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View Full Version : Feds Say the Volt Won't Save GM


SlowHands
04-01-2009, 08:28 AM
http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg ...the Chevrolet Volt, which the White House calls too little, too late and too expensive. (http://blog.wired.com/cars/2009/03/feds-say-the-vo.html)

http://www.cleanmpg.com/photos/data/501/2011_Chevrolet_Volt_Front1.jpgby Chuck Squatriglia - Wired Autopia – March 30, 2009

GM has been backwards thinking for maybe a bit too long. -- Ed.

General Motors has all but bet its future on the Chevrolet Volt, but the government says the range-extended electric vehicle won't save the beleaguered automaker.

"While the Volt holds promise, it likely will be too expensive to be commercially successful in the short term," President Obama's auto task force said in its assessment of GM's restructuring plan.

The panel soundly criticized the restructuring plan GM submitted as part of its request for a federal bailout, saying it relies on unrealistic and overly optimistic projections. The task force believes GM can become a competitive automaker, but only by shaking up its management — which is why Obama essentially fired CEO Rick Wagoner — and accelerating its restructuring.

"A great deal of progress needs to be made," the panel said in its five-page summary (.pdf) assessing GM's proposal, "and GM's plan contemplates initiatives that will take many years to complete."

Among them is the Chevrolet Volt, which the White House calls too little, too late and too expensive.

GM says the range-extended electric car will be in showrooms by the end of next year; the first production prototypes will be on the road in June. The four-door sedan will deliver 40 miles on a charge; a small gasoline engine will recharge the battery as it approaches depletion, extending its range by as much as 200 miles. The car is expected to cost around $40,000...http://blog.wired.com/cars/2009/03/feds-say-the-vo.html

chibougamoo
04-01-2009, 08:48 AM
Obama seems to look at GM like it should be an American version of Volkswaggen --- cars for real working people. GM is still thinking like it should be an American version of Audi --- cars for the rich, who can afford to pay the premium price.

Unfortunately for GM, it's the average working American who has to support their cars, and no one is interested in a $40k "Jolt".

On a parallel note, Obama told GM and Chry-co to get out of NASCAR as of the end of the year. There is a similar disconnect here, in that the big FSP lead-sleds have nothing to do with improvements to the econocar breed that the average working American drives to the grocery store.

Blackbelt
04-01-2009, 09:15 AM
The "auto task force" is made up of a bunch of bureaucrats who know next to nothing about the automobile industry. At least 2 members don't even own a car. This is typical of Washingtons practice of appointing people to oversee something who have no clue about the entity that they are overseeing. So forgive me if i look at anything they say with apprehension, and very critically.
I don't know that any one car will 'save' or sink' GM. I think that a $40,000 price tag is ridiculous, and for that reason alone the car will not be successful. They need to bring this car to market under $25K

Earthling
04-01-2009, 10:27 AM
"While the Volt holds promise, it likely will be too expensive to be commercially successful in the short term," President Obama's auto task force said in its assessment of GM's restructuring plan.

I've been saying that here for quite a while. It doesn't take a rocket scientist or auto expert to figure that out.

GM putting all it's eggs in the Volt basket is yet another example of lousy management.

Harry

SlowHands
04-01-2009, 11:48 AM
Getting out of NASCAR sponsorship would only be a reduction in advertising / exposure for them. There are quite a few people that follow racing with the mindset of 'hey if its strong enough to hold up for racing, and win races, their 'regular' cars must be good too.'

I'd think they'd need as much exposure as they can get.

JusBringIt
04-01-2009, 12:55 PM
At least 2 members don't even own a car.

Says nothing about their knowledge of automobiles and could actually be a good thing.

Radio_tec
04-01-2009, 01:18 PM
GM could have had an affordable hybrid or even plug-in hybrid car now if they hadn't killed the EV-1 project, lobbied the Bush Whitehouse to kill the Partnership for a New Generation of Vehicles, PNGV, staked it's future on the Hummer, The Tahoe and other FSP's while stratching their heads at why Toyata was building hybrids (See PNGV) and how on earth they could make any money from them.

GrendelKhan
04-01-2009, 01:30 PM
Peterson concedes Toyota clearly has the advantage when it comes to hybrids. But he notes that GM produces eight hybrids and offers 18 vehicles that get 30 mpg or better — more than any other major automaker.
I'm so sick of this excuse. Produces? Fine whatever. How many do you actually sell? And in what numbers? Might want to ask yourself why they don't sell...

When I look at the road now, almost all I see is Toyota and Honda. What is GM, Ford or Chrysler tends to be trucks. I have to look long and hard to find ANY of these 18 vehicles that get better than 30mpg. When I do find them, I'm just not sure that they compete.

When I look at the road of the future, I just don't see them as big players.

Good luck with the excuses GM. Tho I'm not sure that it'll count for much.

freezin4
04-02-2009, 12:11 AM
GM finally got the Saturn line-up right: all nice-looking vehicles, mostly European designs/chassis. Most of them economical, priced right and drive pretty well.
And now they are on the chopping block!

paratwa
04-02-2009, 08:49 AM
I'm so sick of this excuse. Produces?

Agreed. Here's my beef. You make one car and slap 3 badges on the front of it. Sorry fella, that's not 3 different cars.

GrendelKhan
04-02-2009, 09:23 AM
Agreed. Here's my beef. You make one car and slap 3 badges on the front of it. Sorry fella, that's not 3 different cars.

I hear ya. But frankly, I don't care if they slap 17 different badges on a car, so long as it freaking sells. They just don't sell.

Sorry GM, they're just not good enough. Producing a crappy car that gets ok mileage just doesn't cut it. And blaming the unions and making excuses isn't going to get me to buy a car from GM. GM needs to build good cars.

I suppose it's fine if everyone wants trucks, the economy stays strong, and gasoline prices stay low - whoops....

I was on the highway (rt128 in MA) with Mrs. Khan the other day and the radio was talking about car company bailouts, and she asked "Which cars are Chryslers?" Ignoring SUVs and trucks, it took a long time before I could point out a car.



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