Its no secret times have gotten very very tough for automakers, and during today’s press conference GM’s CEO will be announcing “important changes” to the company, presumably designed to try and shore up the bleeding of cash.
Auto site Jalopnik reported let’s say a very dubious source who claimed GM will announce today that it is putting the Volt program on hold indefinitely. Needless to say, that was quite a shocker for me in my morning inbox.
Fortunately Volt spokeperson David Darovitz has provided GM-Volt.com with the following statement:
“No doubt these are challenging times for the entire auto industry. However, the Chevrolet Volt remains a high priority product program at General Motors. There is no intention to delay the development of the program. We remain committed to our late 2010 timing.”
This entry was posted on Friday, November 7th, 2008 at 8:28 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.
Nov 7th, 2008 (8:30 am)Lyle, the last thing we need is rumor mongering at a time like this.
Although Jalopnik is a great website, even they are capable of being put-on.
In the current economic climate, a claim like this by GM is plausible, but dubious.
I think its a put-on, some EV haters idea of a sick joke.
Nov 7th, 2008 (8:34 am)Wow! For a minute there I thought we were going to loose the Volt.
Nov 7th, 2008 (8:43 am)Who is the jerk that put the rumor out?
Interesting though if this could be a ploy by GM to convince the government to support them. Now would be the time to press Obama on following through on his campaign promises to put cars like the Volt on the road.
Stupid conspiracy theories.
Nov 7th, 2008 (8:48 am)The Jalopnik report had a somewhat tongue-in-cheek tone and clearly was just a rumor. I would assume that some who may be working on the Volt will be laid off. There is always room to cut staff in a big company and when GM is bleeding cash like they are, they must make cuts where ever possible.
Thanks for this report Lyle, When I read the Jalopnik article I was hoping you would weigh in on this.
We should know more today.
The fate of the Cruze is also somthing of importance. Here is a car that they can actually produce in large numbers right away and possibly make some money on. Remember, the Volt will be a money loser for a few years. Cars like the Cruze are needed to keep programs like the Volt moving ahead.
Nov 7th, 2008 (8:49 am)I hope GM can restructure its finances to weather a recession of extended depth and duration. An insolvency of GM is probably the most serious threat that the Volt faces.
Nov 7th, 2008 (8:52 am)It is doubtful that Volt development is being discontinued in any public way because the car is the only valuable political symbol that GM has right now, a moment when GM’s future is dependent on political support in DC.
When what is needed by GM is a symbol rather than a car, however, the actual underlying expenses made by GM for the car itself, the Volt program, are probably going down rapidly, even if under the radar. This is how 50 mules become 5, or 100 days of testing become 10, 1000 hours of software tests become 100, etc. Or, it may be that the reductions are less direct, as in facility availability, but big reductions that affect the Volt have to happen..
Nov 7th, 2008 (8:58 am)#4 nuclearboy says “Remember, the Volt will be a money loser for a few years. ”
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It’s a money loser only when accumulated research and administrative expenses are charged to the program. Those will already have been incurred before the first Volt is sold. Each car sold helps reduce that overhang,, and to generate cash.
Nov 7th, 2008 (9:01 am)I hope it won’t be put on hold.
We really really need this car and other cars like it.
Nov 7th, 2008 (9:12 am)Look, it is time to face facts. GM as we know it will not be here in 2010. IN fact, there is very little hope for any of the big three to look anything like what they look like right now. But the Volt Program is easily “sold” at this point, it has some intrinsict value in that the engineering is mostly wored out and there are big US tax credits to make the thing.
The real thing to watch is mergers and bailouts. Someone will buy up the Volt program…just hope it is someone with deep pockets and who is eager to launch it soon.
Nov 7th, 2008 (9:13 am)I dont think I will be able to afford one now anyway. Heckofa job Bushy. Obama will spend his entire first term trying to pull us out of the ditch.
Nov 7th, 2008 (9:14 am)Hi Lyle,
No better proof than this one, GM has one more reason to bring this car on road as fast as they can.
Why people are always so critical to GM?
Nov 7th, 2008 (9:17 am)My guess is somone holding a lot of GM stock wants GM to end the Volt program, so their stock value or dividend will go up a penny or two and they can unload it. Figures.
If GM produced cars that held their value, they would not be in this mess. When you look at the history of the company, their devotion to “cool” and “margin” at the expense of “value” is the number one reason they are in danger of…no longer existing as anything but a Toyota charity case.
I really hope one of their remaining employees understands that. And the Volt is their only path back to health. Even if GM was capable to making cars more durable, reliable, and efficient than their rivals today, no one would believe them. If you disagree with me, compare the current price of a used Accord to a new Malibu.
