Exclusive: Interview with Ed Peper on Marketing the Chevy Volt
I just had the chance to interview Ed Peper, Chevrolet brand manager, and some of his team members, John Hughes, Carolyn Normandin, and Steve Wagg about bringing the Volt to market. Unless other initials occur, the responses are from Mr. Peper.
What is your job in GM?
I’m responsible for all the marketing, advertising, promotion, relation to production development and also just had sales added to my responsibility. So just about anything having to do with the Chevy brand myself or my team is involved.
Does that involve Chevrolet internationally?
No. I’m responsible for the US market. There are 4 major regions in the world for GM in a lot of big countries. I’m part of the global Chevy council that meets and talks probably once a month and we discuss all the issues that are germane to us all and how we can help each other with common practices.
That’s especially important as Chevy is the fastest growing global brand right now. Some of our brands do cross different regional boundaries.
When the Volt concept first arrived did you guys know right from the start that you wanted to make it a Chevrolet or did that come later after some initial discussion?
We knew right from the beginning it was going to be a Chevrolet. Prior to the Volt happening we really changed the direction of our brand. We want it to stand for fuel economy as well as the multiple fuel solutions that we offer. That would be great mileage on current vehicles, E85, and hybrid products and also the Volt and hydrogen fuel cell vehicles. We developed this whole campaign, our fuel solutions campaign going from gas friendly to gas free and all of us in leadership in GM felt as the volume brand for the company we had to make a huge statement, not with a smaller brand or a smaller division, we needed to make it with the biggest division. It was very intentional that Chevrolet got the Volt. The other thing is too we’ve got to find a way to really produce these in high volumes so we can really make a huge difference.
Was the first thought to move Chevy to the fuel economy car and the Volt was the second thought?
Well it was one of many. We have existing technologies already out there right now, but this was one of our gas free technologies this and the hydrogen fuel cell, and were doing that hydrogen fuel cell test now, so we have a couple of different gas free technologies we were working on at the same time.
Even though GM is being open and showing us the Volt program, there are those naysayers that say the Volt is a statement and that GM doesn’t really plan to sell Volts in high volumes. What is your comment about that?
Well I think we’re making a huge investment in this product and we don’t make investments in products that we don’t plan to sell. Eventually we may start with a little lower volume at the beginning as we get it into the marketplace and start seeding it and talking about it and obviously working with folks like you Lyle to help spread the word to other consumers. We want to make this a profitable business for us in the long term, not only the Volt business but the business in general of GM. We don’t make investments like this if were not planning to take it forward and make it work for us. That’s very very very significant.
Some people say its helping to change the image of GM but the real meat and potatoes will be to sell trucks.
For us its definitely going to make a difference as well. We believe its a game changing vehicle for us.
(SW) Its a category buster. When Toyota launched the Prius in the initial years they sold very few of them and they lost a significant amount of money. I’m not suggesting that’s the business model you will see with us, but clearly as you plan for next generations of these vehicles you intend to make it a core mainstream vehicle within your portfolio.
There are lots of electrics out there and lots of hybrid, but no other manufacturer has a vehicle like this that provide consumers with the opportunity or the function of a vehicle like this. So we have a real opportunity for a considerable period of time to be sort of alone in this arena. That’s why I call it a category buster, because your not really competing with electric and your not really competing with hybrids.
Do you have a plan on how to educate the public to understand the car since its so unique in order to make it more readily salable?
Were working on that right now. Were actually doing a lot of work right now to understand in general who the consumer is for this product. Were working with a group that’s based out of Harvard and there a company called Innosight. What their working with us on is developing a jobs-based positioning for Volt. Which means what are the jobs that Volt really needs to handle for the consumers that buy them. On an emotional level, on a social level, on a functional level, what are the jobs that this vehicle must perform and must do well. Were in the process right now. We’ve done a couple of focus groups. We have a lot of data that you and others have provided us. And its going to help us from a marketing standpoint, what things should we talk about, what things shouldn’t we talk about. And how to we best present the category buster. How do we present this in such a way that consumers who are interested will know this is the first of its kind and this will be the best of its kind and it will be the only one of its kind when it hits the market place in 2010.
With respect to volume, any new car that GM makes can only be sold through the dealerships, is that a contractual obligation?
Yes, the dealers have a legal sales of service agreement with us that’s a binding agreement. They are the only ones that can sell new vehicle through their outlet.
So GM cannot sell directly to the consumer over the Internet?
No sir, we may get people interested and they may wish to communicate with the dealer over the Internet but ultimately that sale has to take place at the dealership.
About how may Chevy dealers are out there?
Around 3800.
How might you distribute these vehicles to those dealers initially?
I think there is going to be specialized service training. Many times what we do for example with certain brands like Corvette, not every Chevrolet dealer sells Corvettes because there’s an enormous amount of training that has to be done to service those vehicles. This could very much be like that. If someone’s not trained and they’re not able to fix the potential problems or issue with VOLT they probably wont be getting any.
(SH) That’s one of the benefits of having this branded a Chevrolet is the vast distribution channel that exists and the service support that exists within that channel. But as Ed mentioned there will be prerequisite for the dealers prior to them being able to sell the new Chevy Volt. That will be of course service training and sales training. We want to make sure they are able to understand how the car operates completely and totally. But also if there are any issues technically they know how to address them swiftly. There may also be some required tools and such. The whole idea is to make sure that our entire sales and service organization is at a high level of readiness for this prior to the arrival of the product. That part of the whole experience to make sure that when the product gets here the support system is in place.
