GM’s Potential

June 11, 2010

GM's Chevrolet Volt

I just ran across this article today and it disappointed me. Ever since I first heard about the details for this car, I’ve been excited about it because of its potential to usher in the EV market. The car is the perfect vehicle to transition people from gas vehicles to electric vehicles. For those of you who don’t know how the Volt works, it basically has an all-electric range of 40 miles (most people drive less than this in a day), after which the gas engine kicks in to charge the battery instead of drive the car. This differs from plug-in hybrid electric vehicles in that the gas and electric engines are in series instead of parallel. In plug-in hybrids and hybrids, the engines are parallel and the purpose of the electric engine is to offset the load on the gas engine. This vehicle allows someone to drive only on electricity for most days and then let the gas engine kick in for road trips.

So why am I disappointed? Just as GreenTech Media has also figured out, that article shows that GM isn’t taking their Volt seriously. Their argument is that the demand isn’t there and they will only increase production when demand increases but always “want to keep VOLT in a position where demand for the product is slightly greater than supply.” However, I think this is a surefire way to keep people from transitioning to EV as they will always be seen as niche products for people with disposable income. GM has the ability to produce a massive amount of Volts and lower the price so everyone can afford it, but it just becomes a question of their willingness. This is where I hope the fact that the government is a majority shareholder plays a role.

Back in the 90s, GM developed the GM EV1 electric vehicle that was the precursor of this Chevy Volt. They released only a few vehicles to conduct a pilot test in California and every driver of that vehicle loved every bit of it. Then for no reason at all, GM canceled the car and destroyed all the EV1 vehicles and went forward with their SUV/Hummer strategy. The demand was there, customers wanted it, yet GM said no. We could be driving EVs today if it wasn’t for GM saying no. I’m afraid they are going to kill the Volt in the same way. Remember, customers only want what you give them. Give them the choice of the Volt at a reasonable price and you will see that they will sell.

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