Topic: The Volt is not commercially viable according to the US Gov.

[Cortina]

So according to US GM is years behind in Green Department and It should concentrate on making a decent small car.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20090331/AUTO01/903310374/Report++Volt+won+t+power+GM+past+Toyota

Report: Volt won't power GM past Toyota
Scott Burgess / The Detroit News

The Chevrolet Volt may wow the media when it arrives in dealerships next year, but the Obama administration believes the plug-in electric car will cost too much and won't attract enough buyers.

"While the Volt holds promise, it will likely be too expensive to be commercially successful in the short-term," the administration said in its evaluation of General Motors Corp.'s restructuring plan. The car "is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable."

The analysis was a significant blow to GM. Since the vehicle's unveiling at the 2007 Detroit auto show, the Volt has helped GM reshape its image as a more environmentally conscious company. GM parlayed the Volt into massive media coverage and has invested heavily in the program.

Despite the administration's assessment, GM remains committed to the Volt and will begin production next year. The car will drive about 40 miles on batteries only; then a gas engine will act as a generator and extend its range for hundreds of miles more.

The government also said the carmaker remains at least a generation behind other automakers -- particularly Toyota Motor Corp. -- in green technologies.

"In hybrid technology, it's hard to argue that we're not behind," said GM spokesman Rob Peterson, when comparing gas-electric hybrids. "But we believe we have a better solution."

However, GM's new powertrain makes the Volt too expensive, the government said.

The four-passenger Volt is expected to sell for around $40,000 -- more than double many gas-only compact cars and thousands more than a comparably sized hybrid sedan.

That price would certainly hurt its volume, said Jack Nerad, editorial director of Kelley Blue Book, which operates a leading car consumer Web site kbb.com.

"That's just one factor," he said. "Is it even profitable at $40,000?"

Peterson said the carmaker is finding ways to reduce the cost of future versions of the car, something that happens with any new technology. The Volt uses a much different powertrain than today's hybrids. Gas-electric hybrids have very short ranges and low speeds on electric power only. The Volt runs only on electricity.

"It's a transformational technology," Peterson said. "That's part of the reason the cost is so expensive. But we believe if you start in the right direction, as the supply base matures, the volumes of the vehicle increases and the costs will go down."

The government audit of GM's restructuring plan suggested the carmaker had invested too much time developing the Volt to leap frog Toyota's lead in green technologies.

Instead of focusing on a car that will not produce a commercial winner out of the gates, GM should focus on producing better smaller cars, the report suggested.

The Volt, Peterson said, may have garnered the most media attention because of its unique powertrain, but it is only one of many green technologies coming out of GM.

The government report didn't mention other small vehicles GM plans to debut in the coming years. They include the Chevrolet Cruze, a high mileage compact car that will arrive in America next year to replace the Chevy Cobalt, and the Chevy Spark, a stylized urban microcar.

The report also noted that GM remained too dependent on trucks and SUVs.

"General Motors has a very robust plan in place," Peterson said. "We have refinements to the internal combustion engine coming, the development of bio fuels and one of the largest hydrogen fuel cell fleets on the road today."

It will take a variety of solutions for GM to keep operating, and for the next decade the high volume vehicles will run on gasoline, Nerad said.

"Are they a market leader in small cars? No," Nerad said. "Midsize cars? No, but they're closing in with the Malibu.

"That's where the big volume is," he said, "and that's where the game is won and lost."

[articsteve]

Agree with every word.  The Volt is a toy project and largely conceived to dupe ppl into thinking GM was viable as it lost 30 Billion year after year.  Similar to a botched triple LUTZ in girlie skating. 

[Sir Osis of Liver]

Hybrids in general aren't commercially viable. The Volt is no different. They are marketing gimmicks. It's well known that the first generation Prius sold at a loss. Toyota's protestations to the contrary, they did little better than break even with the second generation. Adding more batteries and provision for plug-in charging is going to make the business case even worse.

To compound matters, hybrid sales have underperformed the market significantly since the price of fuel dropped from last summer's price spike. In December, Prius sales were down ~50% compared to ~30% for the industry as a whole.

More energy savings could be had with smaller, lighter cars with direct injection diesel engines, but that isn't what the American market wants. The hybrid is simply another technological solution to a behavioural problem.

I do, however have a problem with any government dictating what type of car the manufacturer should be concentrating on. It is the downside of the Faustian bargain GM and Chrysler now find themselves in.

[toolatecrew]

And in other news snow is cold.

The volt is a long term paln. You need to survive to see it realized. The Cruze is the car that is the key to sucess and its not here yet.

The Volt is like manyana always TOMORROW.

[articsteve]

They are marketing gimmicks

You need not tell me.  I've been driving probably the silliest Hybrid on the market.  Namely a AWD SUV which is for the lack of a better expression, counter productive to the objective.  Can't wait to get rid of it.

Outside of warranty it's gonna be a nightmare when things need replacing, IMO.

[rrocket]

^^It's a Lexus...they don't break!   


I've driven one too!  Fuel mileage was OK...but it was pretty peppy!

[sailor723]

I have two friends that each have RXh400's. They love them.....go figure

[rrocket]

I have two friends that each have RXh400's. They love them.....go figure

The only person we know that has one drives it exclusively in the city.  Since they've owned it, they've gotten almost 26 MPG over the life of the vehicle.  Not amazing...but not too bad for an AWD larg(ish) vehicle.

[sailor723]

You know,I was thinking,maybe a lot of people will buy the Volt. Not because it's a great automobile or because it's a logical and senseble transportation choice but becuase they think  it's "neat" "cool" and "in".

Wait a minute.....isn't that why a lot of people have always bought certain cars? 

[rrocket]

You know,I was thinking,maybe a lot of people will buy the Volt. Not because it's a great automobile or because it's a logical and senseble transportation choice but becuase they think  it's "neat" "cool" and "in".

Wait a minute.....isn't that why a lot of people have always bought certain cars? 

I agree....but at that price point ($40,000 USD) there are other cool cars out there.

[Cortina]

You know,I was thinking,maybe a lot of people will buy the Volt. Not because it's a great automobile or because it's a logical and senseble transportation choice but becuase they think  it's "neat" "cool" and "in".

Wait a minute.....isn't that why a lot of people have always bought certain cars? 

I agree....but at that price point ($40,000 USD) there are other cool cars out there.

I guess GM could still use the Volt, They must have some Ecotec engines lying around and should be able to cobble together a dash and charge 20 something. Because the Volt looks good if a bit Honda Civic. 


Ummmm.

I do find it funny, It takes a US president to step in and show what they need to do, You have to wonder why GM needed a CEO in the first place. It does make me wonder what CEO's do all day.

[articsteve]

I have two friends that each have RXh400's. They love them.....go figure

I think it depends if you have literally money to burn because these units are hardly worth the cost of admission.  The freezing temps knock the jeepers out of the battery function.  The battery off/on mode is taxing.

I suppose the only positive is that it provides Toyota with real world testers that hopefully will lead to something worthwhile.  Cold/below 0C temps are gonna be the biggest challenge with battery/electric.