>> here goes nothing. >> we are finding it, we are testing it, we are there as they build it. we are on a quest to show you the most cutting-edge companies on the brink of the future. >> tonight i will go to a fish farm called an aqua pod. the will check into hospital of the future. >> and we will take a road trip to the super green car factory in america's heartland. next to a car manufacturer. >> that is right. >> bloomberg brink.

companies that break the mold. and the future of technology, design, and industry. >> so far in our quest to find innovative companies and people i have gotten to go to chicago and new hampshire. went into mexico. what were you doing? >> i was snorkeling around an aqua pod. >> first of all, what is an aqua pod? i thought fish farms had a bad rep. >> some of them do. a lot of them are close to shore. what aqua pods are doing, they are moving it into the open ocean and producing fish in a more sustainable way.

>> the oceans are in trouble. we have to think about improving the conditions of the fish. growing farms by in the open ocean. >> the technology is leading the advancement of the technology to make open ocean fish farming sustainable and profitable. >> i think this is going to open up new territories. this is going to revolutionize agriculture. >> went over, we are ready.

>> we are about to see one of our cages being raised. all right, here comes the fish farming system of the future. >> it looks like it is from the future. how many do you have? >> right now we have four. it is designed for 10. farms likee many this so what is the advantage of using the aqua pod? >> the difference between building a tent or a house. this is like a tent. it is flexible. it won't hold up to a hurricane. the aqua pod is a structure. it is totally enclosed and it has metal mesh on it. it has an entire framework. >> what we're are doing with these fish farms is developing a profitable, sustainable, system. we can change the way people are growing fish and produce high-

fish farmingin. >> developed over the last 40 years close to shore. there are advantages to the open ocean. there is much more real estate. areish farming grows, there not going to be enough places close to shore. my background is this kind of fish market. the idea came to me wh said we really can't sustain this in a safe way. >> can we get a closer look? >> let's go see it. what are they doing right now? they are cleaning it. >> that is right. every farmer has to keep the r clean. anything in the ocean gets algae very quickly. what we have done to develop something that can be brought to the surface and because of its shape, it can be rotated. on part of it can be washed

the surface. that makes it unique. clean pens, healthy fish. on top ofgoing to be the aqua pod. >> ok. it is like rock climbing. >> yeah. almost there. >> this is amazing. so what is the impact on the surrounding ecosystem? >> we have seen a very positive impact. are fishpods aggregating devices. every time we go out, we see schools and schools of fish. >> of this event creditors from coming in but it also allows for that waste -- this event creditors -- predators and coming out. offshore with high

currents, the currents take away any remains that stay on the cage. >> lunchtime? >> for the fish. that is correct. the hatch opens. look at the clarity of the water. is to have a not abated feeding system that will feed the cages we plan to have. ands remote controlled every cage gets what it needs every day. >> let's feed these suckers. all right. >> it is custom made feed. there you go. can i jump in? here goes nothing. what are the greatest challenges on senate -- the selling clients on the technology? >> the new people who want to get into aquaculture, that is a

steep learning curve. the other challenge is the existing farmers using surface clients. a multitude of questions. there is skepticism from the general public in terms of how they work, and there is skepticism from the traditional existing fish farms that this can be done in the open ocean. we have a lot to prove. >> how much does a fish farmer have to invest into this technology? >> the initial investment is high. we are talking about tens of millions of dollars. it is a farming system that is probably not suitable for small aquaculturies, but yes for a medium-sized company. >> we acknowledge the fact that setting up an open-ocean fish farm is going to be challenging. this is precedent setting, and precedence doesn't happen quickly. we have investors who realize that what we are doing is cutting edge, it is new. we're very confident that by the

end of this year we will be profitable. >> we think we can achieve profitability between 10 to 15 aqua pods. >> how many fish does that mean? >> about 40,000 per aquapod. >> a lot of fish. >> a lot of fish. >> what is the future of the expansion of the aquapod system? >> it is a huge future. we are looking at worldwide expansion. we have aquapods in asia, in latin america. definitely our market is global. >> we are going to change the perception not only of the industry, but also public perception, which has largely been negative about fish farming because there are so many conflicts. >> we see farming going offshore where the conditions are so much better for environmental sustainability. people really getting tuned in that we need to produce fish and do it sustainable to feed ourselves, to feed future generations, and to do it better than we have been doing it in the past. >> i have spent some time in

hospitals. i can tell you they don't usually look like this. >> this is a living lab. ♪

