He is the German-born engineer with the job of Volt vehicle line executive, making him as the leader of the Volt program, reporting to the VP level.

I have had the chance to interview and meet Frank many times.  His precision, attention to details and strict demands have made the Volt program successful, high quality and able to move on a very rapid time frame.

Weber will be leaving his post on December 2 to take a promotional leadership position in Opel in Germany on December 2nd.

As per GM Volt spokesperson Rob Peterson, this is not a surprise but has “been in the works a while.”

Frank will be replaced by Doug Parks who is currently the vehicle line executive of the global compact architecture, upon which the Volt is built, and has already seen through the launches of the Chevy Cruze and Opel Astra in Europe.

According to Peterson, Weber has “taken the Volt from theory to starting to put all the pieces into place.”  He also notes that Parks has the specific skills and experience to take the car from where it is to actual launch.

Weber is highly thought of in the organization which is why he was given the Volt project in the first place, and this like most assignments at GM are for 3-year intervals.  By going to Opel and getting a promotion, GM continues to benefit from and applaud Weber’s skills.

Peterson reminds us the key players in the Volt program such as Andrew Farah who carried electric car experience from the EV-1 days and Tony Posawatz who was part of the Volt planning since 2006 are staying in place.

I was able to reach out to Frank for comment. I asked if this had anything to do with the Volt program.

He graciously replied:

“How could it be connected to the Volt program? We delivered ahead of schedule, the cars are performing extremely well and we have an outstanding GM team that has inhaled the mission of the electrification. The Volt has transformed the industry, GM and myself. This program will always be very close to my heart.

There will be more opportunity to say good-bye.”

For fun I have included one of my favorite Frank Weber videos going back to late 2007:

The 74th and final integration vehilce prototype version of the Chevy Volt rolled off the assembly line at the pre-production operations plant at GM’s Warren Technical Center campus.

Those following the Volt story closely will remember the countdown clock chief engineer Andrew Farah had on display in his office showing the day the first one of these Volt vintages would arrive.  That day was just before July 3rd.  And now 3 months later, 74 of these cars have been made.

These vehicles are for all intents and purposes full production-intent Chevy Volts though they have some minor fit and finish issues as they are the first true cars to be made from the original math models.

GM has been and will continue to rigorously and tirelessly test these cars.  From what we know they have been from the pit of Death Valley to the summit of Pikes Peak and spend all their days on GM’s test track and around Warren.  This author even got to ride shotgun in one with Volt executive Frank Weber at the wheel.

“This is our shining moment after all we’ve been through with the bankruptcy this year,” said Andy Pawlaczyk, who is chairperson of UAW Local 160, which will build the Volt with Local 122 at GM’s Detroit-Hamtramck assembly plant.

“This is the same kind of work we do on any new car, but it’s got a different purpose,” said Keith Brown, who is an an assembly worker in the preproduction facility. “We want to get off foreign oil. I hope everybody buys the Volt and loves it, and we can push the industry in that direction.”

Using all the learning these cars can provide, GM will begin building the next iteration of car on the Hamtramck assembly line in the first quarter of next year.

And we are one step closer to a world without oil.

Source (Detroit Free Press)

To date the company has only produced low volumes of low speed neighborhood electric vehicles, but had been planning to introduce a highway capable electric car called the cityZENN.

Zenn has based its future and that car on a partnership with EEStor, which is known to be secretly working on mass producing a new type of battery that would surpass lithium ion in every way. Its far cheaper to produce, several times more energy dense, can be recharged in minutes and has a functionally unlimited lifetime.

Zenn has taken incrementally greater ownership stakes in EEStor based on milestones for producing that battery or EESU. At this point no batteries have ever been publicly demonstrated, but Zenn holds a 10.7% stake.

Clifford has just announced that his company would no longer be pursuing mass production of the cityZENN car.  I had the chance to discuss this with him.

“Our decisions regarding cityZENN continue to evolve in response to advancements in electric vehicle deployment across the industry since we announced cityZENN a couple of years ago,” said Clifford.