The Volt is their chance to wipe the slate clean of 40 years of not being the best car.
No Volt, no GM.
Nov 7th, 2008 (9:24 am)Gee, didnt see this one comming..NOT.
The horse and pony show is almost over…you can only hang a carrot ahead of the horse for so long before he figures it out
Nov 7th, 2008 (9:26 am)Years ago Ford was almost out of business and the Taurus saved Ford.
GM had better realize that the Volt, and it’s future platform for other models, is their Taurus.
Nov 7th, 2008 (9:34 am)I would think that the ‘rumoUr’ iis untrue. I was just wondering if your statement from GM was fresh the last couple hours…sounds like it is.
However, when companies like GM report numbers like GM is going to post today…nobody knows anything, at even very high positions. Alot of ‘HQ people’ are getting blindsided these days. The only people that know anything for sure are the people on the board.
/hopefully the Volt lives on
Nov 7th, 2008 (9:38 am)I could see GM using the Volt as leverage with the gov’t. GM wants the additional $25,000,000,000, on top of the original $25,000,000,000. They’ll call up Paulson, tell him “give us the money or the Volt gets it, and we’ll blame you.” So not only are you now guilty of killing jobs (at least in the news), you also favor raping the environment.
Oh how beautiful it is when gov’t gets involved in private business.
Nov 7th, 2008 (9:40 am)Since all car manufacturers are experiencing difficulties, I forsee a time when the economy improves (hopefully) and there will be a pent up demand for automobiles. This is a historical trend. GM needs to be positioned for when this upswing occurs.
Again, I am looking at history. In the 1973-74 time frame, GM made big cars that only got 15 mpg – on the highway!! Then the first oil embargo hit, and gas prices doubled. The auto industry went into a slump. By 1976, gas prices had stabilized, and GM was making big cars, but now with smaller V8′s and higher gear ratios. Highway mpg increased to about 20 mpg, and sales boomed.
In 1981, the 2nd embargo hit, and again gas prices doubled. The auto industry slumped. By 1985, oil prices dropped from a high of $40 per bbl to $18. By now, the bigger cars were replaced with more medium sized vehicles with V6 engines. These cars could get 30 mpg.
So the trend is a spike in oil prices, followed by a slump in auto sales, only to be followed by an auto sales boom within a few years. After the spike, the automobiles transitioned to smaller and more efficient vehicles.
Now comes the present where SUV’s are very popular. Will the public be looking to surrender their SUV’s for a sedan? Some, yes, many (including myself) no. So just like the past, I expect GM to introduce more efficient SUV’s.
I notice that the new Saturn Vue 2-mode is projected to get 28/31 mpg city/hwy. See link here:
http://www.autoblog.com/2008/10/24/first-drive-2009-saturn-vue-2-mode-hybrid/
This is a small SUV with a 260 hp V6 engine. Not bad. I anticipate that GM is looking at this for other vehicles as well. So now you have great performance with good economy in an SUV.
My point is that GM needs to get through this down period, but be ready with a range of efficient, cost competitive vehicles by let’s say 2010. The electification of the automobile is inevitable, however, I firmly believe there will be many hybrids that will be sold in the near future to help us cross the bridge to electricity. And these vehicles will represnt the “bread and butter” lines for GM where they will generate their profits.
Nov 7th, 2008 (9:42 am)#15 statik said “The only people that know anything for sure are the people on the board.”
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Actually it is amazing how much we find out, joining together little scraps of information, well before it is reported by MSM and even ahead of some analysts.
/ but always behind statik, I hasten to add
Nov 7th, 2008 (9:44 am)This ones for you Static and our other Canuk brethren.
http://www.engadget.com/2008/11/06/changan-electrovaya-teaming-up-to-release-electric-cars-onto-ca/
Folks need not worry too much about the Volt. The technology is here. The consumer demand is here. The future is coming and these short term financial ills can’t stop it. Tesla inspired Volt, and Volt has inspired everyone else.
Nov 7th, 2008 (9:45 am)I think some demand side thinking is needed here.
To keep GM afloat, and the Volt/E-Rev alive, the US should prepay GM $25 Billion to buy Volts for the Government fleet, with delivery in the 2011/2014 timeframe.
GM would survive at least a few more years, and you know their focus
would be even more on volume production of the Volt and it’s future cousins.
Nov 7th, 2008 (9:46 am)The Volt is used as leveraged to get more $$ from the US Gov., Any shadow on that program would create problems from GM to get more money and fast.
