GM-VOLT : Chevy Volt Electric Car Site

Today is truly a historic one for the US automotive industry, and for the dream of petroleum independence and the Chevy Volt.

After weeks of intense political wrangling and nail-biting financial drama, US President George Bush has agreed to grant low interest loans to GM and Chrysler.

As he just announced those loans will be sufficient to allow GM and Chrysler to operate until March 31 2009. GM will receive its first $4 billion on December 29th, and an additional $5.4 billion on January 16th 2009. It could get another $4 billion on February 17th if the second half of the TARP is released.

Bush said normally he wouldn’t have intervened and would have allowed the companies to fail, but cited the current finical crisis as being extenuating circumstances. He determined allowing the automaker to collapse would be devastating to the economy. Bush also agreed with the automakers that a disorderly bankruptcy would cause them to fail and liquidate as consumers wouldn’t buy their cars.

The automakers will be given until March 31, 2009 to prove they can restructure and obtain net positive value, but not necessarily profitability. They must obtain meaningful compensation from labor and debtholders. If they fail to meet those goals, the loans will come due and they will have to file for an orderly chapter 11 bankruptcy.

Government would take non-voting stock in the companies, and there would be limits to executive compensation. The Treasury would oversee the restructuring.

The following specifics have been published by Politico.com:

Binding Terms and Conditions: The binding terms and conditions established by the Treasury will mirror those that were voted favorably by a majority of both Houses of Congress, including:
—Firms must provide warrants for non-voting stock.
—Firms must accept limits on executive compensation and eliminate perks such as corporate jets.
—Debt owed to the government would be senior to other debts, to the extent permitted by law.
—Firms must allow the government to examine their books and records.
—Firms must report and the government has the power to block any large transactions (> $100 M).
—Firms must comply with applicable Federal fuel efficiency and emissions requirements.
—Firms must not issue new dividends while they owe government debt.

Targets: The terms and conditions established by Treasury will include additional targets that were the subject of Congressional negotiations but did not come to a vote, including:

—Reduce debts by 2/3 via a debt for equity exchange.
—Make one-half of VEBA payments in the form of stock.
—Eliminate the jobs bank.
—Work rules that are competitive with transplant auto manufacturers by 12/31/09.
—Wages that are competitive with those of transplant auto manufacturers by 12/31/09.

Jon Lauckner is GM’s VP of global program development. He along with GM vice-chairman Bob Lutz co-created the Volt concept. In fact Jon is credited with coming up with the idea of a range extender, whereas Lutz’ idea was a pure electric.

Apparently Jon became a bit concerned about the plethora of news in the mainstream media and here on the blogosphere about the shutdown of construction at the Chevy Volt generator plant in Flint, and decide to “squash some of the rumors.”

He advises us the the Volt program remains on track and is “one of the highest, if not the highest, priority programs in the company.” We are also told that the building of the last 33 of Gen II Cruze-mules like the one Wagoner drove in DC were just finished last week.

He also notes that engineering for the “final prototypes” is nearing completion and that those true-to-form Volts will being testing in July 2009.

Lauckner also reassures us that the temporary work stoppage at the Flint Volt generator plant, done to conserve cash isn’t that big a deal. He said that GM’s global manufacturing process is flexible enough to allow that plant to be built in less than a year.

He therefore asserts “the development of the Volt remains on-schedule,” and that we should “reserve judgment until 2010.”

Source (FastLane)

These last weeks have been very difficult for GM, as they have skidded impossibly close to bankruptcy. Aside from VOLT and Cruze, most future planning has had to come to a halt, and even the Volt’s engine factory construction has shut down.

President Bush is soon to make an announcement about whether GM will get government loans or possibly have to endure a pre-packaged bankruptcy.

Regardless of the timing there is a rumor brewing.

Sources have told GM-Volt.com that GM has a brand new E-Flex extended-range electric vehicle (E-REV) under wraps and have been hoping to unveil it in January at the Detroit Auto Show.

We have known previously that other E-Flex cars were being designed. The last time I spoke to E-Flex Design Chief Bob Boniface he acknowledged that was true. Although he didn’t say exactly what it would be he did say it wouldn’t be a “four door Chevy”

Since about four GM brands are on the chopping block, and we’ve heard rumors of such in the past, Ill go out on a line and predict the car will be a Cadillac. Indeed previous reports have stated the next E-Flex car would be a Cadillac, and vice-chairman Bob Lutz has gone on record stating “there’s going to have to be some kind of dramatic environmental statement from Cadillac.”

Sources indicate that the new car will illustrate just how far one can go technologically in advancing the driver machine interface under the unique circumstance of the car being electrically driven. Considering how costly such an interface might be, it would logically have to be a luxury car.

Furthermore, GM unveiled a Cadillac Provoq crossover concept with an E-Flex drivetrain and fuel cell last year. This same design is to be launched as the Cadillac SRX crossover. It is unknown whether this new car will be an E-Flex SRX with a gas generator, or whether GM has a totally new design.

Thus it looks like we have yet another reason for being excited about GM’s survival and success, one more route away from oil dependence, and one more reason for the Bush administration to give them another chance.