He notes the plethora of new EV manufacturers that have exploded on the scene including Tesla, Fisker, and Think, fresh with billions of dollars of government aid.

“Why people would want ZENN to become another OEM is beyond me,” he said.

Instead Zenn will focus on producing electric drivetrains called ZENNergy Drive systems that will be EEStor-powered and would be supplied to automakers.

“Integration of ZENNergy Drive in Tier 1 and OEM product has always been our long term objective,” says Clifford. “The cityZENN program was always designed as a proof of concept for ZENNergy Drive.”

“Now that virtually every OEM around the world has announced some form of battery EV or plug-in hybrid program it makes sense for the Company to focus entirely on ZENNergy Drive’s unique value proposition to maximize ZMC’s penetration throughout the industry, working in conjunction with Tier 1 and OEM’s around the world,” he said.

He is enthusiastic about the potential of that business model.

“Leveraging ZENNergy Drive, powered by EEStor, across the industry is such a massive opportunity,” he says. “Last year 48,000,000 new cars built fit within our 1400 kg exclusivity on EEStor’s technology.”

Clifford denies that there has been any material change in EEStor’s development and assembly of EESUs.

“With respect to the anticipated timeline of EEStor’s technology,” said Clifford.  “EEStor has publicly stated that they expect to complete initial component testing in September 2009 and deliver functional technology to ZMC by the end of the year.”

He clarifies that although EEStor will do component testing in September they may or may not reveal those results publicly.

“With respect to the initial Component testing, it is up to EEStor to announce the results,” he said.  “It should be noted that while EEStor publicly stated their intention to complete component testing, they did not indicate if they would publicly disclose those results. Component testing is not a milestone in our technology agreement with EEStor.”

Besides the Chevy Volt, GM has been developing a 2-mode plug-in hybrid vehicle program since 2006. Originally set to debut in 2010 as a Saturn VUE, that particular vehicle was dropped along with the sale of the Saturn brand.

That didn’t stop the development though. A few weeks ago GM-Volt.com learned the new host vehicle would be an as yet unseen new compact Buick crossover.

Today GM has confirmed this and released a teaser image of the upcoming vehicle.

“Buick has always been at the forefront of new technology, so it is only fitting that the brand should debut our new plug-in hybrid technology in a beautiful new crossover,” said GM vice chairman Tom Stephens. “This will firmly put Buick, and GM, front and center in the advanced technology game.”

The unnamed car will be launched in 2010 with a Ecotec 2.4L direct-injected four-cylinder engine or an optional 3.0L direct-injected V-6 engine, and expectations of more than 30 MPG on highway driving.

The plug-in hybrid version will follow in 2011 and is expected to be the first commercially available plug-in hybrid SUV produced by a major automaker.

The hybrid will have an 8 kwh lithium-ion battery pack, using the same lithium manganese spinel cells as the Volt, supplied by LG Chem, who will be building a lithium-ion battery factory in Michigan set to open in 2012.

“LG Chem – the supplier of our battery cells for the Volt – has also been selected to supply the lithium-ion cells for the new Buick plug-in hybrid, and its Troy, Mich.-based subsidiary Compact Power will supply the pack,” said Stephens.

The plugin hybrid can operate on either gas, electricity or both depending on the driving conditions. It differs from the Volt in that the gas engine can be in operation at any time, not just after 40 miles. Using this technology the vehicle is expected to achieve at least double the efficiency of a gas version of that car. This could amount to more than 70 MPG.

The engine for the plug hybrid will be a 3.6L V-6 flex-fuel, and the car will also contain two powerful electric motors and sophisticated electronic controls.

The car can be recharged in 4 to 5 hours at 110V, and tests show it is capable of up to 10 miles of pure electric driving at low speeds.

Press Release below:
New Buick Crossover Will Feature Plug-In Hybrid System

* Five-passenger crossover arrives in 2010 with family of fuel-efficient direct-injected gas engines
* Plug-in hybrid model debuts in 2011
* Expected to be first commercially available plug-in hybrid SUV produced by a major automaker

TRAVERSE CITY, Mich. – General Motors’ plug-in hybrid technology will be introduced in a new Buick crossover vehicle in 2011, Tom Stephens, GM vice chairman of product development, announced here today during the Management Briefing Seminars.

