For a company with so much history and so many brands, you'd think GM's problem would be having too many valuable nameplates. Not so, according to GM President for the Americas. Troy Clarke tells Edmunds Inside Line "At an awareness level, the Volt obviously has consideration intent (based on 80,000 leads submitted on GM's Web site)." Clarke seems to have conveniently forgotten that the car business involves actually building and selling cars. And overhyping a car that hasn't been built actually has some downsides, even if it is GM's "MVB." "Everybody who's heard of the Volt can give you a description of what they think it is," explains Clarke. "Part of the role of our market research is to understand that, so that we make sure that as we execute the vehicle on something other than just its technical basis, we can build on the brand that the concept has already created." Translation: we still need to figure out which elements of our all-encompassing Volt hype we'll actually have to deliver. Meanwhile, Clarke confirms how much GM is actually relying on the Volt by admitting how badly GM has flubbed its post-SUV strategy. Crossovers like GM's Lambda triplets were supposed to provide a more-efficient alternative to downgrading SUV owners. Clarke says market research shows SUV owners are actually "falling into cars," while CUV buyers are upgrading from cars. In short, one-time SUV buyers can survive in a "regular car." Who'd have thunk it?
Category: Volt Birth Watch
Popular Mechanics (PM) reveals that GM's tri-channel brand strategy hasn't eliminated the usual corporate infighting. Susan Docherty, GM's Veep of Buick, Pontiac and GMC, stakes her claim on company resources. "My personal take: I think [the Volt] would make a great Pontiac. What greater brand than Pontiac to charge ahead with that technology?" Is that a bad pun, a trick question or a trick question based on a bad pun? PM answers: Pontiac could torque-bias a electric – gas plug-in hybrid model to fit the brand's increasingly dubious performance remit (say goodbye to that headline 40-mile EV-only range). Meanwhile and in any case, PM warns that all this green goodness could exact a heavy toll on GM's dwindling, Volt-biased product development budget. "We've already heard that GM may offer a Cadillac version of the Volt. And since the Volt's "E-Flex" powertrain has been such an expensive project for the company, it will need to badge engineer the Chevy Volt as quickly as possible diversify those resources across at least three brands. In fact, GM has said the Volt is its single most important future project. So much so that we recently reported it could lead to less engineering resources for the next-gen Corvette (the one after the Corvette ZR1)." Your TTAC takeaway: even $50b of your hard-earned tax money can't fix stupid.
The Detroit Free Press reports that GM has finally chosen a Volt battery supplier from its dueling development partners LG Chem and Conti. But in the interest of squeezing as many "Volt On The Way" headlines into future news cycles, it isn't saying which has been chosen. Both the battery partner and the final look of the production Volt will be previewed by the end of the year, probably whenever some bad news emerges that GM wants the public to ignore. In the meantime, this news means one thing, according to GM auto authoritarian Bob Lutz: "the Volt is real … and test work is progressing nicely." Perhaps not as nicely as Toyota's plug-in Prius though, which just had its delivery date bumped from 2010 to 2009. And with the 'yota PHEV set to arrive a year before the Volt's "late 2010" target, Lutz makes the case for waiting for the Volt to the AP. Toyota hasn't released an all-electric range for the Prius, but Lutz is assuming that because it's a parallel hybrid it won't match the Volt's 40 mile EV range. "After eight or 11 miles (Toyota's PHEV) reverts to being a completely normal gasoline-electric hybrid, which means you get about a 25-30 percent fuel savings, but the point is they do burn fuel." Lutz goes on: "A plug-in hybrid with a limited range is a very nice thing to have. It's wonderful that Toyota is working on this. If they have some test fleets out next year that's great. But it's not the same thing as a Chevy Volt, which is not a plug-in hybrid." Translation: it will cost more than the Prius, but you'll get more green cred. But don't take Bob's word for it. A full (theoretical) comparison test of the Volt and Plug-in Prius can be found here.
Well, here it is, courtesy of LeftLane News. Maybe. The Chevy electric – gas plug-in hybrid sure doesn't look like the show car that GM's been advertising (as if you could go down and buy one). On the other hand, the Volt shown here isn't a Malibu-a-like, which is a good thing. (Unless you ascribe to Ye Olde German "Different Length of Sausages" School of Model Design.) On the other other hand, the Volt pictured lacks the Toyota Prius' instantly identifiable "quirkiness" and attendant green cred. In fact, in this guise, the Volt's front end shares more than a little gestalt with the current Ford Fusion. So, over to you, our Best and Brightest. Did GM's designers get it right?
