their natural environments. The term can either be applied generally or to specific areas: examples include construction technology, medical technology, and information technology.

Both definitions revolve around the same thing – application and usage.

Technology is an enabler

Many people mistakenly believe it is technology which drives innovation. Yet from the definitions above, that is clearly not the case. It is opportunity which defines innovation and technology which enables innovation. Think of the classic “Build a better mousetrap” example taught in most business schools. You might have the technology to build a better mousetrap, but if you have no mice or the old mousetrap works well, there is no opportunity and then the technology to build a better one becomes irrelevant. On the other hand, if you are overrun with mice then the opportunity exists to innovate a product using your technology.

Another example, one with which I am intimately familiar, are consumer electronics startup companies. I’ve been associated with both those that succeeded and those that failed. Each possessed unique leading edge technologies. The difference was opportunity. Those that failed could not find the opportunity to develop a meaningful innovation using their technology. In fact to survive, these companies had to morph oftentimes into something totally different and if they were lucky they could take advantage of derivatives of their original technology. More often than not, the original technology wound up in the scrap heap. Technology, thus, is an enabler whose ultimate value proposition is to make improvements to our lives. In order to be relevant, it needs to be used to create innovations that are driven by opportunity.

Technology as a competitive advantage?

Many companies list a technology as one of their competitive advantages. Is this valid? In some cases yes, but In most cases no.

Technology develops along two paths – an evolutionary path and a revolutionary path.

A revolutionary technology is one which enables new industries or enables solutions to problems that were previously not possible. Semiconductor technology is a good example. Not only did it spawn new industries and products, but it spawned other revolutionary technologies – transistor technology, integrated circuit technology, microprocessor technology. All which provide many of the products and services we consume today. But is semiconductor technology a competitive advantage? Looking at the number of semiconductor companies that exist today (with new ones forming every day), I’d say not. How about microprocessor technology? Again, no. Lots of microprocessor companies out there. How about quad core microprocessor technology? Not as many companies, bu