The only good thing about all this debacle of US car marker is, they now need the US Gov. help big time and will give Obama the chance to steer them into making green car faster…
Anyhow, in the next few months it will be interesting to see how it unfold.
Nov 7th, 2008 (9:48 am)#15 statik said “The only people that know anything for sure are the people on the board.”
#18 RB said , “Actually it is amazing how much we find out, joining together little scraps of information, well before it is reported by MSM and even ahead of some analysts. ”
/ but always behind statik, I hasten to add
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For sure you are right. Some of us here are certainly ‘ahead of the news’ curve. I meant that the only GM employees/execs that know anything for sure are the people on the GM board…and hear the truth, first hand.
Sorry, I was a little ambiguous there…I seem to be doing alot of that lately, maybe I’m not getting enough sleep anymore…nah, I’m just getting up too early, heeh.
Nov 7th, 2008 (9:49 am)I just heard a report that GM only has about 7 more months of cash at current burn rates (Ford has about 2 years worth). If they don’t get help from the government soon then we are going to see what bankruptcy does to the auto industry.
I have to say, the financial news coming out lately (including the new unemployment numbers) is quite unsettling. I’m going to have to stop visiting those sites and reading the paper. Maybe it’s time to cut off all media and get back to nature.
Nov 7th, 2008 (9:49 am)Obama has committed to put 1 million Plug-ins on the road by 2015. This would seem to be a critical component of any program to reduce reliance on foreign oil.
For myself, I’ll take two Volts, as soon as they are made available.
Nov 7th, 2008 (9:57 am)GM needs the Volt to keep it’s brand alive, so I’m pretty confident it will start selling in 2 years.
The real question is how meaningful the Volt will actually be. If the next 2-3 years is anything like today, with low gas prices and a severe recession, then the Volt may be a niche product. If the economy gets better and gas prices rise again, then the Volt could make a big difference.
Nov 7th, 2008 (9:58 am)British electric car company is adding noise to their car to prevent “speed creep” and to warn pedestrians.
http://www.reghardware.co.uk/2008/11/07/lightning_thunder_noise/
Nov 7th, 2008 (10:07 am)Obama’s pledge is a serious mistake. He should merely pledge to reduce oil consumption and CO2 emission, with broad initiatives to re-price energy sources to achieve those goals. Picking a technology winner is not the way to go.
Nov 7th, 2008 (10:12 am)GM knows that current gas prices will rise sharply once the FIAT dollar unwinds from the world market as it dies as the world’s reserve currency. They also realize that the future power source for cars will be electric and that E-Flex will be a huge part of that future due to range anxiety. This is why they refuse to cancel the Volt project.
If GM stay’s solvent through the coming economic collapse (yes, we just stated the process and more liquidity will only exasperate the problem), we WILL have Volts in 2011. How many, at what final retail price, and will there be anyone in the U.S. with enough credit to buy one is anyone’s guess. Then again, there is always the Chinese market which will continue to flourish as long as they export to the EU.
Nov 7th, 2008 (10:20 am)sunkawakan Says: “Obama has committed to put 1 million Plug-ins on the road by 2015. This would seem to be a critical component of any program to reduce reliance on foreign oil.”
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I agree. Plug-ins are a big part of the solution. But let’s not forget the big picture.
There are around 40 million registered cars in the U.S., so 1 million by 2015 is still a small percentage. The hope is with 1 million on the road, there will be enough volume so that plug-ins become affordable and ramp up in a big way.
The United States imports around 2/3 of the oil we consume. Oil consumption breaks down roughly as follows:
• 44% gasoline (mostly for passenger vehicles)
• 17% diesel (mostly for heavy duty long distance travel)
• 5% jet fuel
• 15% fuel oil (home heating and industrial)
• 19% other (petro-chemical, plastics, fertilizer, etc.)
Let’s say plug-ins got to 80% market penetration. The Volt would eliminate about 80% of the gasoline used in those cars. The total amount of oil consumed by the U.S. would be 28% less (80% * 80% * 44%). While this is a big deal, it’s less than half the amount of oil we currently import.