As Detroit gears up for the beggar-bowl bailout-fest, the Volt is taking center stage as, well, the only reason to invest in Detroit's future. We already know that GM is pushing hard for consumer tax breaks to bring high-flying MSRP estimates down to earth, but it seems production incentives will be the first Volt-related handouts out of the gate. MLive.com reports that Flint's city council has approved three tax incentives worth tens of millions of dollars to bring Volt engine production to the rustiest town in the rust belt. GM's Volt engine plant is expected to cost the company $359m before incentives, and will "preserve" some 300 jobs. The exact cost to Flint taxpayers is as yet unknown, but the city is clearly bending over backwards to reinvent itself as the home of Detroit's energy-efficient renaissance. Flint has agreed to cutting 50 percent of the Volt factory's real property taxes, saving GM $6m, but also bringing in $6m in new property taxes… so far, so tax-neutral. But the city council has also agreed to abate 100 percent of the new factory's personal property taxes, meaning all factory equipment would be tax-free until 2033. Savings to GM from this measure are as yet unknown, but are expected to eclipse the $6m in real property tax savings. The city also agreed to designate the site of the factory a brownfield redevelopment site, making it eligible for state incentives which GM is still pursuing. Flint also approved a fourth undefined tax break to extend the renaissance zone through 2023 for the existing Flint Tool and Die plant. Complaints from a former local NAACP leader that such incentive mean that the Volt engine will be "built on the backs of the working poor" went ignored, as the eco-friendly backslapping from industry and government carried the day. This, ladies and gentlemen, is what we call a preview of coming attractions.
GM Car Czar Bob Lutz dropped quite the load of “Between the Lines” fodder (Justin’s working on it) in his interview with Charlie Rose. One real jaw-dropper: Lutz’s comment that the Volt has a Cd (coefficient of drag) of “between .28 and .29”. Folks, that is seriously bad. Was GM running the wind tunnel fan backwards, or did they put the model in upside down? My 1985 Mercedes 300E had a Cd of .28. As did a 1995 Mitsubishi Diamante. The current Prius scores a .26, and next year's model will undoubtedly improve on that. Lutz specifically said some months ago that the Volt would have better aerodynamics than the Prius. Oh well. Meanwhile, a whole raft of current sedans have a better Cd: Lexus LS430: .26; Hyundai Genesis: .27; Camry hybrid: .27; Mercedes W203: .27; the old B5 Passat: .27. Even the Saab 9-3 ties/beats the Volt with a .28. Keep in mind, that for an EV, aerodynamics plays a much more crucial role in highway range than for a conventional car. That’s why GM’s EV-1 had a spectacularly low Cd of .19. Nothing like progress in the span of fifteen years.
We're all in favor of debunking the myths surrounding Chevrolet's plug-in electric – gas hybrid Volt. Of course, while TTAC's taking on myths like "The Volt will save GM" and "The Volt will be a reliable gas-free daily driver," The General worries that people believe the electric grid can't sustain electric vehicles. "We know that the charging of the Volt will happen at night," Volt-man Frank Weber assures. "When actually the consumption on the grid is lower. No air conditioning, no lights are on." Uh, OK. Myth 2: nobody knows what kind of battery the Volt will use. Huh? Myth 3: I want my GM EV! It's a conspiracy! Nope. It's a cutting edge deal. We couldn't do it before (even though we did). So now you know.
GM's next Next Big Thing (a.k.a. Chevrolet's plug-in electric – gas hybrid Volt) just got a whole lot bigger. Conceptually. The Detroit Free Press reports that GM execs are trumpeting their [Wall Street-friendly] plan to Volt-ize everything that isn't nailed down, including SUVs. Eventually. "The executives would not say how many vehicles they expect to run with the E-flex system, but Andrew Farah, the Volt's chief engineer, said the system is most likely to first be used on GM's global compact and midsize car architectures. The electric propulsion system would need to be greatly altered to work with larger vehicle architectures, such as those for SUVs or pickups, he said." You got that right. Meanwhile, Volt Supremo Frank Weber "expects major improvements to the Volt… to occur on a yearly basis early on. That is different from most vehicle lines, which typically offer major updates every three to five years." Good news? Uh, well… "Weber said the automaker has already identified nine areas on the Volt where it expects to make major improvements or greatly reduce costs in the second year of production. It can't make those improvements in the first year, or it would delay the quick timeline the automaker is on for the launch of the car."
The Volt PR drip-feed continues. The Hail Mary's Design Director hung with his homies in Traverse City (rated E for everyone), then jumped into GM's FastLane to release some teaser pics and say absolutely nothing ("The Chevrolet Volt’s exterior design is an attractive balance between aerodynamic performance and styling.") The Volt's Chief Engineer was more forthcoming– and forthright. Andrew Farrah tells the AP [via Autonet] that "GM workers are testing batteries to make sure they last at least 10 years or 150,000 miles. It would cost more than $10,000 to replace them." The batteries or the engineers? Anyway, "The Volt also is going through the same design issues as a new car powered by a conventional engine, Farah said. 'The program has all of those same things built in. We're just doing them faster because we have to.'" How reassuring is that?
GM may have a several thousand disappointed Voltophiles on their hands before this sad saga plays out. Automotive News [sub] reports Dennis Lyle from GM-Volt.com claims over 33k people have joined his unofficial waiting list, expressing a desire buy the electrowundercar when it's "released in 2010." Oh dear. First of all, a 2010 release date is a reality only to those who live in GM Car Czar Bob Lutz' fantasy world. Next, GM's already said they'll build fewer than 40k Volts per year for the first five years, and many of those will be exported. And you know those left stateside will go to GM execs, politicians, celebrities and celebrity politicians. Finally, Lyle's prospective buyers indicated they were willing to pay an average of $31,261 for a vehicle that GM's already said will top the $40k mark (and will lose money on, even at that price). You have to wonder how long the people on this list will put up with GM's gratuitous promises (being charitable) before they finally give up.
