GM-VOLT : Chevy Volt Electric Car Site

Volt vehicle line director Tony Posawatz gave us a teleconference update on GMs plug-in strategy specifically as it applies to supporting President Obama’s goal of 1 million plugin cars by 2015, led of course by the Chevy Volt.

The idea of creating a “plug-in ecosystem” was proposed. Tony envisioned this as analogous to the success of the iPod. The iPod alone isn’t what’s successful but how it is integrated with its infrastructure. GM feels such a cultural shift will need to take place to enable the plug-in car revolution too. Collaboration between carmakers, utility companies, municipalities, governments, individuals and corporations will have to occur.

GM is fostering relationships with key stakeholders, and in particular feels a capable green grid and excellent plug-in cars are essential.

GM is already working with many national utility companies through EPRI, and working with local progressive governments such as San Francisco.

Mark Duvall of EPRI and Bob Hayden, clean transportation adviser for the City of San Francisco, also attended the conference and support these measures. Duvall reported that the US utility grid in its present state could support 10 million Chevy Volts which would collectively only use 0.8% of the total electric capacity.  He pointed out that charging the Volt is a similar draw to two plasma screen TVs. Furthermore he noted that most new grid capacity these days comes from wind and natural gas which are considered clean sources. He also reports there will be a 500 million ton per year reduction in CO2 emissions in the US when the automotive fleet is fully electrified.

A particular difficulty at present is determining how to handle daytime charging at workplaces and for apartment dwellers. This may cause potential grid strain in dense urban areas, and could be expensive. It was agreed a solution must be found through the effort of third party vendors like Coulomb technologies, utilities, or municipalities. The importance of local “plug-in champions” such as San Francisco Mayor Gavin Newsome was mentioned.

I know that many reader have a lot of thoughts and opinions on these important matters, and you will all have a chance to bring them up directly to GM’s expert in the field.

We will be trying something new and fun.  Come here later today at 4PM EDT.  Below in the CoveritLive interface we will have a multiblog real-time chat with Britta Gross who is GM’s director of electric vehicle infrastructure commercialization.  She will be fielding our questions as well as those from readers at FastLane, GreenCarCongress.com and EVWorld.com.

See you then.

Recently there has been a lot of discussion about the Auto Task Force’s evaluation of GM’s business case. A certain paragraph led many to speculate that the Chevy Volt could be in jeopardy in the case of a a likely “clean rinse” or “quick surgical bankruptcy” where GM’s bad assets were cleaved off in bankruptcy court.

Here is that paragraph again:

GM is at least one generation behind Toyota on advanced, “green” powertrain development. In an attempt to leapfrog Toyota, GM has devoted significant resources to the Chevy Volt. While the Volt holds promise, it is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable.

You may remember I got a direct message from Bob Lutz still GM vice chairman but no longer VP of product development, who told us in a Mr. Spock-like fashion not to worry, “Volt will survive and prosper.”

I have found I couldn’t seem to get a message to Mr. Obama or members of his Auto Task Force, but fortunately Bloomberg.com could.

In a just published report the reporter wrote that the “Chevrolet Volt electric car, called “too expensive” by the Obama administration, won’t be blocked by the government as part of its demands that the automaker cut costs, according to a person familiar with the matter.”

I don’t know who that person is, but they sure are making sense. After all as Lutz said you can’t have a less expensive generation two without a more expensive generation one. Just imagine if people stopped making computers because the first models were too expensive.

The electric car revolution continues…Volts in our driveways November 2010 come hell or highwater!

Source (Bloomberg)

There is new information found in an updated business plan that GM presented to the government on Wednesday.

The automaker is requesting an additional $2.6 billion in low interest loans to support the development and introduction of three new electric vehicles.

Specifically this is for the purpose of developing two spinoff cars from the Chevy Volt, and a third hybrid, and raises the amount GM is requesting from the section 136, or ATVMIP loans to $10.3 billion. These loans are intended to help companies build advanced technology high efficiency vehicles and are not related to the government funding GM currently possesses.