>> rachel, i went to see palomar medical center, which bills itself as the hospital of the future. when i got there, it was weird. it did not feel like a hospital. that is partly because they have rethought the entire building, and they have built it entirely, from the ground up. it incorporates all of the new thinking and technologies that are trying to address inefficiencies in healthcare. >> that is great for palomar, but what about the established hospitals out there that are not starting from scratch? what can they take and learn from palomar? >> palomar thinks of itself as a laboratory for healthcare technology. many of the innovations that they are pioneering right now might well be rolled out to older, established hospitals in the future. >> we are headed to this new hospital.

it is brand-new. they basically started with a clean sheet on how to design a hospital and the equipment they have within it. the hope is to create something more efficient, better for patients, and able to handle a lot of the stresses the healthcare system is going to encounter in the future. >> how do you build today that allows you to go into that future? whatever we were going to build needed to be very patient centric, flexible. the challenge for us is, how do we take two steps for every 10 that we take today? technology can help us get there. >> i would imagine that in a lot of hospitals and institutions in general, there is a resistance to innovation. >> this is a living lab in its own way. if you have an idea and you want to test it out, we are willing to take a look at that and help make you better in that process. >> hi, i am sam. >> hi, sam, welcome to san diego. >> i have spent some time in hospitals.

fortunately not a lot. i can tell you they don't usually look like this. >> that is our objective. >> you have succeeded. it seems more like a hotel. >> definitely not medical. you'll get that feel as you explore this building. this is the result of a healthcare bond that was passed in california, the largest healthcare bond in california history. >> how much did this whole operation cost? >> this hospital is about $1 billion. >> excellent. >> the first thing you do when you come in is you get registered. >> which usually means a clipboard and about 38 pages of paper. >> that's right, but we don't do that here. >> please come closer to the camera. we have finished taking pictures of your eye. >> that was it. >> can move my head now? >> yes, you can. >> you are done, you are now registered. in a hospital when tests are ordered for you, we can accurately identify all of that information and associate it with you to make sure that all of the records are stored in one place. >> you guys are not only rethinking registration, but all

aspects of the hospital experience with things like monitoring vital signs. when i think of the times i have been in the hospital, vital signs have been exceedingly annoying. >> we have jim moon with us today from sotera wireless company. this is the old way of doing spot-check monitor. we are the first hospital in the world to implement this next generation physiological monitoring platform. >> the device itself is a small, wrist-worn device that goes on the patient's arm. very lightweight. all of the vital sign data flows wirelessly from the patient to our system and into the electronic medical record. that frees nurses up to do what nurses should be doing, caring for patients, rather than keeping records. >> i am here with melissa. >> hi. >> what can you tell me you are doing here? >> i am hooking up electrodes to you so we can start getting your heart rate, your skin temperature. >> this way? i never know.

>> you are at a 106 heart rate right now. if i wanted to, i could touch that heart rate there and actually see your rhythm. >> i've got rhythm. >> your oxygen is 96 right now. >> all of this displayed on this device and it is also going somewhere else, right? >> we invented our own applications. >> $.99? >> hopefully a little more than that. physicians can have this device at home, so if they get a call here from the floor, they can see all the waveform information coming from the monitor. they can have this device at home. >> they can be providing care and assistance on the go, whether they are in the building or not that is more efficient, lower cost for you. >> it is all about anytime, anywhere access. sequoia will be selling that to other hospitals. >> very, very cool. orlando, where are you? >> i am using this vgo robot. we have several of these around the hospital.