(CN) There’s a very very strong history of that. For example the hybrids that are out there now have a special battery. So before a dealer could get a hybrid that dealer would have to have his or her service people go through the training and that is one of the prerequisites.
And it goes beyond our dealer to the first responders and law enforcement and fire department areas as well to make sure that when these vehicles are on the marketplace they’re familiar with then just as they become familiar with our hybrids and our hybrid systems. As well as the Equinox fuel cell and the hydrogen storage that is on that vehicle. We have a very comprehensive plan so that when we go to market not only our dealers are ready but the municipalities are ready as well.
So even though the cars have to be sold at dealers then, GM can still regulate what the dealer has to do to get the car?
There would be certain criteria that we would uniformly apply across all our dealers in an equitable manner. In terms of the requirements, we are going to have to develop them. The dealer has a choice though, they can either do them or not do them. If they don’t do them then they wont get the product.
Are you going to roll the car out gradually considering the huge public demand in light of recent gas prices, though wouldn’t it be great to get a strong initial foothold?
There a lot of considerations that we have to take into play. First off this is new innovation and first off and foremost we want to make sure that the product and the safety and all the key components and elements of the product itself are one hundred percent before we come to market. But also when we do come to market because its new unlike anything we’ve ever done there becomes the requirement for us to train and have service support before we distribute the product there. In some cases the system has a limitation. Its difficult to train 4000 dealers or 8000 technicians over a period of a month or two. So there potentially could be the need to have a regional rollout and go across the country in a somewhat systematic manner. But there’s a number of considerations we have to look at along the way.
Lyle what is your sense in talking with your many many people that they think this vehicle is going to be priced at?
(ME) When it was initially stated that the car would be less than $30,000 you could sense people’s happiness with that. But then as the latest sentiment has moved closer to $40,000 as per Bob Lutz, you can detect some degree of discontent. Certainly I think that at $40,000 there would be a lot less people who would be able to afford it.
All of us would really want to see this car take over the roads, that’s my dream, and obviously the price is going to have to play a role in that somehow. I think people now expect its probably going to be around $35,000.
Do you think that the fact its a four seater could be a hindrance to widespread acceptance of the car?
I think just to start with this is going to be a very nice sedan. I think its good sized to start with. I will tell you that were obviously going to look for other applications for this technology in other products. It could be bigger products. Were still on the drawing board on some of that stuff right now.
Are you thinking about other brands and other sizes of vehicles?
(SH) Yes. And also when you take a look for example at a Civic hybrid. While it does have a bench in the back, that’s not a place where you and I would want to spend a lot of time. So in the scheme of things we don’t see that as a major issue. The idea is that when we take a look at what the vehicle is we keep falling back on the benefits. The gas free range, and no anxiety with the ability to drive it as a regular vehicle. Its not convenient to charge but you still have the ability not to use gas ever. That’s something that’s unique and I think trumps any issue about a three place versus two place second row.
Are you targeting certain markets in the rollout?
We’re still in the planning process. A lot is going to happen here when we meet with Innosight next week . We’re going to go through a lot of this data. Customer clinics and what they perceive to be this jobs based positioning. And then we will roll from there to get a really good marketing positioning for the vehicle. And the we will start developing tactics for the launch of the vehicle. And so it all comes in sequence and we should have a really good plan I’d say in a couple to three months.
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June 25th, 2008 at 6:04 am
It sounds like GM is doing a lot of thinking about this just as we would expect. Lets hope they make good choices and I hope they start showing the final product soon.
June 25th, 2008 at 6:07 am
USA! USA! USA!
Go Volt!
June 25th, 2008 at 6:11 am
Nice interview Lyle. Thanks!
I find it interesting that you were asked about the Volt pricing. It shows the issue has not yet been decided and very much on their minds.
June 25th, 2008 at 6:21 am
Its awesome that you get to talk with industry people and get little tid-bits of how they are progressing on this.
Keep up the good work!
June 25th, 2008 at 6:37 am
Great work, Lyle. Keep it up.
BTW, I do hope they keep Florida on the initial rollout list, so that I can fly from Alabama to get one. But it’s really gonna suck if the closest service-trained dealer is in Atlanta (for me anyway). Who knows? Perhaps someone from a dealership here will get trained.
June 25th, 2008 at 6:53 am
From the article, (SH) says: “The gas free range, and no anxiety with the ability to drive it as a regular vehicle. Its not convenient to charge but you still have the ability not to use gas ever.”
Its not convenient to charge? For me, the convenience of not having to go to the gas station is obvious. I would rather take 30 seconds to plug in every night and unplug every morning than to take 10 minutes to gas up every week.
Bottom line: Plugging in is MORE CONVENIENT than going to the gas station. It’s a shame GM’s own marketing hasn’t recognized this.
June 25th, 2008 at 6:58 am
From the article:
Question: “With respect to volume, any new car that GM makes can only be sold through the dealerships, is that a contractual obligation?”
Answer: “Yes, the dealers have a legal sales of service agreement with us that’s a binding agreement. They are the only ones that can sell new vehicle through their outlet.”
Can anyone say PRICE GOUGING !
——
Great interview Lyle, as always.
June 25th, 2008 at 7:05 am
Good interview Lyle. Neat to see they are putting feelers out to see what price range will be best excepted. Perhaps they haven’t settled on a price yet, although I would be a bit suprised if they didn’t.
June 25th, 2008 at 7:05 am
Thanks for this Lyle…good stuff
Helps me be more specific in my questions for my local dealers. I’ll be sure to bug them about when their service personnel are being trained on the Volt, which obviously would lead into a better chance that they actually get some of them to sell.
Eastern PA baby … what a great target market !!!
