GM-VOLT : Chevy Volt Electric Car Site

CEO Rick Wagoner sets off for DC  in Hybrid Malibu

CEO Rick Wagoner arrives in DC

GMs CEO Rick Wagoner will be driving one of the Chevy Volt mules in Cruze bodies through Washington DC this morning on his way to give testimony to the Senate Finance committee in support of government loans. He won’t actually be driving it all the way from Detroit.

He first drove from Detroit yesterdat in a hybrid Chevrolet Malibu. Today he will drive a route from his hotel to GM’s Washington office, and then to Capitol Hill in the Chevy Volt running prototype, or mule.

Then he will be pulling up and stopping to talk to the public. This will occur at 9:30 AM at the corner of Delaware Ave. and C street just outside the Russell Senate Building.

If you’re able to be there, do so!

One of the production Volt show cars will be there on display as well.

They listened to us! Lets hope it helps. Spread the word.

At 10 AM the Senate hearing will begin.

Also in another important development, the UAW autoworkers union has agreed to drop their controversial job bank program that allowed laid off workers to be paid. This may improve chances for the loans as it will lower GM’s cost of operations.

[UPDATE 1: The images above have been changed to show Rick Wagoner setting off and arriving after a 10 hour trip to Washington DC in a Hybrid Chevy Malibu, he did some of the driving himself.]
[UPDATE 2: Information changed to show that it will be today - will get video and stills as soon as possible]

The most stark and striking revelation of the survival plan GM submitted yesterday was just how bad things are for them. The automaker who suffered a brutal November sales, down 41% from the year before, publicly admitted that without receiving $4 billion dollars by the end of this month, they will go into default.

GM’s President and COO Fritz Henderson put it bluntly, “there isn’t a plan B, absent support the company can’t fund its operations.”

The automaker also issued these ominous words:

Absent such assistance, the company will default in the near term, very likely precipitating a total collapse of the domestic industry and its extensive supply chain, with a ripple effect that will have severe, long-term consequences to the U.S. economy.

In exchange for the request for a total of $12 to $18 billion in loans GM has offered to cut jobs, plants, brands, executive pay, and renegotiate debt.

Tomorrow CEO Rick Wagoner, now presumably en route to DC in his Hybrid Malibu, will plead the case in person to the Senate and on Friday to the House.

Senate majority leader Harry Reid has promised to bring legislation offering loans to the Senate floor on Monday the 8th. Without yet addressing the plans, Reid said “we’re already spending a lot of money on a lot of things. We can’t be throwing good money after bad, I’m hopeful and I’m somewhat confident that they can come up with something that will give us the ability to show that they are viable. It’s up to them.”

House speaker Nancy Pelosi said “I believe an intervention will happen, either legislatively or from the administration, I think it’s pretty clear that bankruptcy is not an option.”

White House spokesperson Dana Perino said the White House was still “sticking to its guns” regarding having the loans come from the $25 billion already earmarked for plant retooling, and has not indicated the sum will be increased to the $34 billion all three automakers are asking for combined.  Though, Ford, has said it may not need the $9 billion it has asked be put aside for them.

You can read GM’s business plan here.

Source (Detroit Press)

Today GM submitted its plan to congress outlining how it plans to remain viable in exchange for loans.

Highlighting the severity of the situation they are requesting an immediate $4 billion in the month of December or else they will no longer be able to operate. They will need an additional $8 billion to operate through the end of 2009, with the option of an additional $6 billion should economic conditions be on the downside. The total amount requested will be $18 billion. These funds will allow GM to stay at minimum operating cash levels considering a market of 10.5 to 12.0 million sales in 2009.

These are some other highlights of the plan:

Fuel Efficient Vehicles – The Volt was mentioned and it was indicated that other vehicles using the E-Flex platform are planned. 15 hybrids will be available by 2012. They say they plan to continue to develop hydrogen vehicles. $768 million will be spent on E-REV R&D from 2009-2012. It was mentioned that strong hybrid cars are planned.

Market and Retail Operations - Pontiac will be reduced to a niche brand, they will continue to try to sell Hummer, and “review” Saturn and Saab for sale or even termination. Total number of ‘nameplates” will be reduced from 48 to 40 by 2012. Dealerships will be reduced from 6450 to 4700.