>> the benefit here is that not only can you have virtual presence, but you are able to move around. can we take a little walk? >> let's do that. >> i'm assuming doctors and nurses are able to go visit patients -- is that how this works? >> yeah. we encourage family members not in san diego, from around the world, they can control these robots and visit with patients. we have found that they love it. >> you are sitting at a laptop? >> yes. i am just sitting at a laptop and using the software that we make available, and that is it. it is very easy to use. it is a great tool. >> and it is a lot cheaper than airfare. >> exactly. >> i see that we are in what appears to be a standard issue hospital room. i cannot help but notice whatever this is. do not touch or lean on -- well, i have already now done that. i am sorry. >> this is a robotic room disinfection machine. >> that is the scariest thing i've heard in weeks. >> this machine uses very high intensity light. if we turned this on while we

are in here, you would get a really bad sunburn. what this light does is attack the dna of the pathogens and prevents the pathogens from replicating. in 5 to 10 minutes, this device is going to sterilize all the surfaces in this room. >> howard hughes would have loved one of these. is this machine new to hospitals? >> there are very few -- we were the first on the west coast. this is an added safety measure to go way beyond what other hospitals are doing. >> have you noticed since implementing the new system any change in terms of people getting infected? >> our own internal research shows a dramatic decrease. this thing really is a superbug killer. it really does work as advertised. >> we don't know what the next 10 years will produce, but based on the infrastructure, what we have created here allows us to respond to any of those needs, 10 to 15 years from now. wherever you go in this building, you have a sense of what the future could be, not

just what today is. >> look at all those robots working together. it is like a choreographed ballet. ♪

>> usually when i am thinking about green cars, i am thinking about the prius and the tesla. what i'm not thinking about is where they are made. as it turns out, volkswagen has put a lot of thought into this and has created a new auto plant that is one of the world's greenest. >> auto plants and sustainability do not usually go hand-in-hand. what is volkswagen doing? >> vw built the first leed platinum plant -- leed stands for leadership in energy and environmental design. platinum is the highest level you could possibly get. our colleague matt miller went down to chattanooga to check it out. >> i am headed to the volkswagen

factory in chattanooga, tennessee. it is a big one -- they produce more than 150,000 passats per year. the factory is really environmentally friendly. think blue -- that is their big slogan here. >> think blue means sustainability. not just the vehicle, also the factory itself. when we designed the factory, we took the leed checklist to set up a platinum facility. assembling parts, paint job, body shop -- >> bob, what do you do here? >> i am the welding specialist for the body shop. >> that is a pretty big deal. welding is a big part of the body shop. >> a lot of responsibility. what makes us different, it is called adaptive weld control that monitors the welding current and reacts in real time and inputs the exact amount of

energy needed to make a good weld. normally, you will see a lot of expulsions of metal flying. >> i like it when you see that. >> most people like the expulsions, but it is actually not a good thing. >> look at all those robots working together. it is like a choreographed ballet. >> this roof is sloped to collect the rainwater. we collected almost one million gallons of water last year. it is sent to the body shop and cools the welding sets of the robot. we have over 400 robots in the body shop. they heat up. we needed a way to cool them off in a natural way. we used natural resources to do that. what we are looking at right here is one of three rain collection tanks that we have in the facility.

>> these are 3000 gallons of water right now. >> capacity, yes. >> and i know that you guys collect rainwater in other parts of the plant, you use rainwater to drive 700,000 toilet flushes a year? >> absolutely. >> it must save you a ton of water every year. >> it does. equal to about three olympic- sized swimming pools. >> our whole team has always referred to sustainability. for example, starting with the dry scrubber technology we use in the paint shop. this is quite a lower number of energy use, this is less water we lose. >> down here we will see some paint robots. the most innovative thing about this booth is the dry scrubber. the unique thing about it, in a traditional wet scrubber system, you have to remove the paint from the water and that paint sludge is then usually sent to waste or to landfill.

>> you don't have to use all the water that you would typically use to deal with the over spraying. and you don't have to clean out all that water. and you do not have that much contamination afterwards. >> correct. >> hundreds of thousands of gallons of water saved, which saves you money. and then saves me money when i buy a passat. >> yes. >> i lived in germany for a long time and i know germans are seriously concerned with the environment. and yet you choose chattanooga, tennessee to install a cutting- edge plant. why choose here to do what would seem to fit really well in germany? >> when you see the particular history of chattanooga, it was one of the dirtiest cities in the u.s. at a certain point. and see which path the city of chattanooga has taken. it fits very well together with our dedication to environmental

cleanliness. chattanooga worked really hard to improve their situation. >> we are next to a car manufacturer, right? >> that is right. >> i am used to detroit. >> this particular solar field is the largest single field in the state of tennessee. >> what kind of power is it generating? >> we produce about 7.6 megawatts of ac. >> the amazing thing is that you have this massive solar park here, next to a wetland. >> putting in the solar park helped our situation with the wetlands because before it was just an area that drained into it. if it wasn't maintained well, it could damage some of the wetlands.

