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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?"

21 of 769 comments (clear)

  1. The Volt is the least of GM's problems by Anonymous Coward · · Score: 5, Funny

    Apparently there are quite a few of GM's product lines that don't make any sense.

    1. Re:The Volt is the least of GM's problems by stewbacca · · Score: 5, Funny

      Apparently there are quite a few of GM's product lines that don't make any sense.

      That's because you aren't 70 years old with blue hair, a hip-hop artist, a professional athlete, or a trophy wife. Otherwise their products make perfect sense.

  2. Re:They missed the Technology Review link by Anonymusing · · Score: 5, Informative

    Oh, and here's the GM blog with the actual response.

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  3. Re:Doesn't Make Economic Sense by MightyMartian · · Score: 5, Funny

    I'm sure the companies that ultimately buys GM's R&D department from the liquidators will be interested in this.

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  4. GM != Economic Sense by dreadlord76 · · Score: 5, Insightful

    Considering that GM is surviving on taxpayer money right now, and is begging for more, I don't see how GM has any credibility on determining if anything makes Economic Sense. Maybe the Green Movement can buy the technology off GM, and produce the car themselves. Let's see if that is successful.

  5. depends on price of gas? by fantomas · · Score: 5, Insightful

    "...cost(s) too much for the gas savings"

    Depends on the price of gas? Here in the UK we pay approx 0.90 GBP for a litre, = 0.90 x 1.42 (Pounds to Dollars) x 3.785 (Litres to US gallons) = 4.84 US dollars a gallon.

    This is much less than a few months ago when gas here reached close to 1.20 GBP a litre and with the pound being stronger at that time it was over 8 dollars a US gallon.

    Would you consider a gas/electric hybrid if gas was 8 dollars a gallon in the USA?

  6. GM is working on it? by zappepcs · · Score: 5, Interesting

    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.

  7. Re:Doesn't Make Economic Sense by slick_rick · · Score: 5, Insightful

    How can it make economic sense? I'd much rather have a VW Sharan that gets 7 and still gets 40+ to the gallon. Why on earth are we trying to build electric cars that make no sense instead of using cheap, proven turbo-diesel technologies? Why can't I buy a car that will ride 7 and get 40+ to the gallon in the US? I'm baffled...

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  8. Yes. That's true. by tthomas48 · · Score: 5, Insightful

    It doesn't make sense, right now. Right this second. But last time I checked they didn't have it in any showrooms yet, so that point is moot. Just because a global economic meltdown happened that made driving a gas-guzzling GM make sense for approx 6-12 more months, doesn't mean GM should bet the future of its company on gas prices staying low. That's basically what they've been doing. If gas prices stay low it will be because the economy is horrible, and GM will go out of business because no one buys their trucks. If gas prices rise GM will go out of business because they still don't build vehicles that anyone will want to buy at $6/gallon of gas.

    The Volt is the ONLY thing GM is doing that makes the tiniest bit of sense. For goodness sakes, they released a passenger car hybrid that costs about the same as a prius, but gets about the same gas mileage as a minivan.

  9. Re:A simple suggestion for GM by bartwol · · Score: 5, Insightful

    I first suggest you get rid of the oil company and foreign oil company interests OUT OF YOUR BOARD ROOM?

    I don't see that anybody on the GM board has anything to do with an oil company. Perhaps you can tell me more specifically whom you are talking about? (Or is your remark just uninformed rhetoric?)

  10. Re:Doesn't Make Economic Sense by moosesocks · · Score: 5, Interesting

    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.

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  11. Re:A simple suggestion for GM by jgalun · · Score: 5, Insightful

    What the hell does that mean? GM doesn't have oil company representatives on their board. If you'd like to see, I suggest you Google search GM's board and check out the board member bios.

    Also, if oil companies are stopping GM from bringing electric cars to market, then how do you explain GM betting the ranch on the Volt? Wouldn't GM have *accepted* this argument that electric cars don't make sense, rather than defend their electric car project?

    But hey, didn't stop this post from being modded to 5. I guess any paranoia about oil companies automatically gets modded up...

  12. Re:The economics of it.... by bgarland · · Score: 5, Informative

    You obviously don't value that the Prius is larger than a Corolla, more comfortable to ride in, and will probably last longer (based on the historical evidence of Prius so far).

    By the time a new 2009 Prius kicks the bucket (15 years at least), we'll see where gas prices are. I'm betting we'll be above $5/gallon before the end of 2010.

  13. Re:wrong issue by blueg3 · · Score: 5, Insightful

    I've seen terrorists kill people. So far, I've seen no one die from Global Warming.

    Yes, we know people are terrible at risk assessment and balancing immediate risk against long-term risk. You don't have to show it off.

  14. Re:Doesn't Make Economic Sense by clutchcargo · · Score: 5, Informative

    I have a 2006 TDI Jetta, and (in practice) it gets 40 city/46 highway. The 2009 models are supposed to be even better.

  15. Re:Doesn't Make Economic Sense by kenj0418 · · Score: 5, Funny

    I'm waiting until GM's stock price hits $0.00 -- then I'm buying the whole thing for the $9.99 etrade commission.

    Then I'll fix this for you guys :-)

  16. Re:Doesn't Make Economic Sense by cabjf · · Score: 5, Informative

    Because diesel in the US is taxed higher than regular gasoline. Therefore, it won't make economic sense for someone to purchase a diesel engine vehicle in the US. Until the government changes that situation, diesel will remain a small niche in the consumer market.