So it’s obvious to me that we need other solutions in addition to plug-ins. These would probably include:
• Ethanol from non-food sources ( http://www.coskata.com )
• Bio-diesel from algae ( http://www.youtube.com/watch?v=_ToojK_MJd0 )
• More domestic oil production (stripper wells, oil shale, tar sands, offshore drilling)
• Conservation
Nov 7th, 2008 (10:22 am)I love this market, I think this headline sums it up perfectly:
“Stocks higher After Bleak Job report”
–Jobless rate soars to 14 year high
Clearly this makes perfect sense. Dow presently up 170, S&P/Nasdaq both up 2%…(it is a long day though)
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(Note to our more astute market followers, I realize the US bump is a reflection of the overnight world trade, lead by Hong Kong and South Korea, with follow through in Europe on the back of the BoE cut…but it still amuses me)
Nov 7th, 2008 (10:24 am)“Early reports coming out of Detroit indicate that, despite program cuts at GM, the Chevy Volt will continue to be untouchable. As the Volt has become one of GM’s best PR tools and its marquee brand for the future, this news was expected. And, with $25 billion in DOE fuel efficiency loans available, the Volt is the ultimate candidate. So, continuing the Volt program might not even cost GM very much.”
Source: http://www.hybridcarblog.com/
Nov 7th, 2008 (10:36 am)#29,
Don’t forget CNG for large trucks, trash trucks, etc to displace diesel.
Nov 7th, 2008 (10:38 am)The Chevrolet Volt should be GM’s ONLY priority.
Nov 7th, 2008 (10:40 am)I believe this is a complete rumor. We are working on a project now to build the 1.4L Volt engine. I dont think GM would be spending millions if they didnt plan on making the Volt. The engine line is to come online in late spring next year.. if that helps with everyone’s timetable.
Nov 7th, 2008 (10:46 am)OK Rudi #33
NPNS
Nov 7th, 2008 (10:47 am)GM just opened a $300million plant in Russia. Plan to build the Cruze there next year.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aUULJgE6.ly8&refer=news
I wonder if this may be the plant for Europe’s Volts too??
Nov 7th, 2008 (10:47 am)http://www.marketwatch.com/news/story/Refusing-Muzzled-LA-Auto-Show/story.aspx?guid=%7BC4850401-CB16-4257-995B-77915949A7C7%7D
Take Care
Arch
Nov 7th, 2008 (10:49 am)From GM’s website:
“GM’s Earnings Release for Q3 2008, will be posted here at approximately 10:30 a.m. ET on Friday, November 7th 2008. ”
…tap,tap,tap
Nov 7th, 2008 (11:00 am)Good thing! I will only buy a new car if it an EV! If they want sales to increase they need to keep pushing forward with the Volt.
Nov 7th, 2008 (11:16 am)2011 mid summer….. I WILL be purchasing a new car… GM… I want my Volt… Metal flake black…dark interior.. tinted glass.. all the options… price? I really don’t care as long as you have a good trade-in and finance package… I have deposit in hand..
NO VOLT Available.?.. well then I guess one of those other companies with a hybrid / electric drive…. will get my hard earned dollars..
GM…want to save money.?.. you have hacked enough off the front lines… it is time to butcher most of the upper management.. Done right… no change in efficiency but you could probably put a BILLION bucks in savings back into your financial picture.
Nov 7th, 2008 (11:17 am)Why not let GM fail? Massive union contributions…
A politically Democrat government can not allow the loss of union jobs because of simple economics.
Red HHR
Nov 7th, 2008 (11:24 am)Finally:
GM reported a net loss of $2.5 billion or $4.45 per share for the third quarter, including special items. (thats the pension thing I referenced earlier-UAW Settlement Agreement becoming effective. in other words taking the BS credit for something that was supposed to be amortization after January 1, 2010.
On an adjusted basis, GM posted a net loss of $4.2 billion or $7.35 per share, compared with a net loss from continuing operations of $1.6 billion or $2.86 per share in the same period last year.
Lost 6.9 billion in cash, leaves them with $15,831…AFTER drawing out the 3.5 billion from their line of credit.
Nov 7th, 2008 (11:28 am)#41 Red HHR Says:
Why not let GM fail? Massive union contributions…
A politically Democrat government can not allow the loss of union jobs because of simple economics.
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I think it has to do with more than just the collapse of the big 3. The CAR study predicted a loss of 3million US jobs. In Canada 1 in 7 jobs is directly or indirectly related to the automotive industry.
Nov 7th, 2008 (11:28 am)#34 kdawg
I agree. This is a rumor that GM wants spread so they can bilk more money out of our leaders.