even though we did a massive construction project that actually in a way helped the wetlands in a way, by protecting them. >> it improves the whole ecosystem, it doesn't take away from it. the geese don't mind the glare. >> no. >> we are literally 300 yards away from an automotive manufacturer. we could sit down here and go hunting. it's fantastic. >> whatever we install here, i am 100% convinced, all in all, in terms of the energy consumption we have, in terms of water consumption we have, it is already paying off. >> why doesn't everybody do this? >> it is a lot easier to do it right at the beginning like we did. we are beyond green now, we're thinking blue. >> it does not just help the environment, it keeps your bills cheaper. as far as i understand it, this factory is kind of the blueprint for how to build other factories around the world. >> right now, four other factories in china are being built up following the design of our plant here.

from the factory side and the product side, we really try to push forward. the commitment until 2018 that will reduce our energy by 25% on all factories. we are convinced that we have to take care of our blue planet. it is really executing responsibility, we feel. ♪

>> we are finding it, we are testing it, we are there as they build it. we are on a quest to show you the most cutting-edge companies on the brink of the future. >> tonight, i will step into a tinkerer's paradise. techshop is democratizing invention. >> techshop changes the nature of the innovation process. >> i will get a taste of the miracle berry with an all-star chef who is taking on obesity. what you are basically describing is eliminating sugar. >> and i will take local motors's crowd-source rally fighter off-roading in the desert. >> "bloomberg brink." companies that break the mold, convention, boundaries.

and the future of technology, design, and industry. >> i have had dozens of inventions ideas. the problem for me has always been, besides being lazy, i never knew where to go to get them off the ground. >> i will tell you where to go. techshop. for a monthly fee, you have access to more than a million of dollars worth of equipment. >> is it basically a glorified afterschool program? or is it a place where real businesses can get their start? >> no, real businesses are coming out of techshop. i don't know if you heard of a little company called square, which is changing the way we pay for things, but they prototyped at tech shop. so a lot is going on there. >> techshop, on the brink of democratizing invention. >> on a friday and saturday night, this floor literally

becomes the most creative place in san francisco. >> it is a lamp that i designed, and it basically unfolds from a book. >> we are working on an origami kayak. >> it is a phone charger designed for golfers. >> i was just hanging up these lamps, and they are actually touch sensitive. >> these are great. mark, tell me about the vision of techshop. >> techshop is a membership- based fabrication studio. fundamentally, the idea is cheap access to really powerful tools. this platform really does change the entire paradigm around what it takes to launch a hardware company. it changes the nature of the innovation process itself. >> you make all of these pieces with this piece of machinery? >> i do. >> how much does this machine cost? >> i think they are about $40,000. obviously it is not what i have at home. >> of course. >> this is the fun part. you can grab this end and this end.

pull on it. >> oh, wow. >> once i joined techshop, i was able to do things a lot faster and better than previously. the access to tools was amazing. >> by the end of the week, you will be producing things out of steel that only a millwright was able to produce 15 or 20 years ago. that is truly revolutionary. >> i have never welded before. hopefully i will emerge unscathed. what is the worst thing that could happen right now? >> you just get a bad weld. there is one thing before we pull the red button, we say welding. >> wait, first you have to pull this down. >> ok. >> welding! >> you can see i am holding it tight with my right hand, bracing it. >> ok. it is my turn now. >> hold it just like that and pull the trigger. go for it -- slow ease. there you go. look at you. >> that is a beauty. i should end on a high note, what do you think? >> yeah.