  17. Mr. Cochran would like to add a few comments... by Guppy · · Score: 5, Funny

    The GM response is that they understand that whole "make economic sense" statement. Like some foreign gibbersh to them.

    Ladies and gentlemen of Slashdot, GM would certainly want you to believe that the Volt makes sense. And they make a good case. But I have one final thing I want you to consider. Ladies and gentlemen, this is Chewbacca. Chewbacca is a Wookiee from the planet Kashyyyk. But Chewbacca drives a Toyota Prius. Now think about it; that does not make sense!

    Why would a Wookiee, an eight-foot tall Wookiee, want to drive a hybrid, carpooling with a bunch of environmentalists? That does not make sense! But more important, you have to ask yourself: What does this have to do with this post? Nothing. Ladies and gentlemen, it has nothing to do with this post! It does not make sense! If the battery pack does not fit, you must acquit!

    The defense rests.

  18. plug-in prius being released in 2010 by chipace · · Score: 5, Informative

    I'm opting to buy a plug-in prius next year. It will be cheaper than the Volt, and most likely higher in reliability.

    At least I am seeing some return on my tax dollars, as the Volt has stimulated Toyota to keep their Lithium-ion plug-in on schedule.

  19. Diesel myths and reasons for buying hybrids by hwyhobo · · Score: 5, Informative

    There appear to be a few common myths being repeated here.

    US gasoline is lower octane than European gasoline

    No, it isn't. Octane rating methodology is different. Read Octane Rating

    I would much rather have (some diesel vehicle) that gets this (some incredible number)

    1. Please make sure your are not quoting UK gallons - they are bigger than US gallons, and therefore get more miles.
    2. Please understand that fuel efficiency measurements in Europe are quite different than in the US. The 2008 US EPA measurement methodology is much more conservative.

    cheap (diesel)

    Diesel in Europe is cheaper than gasoline only because it gets vastly preferential tax treatment.

    We have some bizarre unxplained fear and loathing for diesel in the US

    It may have something to do with poor diesel history in the US, but also with health side effects. Even with ULSD, the nanoparticles are suspected contributors to pulmonary and cardiovascular diseases.

    BTW, I love diesels. I love driving them, I love the torque, I love increased fuel efficiency. However, it is important to know the whole story because the other side has very good points as well.

    As for hybrids and plug-in hybrids, yes, I will likely buy the new Honda Insight when it becomes available even if it costs more than a regular vehicle of the same kind, and even if I cannot recoup the extra price. I would rather pay more money for R&D into technology than drop coins into Al Qaida's collection box.

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  20. GIGO by Rei · · Score: 5, Informative

    And it's people like you that PHEVs are designed for.

    Once again, Slashdot does its best to continue ignorance by leaving out the core criticism of the study: that the study's authors assume a battery pack price of $1000 per kilowatt hour, and that's not even close to they cost today, let alone 5-10 years from now. And that's hardly their only mistake. I'll list their assumptions, and make a few quick comments on them:

    * A 2004 Prius with varying size packs
    * They upgrade the size of the motor to be sufficient to operate as series, but still keep the parallel configuration (why...?)
    * 52 kW motor (70hp), yet weighs 40kg (huh...? The Tesla Roadster does 185kW with a 31kg motor)
    * The main assumption that 1kg of batteries requires an additional 1kg of structure (Um.. really?). They also test 0kg and 2kg per 1kg of battery mass.
    * Li-ion (unspecified chemistry). 100Wh/mi -- similar to LiP and some spinels -- and a 25% packaging weight penalty (on top of the 1kg weight for every 1kg of batteries)
    * Only 50% depth of discharge (i.e., they're only using half of their pack)
    * Charging at $0.11/kWh (US residential average)
    * Gasoline at $3.00/gal (probably a reasonable long-term value)
    * Assumption of $1,000/kWh battery cost (Um, no. I can get Thunderskys at non-bulk rates for a fraction of that. I can almost get A123s at non-bulk rates for that. The Th!nk's pack is $500/kWh, and they think they can cut that in half with production rates of several hundred thousand per year. Conventional li-ion, like Tesla uses, is ~$300/kWh currently. In short... no.). They justify their number by pointing out that it's cheaper than the original price of the Prius's battery pack (ignoring that small HEV battery pack prices don't scale linearly to BEV or PHEV packs or linear with capacity in general)
    * GHG emissions of the grid are assumed to be fixed over time (Um, no)
    * Vehicle lifespan of 12 years (the average vehicle *on the road* today is nearly 10 years old, and that number is increasing, so... no)
    * 12,500 miles/year (reasonable)
    * Vehicle base purchase cost, excluding the battery pack, of $17,600
    * Assuming by default no carbon tax, both on electricity and gasoline, but considering it under alternative scenarios
    * No tax credits assumed
    * No battery replacement (in the base case; an alternative scenario includes replacement)
    * A 5% "consumer discount rate", No clue what that is, but they state that the higher it is, the less competitive PHEVs are. So it's some sort of penalty. (Perhaps purchase interest rate on the auto loan? If so, too expensive.)

    In short: stupid assumptions in, stupid results out. Note this paragraph that they just skim over:

    Cheap battery costs of $250 per kWh would significantly increase competitiveness of PHEVs, making them similar to or less expensive than HEVs and CVs across all distances driven between charges. A battery technology with an increased SOC swing, which would allow more of the battery's physical capacity to be used in operation, would also improve PHEV competitiveness, making moderate ranged PHEV20s cost competitive with the HEV and CV.

    In short: "If we pick more reasonable numbers, PHEVs are great. But with the bad numbers we picked, they're not."

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