GM’S JOB ONE

There are a lot of doubts about General Motors (GM)’s ability to produce the Chevy Volt and even more doubts about GM’s ability to make it a quality vehicle.

Most car industry insiders see GM, reported to now be losing a billion dollars every month, as a failing enterprise. They see GM's Chevy Volt as the company’s last viable chance to get back in the car business.

Job 1: Overcome the curse of the accusation implied in "Who Killed The Electric Car?" The film implied that GM allowed a constellation of factors, including California regulators and manipulations by the oil industry, to ruin the perfectly viable EV1, the first electric car to come out of the U.S. auto industry in a century.

The solution to Job 1: Make the Volt not an EV (all-electric vehicle) but a PHEV (a plug-in hybrid electric vehicle). The PHEV will (theoretically) have a battery range of 40 miles and a gas-engine that will charge the battery so the vehicle can travel as far as any other car.

The combination simultaneously solves the problem of current lithium-ion limited battery capacity and capitalizes on the popularity of existing hybrid cars. Does a 40-mile electric power range make a real difference?

Lauckner, GM: "The statistics prove that 75-80 percent of drivers in the United States and Europe travel less than 60 kilometers every day…So in the overwhelming majority of cases, a gas engine won't even be activated. For those who want greater mileage, the gas-powered engine is there."

Will it work?

On a recent test drive for CBS’ 60 Minutes, the Volt literally failed to go. GM towed it back to their shop in front of the CBS cameras.

GM is undiscouraged. They have several dozen prototypes in various stages of development. Unofficial reports indicate Compact Power, Inc., has been chosen to make the battery.

Cost is the next big challenge. GM is not giving a price but Lauckner did not deny the possibility of a $35-to-40,000 price. It is uncomfortably high and raises questions about marketability because, at that price, it will be competing against luxury cars.

GM thinks the feature that will sell the car will be the savings on fuel. If most drivers always run on electricity, they will almost never need to buy gas.

Lauckner, GM: "It is true that the purchase price will be higher, but the use of the car will be cheaper and when you want to sell it you will get a higher price. Besides, you have to take into account that the price of the car is likely to drop the more we manufacture, just like what happened with personal computers, LCD screens and the like. If we weren't certain that the Volt would be a popular, widespread car, we wouldn't call it Chevrolet [GM's popular brand name as opposed to Cadillac]."

If the GM PHEV becomes the next auto phenomenon, it will have to do so against competition from Toyota, Honda and other major automakers. So it had better be a quality vehicle.


Watch CBS Videos Online

The Chevrolet Volt. Sorry about the ad, that's CBS News.

The car that could make or break GM; The Chevrolet Volt will be the American automobile giant's second attempt at producing an electric-powered car, a decade after the debacle of the shelved CV1 project.
Yoav Kaveh, November 2, 2008 (Haaretz)

WHO
John Lauckner, Vice President for Global Program Management, General Motors (GM); Robert Lutz, Vice Chairman of Global Product Development, GM; Better place (Shai Agassi, Founder/CEO)

WHAT
The Chevrolet Volt could save GM – or ruin it.

The Chevrolet Volt. From CarmeleonBE via YouTube.

WHEN
- 1996: GM’s EV1 emerged to high hopes.
- 2003: Total recall and crushing of all EV1s.
- 2005: The Chevy Volt was proposed to GM by Bob Lutz.
- 2008: Volt prototypes are being developed.
- 2010: The Volt is promised for Fall 2010.

WHERE
- GM is building its Chevy Volt in Michigan.
- The Better Place project is being tried out in Israel before being developed in other countries.

WHY
- The EV1 was offered for lease at $300-$600/month.
- The EV1 had the most advanced aerodynamics in history, with a drag coefficient of CD 0.195).
- EV1 was fully electric, completely noise-free and went from 0 to 100 kilometers-per-hour in 8 seconds.
- The public was enthusiastic about the EV1 and GM had a long waiting list for leases. But GM only manufactured 1,100 units – which made it economically unfeasible.
- The Volt will travel 40 miles on battery power, a distance 78% of U.S. drivers go on any round given trip.
- After 40 miles, the Volt’s gas engine will charge the battery over a 250-to-300 mile range, the same range as any gas-powered car.
- At present, the Volt is in the prototype stage.
- Unofficial reports indicate Compact Power, Inc., has been chosen to make the Volt battery.
- The Volt may cost $35,000-$40,000 while the hybrid Toyota Prius costs $22,000-$25,000.
- The Better Place project will use all-electric vehicles.

What's good for GM is good for America? (click to enlarge)

QUOTES
John Lauckner, Vice President for Global Program Management, General Motors (GM): "We've identified the technical problems. They are evident to us and all of them can be resolved. We have already built a number of prototypes that drive smoothly. By the end of the year, we will announce who will supply our batteries."
- John Lauckner, VP, GM: "Chevrolet Volt is not some public relations stunt. Chevrolet Volt is a real car. We are going to produce it beginning November 2010 in the biggest GM factory in North America. Believe me."
- Lauckner, GM, on the Better Place company: "Theoretically it's possible. But we at GM know a thing or two about installing car components, and we came to the conclusion that this solution poses complex technological challenges."