>> jim, some may say your chief innovation is creating a space for other people to invent. >> i think that is my best invention yet. >> can you show me some of the things you have built in here? >> i built an electric cargo bike for burning man. >> you are a burning man man? >> i have been one time. it was fun. >> you go to burning man and you build a bike. >> i built this in about four days. it is fully electric, it has got two car batteries inside. i could have lived out of this. >> can i get on it? >> sure. let's take it out front. >> here goes nothing. it is a little wobbly. you have always been a tinkerer did that inspire you to open up techshop? >> it absolutely did. i did software for a long time, but you don't get to hold the stuff in your hand. it always bothered me. when i closed that company down, i decided to work with my hands more. i started techshop just so i could get access to the tools and make stuff. i think unlocking the new technologies that people have in their heads is really important

to big companies. i am proud of a lot of the products that our members are coming up with, too. >> what is one that has struck you that you are really floored by? >> that is like saying which of your kids is your favorite kid. >> how integral was techshop to the beginning of dodocase? >> techshop was key for us to scale as quickly as we did as a business. the ipad was coming out, and we wanted to have a device and a product ready when the ipad went on sale. the only way we were able to do that is because we had access to techshop. there was someone there to teach me the equipment, and then i could spend time on it and tweak and tune. i was able to learn exactly what kind of equipment i needed before i ever invested in buying a piece of equipment. >> tell me about type a machine. >> we are a 3d-printing company that makes this, the series one.

we started about a year ago. we built this right here in san francisco, inside techshop. >> do you think type a machine would have come to fruition if not for techshop? >> no. that simple. access to the tools here is so critical because it is a simple equation of you can either make the thing, or you can't. >> show me some other things you can do with the machine. >> have you got an iphone? that is all you need. if you take roughly 30 to 40 photographs -- >> do i stand still? >> yep. take a whole bunch of photos, then this fantastic app takes all your photos and turns them into a solid model that you can print. >> this is the 40 photos that you just took, they come together to make this. wow. >> right now we are cutting your model into .2 millimeter-thick slices. they stack up. then we will send that code to the machine. the machine will build it up out of plastic, layer by layer.

>> how long will it take for the machine to build it? >> probably about three hours. >> this isn't just for people -- this is for anything. >> there are practical applications, too. it is not just a party trick. tell me about the future of techshop. >> we believe that every community eventually needs one of these. >> in the next 15 or 20 years, i would love to see thousands of techshops across the united states. if you open access to the tools of innovation up to everyone, just as a recreational basis, you're going to see some amazing things come out. >> we are getting to profitably. it takes about two years to get a site in the black. the way we have been growing, we have been working with partners. ford helped us open up and stand up the location outside of detroit. when a fortune seven company calls and says they want to drive innovation in their community, you say absolutely. let's go. >> what are your next steps? >> i have to scale up very quickly. >> are you still going to be working everyday at techshop, or

are you going to cancel your membership? >> we will still keep using it, for prototyping at least. >> everyone is doing something amazing here. it always inspiring to come in. >> i want one of these. nice ride. >> we actually have more stuff to make if you want to stick around -- >> all right, yeah. are you going to pay me? >> making things, tinkering, and innovating should not be an odd thing that some people do but most people don't do. i want innovation to be something that everyone does, and they don't think about it. it is just part of their life. >> what you are basically describing now with the miracle berry is eliminating sugar from food. whoa. it tastes like sprite. >> completely healthy for you. ♪

>> you have been eating some really fancy foods recently. >> i am always eating fancy foods. in fact, this time i was in chicago, spending time with homaro cantu, who runs a bunch of restaurants there. what he is trying to do is tackle issues of obesity and malnutrition by basically eliminating sugar from our diet, and he is doing that using something called the miracle berry. >> how can you take on these global problems from a michelin- starred restaurant? >> you can if you think of

yourself like a robin hood. cantu charges his patrons a lot of money, but he pours that money back into research, which he then hopes will filter out into the greater food industry and change the way we all eat. >> chef homaro cantu -- on the brink of conquering sugar. >> food has been largely the same for the last 40 or 50 years. it is time now to change the way we eat and think about food. i don't look at food problems as problems. i look at them as untapped resources. there is this whole other world of food that we have just scratched the surface of. the first time i tasted a miracle berry, i went into work thinking, everything that we know is useless. our mission now has to be to get rid of sugar.