June 25th, 2008 at 7:07 am
Convenience is relative, as is price. For apartment dwellers like myself, finding an outlet is going to be a problem. Same thing with price. For someone making $70K a year, a $ 35-40K price tag is not going to be a problem.
This whole Volt gestation and birthing process has been quite a roller coaster. I was all hyped about it initially, but now reality has set in, and I realize I won’t be owning a Volt anytime in the next five-seven years. Between the incremental roll-out and the high price tag, I’ll be looking at one around retirement time, if that.
June 25th, 2008 at 7:12 am
“Even though GM is being open and showing us the Volt program, there are those naysayers that say the Volt is a statement and that GM doesn’t really plan to sell Volts in high volumes. What is your comment about that?
Well I think we’re making a huge investment in this product and we don’t make investments in products that we don’t plan to sell.”
Obviously, Ed does not remember the EV1 and all the money invested in a vehicle that was NEVER for sale…
Why does GM pretend that the EV1 never existed or that it was such a great car?
June 25th, 2008 at 7:15 am
I’m glad to see that GM is considering E-Flex for other vehicles. I really see a better market for a mid-size sedan with 5 passenger seating than a smaller 4-seat econobox.
Even if the mileage is reduced from 5 miles per kWh to let’s say 4 miles per kWh, that reduces AER from 40 to 32, and energy costs per mile goes from 3 cents per mile to 3.75 cents per mile (based on $0.15 per kWh). This is compared to 16 cents per mile for a Malibu with an average 25 mpg (4-cyl engine) and $4 gal gas.
Hopefully, E-Flex will find its way into trucks and SUV’s eventually as well.
June 25th, 2008 at 7:17 am
3800 dealers and 10,000 Volts the first year. Each dealer will not get three, some will get zero and others more. But even if the dealers with Volts got 36, that would be three a month for the first year. This is not limited availability, this is very limited availability!
June 25th, 2008 at 7:17 am
Lyle, great interview, as usual.
The only thing I do not understand is the training issue for the service techs. It was stated that they can not train techs from 3800+ dealerships in a month or two.
But:
GM knows when this car will be released.
They have training scheduled at regular intervals for their techs at sites all around the country.
They will have 100+ pre-production models on the road sometime next year. That is what we have been told, as I recall.
So it is not like they will only have a month to train. They could start in mid 2009 at their training sites with maybe 10 of those pre-production units. That would give them almost 18 months to get everyone up to speed.
I just get the feeling that they are intentionally trying to keep the cars located in small areas for the first year or so. But the question is: Why do that?
If they truly want widespread acceptance of these cars, they need to be seen by the general public driving on the roads all over the country, not just in LA, Miami, Washington, D.C., and the one unit for Lyle in New York.
If the plan is to produce 10K units the first model year, they should plan for 200 cars per state, and get to work with training for service and sales people. That is, if they are sure this car will work everywhere……………
JMHO
P.S. I am ready to be one of the first 200 people from the great state of Ohio!!!!
June 25th, 2008 at 7:29 am
Also from the article:
Question: “So even though the cars have to be sold at dealers then, GM can still regulate what the dealer has to do to get the car?”
Answer: “There would be certain criteria that we would uniformly apply across all our dealers in an equitable manner. In terms of the requirements, we are going to have to develop them. The dealer has a choice though, they can either do them or not do them. If they don’t do them then they wont get the product.”
Can anyone say GM GOUGING DEALERS before they GOUGE US?
I also have no bones about the article, nice work. I bet you that guys name is not really Ed Peper. Marketing guy with the name Peper? C’mon.
“Ouch town, population you, bro”
June 25th, 2008 at 7:29 am
I am all for doing marketing research and bean counting, etc., but thank God Bob Lutz is in charge, because he won’t let a stack of numbers obscure his vision.
June 25th, 2008 at 7:31 am
#10. benson,
I agree with you on that. I have a garage with plugs on all the walls so the volt would be pretty convienient for me. My last place, however, forced me to park about 30 yards from my townhouse. This would make charging the car at home a real pain (could I trust having a plug in all night with some of the “local kids” wandering around at night?)
I think the Volt will be great for many (I want one) but may not be worth the extra price for some until the charging options are moved closer to parking lots for everybody. If I could not charge the $35-40K Volt routinely I would rather have the 40+ mpg cobalt replacement that GM has announced (which I could buy for less than 20K).
Everyone benefits from cars like the volt, however, since it will reduce the demand for gasoline.
#7. Many good companies will only sell through dealers. For instance, if you want a Stihl chainsaw, you can only get one at a Stihl dealership. If you want something cheaper, you can go to Home Depot and grab a box but you will not be getting a Stihl product. When you ask the help about the product you may or may not get a good answer. In the case of the Stihl products, the dealers are trained and can answer your questions and fix your product. I know this first hand. The product has a higher value to me because I can deal with people who are knowledgable about it. When I get something from a big box store and it breaks and I cannot find help, I assume the product is a piece of crap. Manufactures want their product sold and serviced in a certain way to maintain the best image for the product. Dealers can help with this (although they too are sometimes lousy).
June 25th, 2008 at 7:35 am
From the article:
SH says, “It’s not convenient to charge but you still have the ability not to use gas ever.”
I completely disagree. Charging is way more convenient for me than
) and go to sleep. Next morning, I unplug the car and drive away. How much time did I lose doing this? 20 seconds? Couldn’t be more convenient if you asked me.
going to the gas station to pump gas.
