Archive for November, 2008

 

Nov 30

GM’s Canceled LA Auto Show Conference: Was it Going to be the Volt Battery Contract Announcement?

 

The most important component in the Chevy Volt is its lithium-ion battery pack.

We have been hearing for some time that an announcement about which supplier GM had chosen to maek those packs would be coming by the end of this year.

Reuters had previously reported that LG Chem/CPI had gotten the contract and noted the official announcement would be coming in November.  Compact Power Inc.’s CEO also told GM-Volt.com previously that he needed to know if he’d gotten the contract by the end of this year in order to tool up for November 2010 production.

Aside from waiting for the redesign unveiling, which we did get in September, learning about the battery pack supplier and all the attendant details was an equally or more important thing.

Recent reports stated that GM had canceled a press conference it was intending to have at the LA Auto Show.  It was not said what the nature of that press conference was actually going to be about, and the reporter indicated to me “he wasn’t sure.”

Pure conjecture, but sadly I imagine it was to have been the Volt battery contract announcement.  Other outside experts also suspect this.  GM sources would not confirm or deny this fact, indicating that the topic of what that conference was going to be wouldn’t be divulged at this point.

December begins tomorrow without an official battery announcement, as GM’s fate now lies in the hands of Congress, and their viability plan which will be submitted on Tuesday.

 

Nov 28

Flextreme Concept Wins Prestigious Design Award, Still Not Production Intent

 

In late 2007, GM unveiled the Opel Flextreme concept car and later showed it rebadged as Saturn.

The vehicle has a unique monocab design, but importantly, like the Chevy Volt, is also an E-Flex vehicle. It is meant to demonstrate how the range-extender could also be diesel and how the E-Flex E-REV drivetrain could be implemented in a utility vehicle body.

Many have praised the design.

Today GM announced that the Opel Flextreme was recognized by an international jury and received the prestigious red dot award in a ceremony in Singapore.

I asked GMs Director of Communications from Opel in Europe, Jean-Philippe Kempf, whether since the design has been so acclaimed that GM might move it into production.

He replied:

While I cannot directly comment on future products, I can tell you that you will see further implementations and evolutions of the new Opel design language in future Opel on one hand, and that the E-REV concept will also be deployed within the GM brands.
Do not expect to see the Flextreme hit production. But stay tuned, and you will find many of (not all) the ideas it contains in future Opel products.

Vijay Iyer who is GM Europe’s Manager of Design Communication told me the following:

We expect the first iteration of  an Opel/Vauxhall E-REV to be quite close to the Volt, but there could well be Opel/Vauxhall specific designs in the future.

Source (GM)

 

Nov 27

What Would Happen to the Chevy Volt if GM Failed?

 

In the present economic climate, GM requires urgent loans from the government or else it will fail.

If that were to occur one cannot help but wonder what would happen to the Chevy Volt.

Chris Paine director of ‘Who Killed the Electric Car” envisions that his new documentary “Revenge of the Electric Car” due in 2010 along with the Volt could wind up with a dark ending.

There has been much debate over whether GM should simply go into Chapter 11 bankruptcy, reorganize and re-emerge leaner and in better financial shape.

There are considered to be two problems with that approach. First, strategic bankruptcy couldn’t take place in the current credit-strapped financial environment where there is no access to the loans required to restructure. Second, studies indicate that people wont buy cars from an automaker in bankruptcy, thereby destroying future growth potential.

Thus in the absence of a federal bailout, GM may be forced to simply shut down operations and all of its assets would be liquidated.

I asked Dr. David Cole who is the Chairman of the Center for Automotive Research (CAR) what he thinks could happen to the Volt in that scenario.

He said, “no matter what the outcome in the next few weeks or months, the Volt will live. It is just too important and even in the tough cash situation of GM today, there has been no cut in the Volt program. I think the government will step up with some bridge funding.”

We can only hope.

 

Nov 26

GM Viability Proposal Leak: CEO Likely to Work for $1 and Brands Likely to be Shed

 

GM is working fervently on a “viability plan” which will be presented to Congress on December 2nd. If the plan is deemed capable of ensuring the company’s future viability then a portion of $25 billion in low interest bridge loans will be awarded.

GM is trying to keep their plan’s development under tight wraps. When unveiled it is expected a 10 to 12 page public version will be presented along with an 80 page private version for lawmakers’ eyes only.

Today reports citing anonymous sources have leaked out some aspects of the plan under consideration.

One component includes sacrifices from top executives who may even work for $1 per year.  As well concessions from the autoworker union (UAW) including the elimination of a controversial “job bank” program under which laid-off workers continue to get paid.

Other possibilities include the elimination of brands.  Beyond publicly admitting Hummer is for sale, GM has not openly confirmed it might consider ending brands.  Sources say that in addition to Hummer, GM is also considering terminating Pontiac, Saab, and Saturn.

