Wal-Mart Sets The Stage To Enter the Hybrid Market, Does This Change The Market Forever?

Everyone knows Wal-Mart is alway expanding it's reach, and in it's annual “Kick-Off” meeting, CEO Lee Scott expressed the juggernaut's intentions of entering the hybrid market.

While addressing more than 7,000 store managers Scott revealed  that Wal-Mart had been positioning itself with major automotive manufacturers to market a future hybrid vehicle.

When a player with the resources of Wal-Mart enters an emerging market such as this, it typically send ripples throughout the industry.  If Wal-Mart moves forward with it's plans for a hybrid, will it forever change the way we buy cars?


Below is an excerpt from Lee Scott's address:

In the coming months, we will work with our suppliers to reduce prices on more items that have a significant impact on energy use for our customers.  Our goal is to double the sale of products that help make homes more energy efficient.
 
Let me give you an idea of what your company can do with just one item.  By doubling the amount of weather stripping that we sell, we can save customers $285 million in heating costs and save the energy equivalent of over 4,000 tanker trucks of gasoline.  This is a huge opportunity.
 
Now let me turn to something that you might think is completely out there.  I have been talking with the heads of the major auto manufacturers over the past few weeks.  And I have been asking them if there is a place for Wal-Mart in the hybrid electric or plug-in electric car market, so our customers do not have to spend so much money filling up their gas tanks.  Maybe there isn’t room for Wal-Mart in this right now.  But something tells me that there may be some role for us in the future, and we are going to continue taking a look at this.
 

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pushrod27 - 1/25/2008 2:12:43 PM

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When you have the kind of cash hoarde that Wal-Mart does, you can pretty much set yourself up in any business that you want to. So the answer is yes, they can become a player if they want to, they have considerable resources to throw at the project. The question is can they do something good enough to remain signifigant.

w209w114 - 1/25/2008 2:28:55 PM

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They should have bought Chrysler for the bargain Cerberus did and poured its resources into that by turning it all hybrid/electric.

EnnNorak - 1/25/2008 2:30:40 PM

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Older guys than myself may remember that Sears used to sell vehicles. Cars are basically a commodity these days so WallMart should do well. It starts with hybrids and, the next thing you know, WallMart will own the industry. I'll repeat what I've said before that the only good hybrids are plug-in hybrids and only if they are strictly for urban use and if power companies can be persuaded to offer low rates to hybrid customers who charge their vehicles during off-peak hours.

Porschinator - 1/25/2008 5:39:32 PM

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Did Sears sell domestic vehicles?

EnnNorak - 1/25/2008 2:34:43 PM

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w209w114, in hindsight anyone buying Chrysler would have made a bad deal so WallMart should not have bought it. I would not be surprised if WallMart simply sources its hybrids in China or India thereby avoiding all product development risks and simply pocketing retail profits.

Anthony - 1/25/2008 3:30:26 PM

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This worries me.

PlanB - 1/25/2008 4:04:17 PM

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Hopefully not in my lifetime. I know they say that cars are appliances but this isn't what I had in mind.

Porschinator - 1/25/2008 5:39:03 PM

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Hmmmm let me guess...some Chinese Auto maker? Like everything else sold in Wal-Mart comes from China. I am thinking Yugo with hybrid built-in...lol.

toolatetorace - 1/26/2008 10:45:51 AM

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They are going to set up vending machines for this program . " Please deposit exact amount " . On the other side of the coin , it seems that every time Wally World gets into another product line , the companies that make goods for they are forced to lay off scores of people because they beat them up so bad in pricing to foster thier own bottom line

lexusis350 - 1/26/2008 3:49:08 PM

+2 Boost

Wow. And I thought Chinese cars were cheap. Wal-Mart is the most miserable store on the planet, I hate to think of the cars they might make.