Nov 7th, 2008 (11:31 am)Smoking gun admittance in the statement:
“Even if GM implements the planned operating actions that are substantially within its control, GM’s estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business. Looking into the first two quarters of 2009, even with its planned actions, the company’s estimated liquidity will fall significantly short of that amount unless economic and automotive industry conditions significantly improve…”
Million dollar sentence, “(unless) it receives substantial proceeds from asset sales, takes more aggressive working capital initiatives, gains access to capital markets and other private sources of funding, RECEIVES GOVERNMENT FUNDING under one or more current or future programs, or some combination of the foregoing”
In english–”We need 13-14 billion to continue day to day operations, we have 16 billion left”
Nov 7th, 2008 (11:39 am)Check this for a admittance of things that could (probalby go wrong) in the ‘forward looking’ section of the report…and no I didn’t smoosh it all together…GM did:
“Among other items, such factors include: our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; continued economic instability or poor economic conditions in the U.S. and global markets, including the credit markets, or changes in economic conditions, commodity prices, housing prices, currency exchange rates or political stability in the markets in which we operate; our ability to realize production efficiencies, to reduce costs and implement capital expenditures at levels and times planned by management; market acceptance of our products including cars and crossovers; shortages of and price increases for fuel; the ability of our customers, dealers, distributors and suppliers to obtain adequate financing on acceptable terms to continue their business relationships with us; significant changes in the competitive environment, including as a result of industry consolidation, and the effect of competition on our markets, including on our pricing policies or use of incentives; changes in the existing, or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations where such actions may affect the production, licensing, distribution or sale of our products, the cost thereof or applicable tax rates; the effectiveness of recent or future actions by the U.S. federal government, including the $25 billion loan program for automobile manufacturers and suppliers and recently enacted legislation relating to mortgage assets; costs and risks associated with litigation; the final results of investigations and inquiries by the SEC; changes in accounting principles, or their application or interpretation, and our ability to make estimates and the assumptions underlying the estimates, including the estimates for the Delphi pension benefit guarantees, which could result in an effect on earnings; negotiations and bankruptcy court actions with respect to obligations owed to us by Delphi Corporation, a key supplier and our obligations to Delphi; negotiations with respect to our obligations under the benefit guarantees to Delphi employees and our ability to recover any indemnity claims against Delphi; labor strikes or work stoppages at our facilities or our key suppliers such as Delphi or financial difficulties at our key suppliers such as Delphi; additional credit rating downgrades and the effects thereof; changes in relations with unions and employees/retirees and the legal interpretations of the agreements with those unions with regard to employees/retirees, including the negotiation of new collective bargaining agreements with unions representing our employees in the United States other than the UAW; possible downgrades for GMAC or ResCap by rating agencies; GMAC’s ability to maintain adequate financing sources; developments in the residential mortgage market, especially the nonprime sector; and changes in the competitive markets in which GMAC operates, including increased competition in the automotive financing, mortgage and/or insurance markets or generally in the markets for securitizations or asset sales”
/hey all that kind of looks like my posts over,lets say…the last year and a half.
I would also like to mention that my prediction of the company line moving overnight from ‘hey everything is okie fine’ to ‘OMG, we are done, like right now, we were totally unaware of all these things around us…give us money, NOW!’ has now officially become true.
This is no different from when the Volt was ‘true to the concept, and unmistakeable the Volt, right up to the very second the picture leaked out on the net proving it was absolutely nothing like they said’
Nov 7th, 2008 (11:44 am)We need to stop propping up unprofitable businesses with taxpayer money. If they can’t change and adapt with the time, they should go bankrupt – plain and simple. We already have socialized banking now, we don’t need a socialized car industry.
Nov 7th, 2008 (11:44 am)I really doubt that they would put it on hold. You have to ask yourself the question, “why?”
The \Volt program is the surest excuse they can give the government to bail them out. It’s the only thing that gives the government an excuse (It’s for the national security!) other than it just likes to bail companies out. If they put it on hold, it means either they think no bailout is possible or they are “negotiating”. I suspect it would be the latter… The current congress and the president elect seem amenable to a bailout of some kind, especially for electric vehicles.
If they think no bailout is coming, then they might think sales of the \Volt will be impossible in the face of $2 gasoline. That kind of shortsighted management philosophy I could believe since they’ve been thinking like that for my entire lifetime.
It’s especially shortsighted since gas will go up 4x about 2012. 
Nov 7th, 2008 (11:44 am)Crappy news on the financials.. but we were expecting it. Hopefully sales pick up worldwide, GM implements their internal measures, and they get the $ they need from outside sources (private, merger, government, whatever), so that the Volt will show up in 2010.
Nov 7th, 2008 (11:48 am)Blood is running on GM stock.. down over 10% at $4.20/sh
Nov 7th, 2008 (11:49 am)Oh, sorry, I guess I should post the link to the details of the report:
http://biz.yahoo.com/prnews/081107/clf042.html?.v=101
Nov 7th, 2008 (11:49 am)GM needs more than the Volt. 60K Volts in the first two years would be great for a company like TESLA but for GM this is a drop in the bucket. GM needs to make it through 2011 and 2012 (not to mention 09 and 10) to give the Volt production time to ramp up.