Source (AP) and (Reuters)

 

Nov 25

Will the Volt Lead the DC Caravan? And Bob Lutz on How We Can Help GM

 

When the CEOs of GM, Chrysler, and Ford went to Capital Hill to obtain government loans they were publicly derided for having arrived there on three separate corporate jets. One congressman said it was like “going to the soup kitchen wearing a tuxedo”

Since then, GM has sold off two corporate jets and is preparing a new method to get CEO Rick Wagoner back to Washington next week when he will testify again on December 5th, 3 days after a viability plan is submitted.

A group of auto suppliers, dealers and the UAW have devised the idea of a caravan of US-made advanced technology fuel efficient vehicles winding their way from Detroit to DC for the next hearing.

Unfortunately the Detroit 3, although praising the plan, cannot contribute to it and the CEOs won’t accompany them.  GM spokesperson Tom Wilkinson said “the whole grassroots caravan to Washington, D.C., effort we think is a great idea, it’s just not something we are in a position to sponsor or manage.”

He also indicated that Mr. Wagoner wont be taking a corporate jet this time, saying “for security reasons, we don’t normally comment on transportation of our senior executives. As the date for the hearings gets close, we may provide more details.”

I have received many emails suggesting that the Volt show up in DC too. Of course, there are no final production-intent Volts in Volt skins yet as they wont appear until next summer. While it might be possible to trail along one of the Volt show cars, I doubt a mule will be allowed to leave the testing grounds, and besides they looks like Cruzes.

Phil’s and my suggestion of massive government purchases of Volts also obviously met with some criticism here and on TheCarConnection.com.   Though the esteemed Automotive News ran a positive story about it.

Furthermore, I was also graced with a reply from GM vice-chairman Bob Lutz after I forwarded him our suggestion. He had this to say about it:

“There are certainly elements of this suggestion that are potentially useful, but even a large government fleet, say, 50,000/year, would not solve the larger problem.”

I asked Mr Lutz how else we of Volt Nation might help ensure getting the Volt on the road, and he said:

“(Ask) your members to e-mail their Congresspersons to express support for the “Detroit 3″ loans. That would assure a future for Volt!”

And so I have Mr. Lutz, and for those of you reading this site who want your Volt too, please do the same.

Source (Detroit Free Press)

 

Nov 24

GM-Volt.com Viability Plan Suggestion: Massive Government Fleet Sales of Battery Warranty-Free Chevy Volts

 

On December 2nd, GM will submit its plan for viability to the US government, which if accepted will result in a bridge loan for the automaker.

Congress also requires that in addition to demonstrating profitability, the plan describe how the loan will enable GM to “expand production of advanced technology fuel efficient vehicles.”

Certainly the Chevy Volt represents GM’s most important effort in that regard. However, due to the cost of the lithium ion battery of about $10,000 – $15,000 per car , GM has stated it wont be able to make a profit at a cost of $40,000 per car.

How can these two opposing attributes be reconciled?

An idea first put forth by Phil Toney (aka Nasaman) here on GM-Volt.com was by leveraging governmental fleet sales.

Phil, a semi-retired NASA engineer, noted that the US government’s way out of the Great Depression and World War II was through enlisting US automakers to build war machinery. He proposed that an organization known as the GSA which is responsible for procuring government vehicles, be immediately legislated to buy massive quantities of Chevy Volts to replace the current government fleet.

I support this proposition with the following additions.

These Chevy Volts should be sold to the government at premium and without a battery warranty. Each vehicle should be sold at a profit. And in so doing, and assuming sufficient battery pack quantities can be produced, they could be released earlier than the November 2010 deadline.

As well, supportive governments of the G8, and US utility companies should also be permitted to purchase these fleet Volts under the same constraints.

The result of this action could lead to contracts resulting in the sale of more than 100,000 Chevy Volts. Indeed, the current US government vehicle fleet amounts to greater than 600,000 cars.

Not only will this effort help ensure GM’s viability but it will help vigorously propel the US towards petroleum independence.

It will act as a stimulus for the eventual electrification of the entire US automotive fleet, will enable large scale public exposure to these US-made vehicles, and permit extensive field testing. Furthermore it well expedite economy of scale cost-reduction for large format lithium ion batteries, and make these cars more affordable for the public.

As Phil writes, “it worked in the 30’s & 40’s ….in fact, the US rose from a desperate, financially-anemic economy in the 30’s to the world’s strongest economy after WWII!!! ….due primarily, I believe, to the multi-billion dollar government contracts placed with the big 3 for the machinery of war! We know it works. So let’s do it again!!!”

Since the government is already spending billions on bad assets, how about a few billion on good assets!

I have emailed this proposition and post to the highest-ranking GM executives I have access to, and have phoned my Representative and Senator.  If you too support this idea, cut, paste, and fax this post to your Senators and Representatives. The hour is getting late.