GM-VOLT : Chevy Volt Electric Car Site

After the fall of Saab, now independent from GM, in court supervised restructuring, and having shut down all production, the next domino to fall is Opel.

The Germany-based division of GM has developed a restructuring plan that they plan to present to the German government and four other European countries on Monday . The division needs euro3.3 billion ($4.2 billion) in government aid or may not be able to operate by the end of March.

Opel officials have indicated that Opel will loosen ties from parent GM and become a “legally demarcated, at least partly independent business unit,” said GM Europe President Carl Peter-Forster, “Opel needs to remain part of GM but will be considerably more independent than at present.”

The plan to be submitted has “the goal of creating an independent European Opel organization that is open for investment from third parties” and a “walling-off concept,” says Opel Chief Executive Hans Demant.

The concept is that Opel would operate independently, and its European aid dollars would not be allowed to flow back to GM. GM would sell a 50% stake in the company, which its owned for 80 years.  Opel would still have a close relationship with GM for the sake of sharing technology and sourcing parts.

Potential investors would include employees, dealers, and others.

There are 10 European plants in danger of being shut down. One likely to be spared is the advanced Ellsmere plant in England where the Opel Ampera extended range electric car is expected to be built. This car is set to be unveiled at the Geneva auto show in Tuesday.

A decision on the plan by the German government is expected “from Monday” on.

Late word indicates that Germany is “ready” to go ahead with a 5 billion euro bailout of Opel and may even take up to a 20% stake in the company. Sources also note that the government doesn’t believe Opel’s own rescue plan is viable.

Source (Forbes) and (GM)

This week GM announced that they will be building Chevy Volt engines in a re-tooled existing plant rather than building a new plant which had been the previous plan.

Within that announcement GM indicated the first of these engines would begin being assembled in December 2010. This led some to speculate that GM would somehow be delaying the long confirmed November 2010 launch date for the car.

I was able to reach GM spokesperson Sharon Basel who denied that was the case. She offers us the following detailed explanation:

The announcement was mainly a confirmation that we will build the Volt engines in an existing plant vs building a new facility. Production will begin in Dec 2010 which is not different than if we had proceeded with a new facility. Our plans all along have been to initially and temporarily source the engines from existing capacity in Europe to meet Volt production timing while we get the Flint engine capacity installed and ramped up. This direction has not changed with the announcement. It is not unusual for GM to do this. As a global company, we leverage our global manufacturing base to meet fluctuating demand in various markets as needed. That’s what we are doing here. In the long term, however, we source powertrains within the region the vehicles are produced. In that regard, Aspern Austria is our primary source for the engines in the European market and Flint will be the primary source long term for the North American market.

In a case of kick em while they’re down, Bloomberg has just published an article about an upcoming report out of Carnegie Mellon University.

The study suggests that a rechargeable auto with the Volt’s target range of 40 miles is “not cost effective in any scenario.”

According to Jeremy Michalek the engineering professor who led the study, “Forty miles might be a sweet spot for making sure a lot of people get to work without using gasoline, but you’re doing it at a cost that will never be repaid in fuel savings.” It is pointed out that the Volt’s battery is likely to cost $16,000 at current prices, and the car close to $40,000.

The study claims to show that a car with a lighter cheaper battery and a 7 to 10 mile range or even a conventional hybrid might show the best mix of price, faster charge times, and efficiency.

Toyota’s Bill Reinert says of the future plug-in Prius with 50 mpg hybrid efficiency and 10 mile driving range, “We believe that if you have a smaller battery charged more frequently, you can run on electricity more of the time, then your carbon emissions are going to be lower overall.”

Of course it is GM’s intention to have the Volt lead the way to economies of scale for lithium-ion battery production and spur the future of electric cars. While the price will be high for early adopters, getting the car out there will lead to cheaper future generations that are more cost effective. And the value of driving without gasoline is for some, priceless.

In case you were wondering, by the way, the photo above is an official one of the Holden Volt, set to appear in Australia in 2011.

Source (Bloomberg)

The beleaguered automaker announced that in the last 3 months of 2008 they lost $9.6 billion for a net loss of $30.9 billion for the year.

The noted that “cash, marketable securities and readily available assets of the Voluntary Employees Beneficiary Association (VEBA) trust totaled $14.0 billion as of Dec. 31, 2008, down from $27.3 billion on Dec. 31, 2007.” That represents a cash burn of $6.2 billion for the quarter.

Revenue for the quarter was $30.8 billion compared to $46.8 billion in the 4th quarter of 2007.

“2008 was an extremely difficult year for the U.S. and global auto markets, especially the second half, ” Chairman and CEO Rick Wagoner said.“ These conditions created a very challenging environment for GM and other automakers, and led us to take further aggressive and difficult measures to restructure our business.”