With charging, I pull into my garage, pull the cord down from the ceiling and plug it in. I go into the house, eat, play with the kids then the wife (OK playing with the wife is wishful thinking
June 25th, 2008 at 7:37 am
#14 Jim I
I believe GM will target California initially, because not only does CA have strict emissions targets, they have also passed legislation to limit CO2. With about 35 million people, and the mandates set for reducing greenhouse gas emissions, this will be one of the biggest markets for E-Flex.
The other initial target market seems to be Florida, with a few for DC and NY.
The one thing that I see in these two primary markets is a generally warm climate. So by focusing the first year’s production in these locales, GM buys more time to complete testing the Volt in more severe environments where snow, freezing rain, sub-zero temperatures, and other weather extremes are possible.
June 25th, 2008 at 7:42 am
“Ok, fellas. I’m going to put the big ball waaaay up here on this tee. Now once I move back five feet, you swing.”
Question: “Even though GM is being open and showing us the Volt program, there are those naysayers that say the Volt is a statement and that GM doesn’t really plan to sell Volts in high volumes. What is your comment about that?”
John Hughes: “Score! I’ll take that. I called it! Woohoo!”
Steve Wagg: “No, no, me, I hardly ever get to say anything”
Carolyn Normandin: “I’m a lady, me first”
John Hughes: “Please! Again with that Carol? I clearly called it!”
Ed Peper: “Kids! Simmer down! If you don’t behave I’ll make you talk to the guy in the lobby from Standard & Poor’s. Besides, I have the big office, so it’s mine.”
John Hughes: “Your right, you totally should. I’m sorry, please don’t remember this moment when you have to cut your team by a third!”
Carolyn Normandin: “Yes sir, and might I add your tie looks just as perfect as everything else here”
Steve Wagg: (mumble) “why don’t you just kiss his… “(mumble)
June 25th, 2008 at 7:44 am
I’m OK with starting at low levels, and in regional markets, because GM’s entire existance is riding on this. I anticipate that every one of the initial production run will be “replaceable” meaning that if anything but minor problems comes up, GM is going to replace the entire vehicle. They have too much riding on it for anyone, anyone, to get burned in the first year. The minute Fox news has a story of someone who bought a Volt and it’s not working right, millions in marketing and development will be lost.
And because this vehicle is being developed so quickly with so little lead time, the odds that they will have to replace a vehicle to preserve the brand image is a lot higher than for any other vehicle they have launched since the Saturn.
The focus group thing…scares me. Sometimes they work, but sometimes they are a disaster that keeps on giving. Raiders of the Lost Ark was a movie. The third movie was the product of a focus group. What else do you need to know?
June 25th, 2008 at 7:50 am
Specialized servce? I’m sceptical when they start compairing the level of service skills for Corvettes & VOLTs. The VOLT is different but way less parts. How much training does it take to plug in the diagnostic connector, read the screen & replace the component. Maybe upgrades & patches for the operating software will be the most common service issues. Dealers have have been long know to develop there own methods of revenue enhancements.
June 25th, 2008 at 7:50 am
I have a question that I encourage ANYONE to answer.
Since the first production run is pretty much confirmed at 10,000 units and the first roll-outs will be in CA, FL, DC and NY, does that mean that each market will get 2,500? Or will California get preferential treatment and get more than the other markets? I would prefer the equal share distribution. Chime in, anybody?
June 25th, 2008 at 7:54 am
#22 Dr. Science;
Amen to that. I always find it amazing that I go into a dealership for one thing that I know is a problem, and they for some reason have the perception that I need to have 8 other things fixed for a nominal fee even though I’ve fixed them 3 weeks earlier. Now THAT’S price gouging.
June 25th, 2008 at 8:04 am
#23 Firefly
I would wager that California gets the bulk. All the advantages/disadvantages are there. (depending on how you see their emission regulations).
Plus, they have all the celebrities, lol.
(My guess)
A few for politicians, a few for the south and a couple thousand for the larget city in the US. The rest to California.
June 25th, 2008 at 8:05 am
I’m actually planning to buy this car, if it is practical. I don’t need to buy a car just to be an “early adapter” or to be especially “green.”
Even at $35,000 to $40,000 this car would make sense if:
1. It has at least a a 4 year 50,000 mile warranty, including routine service (per upscale cars such as BMW and Mercedes) and
2. in addition, it has at at least a 10 year warranty on its revolutionary drive train, including the battery.
3.I have no desire to lease the battery, as had been suggested. If I buy something I want to own it! The whole idea of a car like the Volt is to free oneself form dependence on outside sources of energy as much as possible. Leasing the battery replaces dependence on oil with another kind of dependence.
June 25th, 2008 at 8:06 am
22 Dr. Science:
Fewer parts sure, but how many of those techs have ever worked on an electric motor? A generator?
Don’t forget also the ICE will need normal servicing.
June 25th, 2008 at 8:07 am
Convenience is relative. If you are commuting and have power in your garage, it is very convenient. If, however, you are on a 14 day driving vacation, you might find that you are on range extender after the first 40 miles. There wont be any place to plug in to at the motels. At least there wont be for the first few years.
It looks like the Volt will be an electric commuter car and a high mileage gas car for touring.
June 25th, 2008 at 8:15 am
You can be sure that if a dealer in your area sells hybrid Tahoes or Yukons, they’re probably going to get a VOLT. The training will be quite similar. Of the 3800 dealers, I’d say maybe 2000 are hybrid trained/ready in their service/sales departments. But the best way to make sure your dealers get this vehicle is to call them. Call them and ask for the dealer principal or the general manager and ask them if they plan on getting the VOLT. Call them once a month until they finally tell you yes. The more requests they get, the more VOLTS will be constructed!