Nov 7th, 2008 (12:01 pm)#49 kdawg
Crappy news on the financials.. but we were expecting it. Hopefully sales pick up worldwide, GM implements their internal measures, and they get the $ they need from outside sources (private, merger, government, whatever), so that the Volt will show up in 2010.
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Thats not true, no one called this report to be this hard on the cash, and thats the only thing that matters…. Well, actually I did (toot, toot):
statik Says:
“I’ll predit EPS around -9 (ex items)…and cash burn around 6B, for the record” — ((November 6th, 2008 at 4:28 pm))
http://gm-volt.com/2008/11/06/gm-qa-volt-vehicle-line-executive-frank-weber-on-the-current-chevy-volt-mules/#comments
We got -$7.35 EPS, which I was a little high on, and 6.9 billion in cash burn, which I was a little low on. (Hard to tell the mix exactly).
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Further to that, I don’t think people get it still.
GM has $15.8 billion left. At 14 billion they experience a ‘run at the bank’ and then it is all over…practically overnight. At GM’s burn rate, they are done by Christmas. There is no more time to ‘pick up sales,’ there is no more time for ‘internal measures,’ they have already exhausted the private sector for cash.
The ONLY thing that saves GM right now is the government.
At this moment GM could careless about the Volt program, or anything else for that matter. No quote or press release from them means anything.
The only statement that saves the Volt or GM starts like this “Today, we are putting through a emergency…” and it is authored by the US government.
Nov 7th, 2008 (12:03 pm)First of all, the US government wants this car badly. Any kind of help from the government will have all kinds of strings attached to them and one of them is the electric car. Anybody writing such articles is not using their head. Remember, this is the car that’s suppose to put GM back on the road. Excuse the pun.Just making cars “as good” has not worked for GM.
Nov 7th, 2008 (12:04 pm)If they put the VOLT on hold, then it will only further highlight the vacuum that GM managers have worked in for two generations.
In the 60′s they were caught napping when VW revolutionized the automobile industry.
In the 70,s they were asleep at the switch when the Japanese took the market with small vehicles that would run forever.
In the 80′s they forgot that “quality” wasn’t just a marketing term.
In the 90′s – I forget – oh yea- there was a movie about that EV1. Great decisions on that one.
This time around – if they can’t get it right with the VOLT- then maybe we shouldn’t waste our money on a bail-out. Just let them sink.
Anyway, in 2010 I’ll have cash in hand – if they can’t get the VOLT done, then I’ll buy Toyota
Nov 7th, 2008 (12:07 pm)All as planned, better minds are in control. The Volt was conceived during an unnatural spike in the price of fuel. (A spike in fuel prices that just happened to be before a major election?). In reality fuel will become very expensive in about ten years. So say better minds, we must prepare now. GM and the US auto industry has been broken for some time. They can function, the unions want to keep their jobs, and everything is open to negotiation, except the jobs. It is kind of like the beginning of a new world order.
We will be driving Volts!
Nov 7th, 2008 (12:11 pm)If you want to listen to the conference call on earnings, you can find the live stream here:
http://www.gm.com/corporate/investor_information/earnings/index.jsp
/starts at 12:15…if there is future reprecussions/cutback and Volt production news, it will be found here
Nov 7th, 2008 (12:11 pm)#53 statik
The only statement that saves the Volt or GM starts like this “Today, we are putting through a emergency…” and it is authored by the US government.
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Don’t sprain your arm patting yourself on the back.
Government cash will prob be the emergency device. But all the other things are what will sustain GM to 2010.. aka the Volt. And of course i would like the company to continue behond 2010, because i will have a warranty (unless i use a 3rd party for that).
Nov 7th, 2008 (12:15 pm)______________________________________________________
The postings text history of Lyle’s GM-VOLT blog site will one day make a very interesting look-back read.
What position would GM be in today if it did not have the VOLT Program chip in its back pocket to bargain with? How much influence did Lyle’s sit have in promoting the VOLT Program to the status it has today? I myself would have much less an interest in GM’s viability where it not for the VOLT Program and I would have not been drawn into the VOLT Program if not for Lyle’s site. Just goes to show you “the power of one”.
I trust the VOLT Program stays alive and on schedule.
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Nov 7th, 2008 (12:19 pm)#58 kdawg
Don’t sprain your arm patting yourself on the back.