GM wouldn’t be able to get these loans, which could be released as early as June, until they are deemed financially viable. However this information confirms that GM has production plans to build two more EREVs, proving they do not intend the Volt to be a one-off or niche car. Building multiple models in increasing volumes is the primary way to drive costs down for the battery technology.

GM has previously unveiled the strikingly designed Voltec-powered Cadillac Converj which could conceivably be one of those two cars.

GM-Volt.com has been told that one or more additional Voltec concepts would unveiled in 2009. There is speculation that one could be a Buick, perhaps based on the new China-based Excelle which sits atop the same compact delta platform the Volt and Cruze use.

Even if GM has to go through a quick-rinse bankruptcy to cleave off its bad assets, the company will survive lean and mean and if all goes to plan with at least electric cars to choose from.

General Motors has released its sales figures for the month of March. Overall 156,380 vehicles were delivered. While down 45% from March of 2008, it is less than estimates of analysts who expected a sales decline of 48%. And, as GM points out, sales are actually up 23% from February as the Spring car buying season begins.  A total of 1,612 GM hybrid vehicles were delivered in the month.

“Sales for GM and the industry showed signs of life at the end of the month compared with January and February. In April, we’re stepping up to the plate to get a rally underway with ‘GM Total Confidence,’ our unprecedented customer protection package,” said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. “We are encouraged by actions taken by the Federal government to stabilize the industry and stimulate demand. As we continue the reinvention of General Motors, our brands are adding even more world-class, fuel-efficient cars and crossovers to their portfolios. We will also continue to add even more fuel economy technology to our trucks.”

Other companies are reporting similar findings. Ford sales dropped 41% while Chrysler and Toyota dropped 39%. Those decreases also were less than analysts predicted.

Since sales levels from February have increased this has led some experts to predict a bottom has finally been reached.  In fact some authorities belive Obams announcement may have reassured consumers.

Furthermore, an Obama administration official told Reuters of GM “We remain optimistic that significant restructuring can be executed without the use of the bankruptcy code.”

Source (Bloomberg)

GM was given 60 days by the White House to solve its financial problems and become viable.

But lets face it, 60 days isn’t a lot of time. GM already had 90 days, since last December to try once and they didn’t make it.

On Tuesday, Rick Wagoner’s replacement as CEO, Fritz Henderson told reporters “We’ll get it done in court or we’ll get it done out of court, but we will get the job done.”

And what job exactly is that? Ridding the company of debt.

Even at sales 50% lower than previous year, GM still brings in a lot of revenue. Not enough though to support a company of its current size, and not enough to pay back the debt it owes, in addition to now more than $16 billion of new government debt. They already owe $27.5 billion to bondholders and $20.4 billion to the union’s health car trust fund (VEBA).

The goal is to reduce all that $48 billion debt down to $9 billion with the rest being exchanged for equity in the company.  Mr. Henderson says he believes he can win this concession in the 60 days.

In addition to that he will have to finally remove Saturn, Saab, and Hummer, close more plants and more rapidly downsize operations and workforce that previously planned. And of course sell more cars that people want to buy and make every one profitable not just the trucks sand SUVs. To that end GM introduced the “G.M. Total Confidence” program which pays back any negative equity when buyers trade in their cars and pays up to $500 per month up to 9 months if the buyer loses their job.

All these tasks are quite the very tall order, the time frame very short, and considering the sorry state of the US economy it looks increasingly likely that the job will get done…in court. In fact Obma is said to believe bankruptcy is inevitble.

The bankruptcy is likely to be unique one in which all of GM’s best assets are sold to a new GM which will be in operation immediately. The would include things like Chevrolet (and the Volt), Cadillac, Buick and GMC. The rest of the bad assets would stay in court being hammered out by creditors.

And so it seems by June 1st not will we only have the first Volt under assembly, we will have the first day of the new GM.