Chris
June 25th, 2008 at 8:17 am
By the way,
Someone will be posting the official VOLT “preliminary specs list” in the design thread of the forum today. Just to let you guys know if it’s not there already.
Chris
June 25th, 2008 at 8:18 am
The biggest problem with GM cars is the same with all cars, THE DEALERS! Like any other auto business the product maybe good but how is the service? I have first hand knowledge of that arena and most of the time I come away very disappointed in the service department and knowledge of the service person. How many service personnel take the time to learn what is needed to service and repair the current models being sold? The current models are complex machines and a trade school education is almost inadequate to be a service and repairperson. The complexity of the compoents is such that they replace instead of repair. Many times I know more about the vehicle then the person I am paying 65 an hour to work on it and due to warranty issues I have no choice so I ask your, are the dealers and their service departments going to be able to meet the needs of maintaining something like the Volt?
June 25th, 2008 at 8:22 am
Jay,
I would imagine that only the service departments that demonstrate skills with current hybrid models and high customer satisfaction surveys for service will be touching these vehicles at first, so I would say yes to your question. Without a doubt though, the best service experience a GM customer can get though is at Saturn.
Chris
June 25th, 2008 at 8:41 am
Lyle — Wonderful interview. One gets a sense of who these marketing people are, how they are working on their assignment, and how they think.
Those interviewed show us vintage Chevrolet lowest-common-denominator marketing. I wonder if there is anyone who reads this site who is more enthusiastic about buying a Volt after reading the interview.
June 25th, 2008 at 8:50 am
32 Chris Rather than skills, dealer choices are likely to be made by overall Chevrolet sales volume. (Remember, this is about Chevy brand marketing.) These dealers have pull and will get a car in short supply. It’s a tremendous risk, because many of the high-volume dealers have just-get-it-out-quickly service depts, so the Volt can have a damaged reputation through bad service before any of the more competent dealers get one.
June 25th, 2008 at 8:54 am
I also disagree with the plugging in being inconvenient. I would so much rather plug in my car that drive to the gas station stand outside and breath in all the gasoline fumes that are known to cause cancer for about 5 min while you fill up. I remember when I lived in new england that it would be so cold it that it actually hurt to stand outside and fill up. Its still cold in a garage but you can plug a car in, in less than 10 seconds.
I also see in the future that the car will plug itself in. Just drive it onto a dock.
June 25th, 2008 at 8:58 am
Ahhh…the challanges of the dealership model. I wonder if GM could use CarMax?
June 25th, 2008 at 9:07 am
21 Eco
I enjoyed reading your comments about “replace the vehicle” but (after looking hard) I don’t see any sign of anything at all unusual in the interview. It looks to me like completely routine Chevy marketing, done in a completely routine just-another-Chevy-car way. Mr Peper and his colleagues are nice people, organizing focus groups to practice what to say and what not to say, thinking about the pitch to your average Joe or Jane. I think they see the Volt as just another Chevy brand, and wouldn’t you really rather have a Tahoe? They do not realize that the Volt is not an average car and could find immediate and strong acceptance with a group of customers who are far from the average for Chevy dealerships.
June 25th, 2008 at 9:09 am
12 BillR……
You say, “I’m glad to see that GM is considering E-Flex for other vehicles. I really see a better market for a mid-size sedan with 5 passenger seating than a smaller 4-seat econobox.”
I’m also glad GM will be using E-Flex on other larger vehicles, but not because the Volt will be a “4-seat econobox”! I’d guess that most posters here haven’t actually driven a ‘07 or ‘08 GM vehicle. Bob Lutz essentially DECREED a few years ago that all new GM cars would employ dramatically-upgraded interiors in terms of design, fit, finish & use of premium materials. As a rule of thumb, he insisted that GM spend roughly $500 MORE on interiors (at GM’s OEM cost, of course) —and most new GM vehicles now have these gorgeous interiors.
Also, I had a long conversation with both Tim Creig, the Volt interior designer and Tony Posawatz, the Volt Line Director, in NYC.They confirmed that the Volt would be a high-performance sports car —and would be one of the world’s first “4-door sports sedans” with FOUR bucket seats and TWO center consoles, and its interior would be both futuristic and luxurious. Believe me, the Volt will not be considered an “econobox” any more than a Corvette would be!
Most people, even gm-volt members, will be in for a very pleasant surprise!
PS: Great interview, Lyle!!!
June 25th, 2008 at 9:11 am
#20, Statik, LOL! And too true… Too true.
From the interview, “(SH) Yes. And also when you take a look for example at a Civic hybrid. While it does have a bench in the back, that’s not a place where you and I would want to spend a lot of time.”
Further proof that Chevy is delusional. The Civic hybrid is a low-volume, low-risk addition to an existing product line that sells in the very low $20K’s and which did not move much at all until gas prices shot up. At that price, most people would rather have a Prius. I wonder if GM’s people mostly just pretend the Prius doesn’t exist?
Looking at the Civic as a benchmark for anything and making decisions about a make-or-break the company (’s reputation) $40K car is lunacy.
GM is committed to this car, warts and all, and is now trying to rationalize it so they can feel good about their plans.
From the interview, “The other thing is too we’ve got to find a way to really produce these in high volumes so we can really make a huge difference.”
GM doesn’t know how to make large volumes of cars?
From the interview, “Lyle what is your sense in talking with your many many people that they think this vehicle is going to be priced at?”
They couldn’t figure the answer to this out by reading GM-Volt?
June 25th, 2008 at 9:13 am
The dealers that get a Volt will be the ones who also agree to take an extra 36 Tahoes or Silverados with it.
