GM Cornered Into Defending the Volt

Al notes a story in Technology Review reporting on a CMU study (now over a month old) claiming that the Volt doesn't make economic sense, and GM's response. The study suggests that hybrids with large batteries offering up to 40 miles of range before an on-board generator kicks in simply cost too much for the gas savings to work out (PDF). Al writes: "Unsurprisingly, GM disputes the claims, saying 'Our battery team is already starting work on new concepts that will further decrease the cost of the Volt battery pack quite substantially in a second-generation Volt pack.' Interestingly, however, GM admits that the tax credits for plug-in hybrids will be crucial to making the volt successful. Without those credits, would an electric vehicle like the Volt be viable?"

Comments

It does matter..

[denis-The-menace]

The Union is *currently* unwilling to cut back wages or benefits which is a requirement for GM to even get access to ANY of the "stimulus" money.

Only when GM goes into bankruptcy protection (chapter 11) will GM have more of a free hand to cut what needs to be cut.

Until one of the 2 happen, the Volt won't see light of day at a dealership.

GM is working on it?

[zappepcs]

There are tons of people working on better electric storage system technology. This makes it sound like they are doing the engineering on their own.

Look here and this one is really interesting IMO.

When they get a breakthrough on high capacity systems it will make a lot of things possible that currently are not, not just cars. It is the battery technology that really puts the hobbles on generating your own electricity at home. Well, that and solar collector technology as well as HOA restrictions etc.

If I could get tax breaks to install a 95%+ self sufficiency system I'd do it in the blink of an eye. Having an electric car on top of that would be even better. I would like a nice little commuter car or two; 40 mile range is great if it will also support solar trickle charging while parked etc.

With an initial investment, I could become 95% free of the grid ... well, if I could do that, I'm all in... big time.

Re:Doesn't Make Economic Sense

[moosesocks]

Before you get all proud about the 40MPG rating, please note that a US Gallon differs from an Imperial Gallon.

A US Gallon is smaller, which makes British mileage ratings appear inflated compared to US ratings.

Also, US residents can buy a Diesel VW Jetta, which seats 5 comfortably, and (legitimately) gets 40+MPG. They sell like hotcakes, although the total number imported is still somewhat small. I've driven one -- it's quite nice. Almost impossible to distinguish from its petrol-powered cousin.

Of course, your main point still applies: By global standards, cars sold in the US are hideously inefficient, and we have an inherent fear of diesel, thanks to the loud, smoky GM diesels of the 1980s.

Re:Doesn't Make Economic Sense

[netruner]

I'll try to explain my viewpoint:

Cheap, proven technologies are still steps down a dead end road. We need to take a step back in order to start moving forward again. Electric vehicles are that path forward. An economically viable method for providing electric vehicles has not revealed itself yet, however the potential has been seen. The problem is that there is no reason to produce the new technology to make them viable unless electric cars are present to create the demand, and electric cars won't be viable until the new technology is present. So, what we have is a deadlock.

The question becomes "How do we break the deadlock?". This is a situation where the market as it exists today will not provide a solution in an acceptable timeframe, so we must consider external forces. Providing incentives to "early adopters" will be necessary to pull enough electric vehicles into the public to create a demand for the infrastructure. The problem of imperfect power storage is being mitigated by allowing for flexible power sources (i.e. onboard generators).

The Volt is a transitional technology, not the end result. GM can't say that though - after all, who wants to be the guinea pig with something as expensive and important as a car?