Archive for October, 2010

 

Oct 31

What Every Woman Wants in a Chevy Volt

 

With the Chevy Volt now available for purchase or lease, it makes sense to reach out to potential Volt women drivers. To date, however, GM has made little effort to reach out to us. In fact, out of the 15-member Volt Consumer Advisory Board, only one woman was chosen to participate. None of the new ads that GM has put out speak directly to women either. Since women buy 65% of all new cars and influence 95% of all car purchases, it is time to create a Volt story that resonates with what we want in an electric car.

So, what do women want in a plug-in car? As a researcher and spokesperson in the green car scene, I am often asked by my female associates for vehicle purchase recommendations. Before making any suggestions, I find out about their driving needs and desires. The women I speak to want style, comfort, and convenience. They want reliability, efficiency, and cutting-edge technology. They want a car that makes them stand out from the crowd. They want power when they need it and they want a nice sound system too. In short, they want exactly what the Chevy Volt offers.

Most women in my network are young, single professionals with successful careers. We make up the Gen X and Gen Y marketing segment with advanced degrees and moderate-to-high incomes (9,000,000 in the U.S.). I like to think of our subgroup as “Generation E.” We are the most Educated, Eco-conscious, and Enterprising group of young Americans to date. We are strong believers in the power of technology to address social and ecological problems. We are looking for a car that expresses our values and our desires. In short, we are Chevy Volt’s ideal target market.

So, what kind of Volt story would appeal to this market? It’s not a story of “more car than electric.” The advanced electric drivetrain of the Volt is the part we like the most! It’s not “Chevy runs deep.” Most of us don’t have a sense of “Americana” nostalgia for Chevy cars. The story that appeals most to us is one that portrays the Volt as smart, sexy, and fun.

If I were to craft this story, it would go something like this:

The Volt is Smart: This car is so smart that it runs on electricity instead of oil for most daily driving. It is so smart that it connects to our SmartPhones to let us know when it needs to be charged. It also lets us know when to benefit from the cheapest electricity from a smart grid. And, it has an MPG that kicks some serious Prius-bootie!

The Volt is Fun: This car offers an exhilarating drive experience, with excellent acceleration and great drive dynamics. Driving the Volt is interactive – you control how much charge you get from the battery based on your own driving style. Plus, the Volt comes with entertaining features, such as a new and improved energy-efficient Bose sound system, that enhance the driving experience.

The Volt is Sexy: The car itself is sleek, aerodynamic, and stealthy. It appeals to those that want stylish options in clean mobility. The Volt makes you look and feel good. And everyone will ask…. “Is that your Volt?”

Finally, on price, women are known to make intelligent investments with their money. The sticker price is a bargain for those of us who invest in technologies that offer long-term value. There is no other similar product like it on the market – the closest stylish, fuel-efficient sedan I can think of is the Lexus Hybrid HS (which has an impressive hybrid platform, but no plug). For us, the overall ROI on the Chevy Volt is worth it.

And let us not forget that when EV technology first emerged, women were the strongest proponents of plug-in cars. At the turn of the 20th century, it was urban, well-to-do women who preferred the clean, quiet, convenience of petroleum-free mobility.

These are just a few preliminary ideas on how to craft a stronger Volt story. I am sure that GM-Volt readers will have lots to say on this topic as well, especially for the women readers out there. If the Volt story is not communicated in a way that resonates with the “hearts and minds” of today’s women, its initial entry amongst our segment could be somewhat limited. By appealing to what we really want in an electric car, however, the Chevy Volt will have a lasting impact on a whole new generation of plug-in drivers.

Shannon Arvizu, Ph.D., loves driving clean, green machines. You can catch her test drives in cars of the future at MissElectric.com.


 

Oct 30

Chevy Volt Job 1 Pushed Back to November 30th

 


Job 1 is the name given to the first Chevy Volt that will roll off the Detroit-Hamtramck assembly line, destined for consumer purchase.

Though not distinctly different than any of the previous dozens or even hundreds of pre-production cars coming off the line before it, this vehicle has profound symbolic implications.  It shall represent the culminative effort of more than four years of intensive development that occurred despite all the odds against it.

It will also be a great reward for all the effort we here have poured into cheering the company into building the car ever since those early days in 2007.

Previously it was reported that GM scheduled Job 1 to be built on November 11.  In fact, as long ago as mid-2009 GM executives confirmed it would be a day in mid November that the first consumer Volt would be built.

According to CNBC reporter Phil LeBeau, however, the plans have just been changed, something I was able to confirm with GM sources.

Instead of November 11th, Job 1 will roll on November 30th.  As expected, GM is planning a launch ceremony for this very special event, and inability for certain guests to attend is actually the reason for the change in plans.  It’s not that the car won’t be ready before then, it’s that executives who need to be there will be involved in the pre-IPO “road show” where they go around selling investors on the company.