June 25th, 2008 at 9:14 am
Great interview, Lyle. Keep up the good work. GM is doing what they should be doing. Getting the planning done and moving from point to point to cover all the bases.
The only thing that does not excite me about the Volt is the time-line for release to the public. It is still too far in the future. We all need this vehicle now, but I know GM cannot work miracles.
June 25th, 2008 at 9:19 am
#40 dagwood 55
Yes, or another 200 Malibus. (Marketing Instruction: show them the Volt, and when they say it’s too expensive, sell them a Malibu)
Hope springs eternal, so maybe Chevy marketing will learn what they really have to sell, someday (and no, it’s not the hydrogen car…).
June 25th, 2008 at 9:23 am
Rashiid has a very good point about price gouging. That is one other concern of mine that many of us have expressed. GM needs to find a way to force the dealers to sell the car at the suggested retail price and not gouge the customer. If I find gouging, I will leave that dealership immediately. If it is across the board at all dealers, I will not buy the Volt. I will not allow a dealer to gouge me just to buy the Volt. If it happens, I will not buy any GM vehicle. Period!
But, having said that, I believe there will be several other vehicles available that will give the potential Volt buyer other choices. They will not be a Volt, but they will be very good second choices. I will buy a second choice vehicle rather than be gouged.
I am trying to make myself well understood by any GM employee who may read this posting. I think we all should make the same statement.
WE WILL NOT STAND FOR DEALER VOLT PRICE GOUGING!
June 25th, 2008 at 9:28 am
FREE TEST DRIVES…GM should put at least 2 Volts at every dealership just prior to launching the product…and then mount a massive TV/ Radio/Print ad campaign inviting EVERYONE to contact a Chevy dealership for a FREE No Obligation test drive. Can you imagine how much excitement this would generate? Potentially just about everyone in the country could be exposed to the car in a non-threatening low-pressure environment…THIS WILL GENERATE SALES….AND EXCITEMENT!!
June 25th, 2008 at 9:35 am
23 firefly
Remember that we don’t know where the car will go, initially. CA, FL, NY, DC were mentioned by someone at GM on an earlier thread, but it was tentative. Most everyone sees the liklihood of CA, but beyond that we just don’t know.
43 N Riley
Stay cool, it’s just about finding a mutually acceptable price. Would you agree that most high-priced items have a negotiated price rather than a fixed price? Accepting that, when the salesman presents a high price, don’t get mad, just respond with a (much) lower offer. Negotiation is done best with complete good will and always with politeness. It is the salesman’s job to start with a high offer. The customer must start with a very low bid and then work up, very gradually. You might find common ground, but you have to be prepared to walk away until another day. It is a kind of auction. The Volt will apparently follow this standard model.
June 25th, 2008 at 9:39 am
For #6, 18 and 35, since you all had the same sentiment.
I believe what they weren’t saying–though I can’t be sure as they didn’t elaborate, wasn’t that the act of dragging a plug and pushing it into the car was inconvenient. I believe what they were referring to was what killed the EV1, that you drive X number of miles, say a sporting event 40 miles from your home and then you have to charge or get towed back. Its inconvenient to be forced to wait for the charging to complete.
I’m pretty sure the Volt is twice as fast to charge as the EV1, and its front loaded where the last 50% takes more then half the charge time, still if you were FORCED to wait for that to take place in order to travel, major irritation for most people.
June 25th, 2008 at 9:41 am
Cyclops:
Cust satisfaction and previous hybrid training will be a huge deciding factor as i stated, but yes, sales will also come into play. I would say that, specifically, Malibu sales would probably come into play, and Impala ones… vehicles of that size mostly. Either way, it’ll be some time before you’ll see more than 1 on a lot at any given time. I live in Canada and I’ve yet to even see one of those hybrids, other than the day I sat through GM’s seminar on these vehicles at my place of work. I don’t think our dealers have them.
Chris
June 25th, 2008 at 9:46 am
My preferred dealership already sells the “hybrid” line…so I don’t think they will have a problem of upgrading their service staff to be able to look after the Volt…
GM…. Let me know when I can get my Volt (central Alberta, Canada) and I will tell you the dealership…..
I want my Volt and darn soon too…
Ray
June 25th, 2008 at 9:50 am
#35 brad
Plugging your car in at night will become routine…
Time to go to bed… let the dogs and cat in…. garage doors down…
plug in car… make sure doors are locked… plug in cellphone… brush teeth… go to bed…
June 25th, 2008 at 9:54 am
#36 Jeff says “Ahhh…the challanges of the dealership model. I wonder if GM could use CarMax?”
Why not Walmart… Hell, Walmart would probably do the financing for you too. Put the down payment on your credit card then Walmart would bill you monthly. They ship the car straight from GM to your home or you could do instore pick-up.
June 25th, 2008 at 9:55 am
What’s all the fuss about convenience in recharging? There ar already electric car charging stations in a number of locations and electric outlets are cheap and easy to provide anywhere. As soon as the Volts start hitting the road, you will see charging stations popping up everywhere.
Also, I don’t understand the fuss about a four place car being too small. The vast majority of cars on the road only have one occupant, although most owners say that they want a four place car. I think GM has hit it just right.
Frankly, I think GM is doing an excellent job in bringing out the Volt. If they come out with a price of $35000 and the government gives us a $5000 rebate, that brings it down to $30000 which is high, but not too high.