The yet-to-be-named Buick crossover will launch in late 2010 offering a family of fuel-efficient direct-injected gasoline engines, followed in 2011 by the plug-in hybrid model.

“Buick has always been at the forefront of new technology, so it is only fitting that the brand should debut our new plug-in hybrid technology in a beautiful new crossover,” said Stephens. “This will firmly put Buick, and GM, front and center in the advanced technology game.”

A new Buick for a new customer

The new five-passenger crossover will build on the success of the Buick Enclave, offering the brand’s finely crafted execution and premium driving experience in a fuel-efficient package.

“Some customers who have been drawn to the Enclave were looking for something a little smaller, but they didn’t want to give up craftsmanship or a quiet ride to get there,” said Susan Docherty, general manager of Buick-Pontiac-GMC. “We believe this new Buick will excite those customers, and will continue to broaden the appeal of the brand.”

The Buick crossover will be powered by an Ecotec 2.4L direct-injected four-cylinder engine with an optional 3.0L direct-injected V-6, and is expected to deliver 30 miles per gallon or more on the highway. Final fuel economy estimates, as well as additional vehicle details such as name and pricing, will be announced later.

Plug-in hybrid model

The Buick plug-in hybrid is expected to be the first commercially available plug-in hybrid SUV produced by a major automaker.

The Buick plug-in hybrid has the potential to achieve double the fuel economy of comparably-sized SUVs on short trips. This significant boost is achieved by combining a modified version of GM’s proven 2-Mode Hybrid system with advanced lithium-ion battery cells and charging technology developed for GM’s Voltec system, which will debut in the Chevrolet Volt extended-range electric vehicle in late 2010.

“LG Chem – the supplier of our battery cells for the Volt – has also been selected to supply the lithium-ion cells for the new Buick plug-in hybrid, and its Troy, Mich.-based subsidiary Compact Power will supply the pack,” Stephens said.

The Buick plug-in hybrid will use the same manganese-spinel based chemistry and polymer battery cells as the Volt. The 8 kwh battery – containing half the energy of the Volt battery pack – will be packaged in a rectangular-shaped box under the cargo floor.

The lithium-ion battery can be fully recharged in four to five hours by simply connecting the vehicle to any standard 110V household electrical outlet. By recharging rather than refueling, the Buick plug-in hybrid significantly improves fuel economy and reduces petroleum use. In early testing, the plug-in hybrid is capable of electric-only propulsion for more than 10 miles at low speeds.

On the road, GM’s 2-Mode plug-in hybrid system can use any combination of electric or gasoline engine power to move the vehicle, depending on the driving conditions. This differs from GM’s Voltec technology, which provides the Volt with up to 40 miles of emissions- and petroleum-free electric-only propulsion, and an overall range of more than 300 miles with its flex-fuel engine-generator.

In addition to the lithium-ion battery pack, the Buick plug-in hybrid’s powertrain features two powerful electric motors, sophisticated electronic controls and battery management systems and an efficient direct-injected 3.6L V-6 flex-fuel engine.

About General Motors: General Motors Company, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 235,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors Company acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. More information on the new General Motors Company can be found at www.gm.com.

# # #

McGuinty said “we want to make it easier to buy green cars,” and pledged a goal of 1 in 20 cars to be electric on Canada’s roads by 2020.

The Premier actually made the announcement at a Chevrolet dealership while stepping in and out of a Volt show car.  Buyers of the Volt could expect the full $10,000.

He did not state the program’s cost.  Other incentives mentioned were special green license plates and preferred parking spots in places like Wal-Mart.

Toyota had not been notified of this decision and was caught off guard. In return for $3.16 billion in funding the Canadian governemnt is a 12% owner of the new GM, and as such the Japanese automaker expressed concerns of favoritism.

“How long does this continue?” said Stephen Beatty, managing director of Toyota Canada Inc. “We can’t set up a situation where the future of the industry depends on constant subsidies.”

