Carmakers Turn Into Toy Makers

April 7, 2009 Anders Bylund writing for Motley Fool reported that back in 2000, the world was aflame with excitement over Dean Kamen and his top-secret "Ginger" technology. "As big a deal as the PC," said Apple CEO Steve Jobs -- and Jeff Bezos of Amazon.com also backed the two-wheeled opportunity.

And then everything stopped. The Segway never made the big splash it was supposed to.

Now the Segway is back in the news with a well-known partner. General Motors plans to sell the PUMA -- a Segway-like mini-car for city traffic -- starting in 2012. Will this thing save both companies? Could Toyota and Honda be left flat-footed by a confluence of genuine, all-American know-how?

I don't think so. At least, not in the form GM is planning to show this week. Let me put it this way: Would you drive a high-powered electric wheelchair in city traffic?

Didn't think so.

Kamen's intentions with the Segway were admirable, and still shine through in its GM-kissed incarnation: Remove bulky 4,000-pound machines from busy city streets and replace them with something far lighter, more efficient, and safer. But the safety goal looks far away right now.

If everybody had a "Segwrolet" or a "Saturway," then the problem would be solved. A high-tech navigation system plus extreme maneuverability are selling points, but the safety issue remains a concern. Run an Escalade into one of these contraptions and tell me who walks away. "Sorry, sir -- my forehead made a dent in your bumper."

Even a Corolla or a Nissan Motor Sentra looks fearsome when you're strapped into a tiny, one- or two-person people mover -- like this PUMA. Until the population of Seg-something drivers reaches critical mass, I don't see anyone really wanting one. It's the chicken-and-egg syndrome. This time, nothing comes out first.

Back to the lab again, guys. I know that Segway wants to go public, and maybe hopes to use this product as a springboard for those ambitions. Best of luck. I'm not holding my breath waiting for that IPO. The PUMA can't save anybody.