Government cash will prob be the emergency device. But all the other things are what will sustain GM to 2010.. aka the Volt. And of course i would like the company to continue behond 2010, because i will have a warranty (unless i use a 3rd party for that).
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I’m going to practically tear my arm from my body I am patting so hard, hehe. If you can’t laugh, you’ll cry I guess.
Nov 7th, 2008 (12:21 pm)Statik:
I’m not a financial guy by any means, but was wondering why you said GM would be done by Christmas? If the burn rate is $1B/month, and they have $15.8 B left, wouldn’t that be approx. 15 months until doomsday? I know things are really, really bad there, but I’m not understanding the whole–their done now if they don’t get a bailout yesterday scenario?
Nov 7th, 2008 (12:28 pm)#61 Schmeltz
Statik:
I’m not a financial guy by any means, but was wondering why you said GM would be done by Christmas? If the burn rate is $1B/month, and they have $15.8 B left, wouldn’t that be approx. 15 months until doomsday? I know things are really, really bad there, but I’m not understanding the whole–their done now if they don’t get a bailout yesterday scenario?
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Sure, good question actually. We should probably touch on that again.
Basically, they need a float to pay bills as they come in, as the cash flow is not linear, and to provide assurance of payment to suppliers. It is kind of like a mortgage payment (simply put as a analogy), at the first of the month you need $2,000 to pay the bills, you may make $2,000 over the course of the month…but you have to start each month at $2,000 or you default.
GM doesn’t have that $2,000 to start the month pretty soon…and they only make $1,500 a month…that is the problem.
Nov 7th, 2008 (12:55 pm)#60 statik:
“If you can’t laugh, you’ll cry I guess.” Pretty much sums it up. Wait a second, let me get a Kleenex.
Nov 7th, 2008 (1:14 pm)Obama may favor bailing out the car companys and he may want to see electric cars developed, but he is not president yet. If what Statik says is true (and I believe it is) GM will be bankrupt before he takes office. The present executive branch has already thumbs down for the car companys. It don’t look good for GM making it in it’s present shape. I still think it could come out of Chapt 11 in much better shape. I wouldn’t hold something like that against them (there has been mention that people would be reluctant to buy from a company that has been through bankrupcy). He could provide cheap loans after bankrupcy to get them moving again.
Nov 7th, 2008 (1:45 pm)#62 Statik:
Thanks for that explanation. That makes a whole lot more sense. Scary times to say the least.
Nov 7th, 2008 (1:53 pm)EDIT: Ooops, wrong thread…
However, I will use this opportunity to say that GM did give solid assurance that the Volt program will be untouched.
Nov 7th, 2008 (2:01 pm)This isn’t business as usual; we need E-REVs and EVs…NOW! We need them for many reasons. So, I don’t care if they come from GM or the government. I am not going to fear “socialism” so much that I would give up E-REVs and EVs on principle. Just get them here.
Say what you will about the US government. For all its flaws and inefficiencies, it still allows a robust, strong nation. I am not an extremist. I hope wisdom prevails and the proper balance of government/private gets us to a better place. We are in a big, domestic, global, economic, environmental, political, religious…mess!
Nov 7th, 2008 (2:04 pm)The employment news is getting bad enough now. It will be even worse if GM, Chrysler or Ford fails. If any two fail it will be terrible. If all three fail, move over Great Depression and make room for another one. It will be very bad. Helping the automakers is cheap compared to what it will cost to recover from one, two or three of them failing.
Nov 7th, 2008 (2:23 pm)#68 N Riley
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I totally agree. A stich in time saves nine.
Nov 7th, 2008 (2:38 pm)Statik, you the man. As much as I hate to see you be right, you have been pretty consistent in your analysis. I am not trying to “shoot the messenger”. Just too bad it is looking like this. Thanks for the information, but right now I just wish I had stayed in bed all day.
Nov 7th, 2008 (3:03 pm)Dont worry, its almost beer:30
Then you can create your own reality
Looks like GM stock recovered a little.. but its not beer:30 yet.
Nov 7th, 2008 (3:07 pm)Time to start saving up for a Mitsuishi iMiev because I seriously doubt GM will survive long enough to deliver the Volt. And if they need a bailout to get to the finish line, then shame on GM. I will not cheerlead for them any longer when my tax dollars are going to be used to mop up for their mismanagement (which yes, includes killing the EV1).
Nov 7th, 2008 (3:49 pm)#64 Len:
I would buy a Volt from GM, even if they were in Chapter 11. I would just take the risk on the warranty.