“The executives will be on the road show between the 3rd and the 17th,” said Phil LeBeau. “And that road show is far more important than going out and doing a dog and pony show for the Chevy Volt.”

The new GM’s IPO is obviously very important, and in fact it’s success may be directly proportional to how many future electrified vehicles GM can develop.  To accommodate the road show, the launch ceremeny has been rescheduled to take place on November 30th.  And still, amazingly, GM will live up to its promise of 2007 that the car would go into production in November 2010. Some first early launch market consumers should still be able to pick up their cars in mid to late December.  But don’t expect too many.

“There’s been no change in our production plans,” says GM spokesperson Rob Peterson. “They are the same as what we’ve stated since early 2007 – production begins in November.”

Source (CNBC).  See Video Below:

Thanks to Brian E. for the tip!

 

Oct 29

JD Power: Electric Car Demand Over-hyped, Only 100,000 EVs Will be Sold in US in 2020

 

As someone who wants to help this country, and indeed the world off of oil, the question of electric car demand remains a big question mark. We can follow electric car developments, and dissect every element of engineering, design, and marketing, but no matter how hard we try we cannot simply will people to buy them. They have to want them, and critically they have to make financial sense.

Sure us early adopters will buy up all the paltry volumes of Volts and LEAFs that will be made in the first years, but what will happen down the road? Will the mass population adopt them?

The venerated market forecasting firm JD Power and Associates apparently doesn’t quite think so.

The company has issued a new report entitled “Drive Green 2020: More Hope than Reality” which has determined that global EV and hybrid car demand is over-hyped by a zealous media.

They say it will be difficult to convince a significant portion of the population to buy electric and hybrid cars unless one or more of the following three scenarios occur:

1.   There is a significant increase in petroleum prices by 2020
2.   There are dramatic improvement in battery technology leading to lower prices and increased consumer confidence
3.   There is a sustained coordinated and concerted effort of government policy.

The study concludes none of these three things are likely to occur within the next ten years.

“While considerable interest exists among governments, media and environmentalists in promoting HEVs and BEVs, consumers will ultimately decide whether these vehicles are commercially successful or not,” said John Humphrey, senior vice president of automotive operations at J.D. Power and Associates. “Based on our research of consumer attitudes toward these technologies—and barring significant changes to public policy, including tax incentives and higher fuel economy standards—we don’t anticipate a mass migration to green vehicles in the coming decade.”

The report finds consumers have particular concerns about electric car design, performance, reliability, charging, and range anxiety. Also it is concluded that although many people want to do their part to displace petroleum, very few are willing to pay the price premium required to buy an electric car.

“Many consumers say they are concerned about the environment, but when they find out how much a green vehicle is going to cost, their altruistic inclination declines considerably,” said Humphrey. “For example, among consumers in the U.S. who initially say they are interested in buying a hybrid vehicle, the number declines by some 50 percent when they learn of the extra $5,000, on average, it would cost to acquire the vehicle.”

Furthermore consumers are also worried about how well electric cars will hold residual value over time, and the fact that they may never recoup cost savings over time when compared to conventional ICE cars.

In the end the study predicts that by 2020 only 1.3 million EVs will likely be sold globally. Of those 1.3 million, only 100,000 will be sold in the US, representing less than 1% of all sales.

Source (JD Power)

 

Oct 28

New Chevy Runs Deep TV Commercials

 

We just recently saw the first Chevy Volt commercial which aired on Wednesday in the World Series. Accompanying that 30 second commercial were three other Chevrolet commercials.

All are narrated by comedian Tim Allen and all evoke memories of this country’s past and how Chevrolet has been a thread that ties the decades together. The advertising tag line “Chevy Runs Deep” tries to remind consumers how much a legacy the brand is for the country, and how it is still alive. Furthermore the brand’s future is exemplified prominently by the Chevy Volt.

The following commercials illustrate these ideas:

1. Babies:

2. Dogs in trucks:

3. Chevy runs deep:

4. That first Chevy:

It is obvious GM has abandoned the ill-conceived memo of former brand director Jim Campbell to not call the brand Chevy, which is good. Whether prompting consumers to remember Chevy’s role in this country’s past will sell more cars isn’t known. The new advertising push is being led by GM’s new VP of marketing Joel Ewanick. The ads were conceived by GM’s new advertising partner Goodby, Silverstein & Partners, who took over after GM severed ties with Campbell Ewald with who was their advertising partner for over 90 years.

“Are we going to wrap ourselves in the American flag? No, we’re not, but we are going to wrap ourselves in the values and the character that has been part of this country for centuries,” Ewanick said. “That’s what we want to be.”

These commercial are reminiscent of previous patriotic campaigns such as “Heartbeat of America” and “American Revolution” that didn’t necessarily drum up a lot of business. Of course back then there was no Chevrolet Volt.

Ewanick believes this strong historic American theme is something Japanese competitors cannot claim, and allows the brand to be set apart. “We have a soul that our strongest competitors don’t have,” Ewanick said. The question is, will it work?