Right now, the public thinks that plug-in electric cars are sci-fi and that battery technology won’t allow them to be a reality for years, if ever. Also, they remember the EV-1 and think it was an overpriced, underpowered toy (2 place). When the Volt comes out, people will begin to realize that 1) it is real and it is here now; 2) It is a REAL car - 4 place with performance figures comparable to their gas guzzlers; 3) it is vastly cheaper to operate that the gas guzzlers; 4) They will be amazed to find out that is is also extremely quiet, requires virtually no maintenance, is a viable alternative to petroleum and is environmentally friendly. As soon as that begins to sink in, GM won’t be able to build them fast enough.
June 25th, 2008 at 10:08 am
The best thing that they can do for marketing is SHOW US THE VEHICLE.
JMO,
Tag
June 25th, 2008 at 10:29 am
One point that no one has raised is that electric cars are great for a commuter if you don’t need to much air or heat because the pull up and stop is great for electric systems. Just make sure you have a separate radio or other entertainment while you set and wait to move forward. Of course you could sell those large houses in the burb’s and move closer to work were trains, buses or you bicycle can be utilized, go live in Europe as I did and work for awhile. Your hold perspective or how you live will change.
The other point is it’s time to look at your life style and make hard decisions as to how you and your family will survive in the coming years, because things are not going to get cheaper! Gas will never be $2.50 a gallon again. How much of your disposable income can go to commuting cost and associated transportation requirements and can you afford the higher cost of utilities that is coming? Projections are that utilities will double within ten years or less. Happy commuting.
June 25th, 2008 at 10:32 am
I think come rollout time that GM has a marketing opportunity to take advantage of the legacy of the EV-1. The Volt specific ad campaign should emphasize that the Volt is the now timely successor to the pioneer EV-1 that suffered the fate of being built before its time, and now rises phoenix like as the “EV-2” from its ashes. And as the EV-1’s successor, the Volt addresses and advances on the shortcomings of the EV-1 which contributed to its niche market appeal and early demise, e.g. limited range and capacity, cost, battery technology, etc.
Not only does this allow GM marketing to capitalize on the fame and cache of the EV-1 legend already in place because of the movie, it finally offers redemption for GM’s reputation, which now suffers the infamy of killing off the EV-1 and all the potential it represented. This is now its resurrection. It also distinguishes the Volt first and foremost as an electric car with a lineage, and distances it from the overall “hybrid” genre which invites simple price comparisons with its competitors.
June 25th, 2008 at 10:35 am
#53 jay says ” Projections are that utilities will double within ten years or less. Happy commuting.”
The question is “How long will people take it until they stand up to the government and the green weenies and say enough!”
You want utility prices to stay down… Build more nuclear and clean burning coal power plants.
The government and green weenies can’t have it both ways. You want electric cars not gas, but you don’t want more power plants… give me a break…
June 25th, 2008 at 10:38 am
This may have come up previously, but has GM considered offering a solar charger that doubles as a windshield shade as an accessory? I could see a fold-able thin film solar charger that would plug into the cigarette lighter and provide a trickle charge all day while at work. That could perhaps add a few miles to the electric range. Don’t know how that works with the current battery technology.
Lyle, your thoughts?
June 25th, 2008 at 10:41 am
mien green@54
I totally disagree with using ANY association to the EV-1. I wish that “EV-1″ would automatically send posts into moderation (at least), GM screwed the pooch on the EV-1 and they know it. Public opinion re that STILL festers like a weeping sore.
Please, no more EV-1. Toyota could use it well though.
Be well.
Tag
June 25th, 2008 at 10:48 am
@ 56
This is the single biggest feature upgrade I would like to see.
I certainly have brought up the same thing myself on here when they have the “suggestions to GM” threads.
In the recent Lutz interview he alluded to that, though I don’t know how committed to the idea they are for the 2010 model.
I would go so far as to suggest that in later versions why stop at just a windshield shade when you could have this cover descend from an enclosed panel from the roof like a window rises from the door? These panels could cover most, if not all of the cars windows, and with the California sun that is a lot of surface area.
Sure it may be only a few more miles, but that’s a few more free miles. Not to mention it would save on having to cool the cabin down.
June 25th, 2008 at 10:59 am
Tagamet-
Don’t deny its existence; embrace it as a noteworthy GM accomplishment. This can be redemption for GM’s tarnished reputation.
The abuse of the subject on this website is another issue entirely.
June 25th, 2008 at 11:02 am
@ #43 N Riley:
>> WE WILL NOT STAND FOR DEALER VOLT PRICE GOUGING!
ECHO THAT. It’s going to be pricey enough to start. And I believe that as GMs manufacturing costs drop (as volume ratchets up and economies of scale kick in), we’re a *lot* more likely to see rising profit margins, than we are to see dropping MSRPs.
Note to Chevy dealers: I have other options, rather than to be gouged. Therefore, I refuse!
BTW, I just emailed my the GM at my local Chevy dealer, to ask what they’re doing vis-a-vis preparation to sell the Volt. I also passed along Ed Peper’s indication that dealers won’t be allocated Volts to sell if their service departments aren’t ready to service them. It’ll be interesting to see what the response (if any!) will be. I encourage others to email their dealers, too.
BTW, I did the same for my local electric utility, the mighty We Energies, about four months ago. That message was oriented toward electric car charging demands, and what they were doing to their infrastructure, to become prepared for such effects. I never heard a damn thing back from them. Not exactly spectacular “good preparation for the future” -or- “good PR,” if you ask me!
June 25th, 2008 at 11:03 am
All this talk about price gouging via dealers… There is a simple solution! I just bought a Saturn and it was the most pleasant car buying experience of my life! I knew what the car cost going into the dealership. I had done my homework and considered it a great buy. It could not have been easier. I payed one ~$100 dealer fee for the paperwork to get it licensed. Even the destination and delivery charge was included in the sticker price!!! The Saturn model works for both customer and dealer. I think Chevy should adopt this model for the Volt.