a friend was undergoing chemo and radiation therapy, and when you undergo this, your taste buds become twisted. this friend said hey, can you help me eliminate this taste effect? so we ordered thousands of food ingredients from around the world. we got this berry in from some probably african warlord from west africa. you have these twisted tastebuds when you're undergoing chemo, and it would latch onto one and split it apart so you could taste food as normal people do. >> so, chef, what you are doing right now with the miracle berry is a two-step process. you have to actually consume the berry first, and then that changes what you eat. >> yep -- let's do a quick demonstration. >> hello. >> take the powder and we are going to put it on our tongues. you have two taste receptors on your tongue -- one tastes sour and bitter and one tastes everything else. there is a protein in that berry that is latching onto your sour receptor. when you eat sour foods, it will bounce off of the sour receptor and go to the other one and tell

your brain that it is actually really sweet. now, take your lemon and squeeze a little bit on your sour cream. just give that a taste. >> whoa! >> cheesecake. >> totally. that is really good. >> cheers. >> whoa -- it tastes like sprite. >> completely healthy for you -- there's zero calories from refined sugar, so we could argue that this is healthy junk food. but what we are creating is a new product that will go into your food, then companies can start integrating this into their product and you will just see obesity rates fall through the floor. >> that basically removes the two-step process. it is in your twinkie, it is in your sprite. >> it is really an exciting opportunity to create healthy junk food. >> ready? >> completely different. >> what you are basically

describing now with the miracle berry is eliminating sugar from food. tell me a little bit more about why you are doing this. one could be happy running two successful restaurants and doing really interesting things. >> i grew up very poor. my mother, sister and i were homeless for about three years. we went from homeless shelter to homeless shelter, and everything that we saw was junk food. as i started working in nice restaurants, i realized the biggest difference between poverty and the upper-middle class is diet. there is a huge opportunity out there to take all of those problems in food that i grew up with and really flip them upside down. when we built our lab for moto restaurant, that is when our innovation really started taking off. i have a fascination with efficiency because if you have more efficiency in a business, you can take more money from that business and then do whatever you want with it. some people like to drive fancy

cars, i like to build a lab and then work on more efficient ways to work. the big push over the last five years has been, like, farm to table. but -- very sick of that term, by the way. it is used and abused. we are dead set on replacing all of our farm products with indoor farm products. >> because you have one. >> exactly, we have one of the world's most advanced indoor farms. i want to show you that. this is our farm. >> this is your farm -- in a closet. yeah, it looks like a farm. >> logically, the best-tasting fruits and vegetables grow really close to you. we have decided to just grow them right next to the kitchen. >> what is growing here? >> we have soybeans and sunflowers -- >> oh, look at that. they are, like, little edamames. >> it is all organic -- there are no chemicals. we are eliminating the need for packaging, shipping, handling. it cost me about $12,000 to build this room, so it has

already paid for itself. >> how did you get the idea to develop an indoor farm here? >> we started developing the software program to run our business. we realized that we did not need a full-blown office here at moto. this was our office space. here it is a financial spreadsheet. even further than that, let's say that we have 16 chefs in the kitchen -- it will calculate how much they are costing us up to the second. >> you are basically bringing big data into the kitchen. >> we have real-time profit and loss reports, which enables us to not waste money on an office but saving money and applying all of that residual capital for innovation. >> maple, kind of granola. it tastes good. almost like a snickers bar. >> what you are actually eating is a chocolate sauce that consists of balsamic vinegar,

orange juice, and cocoa powder. you're actually eating vegetables and fruits, and it tastes like a dessert that would really be bad for your body. i worked with an ice cream company, and they were voted one of the worst unhealthy products in america. when i explained to them, your ice cream has 37 ingredients in it, but i can actually replicate that using nothing but yogurt, lemon juice, and cocoa powder, that is really an opportunity for me and them. maybe ben & jerry's will be the first company on the planet to ever make an ice cream that is actually good for people. >> what is the step to go from here to a much larger scale where you're really going to have national and global impact across the industry? >> right now i am kind of like the prototype guy. let's make it work on a small- scale and then license it out to other food companies. they really want this.

they don't want to keep going down the same path. we are taxing sugar, people are banning it in certain cases. it is only going to get worse. everything becomes obsolete at some point. every technology, every food product. the trick is staying ahead of the curve. nobody in those industries is going to turn down an innovative product that can do exactly what their product does, except better. >> what is the hardest thing about driving off road? >> long pedal on the right, that is all you got to remember. >> i am holding on for dear life! ♪

>> you just got back from arizona. tell me what you saw down there. >> i went to local motors in chandler, arizona, and they are trying to revolutionize the way cars are manufactured. >> do they stand a chance of taking on a toyota or a gm? >> they are not trying to -- they are trying to out-innovate them. they're introducing crowd sourcing into car design, which is reducing r&d costs from billions of dollars to just a few million, and they can get a car to market five times faster. >> local motors, on the brink of reshaping the automobile industry. >> ford brought about the first industrial revolution in cars. it was mass production. gm brought around the second industrial revolution for cars, segmenting the market. ours is the third industrial revolution. the truth is that the world does not need more cars. the world needs better cars.