“This suggests that (the government) is prepared to be interventionist beyond their aim to help the industry recover,” he said. “The question is: Is this a well thought-out industry strategy? Or is it sort of the next stage in advancing a particular product and helping a particular company?”

Toyota will only be producing a limited test fleet of 500 global plug-in Priuses by the end of 2010, and have hesitated to publicly embrace the technology which could make their hybrid synergy drive obsolete.  “We’re not entirely convinced that the technology is a winning proposition for consumers today,” said Beatty.

Source (Windsor Star) and (LeaderPost)

GM will not confirm pricing until May 2010 primarily because of the changing landscape of these facts, but most estimates place it around 40-ish or so.

That value became lower by $7500 when the tax credit for plugin-cars was legislated, which allows the first 250,000 buyers of the Chevy Volt (in the US) to receive a $7500 direct credit, thereby putting the effective price tag close to $30,000.

On Thursday the Congress passed a $1 billion “Cash for Clunkers” bill. This legislation provides up to $4500 in vouchers to anyone who trades in their old inefficient car for a new fuel efficient vehicle.

The requirements are that the old car get less than 18 mpg, and the new one more than 22 mpg. A difference of 4 mpg is worth $3500, if the difference in more than 10 mpg than its worth $4500. For trucks the new one needs at least 18 mpg and be 2 mpg greater than the old one for $3500, if its 4 mpg the voucher is worth $4500.

To see if you vehicle qualifies check here:  FuelEconomy.gov

The plan will take effect 30 days after Obama signs it into law and could stimulate up to 250,000 vehicle sales.

If this voucher were applied to the Volt it could cost you $12,000 less than sticker if you have an old gas guzzler to trade in for it. Once catch though. The program expires in November, a year too soon for the Volt.

Don’t give up hope though. Some members of Congress are already trying to get the bill extended for another year, and that would cover the Volt launch.

Or better yet, maybe we should propose a new program called “Cash for Gassers” which would give people a cash voucher if they traded in their gas car for one that runs on electricity. The bigger the battery, the bigger the voucher.

Also, the possiblity of state tax credits or removal of states sales tax has the potential to lower initial Volt costs as well. As an example, I discussed with my assemblywoman’s adviser the creation of such a bill here in New York. The adviser said there would be a high likelihood they would draft it and that the assemblywoman would bring it to the NY State assembly in January 2010. You could consider doing the same in your state (or country).

The US government has given Chrysler until this Thursday to either complete a merger with Fiat or enter bankruptcy. Reports indicate that the government has already begun preparing for the bankruptcy proceedings, and that even if a deal is reached, bankruptcy may still ensure.

GM on the other hand has been given to June 1st to restructure or face similar consequences. Both companies are contending with debtholders who are unwilling to accept concessions to reduce the companies obligations.

There are indications that GM may announce on Monday that they will be shutting down their storied American iconic Pontiac brand forever, though the company has not confirmed this. Reports also indicate that GMC will be allowed to stay on along with Chevrolet, Cadillac, and Buick.  Meanwhile GM will be idling 13 plants up to 9 weeks this summer to save cash and has just received another $2 billion in government funds to continue operations.

Even if GM too has to enter bankruptcy on June 1st, a smaller leaner and profitable GM along with the Volt and Voltec is expected to rapidly emerge.

Chrysler though may simply be liquidated and sold off if deals with banks and Fiat cannot be reached.

Stay tuned, the week ahead may be full of surprises.

What is the current state of mule development?
Frankly, its complete. We’ve built all of the cars that we intended to, around 33 or 35, and we are done with the hardware building phase. The cars have all been delivered to the Milford proving grounds and testing and development is ongoing.

What we learn from that particular hardware phase will be used for the hardware phase that is upcoming. Around the middle of this year we’ll build our integration cars which not only feature the drivetrain components of the Chevy Volt which we’ve had in the mule cars. Those mule cars were built in Cruze-bodies. Our integration cars are where we integrate all of the pieces together whether they’re drivetrain related or the interior and exterior the car altogether in a series of prototypes. We’ll probably have the first ones completed when it gets warm here next summer.

