GM wants to have a production version of its plug-in electric – gas hybrid Chevrolet Volt ready in time for its centennial this September. Automotive News [sub] cites "people familiar with the project" [Ed: my haven't they been busy today] who say the ailing American automaker is rushing to finish their four-wheeled Hail Mary by September 16, when RenCen celebrates the 100th anniversary of its founding by Billy Durant. In spite of the self-imposed deadline, "a GM spokesman declined to comment on the timeline for its next announcements on the Volt, which will include naming a supplier for the vehicle's lithium-ion battery pack." How can GM PR claim a "production version" of the Volt will be ready when they can't even say who'll supply the battery pack eight weeks before the debut? With ease, apparently. GM seems to be banking on the usual fawning media coverage to divert attention from the real issue: crashing sales, a raging cash conflagration and the threat of Chapter 11 just over the horizon. But hey! We'll have a hand-assembled "production" Volt to show off. What more could you want?
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Ah, yes the production version of the car that will look nothing like the finished product when (if?) it goes on sale in 2010, um 2011… 2012?!? Ah well, it was a good so-so 100 years while they lasted.
“the threat of Chapter 11 just over the horizon”
I think it came over the horizon with Hurricane Katrina, but it wasn’t recognized for what it was. It is a lot closer now so it can be recognized more readily. I place my bet for the GM C11 dead pool for May 2009.
–chuck
Heh, the hundred-year anniversary of William Durant, the first GM executive to buy brands without a plan for what to do with them and burn through piles of cash.
How incredibly fitting that the company has come nearly full-circle. We can only hope that the next step is the same: forcing a change of management as part of a refinancing deal.
Somewhat off-topic: I feel I’m in the loop most of the time regarding automotive development, but why did I find out about a Chevy Malibu Hybrid from a Canadian television station, rather than through the media here in the states? And why isn’t this bigger news?
drifter,
Aside from the spy pics, no. I wouldn’t be surprised to see the official unveiling of the new Camaro come September, though…
Looks like GM’s PR machine is still running at full capacity. It’s just like the orchestra on the Titanic: Keep on playing, boys.
Vvvvolt.
Vvvvega.
Hey, you gotta hand it to GM on the “fawning media coverage”. At least the PR machine knows how to do it.
To me, the funnier thing is how the media drools over anything “green” they can report on.
Perhaps GM will do a Merger of Equals with Tesla :).
briandfromo:
Somewhat off-topic: I feel I’m in the loop most of the time regarding automotive development, but why did I find out about a Chevy Malibu Hybrid from a Canadian television station, rather than through the media here in the states? And why isn’t this bigger news?
We’ve mentioned the Malibu hybrid-lite and its belt-alternator system many times. It’s was also in the media a lot when the Malibu first debuted. They build so few of them that the chances of finding one on a dealer’s lot is about the same as finding pigs feet in a kosher deli. GM is very tight-lipped about hybrid sales, so it’s hard to tell how many hybrid Mailbus they’ve sold, but it’s probably fewer than a thousand total. The fact that the hybrid doesn’t get that much better fuel mileage than the 4-cylinder gas model doesn’t help the situation, either.
North America’s first large scale production Electic vehicle and all the focus is on lagging business performance?
Wow.
“So you survived the Hindenburg disaster! What are your thoughts?”
“The pudding was runny.”
Gm has been involved in EV’s for a long time now. Remember the Sunraycer in the 80’s? Just deciding who will build the battery though in the late stages is pretty brilliant though. They already have the req’s and have submitted the test protos I assume, or they wouldn’t BE suppliers in waiting. And GM can make them sweat it out to the last minute. Maybe they’ll submit a last gasp low ball bid.
I do the same to my business suitors.
monkeyboy: “North America’s first large scale production Electic vehicle…”
Yes, maybe, someday.
monkeyboy: “… and all the focus is on lagging business performance?”
Of course. What’s the point of GM building this thing if not to make money? Last time I checked, GM wasn’t registered as a non-profit (although that’s a strategy that they might reconsider). And if GM doesn’t make it to November, 2010, then they certainly won’t build “North America’s first larg scale production Electric vehicle…”
monkeyboy: “Just deciding who will build the battery though in the late stages is pretty brilliant though. They already have the req’s and have submitted the test protos I assume, or they wouldn’t BE suppliers in waiting. And GM can make them sweat it out to the last minute. Maybe they’ll submit a last gasp low ball bid.”
GM jerking its partners around is part of their problem.