Stay tuned.

The drama of the end game seems to be picking up steam. Despite early reports that the Bush administration would announce loan plans to GM by Wednesday, still no word. Most recently, White House press secretary Dana Perino said “there’s nothing new on the auto front.”

President Bush discussed the topic on Wednesday on a Fox News interview and said the following:
“I’m thinking through, you know, it needs to get done relatively soon. I’m looking at all options. Two principles by which I’m making this decision is … a disorganized failure, disorganized bankruptcy or disorderly bankruptcy would cause, could cause great harm to the economy — beyond that which we’re now witnessing, and that concerns me. And the other point is that … I’m not interested in, in really putting good money after bad, so it’s … an issue that I’m thinking through.” (Reuters)

Chrysler announced it will be shutting down all vehicle production at all of its 30 plants beginning this Friday for a period ending no sooner than January 19th. As we’ve heard GM has had to shut down construction of the Volt engine plant.

However, a senior GM executive stated that GM will continue efforts to build the Volt even if the government loans don’t come through. This person said “although we are temporarily absolutely stopping all work on everything, the Volt will be out as originally scheduled.”

Reportedly there are plans in place such that even if GM goes into bankruptcy it will still have funds set aside to carry the Volt to production. It was noted that even if the Flint factory doesn’t get built in time, the 1.4 L engine generator could be sourced from overseas. (CNN)

Sources familiar with the White House discussions advise me though that the bailout negotiations are progressing and because there is “no playbook for this” it takes time. Those sources reassure us that a conclusion will be coming soon.

Furthermore new reports indicate that Chrysler is attempting to revive merger discussions with GM again in an effort to prove to the government they are serious about restructuring. GM has denied this.

As GM’s cash dwindles to the disappearance point, and we all wait for word from the Fed on when loans will be forthcoming, the Chevy Volt’s heretofore pristine production plans have now shown the first signs of crumbling.

We have heard previously that GM had chosen the 1.4L normally aspirated 4 cylinder family zero engine to act as the generator in the Chevy Volt.

We also heard those engines would be built in a newly constructed engine plant in Flint Michigan. As well that plant would be responsible for making the engine for the upcoming Chevy Cruze.

Today, sadly, GM announced it was putting construction plans for the engine plant on hold. Citing cash management concerns, GM spokesperson Sharon Basel noted “everything that involves heavy cash outlays obviously is under review.” Specifically GM has had to delay purchasing of the very expensive steel supply that would go into manufacturing the plant.

Basel hasn’t dashed our hopes completely just yet, stating “our intent is to still go forward with a new facility bringing that engine to Flint, Mich.” She notes that these expenditures have had to be delayed awaiting word from the fed, and will hopefully only be temporary until the cash situation is resolved.

She further reassures us that Cruze and Volt development plans continue on schedule and that both cars are still planned to arrive in showrooms in 2010.

No news was provided on whether the Detroit-Hamtramck plant where the Volt is to be assembled has been delayed in any fashion.

There are now less than 10 business days left in this month of December that GM said it would be out of cash by the end of without a federal loan.

It may very well be up to President Bush and Treasury Secretary Paulson to decide whether the Volt will make it in November 2010 as we’ve all been waiting for.

Source (CNN) and (MLIVE)

Thanks to Jeff L. for the tip.

CNET has just published an article emphasizing the importance of community resources in wide scale launching of the Chevy Volt and other electric cars.

Interviewed is GM’s Volt vehicle line director Tony Posawatz who was by the way also was recently elected co-chairman of the Electric Drive Transportation Association (EDTA).

Tony not only is building the Volt but plays a leading role in developing a nationwide electric car rollout plan.

He explained the importance of community to the Volt’s success. He said “we are looking at communities that exist that are willing to put all the pieces together. To me, the Volt is a remarkable product. But, if the other stuff–the communities, etc.–isn’t there, then we run the risk of failing.”

The article implies that GM may actually target the Volt launch to places in the country where such community exists, referring to buy-in from local utilities and municipalities to ensure there are incentives to buy electric cars and places to charge them.

There already exists a legislated federal tax credit of $7500 that will go to future Volt buyers. Additional local incentives mentioned in the article is for example encouraging communities to install charging stations.

Coulomb Technology’s smart charging station or Smartlet is given as an example of this. These charging stations interact wirelessly with utility companies to ensure car charging doesn’t strain daytime peak demand.

It has already been documented in a study that a 60% penetration of electric vehicles to the national automotive fleet will only result in a 7% to 8% increase in electric demand. If that occurs at nighttime, then no additional capacity will have to be placed online. However, carelessly adding this demand during daytime peak hours would necessitate the construction of dozens of additional US power plants.

It is also noted that no technical standard has yet been written and accepted for the process of rapid charging. At 240 V, the Volt will recharge in 3 hours as opposed to 6 hours at 120 V.

Posawatz amusingly imagines the day when a new Volt Geek Squad industry emerges whose service is to go out and put 240V charging boxes in peoples garages.

Source (CNET)