These will look like Volts?
Yes they will be built off of prototype tools. Those will be tested for a short period of time and then we move to the plant. Then we’ll build our product and process validation vehicles. Those will be built in the plant, on the line using the real assembly documents and all the correct tools in a true production setting. Now it will be at a very low volume to start with but that is the final phase. You’re moving from the prototype production into the high volume production facility and getting that ramped up for start of production.

And that low level production will be at the Detroit-Hamtramck plant?
Correct. And when I say low volume production, keep in mind that’s a high volume plant, so the line rate when its running full production runs very high. We carve out some space in that line by leaving some empty slots and then we put a car in there and we send that down the line and people start to develop the skill to assemble that entire vehicle.

And that will start late in 2009?
No that starts in the beginning of 2010. Sometime around the first or second quarter.

Do you have some retooling to do now in D-HAM?
Sure we need to have all the machinery and equipment in place to build the Volt before we start our production and process validation vehicles. We have to go into that plant and take out equipment and bring in new equipment because its a different car than those that are built there to day. We have to reconfigure all the equipment that’s in the plant so we can build the Volt.

Are you still going to build others cars at that plant alongside the Volts?
I believe that’s still the plan but we continue to still refine what we’re going to do with our manufacturing footprint as we see how the volumes progress. So the plan is we’re still going to have another product or so in that plant, but I cant tell you that for sure.

If you were just building Volts there, what would that plants total annual production capacity be?
Well over 200,000 units.

So if the world demands over 200,000 Volts annually you’ll able to do it?
We would be able to do it in that facility or it may make more sense to put the Volt in another facility. We have to see when we get there exactly what makes the most amount of sense.

The company is known to have inspired Bob Lutz to start the Volt program.

Tesla also has had plans to build an electric sedan called the Model S. The vehicle’s future has been uncertain due to the company’s economic uncertainties. We recently heard their California plant was delayed, and that they had asked for $450 million in US government loans to help them build it.

Today, Tesla Motors CEO Elon Musk announced that the company has was advised they would receive $350 Million in government advanced technology loans, and that they expect to receive funding within the next 4 to 5 months.

Furthermore he announced that the company will be publicly unveiling a road-ready prototype of the Model S on March 26th at his SpaceX rocket factory. He indicated that the government funds "will keep us on track for production to start in 2011."

Musk also noted that the company is set to become profitable in the middle of this year mainly because of the fact that Roadster production capacity of 1000 cars are already on backorder for the rest of the year.

Per Musk "My goal for Tesla from the beginning was to do whatever we can to help end the world’s addiction to oil. We’ll do that by making cars directly, helping other automakers develop cars, and serving as an example to the rest of the industry."

And oh yeah, yours truly will be taking home a production Roadster for a one day test-drive this weekend!

Full letter below:

Tesla to be Profitable by Mid Year

The $40M financing round completed in December was twice the amount Tesla needed to reach profitability. Moving forward two months later, we remain on track with our cost reductions and production ramp, so it appears highly likely that Tesla will meet the goal promised to those investors of becoming profitable by mid year.

The main reason for this confidence is that Tesla is already in the fortunate position of being sold out until early November, something few automakers can claim, and will soon be sold out of all 2009 production. While we have had some cancellations due to buyers experiencing personal financial difficulties, new orders continue to flow in every week from the United States and Europe. We have now produced more than 200 Roadsters for customers and there are more than 1,000 customers still awaiting delivery.

Due to our order backlog, it seems that owning a Roadster can be a good investment. Last September, as the financial and real estate markets began crashing, a Roadster was sold at the Sonoma Paradiso in California wine country for $160,000, well above the current list price of $109,000. Many Roadster owners who have taken delivery of their cars have already decided to purchase a second Roadster or Roadster Sport because they like the first one so much.

The continued strong demand is driven by the fact that the Tesla Roadster has no direct competitors. It is faster than almost any sports car on the market (our Roadster beat a Porsche GT3 on the Top Gear test track) and yet uses less energy and has a smaller carbon footprint than a Toyota Prius, even if you assume the worst possible case where all electricity comes from coal.