Manufacturing and Structural Cost reductions - includes workforce reduction from 96,000 to 65,000,

Reduction of Debt – they will begin negotiations with stakeholders to whom they owe a debt of $60 billion dollars to reduce those obligations in exchange for equity down to $30 billion. They acknowledge the government may need to help broker that. This includes the retiree healthcare obligations.

Executive Compensation – CEO will get $1 for 2009, and other top 4 executives will have a 50% reduction in total cash compensation in 2009.

Corporate Aircraft- all corporate aircraft operations will cease.

GMAC- GM owns 49%, it will be transformed into a bank holding company and will allow access to federal funds and be able to improve leasing and selling options for consumers.

It was agreed that there will be a federal oversight board ensuring taxpayer protection for the loans.

CFO Fritz Henderson has described the plan as essentially achieving the same goal as bankruptcy reorganization.

You can download the plan here.

On a related note, Ford has requested $9 billion and Chrysler $7 billion. Thus the total for the three is $34 billion, despite the fact that only $25 billion has been allocated so far in retooling loans.

In the next round of the fight for their lives, the Detroit 3 automakers will be submitting plans for their viability to the US government today. The plans are expected to be delivered at the close of the stock market. There will reportedly be a short version for public consumption and a long version for Congress, but some lawmakers are expressing concerns that proprietary competitive information might be at risk of being leaked.

Hearings with the 3 CEOs to review those plans are scheduled for Thursday before the Senate Banking Committee and Friday before the House Financial Services Committee.

Congress could then convene for one last lame duck session next Monday December 8th for debate and voting whether or not to immediately approval the $25 billion loans for any or all of the 3 companies.

Key components speculated about the GM plan are a reduction in debt burden by exchanging debt for equity with lenders, a reduction in brand number with Saturn, Pontiac, Saab, and Hummer at risk, and concessions from the UAW to end pay for terminated workers and reductions in retiree healthcare benefit. Of particular interest to us will be more details on how GM intends to roll out advanced technology fuel efficient vehicles like the Chevy Volt.

If Congress decides not to loan GM the money, then Chapter 11 bankruptcy might have to take place, at which point CEO Rick Wagoner would be replaced potentially with CFO Fritz Henderson.

Furthermore, November auto sales, projected to be 25% less than last year are also due out today.

It was just reported that Mr. Wagoner will be traveling to Capitol Hill, not by jet, but by driving a Hybrid Chevy Malibu.

Still no word on whether the Volt will be there. I asked a GM spokesperson who said he would keep us posted and that “it was a good idea.”

The end game is upon us.

Source (Automotive News) and (Wall Street Journal)

[UPDATE: Post changed to indicate GMs CEO will be going to Capital Hill in a Hybrid Malibu]

Last week GM vice-chairman wrote a blog post giving his first hand experience driving one of the latest Volt mules.  These mules use a Chevy Cruze shell, but sit atop the same global compact delta platform the Volt will and use all internal Chevy Volt production-intent parts.

Many readers picked up on this comment he wrote:

“We started with about a 60-percent charge on the battery pack, to see how it would perform and when the engine would kick on,” and “to my delight, we went about 19 silent, electrically powered miles before that engine engaged.”

This led some of us to wonder exactly what he meant by the 60-percent charge.

I had the chance to ask him directly and got even more in return:

When you said the car was at 60% charge when you started did you mean 60% State of Charge or 60% of the way from depletion (30%) to 80% SOC?

Mr. Lutz’ reply:

“It was 60% of the 80% max-30% min band. That’s why I was so delighted that it went over 20 miles in cold weather and at 65 mph or more, steady-state! ”

So now we know for the first time how the Volt prototypes are using battery energy at steady-state highway speed and presumably heating the passenger cabin on a sub-freezing day.

Two points are worth mentioning. It turned out 4.8 kwh was used to go the 19 to 20 or so miles. Also these prototypes would be less efficient than production Volts due to the unrefined nature of prototypes and the fact that Cruze shells would be less aerodynamic than Volt shells.

Now let’s hear what you think!