GM Officially Unveils the Volt

General Motors Corp. lifted the cover off the production version of its Volt extended-range electric car today. But the unveiling was a bit of an anticlimax, as leaks of Volt photos, massive pre-event hype, a dismal financial first half of the year for GM and chaos on Wall Street made for a gloomy mood throughout the company's headquarters in Detroit.

GM Chairman and Chief Executive Rick Wagoner did the honors, which were the centerpiece of the company's centennial celebration. Calling it the car for the company's next 100 years, Wagoner ushered in the vehicle, driven by none other than Vice Chairman Bob Lutz.

"We're reinventing the automobile," Wagoner said. But apart from giving reporters a look at the Volt's interior, which nobody had gotten much of a peek at before, little new information about the vehicle was revealed. GM has placed huge bets on the car, reportedly investing at least $500 million in its development, as well as a ton of marketing dollars.

Still unanswered: Who will make the batteries for the Volt (A123 and LG Chem are vying for the contract); how many Volts will be produced (rumors of 10,000 in the first year of production remain unconfirmed); and how much will it cost (Tony Posawatz, vehicle line director for the Volt, declined to confirm reports that it would be more than $40,000, saying only that such decisions would be made closer to the launch date).

Oh, and about that launch date -- GM continues to say it will deliver the car in late 2010. After the event, Lutz told reporters that GM would produce about 100 of the production models in 2009 for testing around the world, and that by early 2010, the company would make "hundreds of Volts."

Critics have questioned whether the program is legitimate or just a public relations effort aimed at greening GM's image. Others suggest that the Volt is targeted at meeting California regulations requiring advanced-technology cars. Earlier this year, GM successfully lobbied the California Air Resources Board to create a special category that gives credit for vehicles that run on electricity but use a backup generator to extend range, as is the case with the Volt. GM hopes to get as much as $7,500 in government incentives for every Volt buyer, Lutz said. 

Chris Paine, director of "Who Killed the Electric Car," a film critical of GM, was flown in to today's event by GM so that he could film a sequel, which he is tentatively calling "Revenge of the Electric Car." He is among a group of electric car proponents that GM is calling "stakeholders" in the project. "They've wined and dined me," Paine said at the unveiling. "I'm not an expert, but I think they're serious."

Overshadowing the Volt was the news on Wall Street. The collapse of Lehman Bros., the bailout of Fannie Mae and Freddie Mac, the sale of Merrill Lynch and the increasingly dire status of insurer AIG have affected almost every industry and GM in particular. Short on cash, GM depends on access to credit both for its own operations and for its customers, who need financing to purchase cars.

Automobile sales are down sharply this year, and GM has been among the hardest hit. Meanwhile, carmakers are being asked to sharply increase the fuel economy of their fleets by 2020, a government mandate that's expected to cost the industry as much as $100 billion.

GM's Wagoner went before a Senate committee last week to ask that Congress fully fund $25 billion in loan guarantees that were written into last year's Energy Independence and Security Act but were never appropriated. That has been a hot-button issue in the wake of the government takeover of Fannie and Freddie, the $30 billion put up to facilitate the emergency sale of Bear Stearns earlier this year and continuing questions over government assistance for AIG.

Wagoner said today that he expected the loan guarantees would be funded. I don't think the situation [on Wall Street] will have any impact on the auto industry loans," he said, adding that he was not calling for an extra $25 billion in guarantees as has been reported. I think $25 billion is a fair amount."

A report from the Congressional Budget Office on Monday said that guaranteeing the loans would cost taxpayers up to $7.5 billion, rather than the $3.75 billion originally estimated. That's because the cost of borrowing has risen in recent months. GM officials said that they expected the loans to be in the 5% interest rate range, far below the 16%-20% cost of borrowing cash on the open market.

David Cole, director of the Center for Automotive Research, said the loans were not a bailout. "It's only necessary because of these requirements passed by the government," Cole said outside the Renaissance Center, where a line of vintage Corvettes was arrayed for the centennial event. He said the loan program did appear to favor domestic carmakers over foreign brands, but added that it was justified because of the long history of regulation that GM, Ford Motor Co. and Chrysler have had to comply with.

"In any case, the cost of cleaning up a disaster is generally a lot higher than keeping it from happening," Cole said. 

--Ken Bensinger
Photos of Volt courtesy of General Motors

Comments

[Pat]

Yuk, it looks like nothing close to the concept vehicle. Pretty much looks like Honda with a chevy badge thrown on it. So much for new engineering. Count me out especially with the proposed 40K price tag.