I expect sales demand to strengthen further as this awareness grows. After all, what’s the point of driving another exotic sports car when it is slower than a Tesla and damages the environment? Already, the Tesla Roadster is the car of choice among the technology, business and Hollywood A lists – this year’s Academy Awards will be a lineup of Teslas – and we have never had to give a discount to anyone.

Many customers also appreciate the fact that profit from their purchase goes towards helping Tesla develop more affordable, mass market electric cars. The same cannot be said for those who buy gas-guzzling sports cars from other automakers.

And owners aren’t the only ones impressed with the Roadster. Road & Track was the first auto enthusiast magazine to perform third-party, instrumented testing on the Roadster; they were “pleased to see its extravagant claims confirmed.” The Washington Post’s Warren Brown gushed, “Wheeeeeee! If this is the future of the automobile, I want it.” Dan Neil of the Los Angeles Times had perhaps the most colorful description we’ve seen to describe the Roadster’s scorching acceleration: “God has grabbed me by the jockstrap and fired me off his thumb, rubber band-style. Wow.” And we’ve also had a torrent of reviews in Europe, where deliveries begin this summer – including a Le Monde story with our favorite headline: “Le chic électrique.”

Unveiling the Model S and DOE funding

On March 26th, at the Tesla design studio located within the SpaceX rocket factory, we will unveil a street-drivable prototype of the Model S four door sedan. Our objective with the Model S was to create one of the most functional, intuitive and beautiful vehicles on the road. Tesla Roadster customers and select VIPs invited to the event will have an opportunity to judge for themselves firsthand whether we have succeeded.

Regarding funding, I am excited to report that the Department of Energy informed Tesla last week that they expect to disburse funds from our $350M Model S loan application within four to five months. The Obama administration has thankfully made it a top priority to move quickly on the Advanced Technology Vehicles Manufacturing loan program, as this will both generate high quality jobs in the near term and lay the groundwork for a better environment in the future.

This will keep us on track for production to start in 2011. As a gesture of gratitude for their early support, Roadster owners will receive a $10,000 discount off the price of the Model S Signature series and automatically be first in line for the sedan.

Daimler Partnership

We announced last month at the Detroit auto show that we have been working with Daimler (maker of Mercedes) for over a year to create an electric version of the Smart car. Daimler has contracted with Tesla to build the battery packs and chargers for an initial run of 1,000 cars. Pending the results of that test fleet, the relationship could expand to tens of thousands of cars per year.

This is a very significant endorsement of both Tesla’s technology and our financial strength by one of the world’s most respected automotive companies. Daimler would not feel comfortable depending on us for this program if they felt that either our technology was easily replicated or that we were in financial danger.

Daimler was the first company to commercialize the internal combustion engine and has become a benchmark for automotive quality and reliability. It is an honor that they chose to work with Tesla after a thorough investigation of other options. The deal is likely to be the first in a series of strategic partnerships between Tesla and other auto manufacturers to engineer and produce electric cars.

My goal for Tesla from the beginning was to do whatever we can to help end the world’s addiction to oil. We’ll do that by making cars directly, helping other automakers develop cars, and serving as an example to the rest of the industry. Although the Roadster is still the only highway capable production electric car for sale in the United States, it was very encouraging to see that the central theme of the Detroit auto show this year was electric transportation. J

New Tesla Sales & Service Centers to Open

We have reached agreement on Tesla store leases in Chicago and London’s Knightsbridge district, and we are close to finalizing locations in Manhattan, Miami, Seattle and Munich. All six facilities will open this year, and in the following months we’ll provide details about individual store opening parties. These new stores will offer prospective customers the chance to see and drive the Roadster in person – and they underscore Tesla’s commitment to looking at the auto industry with fresh eyes. Unlike traditional franchise dealerships, Tesla owns its stores and controls the customer experience. We think you’ll agree that our stores are a refreshing change from the way most people have bought cars for the last 50 years.

Roadster Sport

Tesla is now taking orders for the Roadster Sport, an even higher performance car that does 0 to 60 mph in 3.7 seconds. It comes with a hand-wound stator and increased winding density for lower resistance and higher peak torque.