Speaking at the Traverse City Management Briefing Seminar, GM's PC Queen Veep of environment, energy and safety policy told the assembled throngs that The General wants federal tax credits for "alternative fuel vehicles." Reporting Beth Lowery's begging bowl presentation, Automotive News' [sub] David Barkholz reveals he wasn't born yesterday. "The incentives would help coax consumers to try new technologies like the Chevrolet Volt plug-in, the hybrid electric car that GM expects to roll out in 2010." O.K., so, selfless concerns about America's energy independence aside, are your elected representatives really going to buy the idea that a plug-in vehicle (with a gas engine, lest we forget) is more important for fuel conservation than a "normal" high mileage vehicle or, God forbid, a "normal" hybrid? Stay tuned– and inflate those tires properly!
We aren't the only ones who question the viability of the Volt. U.S. News has jumped aboard the bandwagon, asking "What is the Chevy Volt, and Why is GM Advertising it During the Olympics?" Observing that GM is pushing the Volt as though it was readily available at your corner Chevy dealer, they state "The car won't reach showrooms until 2010, if it reaches them at all." They wonder about Chevy advertising director Kim Kosak's statement to Edmunds: "We wanted Volt to be an important punctuation to the spot. It's the first [ad] where we've brought [Volt] to the market this clearly." I have to wonder about that one too. After all, don't you have to have a viable product before you can bring it "to the market?" No, wait, that's right… GM's marketing the concept, not the vehicle. And apparantly they're doing a good job of it. Right after the commercial, the Volt jumped to the number eleven search on Google. "Now," as U.S. News notes, "all GM needs to do is actually build one."
Turns out TTAC isn't alone with its Tesla Death Watch and Volt Birth Watch series: Toyota has its own going. EV World's (sub) Bill Moore got this and a few other juicy tidbits from a casual conversation with Toyota's "grumpy old man" Bill Reinert, National Manager of the Advanced Technology Group. Toyota has a Death Watch going on Fisker , Tesla, and…the Chevy Volt. Toyota doesn't think any of them will ever be built in large volumes, because their Li-Ion batteries are simply too expensive to be cost-effective. He also cited concerns over global supplies of lithium. Meanwhile, Toyota is hard at work on next-generation batteries , especially air battery chemistry, including zinc-air, as well as stepping up production of NiMH packs and starting Li-Ion factories. What's the line about not "having all your eggs in one basket"? Reinert also thinks it's unrealistic to expect owners of plug-in to only tap the mains at night. Utilities are going to have to step up capacity. And forget about all the 2010 Prius spy shots floating around the web, they're just cobbled-up mules based on the current Prius. Toyota is famous for keeping their final products under wraps (just one of the many differences with GM). And one more goodie from the grumpy Toyota brain trust: "liquid peak" (every conceivable liquid fuel from petroleum, coal and biofuel) arrives in 2018. That's when global demand will outstrip capacity to produce them all.
No small amount of the excitement surrounding the Chevrolet plug-in electric gas hybrid Volt centers on the vehicle's design. GM has hyped this "car of tomorrow" look by withholding the final design and promoting the prototype as if that's it, there ya go. This despite the fact wind tunnel testing obviated the hyped sheetmetal early in the Volt's development. Anyway, The Detroit News reports that GM is about to show the world the "real" Volt's design. Well, not the world. "GM, which will mark its centennial on Sept. 16, will let employees take a peek at the extended range electric vehicle but not allow them to use any cameras because of concerns about the competition… No final decision has been made on when and where the Volt will be revealed to employees — and eventually the public, but spokeswoman Karla Coleman said, 'It's going to be soon.'" The DetN reckons that means November's LA Auto Show. Or January's Detroit auto show. Or next Independence Day [just kidding, I think]. And get this: "The automaker recently showed a near-production version of the Volt to a focus group in southern California. 'It was very positive,' Coleman said. 'It's not like we can change the design at this point, but we want to hear feedback about how we're doing.'" Yeah, that makes sense. [NB: TTAC will pay $1000 for exclusive rights to the first photo of the finished Chevy Volt.]
In a maximum interview with Auto Motor und Sport, GM Car Czar Bob Lutz tells us to expect 1m annual production of E-Flex EVs in 2020. Meanwhile, we can expect "no more than" 10k Volts by 2012. (For reference, it took Toyota ten years to sell one million Priora, and that they won't hit 1m annually until (you guessed it) 2010. As in the year the Volt comes out.) Lutz also confirms that though Opel-branded E-Flex-mobiles may be forthcoming, the Volt will be a world model to be sold in left and right-hand drive markets. Interestingly, Lutz says he can't remember has never seen anything like the current downturn in the U.S. auto market. Never mind. "Not only will we survive," Lutz barks. "We'll be stronger and more competitive than before." After all, they'll be launching a world-beating plug-in electric – gas hybrid, double annual capacity of it every year and (presumably) turning a profit on it.
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