I recently wrote a post entitled “Could Recession Crash the Volt“. Now another sobering article was published by Businessweek.
The Chevy Volt program along with the entire portfolio of hybrids that GM is building and planning to build is described as a do or die situation for GM. The title, ‘GM: Live Green or Die’ tells it all.
The automaker is sort of described as a deer in the headlights, spooked by Toyota’s success in the hybrid realm and unpredicted rapidly rising gas prices.
The story recounts Lutz’ initial recommendation to build an electric car, confirming its early moniker as the “iCar”, and how the idea was delayed until 2007 when the Volt concept was first introduced.
GM is noted to be burning $1 billion a month and has yet raised it’s R&D budget for future cars from $6.6 to $8.1 billion last year. GM CEO Rick Wagoner is painted as the generally cautious type now forced to make bold moves and bet on unproven technology in the hope of allowing the company known for Big Hummers, Fat Caddys, and Massive Yukons to survive in the lean 35 mpg or more world of the future.
The truth is, the future is here now, and the Volt is already in the race to the finish to save GM.
This entry was posted on Sunday, May 18th, 2008 at 6:50 am and is filed under Financial. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.