The tires are upgraded to Yokohama Ultra High Performance and the suspension features adjustable dampers and anti-roll bars tuned to the driver’s preference – allowing for both softer and firmer rides than the standard Roadster. Deliveries are expected to begin in late June.

Upgraded Roadster Interior and Other Options

Tesla will soon offer an Executive Leather Interior that raises the level of luxury in the Roadster’s cabin. We are also offering a Clear Carbon Fiber Exterior Package to add an additional level of sportiness and highlight the lightweight material that makes up the Roadster’s body. Currently, the only exterior clear carbon fiber touch on the base model is the roll bar cover – but many customers and fans have asked if we could reveal more of this exotic, braided material. These packages will be available starting in June.

Battery Replacement Program

One of the top questions customers ask about the Roadster is, “How long will the battery last and what will it cost to replace?” Tesla engineers have determined that a Tesla battery pack should last approximately seven years or over 100,000 miles under normal use.

Customers may pay $12,000, €10,000 or £9,000 up front and in return receive a replacement battery pack after seven years. Customers will also have the option of replacing the pack earlier at a premium or later for a partial refund. With the low production volume of the Tesla Roadster, the current replacement price of the pack is almost three times that number. The main reason for the relatively low cost up front — and why this is a smart purchase — is that we are arbitraging the relative cost of capital between Tesla and our typical customer.

Extended Warranty to Double Standard Period

Many customers have also asked to purchase an extended warranty. We now offer a doubling of the standard warranty, which means an additional 3 years and 36,000 miles or 60,000 kilometers, for $5,000, €4,000 or £3,800.

This covers everything on the car except the battery pack. Should the motor, power electronics, HVAC or any other major system need to be replaced, this will be money well spent, and it provides peace of mind to many customers.

Thanks for your support!

– Elon –

We began hearing rumors as early as this summer that it was the LG/CPI packs that were the only ones in use in all the Volt mules, but an official announcement was not forthcoming at that time, despite it being the initial plan. Later we heard the announcement could come by year end, but the financial catastrophe delayed it

And as I sat in the press conference audience here in Detroit today, just moments ago, GM finally announced the contract had been awarded to LG chem of Korea using special large format lithium ion cells. The cells will be made in Korea, and shipped to the battery pack assembly plant in Michigan. More importantly GM will be building the packs themselves. although Compact Power will stay on as a collaborator.

Rick Wagoner noted how GM set a challenge to build the battery “that couldn’t be built”. He noted GMs confidence in the batteries has grown dramatically. He showed a model of the pack.

He announced that GM will manufacture the battery pack “right here in the United States”. He said the facility will be the first lithium-ion battery plant in the US operated by a major automaker, and will be built in Michigan. He noted the overall Volt investment has been over $1 billion so far.

He said LG Chem’s cells met has “performance, production readiness, durability and exceptional quality.”

He also noted GM is developing core-competence in automotive battery engineering that will improve their competitiveness. GM will actually create a new facility just for the manufacture of battery packs that will be distinct from the Volt assembly plant.

He said GM will also open the largest 31,000 square feet battery development laboratory in the US later this year, also in Michigan, and donate money to the U of M to develop a battery engineer training program.

Full Release:

DETROIT – The Chevrolet Volt, an extended-range electric vehicle that delivers up to 40 miles of gasoline- and emissions-free electric driving, will use battery packs manufactured in the United States by General Motors, Chairman and CEO Rick Wagoner announced at the North American International Auto Show.

GM will establish the first lithium-ion battery pack manufacturing facility operated by a major automaker in the United States to produce the Volt’s battery pack system. It consists of lithium-ion cells that are grouped into modules, along with other key battery components.

The plant will be located in Michigan, subject to negotiations with state and local government authorities. Facility preparation will begin in early 2009, with production tooling to be installed mid-year and output starting in 2010.

“The design, development and production of advanced batteries must be a core competency for GM, and we’ve been rapidly building our capability and resources to support this direction,” Wagoner said. “This is a further demonstration of our commitment to the electrification of the automobile and to the Chevrolet Volt – a commitment that now totals more than $1 billion.”