>> let's go. yeah. >> if you ask for people's input, and you build at a smaller scale, you can answer customers more quickly, and you can bring technology along faster. >> what is this? tell me in your opinion -- what is the chief innovation behind local motors? >> the chief innovation behind local motors really comes in two parts. we co-create the vehicles together with our community. co-creation is the advanced form of crowd sourcing. give me your idea, i will give you my idea, we will see how it works, and together we will come to a solution. the rally fighter came to be because it was the first vehicle that our community designed.

the other part is that we make them in small volume. micro manufacturing. this is the beginning of the rally fighter. when we talk about the local part of local motors, instead of doing a mass product, the assembly of these vehicles is local, put together right here only when you buy a vehicle. what it means is you have to make somebody want this vehicle. >> right, because they have to purchase it before you start building it. >> as we do micro manufacturing and co-creation, we thought it would be really valuable to get engaged to people by allowing them to come in and build the vehicle that they would be buying on the floor with us. >> this is your first day building your car? how does that feel? are you excited? >> yeah, it is very exciting. >> can i do it with you? >> sure, jump in. >> pull these spark plugs out. >> ok. >> yay.

>> work up a sweat. >> there are a lot of reasons why we created local motors. in a simple answer, we wanted to move vehicle technology forward the fastest. the real answer behind it is i was deployed to iraq and this was my second deployment. two of my friends were killed in 2004, that got me taking about what could i do in their honor to make a difference? we would not have a lot of conflict in areas of the world that only have oil if it were not there or if it were not as valuable. today's off-road vehicles get between 6 and 8 miles per gallon. these vehicles get about 22 miles per gallon. that is better than what is out there already. this is what i would call midway through the project in a project that has been completely decided by the community. it is called the tandem. it was conceived by a community

member that came along and said i would like a car that cost $10,000. i would like it to seat two people, and i would like to commute in it, but i would also to be able to have fun in it. we open up our shop for volunteers to be able come in and work with the online process of designing something and make something real. the only thing we do is help pay for the steel and parts that come in. >> i am a community member. i have been coming here for a little over a year now. i am usually here two days a week to actually have a voice in it, and to be able to influence the awesomeness that comes out all on its own. it is really satisfying to have a chance to be part of that. >> all this intellectual property is online. it is all open. what motivates somebody to come in and pay you guys for the $100,000 car that they could theoretically make in their garage? >> great question. nothing. we are a complete open-source car company. when you think about the notion of the quality it takes to put something together, and the speed it takes to put something

together, that is why people come to us and say, i could do this on my own, but i have chosen to come and do this at your factory. >> what about the big 3 coming and stealing your designs? would you feel about that? >> i would be so honored if they came and stole our design. we build vehicles for the niche local market. if they came and said i am going to steal this idea for a desert- racing vehicle in the southwest that is also road legal, the market is like this big for that. local motors is simply sized to the market to be able to go one place to the next place to the next, always taking on individual innovations that are in the area where people need to have a response to what they need in that place. >> hi, guys. here's a race car coming. this guy is not street legal, right? >> actually, that race car is titled, but we don't drive it on the street. >> oh, my god.

what is the hardest thing about driving off road? what do i need to be careful of? >> long pedal on the right -- that is all you got to remember. >> how am i doing? >> you are doing good. you just want to maintain speed. >> we are looking to share information, the good and the bad, and bring it out as quickly as possible. in the next 10 years, you will see 100 micro-factories from local motors all around the world. you will see the ability for us to be able to make upwards of 100,000 cars in a year, and you will see one million people or more engaged in our community. >> i am holding on for dear life. >> the model that we built in the last 100 years will only be part of the solution going forward, and we will become a very significant actor in the market. >> i think i'll buy it. ♪

>> the following film is paid for by the templeton foundation and presented to you without commercial interruption. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates or its employees. quakes this is the story of john