June 25th, 2008 at 11:05 am
mein green@59
I’m not denying it’s existence, but why open on open wound even wider.
With the notable exception of Statik, the vast majority of the people on this site are FANS and yet there are many vitupritve posts about the EV-1.
It’d be like a tourist ad for Germany saying “From the people who brought you the holocaust”
Be well,
Tag
June 25th, 2008 at 11:09 am
Brett@61
I’m pretty sure that the Saturn dealerships don’t have *quite* the lopsided supply/demand thats likely to accompany the Volt.
Be well,
Tag
June 25th, 2008 at 11:10 am
Imagine what punk kids will be doing in 5 years. “hey guys, let’s go out at night and unplug everyone’s cars on our street! tee hee hee!”
June 25th, 2008 at 11:16 am
@ #61 Brett,
I bought two new Saturn SL2’s, a 1992 and a 1997. They were both great cars! I got 37MPG on the highway with those cars and they were fun to drive. It was also the best treatment and service I ever got from a car dealership. And no price haggling, a process I can do, but that annoys me considerably.
Why GM hasn’t extended Saturn’s business model to its other brands’ throats years ago, I’ll never know.
BTW it really saddens me what they’re doing to Saturn these days. Why don’t they just call it “Opel West” already. Geez.
And… as long as I’m already ranting… I miss those plastic body panels, dang it!!
June 25th, 2008 at 11:26 am
Tag:
You can’t use words like “vitupritve” on this site……… I am pretty sure there is a rule somewhere about that!
From the syntax, I knew what you meant, but I have to admit, I had to go and look it up on dictionary.com
Now to the topic:
I think that GM needs to show the Volt as a totally NEW vehicle, not a re-tooled EV-1.
It is not like they are trying to hide the EV-1 anymore than they try to hide the fact that they built and sold the Vega. I just do not think it is relevant to the marketing of the Volt.
The Volt is the future! That is how it should be sold.
JMHO
June 25th, 2008 at 11:29 am
Brad G #55, says, “You want utility prices to stay down… Build more nuclear and clean burning coal power plants.”
I respectfully disagree. Perfect solar energy collection (in the neighborhood of 80% or so) and make it dirt cheap to buy. Then everyone can put it on their roof top.
BTW, I’m not a greenie, as you call them, I just don’t see any point to harming the environment any more than we already have.
June 25th, 2008 at 11:29 am
I’m hoping that GM is working with other companies to develop a WIRELESS charging system for the Volt’s batteries … yes, wireless charging. No long extension cords that you have to remember to plug in at night. This technology is actually ALREADY available for power tools, laptops, etc. They say it will scale up from milliwatts to kilowatts safely.
http://www.youtube.com/watch?v=EOwVQ3w3ZTM
http://www.ecoupled.com/technologyMain.html
I think it would be great to be able to pull your Volt into the garage and have sensors AUTOMATICALLY detect it and either start charging it right away or set it to charge at 11pm at night or whenever … when the electricity is the cheapest. A dash light would come on in your Volt saying “set to charge” or “charging now”, etc.
This would be a totally safe, no brainer, automatic charging system. If it’s cheap enough, a bunch of employers might could use this technology for their employees while their Volts are in the parking tower or wherever. It would be great for super busy people or little old ladies or teenagers.
It would eliminate an objection to buying a Volt. I wouldn’t be surprised to hear about people being turned off by the Volt purely because they have to remember to plug it in at night. Some people are like that. They don’t want to change their usual habits with their car.
This technology would prevent a lot of unnecessary gasoline from having to be burned by the IC engine range extender. The idea is to maximize the miles that everyone runs on electricity. It’s better for the person’s wallet AND it’s better for societal reasons like pollution, global warming, oil addiction, energy independence, not funding Middle East oil shieks and their terrorist buddies, etc.
Maybe someday, the system will be able to pull cheap nighttime electricity off the grid (or your solar panels during the day), store it in cheap “garage batteries” and then quick charge your Volt battery in 15 minutes or less … at ANY time of the day at cheap rates.
That would be very cool and it wouldn’t have an effect on the electric utilities because of “peak loads” and all that. It’s those “peak loads” that drive the building of new power plants … some of which might be polluting coal plants in some countries. It might be expensive at first for this technology though. Wealthy people would buy it and like HDTVs, the prices would come down in a few years once mass production kicks in.
June 25th, 2008 at 11:33 am
Jim I@66,
RE: “vitupritve” - same root as vitriolic.
I know, totally off topic, but I love words. When moonshiners made their hootch (E100) they tested the purity by burning a teaspoonful and timing the burn. If the flame had a blue “beard”, that was from vitriol (also called “popskull”) that would lead to a huge hang-over.
And now you know the Rest of the story….
Be well,
Tag
June 25th, 2008 at 11:34 am
#62 Tag
“With the notable exception of Statik, the vast majority of the people on this site are FANS…”
HEY! I resemble that remark, lol. But you are absolutely right! I’m not a fan. I’m a customer. Huge difference.
In my business we have a name for a customer that is also a fan…it’s a sucker.
If you don’t believe me, try this:
Go to your local Chevy dealership and sit in a new Corvette in the show room, and tell the salesman how great it is, and how it is the best sportscar ever, a game changer. Tell him how you have been putting off other car purchases and saving up for it and can you have one now. Then ask him for his best deal…see what you get.
June 25th, 2008 at 11:42 am
Boom… Statik on #70 with another big hit to deep center field !!!
Well stated sir.
June 25th, 2008 at 11:43 am
Statik@70
Just checking to see if you were th