The Volt’s lithium-ion battery cells will be supplied by LG Chem. Compact Power Inc., a subsidiary of LG Chem based in Troy, Mich., will build battery packs for Volt prototype vehicles until GM’s battery facility is operational. A joint engineering contract with Compact Power and LG Chem also has been signed to further expedite the development of the Volt’s lithium-ion battery technology.

GM has been testing battery packs for the Volt, powered by cells from LG Chem, for the past 16 months. These tests – both on the road and in the lab – have provided invaluable insight into lithium-ion battery technology.

“Our selection of LG Chem was based on performance, production readiness, efficiency, durability and LG Chem’s demonstrated track record of exceptional quality,” Wagoner said. “At GM, we believe the technical strengths of LG Chem, combined with our own engineering and manufacturing expertise, will help position us as a key player in the development of electrically driven vehicles today and in the future.”

GM’s advanced battery strategy

“Our announcements are part of a comprehensive advanced battery strategy for GM that is expanding along two pathways,” Wagoner said. “First, we’re identifying core competencies – such as battery research, development and assembly – and integrating these fundamentals into our product development and manufacturing operations. We believe this will become a competitive advantage for GM, and will be critical to GM’s long-term success. Secondly, we’re building a roster of battery suppliers and academic experts from around the globe, and leveraging their specialized abilities to develop battery chemistries and cell designs, as well as future automotive battery engineers.”

Key elements of GM’s advanced battery strategy include:

* Opening the largest automotive battery lab in the United States (31,000 square feet / 3,251 square meters) that will be capable of testing new energy storage system technologies, as well as lithium-ion and nickel-metal hydride batteries, to accelerate the domestic development of advanced battery technology and lead GM’s network of existing labs in Honeoye Falls, N.Y.; Warren, Mich.; Torrance, Calif.; and Mainz-Kastel, Germany. This new battery lab will be located in Michigan, subject to final negotiations with state and local authorities
* Continuing to ramp-up “in-house” battery-development capability by increasing the staff of GM’s global hybrid, electric vehicle and advanced battery organization to several hundred engineers in 2009, including more than 200 currently dedicated to advanced battery technologies
* Joining with the University of Michigan to create a new automotive advanced battery lab in Ann Arbor, Mich., and a specialized curriculum within U of M’s College of Engineering to develop automotive battery engineers
* Continuing to grow and establish a robust lineup of battery suppliers for cell development and manufacturing and battery integration expertise, with companies such as LG Chem, A123Systems, Hitachi Ltd., Compact Power and Cobasys
* Collaborating with government organizations and industry consortia, such as the U.S. Department of Energy; United States Council for Automotive Research; the United States Advanced Battery Consortium LLC; and Electric Power Research Institute to advance the development of hybrids, plug-ins and electric vehicles, and related electric infrastructure to support those vehicles

Energy alternatives and advanced technologies that reduce dependency on petroleum, improve fuel economy and reduce emissions are the keys to developing sustainable transportation. GM is pursuing several options to best meet the varied needs of customers around the world – from advanced gasoline, diesel and biofuel technology to electrically assisted vehicles such as hybrids, plug-in hybrids and – ultimately -electrically driven extended-range electric vehicles and hydrogen fuel cell vehicles. GM believes that electrically driven vehicles, based on battery and hydrogen fuel cell technology, offer the best long-term solution for providing sustainable personal transportation.

In June 2008, the GM Board of Directors approved the Chevrolet Volt program and Voltec™ propulsion system for production starting in late 2010. For trips of up to 40 miles, the Volt is powered by electricity from the grid and stored in its lithium-ion battery pack. Beyond 40 miles, a small engine-generator creates additional electricity to extend the range of the Volt several hundred additional miles. The development of the Volt’s 16 kWh T-shaped lithium-ion battery, which is roughly 6 feet long (1.8 meters) and weighs nearly 400 pounds (181 kg), is key to the Volt’s success. The production-intent design was revealed in September 2008.

General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 252,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 34 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

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