And this strategy means GM has a lot of exposure on the Volt. If GM can get a 16KWh (8KWh effective) battery from someone, in 1K/month unit quantities, they’re OK. However, if they can’t get that, they’re screwed. If the battery, for whatever reason (yield, durability, field capacity, whatever), doesn’t make it, the Volt is a pointless vehicle.
Toyota can aim for a 16KWh (8KWh effective) battery for the Prius in… well, whenever, earlier is actually OK for Toyota, ’cause they’re otherwise ready to go… and if they don’t get a full 16KWh but get only a 14 or a 12 or a 6, HSD performance is still enhanced by this battery and they ship an improved Prius with some modest amount of EV-only range but is still otherwise a perfectly good 50+mpg car. Probably at a lower price than the Volt.
Oh, and batteries are generally in tight supply… GM may not be in the driver’s seat in any negotiations. Of course, that could change by late 2010. But GM’s intended unit volumes are initially very modest, so big economies of scale may not apply. And GM’s prospects for eventual high-volume Volt sales are unknown, so a supplier may not be willing to take a risk or profit hit up front by presuming they’ll be rescued by big (>100K) unit volume in later years.
Wow. If I remember correctly, GM is pretty large, even with holes in their feet. They could prolly demand a pretty large audience with suppliers. Even IF it’s cash upfront. GM DOES hold/own COBASYS ya know.
The common late business model has any manufacturer using a loss leader out on debut THEN, jacking up the price and at the same time reducing production costs with quantity. Kinda basic. Even Mattel does it this way.
Toyota made this a household standard when they debuted the LS400. THAT luxo barge entered the market in the early 90’s at $27,000, +/-. Then after the LEXUS brand had some street cred, they steadily jacked it to the Milky Way. Now, anything with a “T” relation is golden, even junk.
Who is going to spend 48K on a GM EV car right out of the gate? Is anyone about to rely on this vehicle? There are bound to be numerous technical difficulties with this thing that GM will use customers as guinea pigs to sort out.
Toyota could be trusted to introduce a new technology. Honda too.
Gm, eh I don’t think so.
monkeyboy says, “… GM is pretty large…”
Sure. But GM will build only 10K Volts in 2011 (and thousand or two in 2010). These are piddly quantities. GM’s other hybrids also sell in insignificant quantities, so there’s no way GM can hold other volume business hostage.
In that same timeframe, Toyota will build about 500K Priuses and other hybrids. Mitsubishi may build 100K MiEVs (or whatever they’re called). Honda will probably aim for well over 100K Prius-fighters of their own. Even Ford will be looking for North of 25K batteries to power their hybrids.
GM’s volume, in comparison to that, is zilch-oh.
Further, price-cutting to establish the brand or product concept is GM’s problem with the Chevy Volt. Batteries, however, are an established industry. Suppliers don’t have to run loss-leaders. Build a better vehicle battery and auto manufacturers will come to you.
And, finally, who’s going to trust a GM check to clear? Enough to take an up-front hit in anticipation of future business that will vaporize if GM goes belly-up? A supplier could sell GM 10K batteries at $10K each, when they cost $15K to make and the bankruptcy court could be holding payment 6 months after the bills were sent to GM’s purchasing department… That’s a winning scenario for any vendor.
Up to a point, sure, battery manufacturers want GM’s business. Enough to shoot themselves in the foot? You don’t want a battery in your car from a manufacturer dim enough or desperate enough to let GM walk all over them.
GM is going to pay market rates for their batteries.
So they think they can hurry up and jam out this car in under 3 years of total development time? It has taken more than 5 (and counting) to get the GOING TO BE THE NEXT GREAT THING…EVENTUALLY Camaro into showrooms. They have already missed the boat with the Camaro and it’s sales will be stale when (if?) it ever actually does hit the showroom floor. I guess it’s too late in the game to cancel the program, but they were just talking engine changes a few months ago. If they are making engine changes, how close is it really to production?
Has anyone considered that it’s not GM who has yet to choose a battery manufacturer but that no battery manufacturer is yet willing to agree to GM’s terms?
GM is in serious trouble right now and a smart battery supplier who has many possible customers could turn the bargaining table upside down.
They may want cash up front from GM to insure that they make their return should GM go bankrupt before the contract expires.
At least I would if I made impossible to find, super-awesome batteries everybody wants.
I hope all this rushing doesn’t result in Volts that spontaneously combust. That’d be a real shot in the sensitive parts for GM’s future hybrid hopes.