Quote Sources (Reuters)

 

Oct 27

Chevy Volt Television Commercial Unveiled

 


As we reach the summit of production Volt launch, the Chevy marketing machine begins to ramp up.

GM is serious about selling this car and has high hopes it is the tip of the spear for future generations of electric cars to come. Though only 10,000 to 15,000 units will be produced in 2011, in the interest of being cautious, after that the company will ramp up to march demand.

We hope demand will be high, but at present it is uncertain, as GM isn’t announcing how many orders it has taken.

According to Automotive News, Volt marketing chief Tony DiSalle said over half of the people who have ordered a Volt are first time buyers of a Chevrolet brand vehicle. He would not give specific numbers nor say whether any of these so-called conquest sales had purchased other GM brands in the past.

DiSalle also reported that the very first Volts would go to customers, not dealerships. Dealership demo models, one of which each Volt dealer is required to have on hand, won’t start being delivered until February of next year.

Today the company has unveiled one of two new TV commercials for the Volt that will appear during the World Series which begins tonight. This represents the premiere of national high profile prime-time Volt advertising. Along with the ads the new Volt tag line, “its more car than electric,” is debuted.

Part of this Volt advertising blitz is intended to draw in showroom traffic to Chevy dealers. Even if people don’t or can’t buy Volts right away, it is hoped they may buy other cars like the Cruze.

“I hope there are redundancies with dealers,” said DiSalle.

GM will also be debuting several Chevrolet ad spots during the series which feature the new Chevrolet tagline “Chevy Runs Deep.”

“The World Series is a defining piece of American culture,” said Joel Ewanick, vice president, U.S. Marketing. “It has a story, a soul and a connection to every generation – just like Chevrolet. You can’t get a better fit than Chevy and baseball. It’s the perfect opportunity to talk about Chevy’s commitment to America and showcase our newest cars, trucks and crossovers.”

“As we prepare for Chevrolet’s centennial in 2011, we’re beginning a new chapter in Chevy history,” Ewanick said. “This is a brand that has touched all Americans. We’re proud of our heritage and eager to let people know how we can create a better future through vehicles like the Cruze, Volt and other fuel-efficient models that will be coming soon, including a new sub-compact car and the Spark. We believe this campaign provides a great platform to tell that story.”

Check out the first exclusive showing of the new Volt commercial below called “Anthem” which celebrates all the different freedoms driving a Volt can provide and tell us what you think.

Source (Automotive News)


 

Oct 26

Chevrolet Volt Will Utilize 10.4 KWH of Battery to Achieve EV Range

 


At the recent Chevrolet Volt launch GM finally let the skeletons out of the closets and exposed all of the Volt’s closely guarded secrets. Among them is the fact that engineers have chosen to use much more of the battery’s stored energy than initially beleived.

We had believed for years based on GM statements, that the car would only draw a total of 8 kwh of energy from the 16 kwh battery pack to deliver the 40 miles of EV range. The idea was considerable excess buffer existed in the pack to let it deteriorate over time without sacrificing range.

Through the years of development GM became more comfortable with drawing more deeply from the pack, finding the properly-conditioned cells could handle it. Even with a deeper band of energy use, GM felt it could meet the warranty goal of 8 years/100,000 miles. Also, though executives and engineers won’t overtly admit it, it seems they needed more energy than initially believed to the acheive the goal EV range.

This first came out when we recently learned the Volt would use more than 8 kwh.

Now GM finally admits the Volt will actually use 65% of the total energy storage capacity of the battery. That amounts to 10.4 kwh.

The engine generator will turn on once the battery hits somewhere between 20% and 25% state of charge, which equates to 25 to 50 miles of EV driving. When fully recharged, the battery will acutally be kept at a maximum 85% to 90% state of charge.

As the battery ages and energy storage capacity of the lithium-ion cells degrades, control units will widen the percent state of charge band to continue to deliver the range goal.

By 8 years/100,000 mile when the battery warranty ends, GM expects the car’s range to be reduced by 10 to 30 percent in the worst case. Some customers will experience less degradation. The car can continue to drive beyond that point, but range will continue to contract.

It was recently reported that the California Air Resources Board (CARB) classified the Volt as a ultra-low emissions vehicle or ULEV. This is the same as a 1.8L Honda Civic, for example. Less carbon emitting and more stringent designations include (super) SULEV, and advanced technology partial zero emission vehicle (AT-PZEV) given to the Prius and Insight. The most stringent is the zero-emission (ZEV) designation given to pure electric cars.

The ULEV designation does not, however, take into account the Volt’s electric driving operation, it only looks at the charge sustaining mode operation. GM will seek a new (enhanced) EAT-PZEV status next model year, by offering the required 10 year/150,000 mile warranty that CARB wants to consider electric operation. To achieve that warranty, apparently “certain kinks” have to be worked out Volt director Tony Posawatz told the Times.


 
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