GM also said it expects to receive a “going concern” notice by auditors to see if the company is able to continue as a viable company.

Meanwhile today GM executives including CEO Rick Wagoner and Vice President Fritz Henderson are meeting with the President Obama’s Auto Task Force in Washington DC to discuss the possibility of $16.6 billion in further loans to help them achieve profitability by 2011. Reports suggest bankruptcy is not the government’s favored option. So far GM has had to rely on $13.4 billion in government loans to be able continue operations since the end of December.

Read Full GM Press Release

Yesterday the Rocky Mountain Institute announced something they are calling Project Get Ready. The goal of the initiative is “to help communities prepare for and welcome plug-in vehicles including full battery electric, plug-in hybrid electric, and converted hybrid or internal combustion vehicles.”

This involves facilitating the engagement of advocates, utility companies, local government and other stakeholders to increase and prepare for the adoption of plug-in cars like the Chevy Volt. They have collated a menu of strategic actions that city and regional leaders can enact to become plug-in pioneers that are available on an online database.

Project manager Laura Schewel says “With this project, we can help get the nation to President Obama’s goal of 1 million plug-ins by 2015…and maybe even beat it.”

GM’s Director of Infrastructure Britta Gross says “We know that many Volt drivers will never require a public charging infrastructure, instead depending on the Volt’s range-extender to carry them any distance beyond its electric vehicle range. But public infrastructure is very important for those who live in apartments or houses without garages where they can’t simply plug into a household outlet for a full charge.”

RMI has announced they are working on initiatives with Portland, Oregon; Indianapolis, Indiana; and Raleigh, North Carolina and plan to convene at least 20 cities in the near future to develop best practices.

The following are RMIs 15 “Must Have” Actions*
Suggested stretch target: 2% of registered vehicles by the end of 2015.

Barrier: Not enough cars in the pipeline, OEMs need proof of future consumer demand
1. Corporate/city/state fleets commit to buy a certain number of plug-ins (RFPs for major purchases or conversions).
2. Stakeholder group provides a place for interested consumers/fleets to register early, and put cash down to reserve plug-ins (cash used for readiness where possible).

Barrier: How can we manage this as a multi-sector, city-wide project?
3. Create collaborative stakeholder group within the community to help regulatory, commercial, and community interests align. Sign on to a clear regional plan (based on this menu!). Plan should give equal consideration to conversions.
4. Have one “champion” whose job it is to keep this group moving forward, who has authority

Barrier: How can we bring down upfront costs for consumers?
5. Work with banks and dealers to offer low-interest loans for plug-ins, based on projected lower operating costs from gas savings.
6. Bundle all key incentives at vehicle point of purchase (home charger vouchers, rebates, etc.)

Barrier: Consumer hesitation at diving into a new paradigm for mobility
7. Perks: access to HOV lanes, free tolls/downtown parking, reserved airport parking.
8. Create consumer, city government, local business and utility education plans including test drives and “quick lease” options to individual and fleet consumers as well as high profile drivers.
9. Reduced (or free) electricity rates for charging.

Barrier: Red tape around infrastructure installation
10. Fast-track permitting for charging stations.
11. Ensure new and reconstruction/renovation building codes support the operation of plug-ins.

Barrier: What if these cars exacerbate my peak load?
12. Tie provisions of free home and public charge spots, as well as free or cheaper electricity, to either utility override power or “no charge” times.

Barrier: Who will pay for infrastructure?
13. Local employers/retailers provide some charge stations at parking decks.
14. Install public charge spots in high-traffic zones and parking areas, either with public money (via utility or gov’t for the first 2% of vehicles) or private money that uses the stations to market.
15. Provide affordable and available—or free—Level 2 home-charger/driveway circuit installation.

Source (RMI) and (FastLane)

Also should you be so motivated you can Tweet with Britta Gross on Twitter @GMblogs later today at 3:30 p.m. Eastern time.

And as a reminder we have a special Plug-in Readiness Forum right here on GM-Volt.com.

In his first Presidential Address to the Congress, President Obama gave clues to his upcoming budget and how it will address the US auto industry and the plug-in car battery industry.

He stated that “the budget I submit will invest in the three areas that are absolutely critical to our economic future: energy, health care, and education. It begins with energy.”

In a clear reference to the Chevy Volt he said “new plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea.” He countered that this shouldn’t be the case and that he does not “accept a future where the jobs and industries of tomorrow take root beyond our borders,” rather he contends “it is time for America to lead again.”

In terms of the US auto industry overall Obama noted “everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink.” Further, he stated “we should not, and will not, protect them from their own bad practices.”

But in a sign that further bailout is on the way advised “we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it.”

Finally he warns “none of this will come without cost, nor will it be easy. But this is America. We don’t do what’s easy. We do what is necessary to move this country forward.”

Source (CNN )