[Jorge I. Gomez]

I have a suggestion about funding electric cars and it's cutting money from the money that Halliburton steals every second, minute, hour, day, years. I'm sure that I could find the 100 million that the car companies need. They also takes us to the cleaners, but it's for a good cause and I'm sure mother nature would love electric cars and so my wallet.

[Adrian]

By the time this car hits the market, at an inflated price, other manufacturers will have better alternatives available. All this hype surrounding a car inferior to the old EV-1 makes me laugh.

[max]

Rick Wagoner expects GM's future to be the "most exciting time in GM's history". The once largest car maker in the world finally go it right: "We're committed to leading our industry on the most important issue we face over the next generation: the development of alternative fuel propulsion" Apparently, GM is on the right track now. This confirms that the electric car revolution is about to happen. http://economatters.wordpress.com/2008/09/16/were-reinventing-the-automobile-rick-wagoner-ceo-and-chairman-of-gm-on-the-occasion-of-the-grand-old-car-makers-100th-birthday/

[phil]

GM must be trying to give EVs a bad name.

[NotOnYourLife]

Twenty years TOO LATE. GM made a habit of giving Europeans the cars Americans demanded...so Americans bought Japanese.

GM deserves to be put to rest. Ignore American tastes at your peril...hear that US Airlines, Phone companies, China lovers.

Many American consumers spend Billions on quality products from Japan and Europe...we no longer care about the "fake" buy American ruse (with Chinese/Mexican labor).

[mg]

GM screws it up again. Chevy Prius, anyone? Why have a concept car if the real thing looks NOTHING like it? People revolt against the VOLT! Get your money back and teach these guys a lesson.

[NKirv]

40 miles? I don't understand. I have friends who have the Toyota RAV4 EV, and it gets 80 miles on a charge. That's what you need to drive around Los Angeles. GM can do better than 40 miles.

[Graham]

If GM has an attractive lease offer on this, I'm getting it. I want to try before I buy.

[GB]

They've unveiled this thing so many times over the past 4-5 years that I'll believe it when I see it.
And it no longer even resembles the 'first' unveiled version.

[Jon in Vegas]

So much for the styling. If it looked like the concept car I'd buy one. Don't need or want any more bland Japanese jelly bean looking cars. GM got it right with the new Camaro. It looks like the concept car. Why couldn't they do it with the Volt?

[Gene]

What the heck happen to the Volt. Man was I excited when I saw the Volt concept car. Finally an electric car that look tough as nails and could tool around town for pennies. I wasn't sure where I was going to come up with the money to purchase this sporty little beast, but I would ... one way or another. Now am sure I won't have to worry about the money issue as I won't purchase a glorified prius. They say the change was for aerodynamic design reasons. Who cares about a few more miles to the gallon. The car is not what they promised. Disappointed in sunny Florida.

[Scott H.]

The concepts had me wanting one, but now ... ugh!

It's like the GM heads got together (and when you put GM heads together it's like ONE brain) and they said, "Well, now that all the Baby Boomers are growing a conscience about their grandkids living underwater in the next 50 years, let's make it as toothless as possible so they'll feel good about taking the kiddies for a nature ride on the weekends."

Hope they only have two little ones 'cuz it only seats four ...

[Roger Josek]

In my business, computer technology, it is common for companies to "pre-announce" products that they don't actually deliver, and can't actually sell for some time. They do this pre-announcing in order to sow "fear, uncertainty, and doubt" -- which we technology managers call "FUD" -- in the marketplace. Why would companies do this? Why, to discourage customers from buying competitors' real, actual, deliverable products!

The problem for the FUDmeisters is that technology managers have become quite inured to these kinds of tactics, and are subject to the professional dunce cap if they succumb to them.

This is not the case, nor can it be the case, with consumer goods like electric cars. Consumers are generally neither engineers working for car companies, nor sales managers working in car dealerships. They have no way of identifying FUD put out by General Motors for what it is.

Calling out FUD, in this case, is the role of the press. Journalists must be very clear when they report about such "innovations" and "products" as the 2011 GM Volt, that these are nothing of the kind. At the same time, attention should be paid to the great vehicles -- hybrids from Japan, clean diesels from Germany, cheap cars from India, and the American electric cars from friendly San Francisco -- that one can buy right now, and drive home.

Good luck waiting for the Volt. By 2011, when you'll supposedly be able to buy a one, you should have the choice of many, many alternatives, some superior to the Volt. And today, you can buy cars that represent a quantum advance over what you're driving now. GM doesn't want you thinking about either possiblility.