#67 ThombDbhomb, #68 N Riley, #69 kdawg and others:
A lot of thought provoking comments today. Thanks. President Bush keeps telling us that we are at war. Many here have commented that our “addiction” to imported oil plays directly into the hands of our “enemies”.
In reading your comments it strikes me that, during WWII, the US government (USG) financed the building of hundreds, or maybe thousands, of “war plants”. If I remember my history, the giant Willow Run plant was thrown up, and manufactured thousands of B-24s, all in the space of about 4-5 years. Even Ford could not have done that on its own.
Many of the aircraft plants in SoCal were built by, and are owned to this day by, the USG. The giant plant in Palmdale is owned by the USG and operated by Lockheed Martin even now.
The plants which manufacture most of the ammunition used by the military today are WWII vintage, owned by the USG and operated by contractors. Never mind nuclear weapons.
So there is plenty of precedent for the USG stepping in to finance the production of the tools of war. Many have said here, and I totally agree, that reducing our dependence on oil would be a lot cheaper than fighting wars to preserve its flow. Never mind the nightmare results for soldiers and civilians alike in the war zone(s).
I could get behind this rationale, assuming that controls were in place to prevent the public’s money from being squandered on business as usual. This would include not perpetuating the current failed “senior management”.
Nov 7th, 2008 (5:13 pm)hi Ray #40,
“2011 mid summer….. I WILL be purchasing a new car… GM… I want my Volt… Metal flake black…dark interior.. tinted glass.. all the options… price? I really don’t care as long as you have a good trade-in and finance package… I have deposit in hand..”
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Why isn’t GM taking deposits now? Seems like the obvious way to stay in production.
=D~
Nov 8th, 2008 (2:21 pm)This car is a compete joke!
Why does GM make a car in 2008 that gets a 40 mile range on electric when it made one in 1998 that got 150 miles on pure electric?
Seems to me they want to drive the company and the countries economy into the trash!
Watch Who killed the electric car and you will wonder what kind of nonsense they are giving consumers on their ability to create a viable alternative to the status quo Detroit and Bob Lutz propaganda of not having the ability to make something better.
What a crock of shite
Nov 9th, 2008 (12:38 pm)it astounds me to think GM still has all the gas hog dinosaur vehicles sitting out on the car lots today. dinasours……that is what they are. Personally, I think the 2010 planned release date of the Volt is a bit ridiculous. GM could just go ahead……put it in production in a few months. They proved some 60 years ago during WWII they CAN DO IT IF THEY WANT TO. GM KEEPS TELLING US……ALL THESE DELAYS. AND ALL THE TIME…….. THEY COULD HAVE THESE VOLTS SITTING ON LOTS FOR SALE IN A VERY SHORT TIME……….IF THEY WANTED TO DO SO.
MY OPINION IS THEY ARE NOT PUSHING THE VOLT OUT TO THE PUBLIC BECAUSE OF THE SAME OLD REASONS THAT HAVE BEEN THERE ALL THE TIME. THEY ARE MIRED DOWN IN STRUGGLING AGAINST CHANGE.
GM BETTER HOPE AND PRAY SOMEONE ELSE DOES NOT BEAT THEM TO THE MARKET WITH A PHEV………… I GOT MONEY SET ASIDE TO BUY ONE. AND FIRSTEST WITH MOSTEST GETS MY NEW CAR DOLLAR………NO MORE GAS HOGS FOR ME.
MAX
Nov 10th, 2008 (12:03 am)Wow, please don’t put this project on hold. It’s GM’s only hope…really..I can’t imagine buying anything but a hybrid from here on out. And i REALLY want to buy american for a change. If GM doesn’t step up, might as well close shop today and make sure everyone gets decent severance….
Nov 10th, 2008 (4:16 am)#74 Dave K. Says:
Why isn’t GM taking deposits now? Seems like the obvious way to stay in production.
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Excellent idea, Dave! I would put my deposit down now.
#75 dan Says:
This car is a compete joke!
Why does GM make a car in 2008 that gets a 40 mile range on electric when it made one in 1998 that got 150 miles on pure electric?
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Dan, you misunderstand something perhaps. After 150 miles you pulled over to the side of the road. With a Volt, after 40 miles, the internal combustion engine kicks in and you get home. Also the EV1 was a huge money loser. This topic has been debated and is considered closed, IMHO.
SO happy that GM denied this rumor – I agree with the previous sentiment: this is the car the world needs, and many more like it.
Nov 12th, 2008 (12:41 pm)I think GM would put nearly every other program on hold except the Volt. I think GM knows that the Volt is probably their ace in the hole for revitalization.
If they cut that, it’d just delay a slow death a bit. Innovate or Die!