[Sal B]

That gray plastic console in the middle of the dash is just butt-ugly and cheap looking. I also agree with others that the exterior styling bears little or no resemblance to the concept car, which was interesting and exciting. What we've got here is inferior to Japanese styling, which is saying a lot.

[tonye]

Unfortunately for GM, by 2011 Honda will likely have brought down the price of their fuel cell Clarity and for all their hybrids... and I'd rather have a fuel cell that can be recharged in minutes than something I gotta plug in for hours and carry a heavy pack.

Does GM need those loans to pay for their PR fiascos?

[Wayne Snyder]

Way to go GM!! Mess up a GREAT concept car that WAS great looking, to style a BLAND GM rental fleet car!! Cost no more $'s to bend metal to style a Great looking car vs a BLAND car. NO resemblance to the concept.! Repeat your mistake a few years back when you showed the "NOMAD concept at the same time you showed the AZTEK. Every body said built the NOMAD!! please!, what did you do, you built the AZTEK!! Go back and place the body of the concept Volt with a glass roof, and you will sell a ton of them! Also dust off the NOMAD and make it a hybrid also. Remember, great products solve all problems. ie the Z06 Vette, CTS etc. I will wait until you get it right, but what does my opinion matter, I just a dumb consumer who votes with my wallet as you surround yourself with million $ execs who do n ot have to buy their own cars. (Talk to Chrysler about build ing Concept=Production type cars. What a disappointment!!!!

[BudSD]

What is GM thinking? Who is running the show? This disgusting POC is butt ugly and lacks the performance/technology of its rivals.

Why would someone buy this junk at such a ridiculously inflated price? GM better get their act together or they'll be the next in line for a government bailout. Just disgusted and disappointed, here.

[Joe N]

Without nuclear power, electric cars are worthless toys for the "I want to look green" rich.

[RonS]

GM could really use a boost in the design department. For all the wow factor and excitement this car will bring , it is still a boring design. More than likely it will follow in the grand tradition of cheaply assembled, poor quality, overly plastic-ised GM crap that starts to fall apart after a few short years. I will resist judgement until I see it in the flesh.

[Alex J]

I don't trust GM to build any electric cars. They had their chance 10 years ago with the EV1, which was ahead of its time, and most probably the best EV ever built in history. Only what did GM do? They recalled all the leased out EV1s in 2001, and sent them all to the crusher, instead of improving on a product, and continuing a green marketing campaign. Now, five years later, GM is too late to the party, and I expect they will just make a few 100 Volts, only to recall them and crush them when they discover all the flaws. Again, GM will be the looser, and continue to loose market share to all the other auto manufactures who will be marketing and selling 1000s of EVs all around the world. GM - stick to making HUMMERs! That's what you do best.

[Chris]

to the one who boasts about the RAV4 EV. the Rav4 used a type of battery that is HORRIBLE for the environment (which is why people don't use them anymore). here are it's performance stats.

"The RAV4EV has a governed top speed of 78 miles per hour (126 km/h), a tested 0-60 time of around 18 seconds (depending on state-of-charge on the batteries) and a range of 80 to 120 miles (130 to 190 km). Mileage depends on the same factors as a traditional gasoline-powered vehicle, mainly rolling resistance and average speed (aerodynamic drag).
The RAV4EV has 24 12-volt 95Ah NiMH batteries capable of storing 27.4kWh of energy."

the volt will go faster and accelerate faster. if you were to allow such a small amount of the electric current out at a time to power the vehicle, i'm sure the volt would ride a longer distance. and older styled batteries could in fact hold more, though they don't do well with recharging as well. and the whole bad for the environment issue which you can't neglect giving thats the whole POINT of a Volt or any EV in the first place!

[Jim Sawyer]

It is amazing at the number of people who damn this car because of the way it looks. The point of the car is how it drives -- and what it uses to do so.

Looks do not equal engineering.

[GG]

I applaud GM-- and am eager to see their end game evolve-- retiring the combustion engine!

GM's Plan to Reinvent the Auto Industry
http://www.memebox.com/futureblogger/show/894

[James]

Nice circa-1987 Nintendo game console grey interior, GM.
There are so many reasons to hate this car, most of which have been addressed above.

It makes me wonder if the marketing department is completely inept - I would have a very hard time believing that this is a car the American general public could or would purchase.

So that leaves buyers who are upper income who are going to expect a lot more than rental car quality. The only people for whom I feel bad if GM takes a dive are the overpaid, unskilled union workers. Oh wait! No I don't.