Chuck!

It will be 2016 before the Volt can generate a return on the investment

The economy is bad and while the computer industry has been hard hit, the hardest hit of all may be the automotive industry. Executives from the largest American automakers have been begging for help from the U.S. government, despite flying down to beg for money in private jets.

In the midst of the economic turmoil, the future of alternative fuel vehicles like the Chevy Volt may be question marks in many minds. However, GM is putting the Volt at the forefront of its business plan as one of the keys to justifying loans for the U.S. government to prevent insolvency of the automotive giant.

GM CEO Rick Wagoner told a congressional committee, "We're putting a lot of money into the Chevy Volt, which we're endeavoring to get into production by 2010. It will not be at that point fully cost competitive."

GM is saying that it will take the better part of a decade for vehicles like the Volt to become profitable. The issue right now for GM is how to maintain its business until alternative fuel vehicles, like the Volt, that consume massive sums of money in research and development provide a return on the investment.

GM told congress that it has spent more than $750 million to develop the Volt with much of that amount going to battery research. GM spokesman Rob Petersen says, "The Volt is the first step in a long-term viability plan."

GM also says that expensive and research intensive projects like the Volt can lead to other technologies that can be used in other vehicle types to improve efficiency. The battery research alone can yield improvements in product categories far removed from the automotive industry such as the consumer electronics realm.

Peterson says, "We expect to reposition General Motors as a technology leader in the industry."

http://www.dailytech.com/GM+Says+Vol...ticle13643.htm


I figured it would have cost more.

Gripenfelter

It costed $750 million to develop because it was the first of it's kind from GM. The next one will cost considerably less. I still think it was a good move and GM should look into producing a work truck, a minivan, a sedan, and an SUV with the same technology along with their regular lineup. Maybe even just offer existing vehicles with the Volt concept type powerplants kind of like they do with hybrids. Then they would mostly need to spend the cash on powerplant development and fit rather than designing a brand new car from the ground up.

Robert_Nashville

I hope GM's investment is worth it...that's a lot of money.

Especially sobering is that it's probably going to take not just more money but a serious "breakthrough" before an electric vehicle becomes a truly practical car for people.

We're the Volt (or something like it) available today and even were it at a "modest" price level; it couldn't be much more than a curiosity/toy for me...my daily commute is about 38 miles; right on the edge of the Volt's range...not enough of a safety cushion for my tastes.

number77

I doubt it. They're most likely just rearranging numbers to look good for congress.

anasazi

most likely. everything even remotely related to the volt production is probably thrown into that figure.

Northwest94Z

I'm sure you realize that 40 miles is the Volt's range strictly on electricity. Coupled with the gas powered generator there is nothing to worry about. So worst case you have to consume a cup of gasoline if traffic is bad or you drive with a heavy foot on a particular day. For an overwhelming majority of commuters in the US that 40 mile range is sufficient.

Klypto

i plan on having my 6mpg camaro in the garage for the weekends, and rockin' the volt as DD. comeon chevy, get moving in the right direction.

Robert_Nashville

No I didn't...apparently I've been operating under a misconception...being that the Volt was supposed to be an all-electric car.

An electric motor coupled with a gasoline "generator" sounds suspiciously similar to a gas/electric hybrid - I certainly don't see why such should take $700M to develop???

super83Z

All the gas engine does is charge the batteries that power the electric motor.

jg95z28

Correct. Unlike the Prius and similar gas/electric hybrids available today, the Volt's ICE doesn't actually power the wheels. There's nothing stopping GM from using other "generators" down the road, be they E85, diesel, biodiesel or hydrogen, etc.

Evilfrog

Well in your case if you just used to go to work. You would never use a drop of gas. But you can take it on a longer trip. And then you would be getting ~40 mpg.

super83Z

I believe you will get more than that, as rumors were the Volt was going to be rated at 100MPG.

Robert_Nashville

Both quite true I suppose.

On the other hand, I don't think I'm going to give up my M45X for a Volt right away...of course, I may be whistling a differnt tune when gasoline hits $10/gal.

HuJass

I didn't think $750M was a large figure.
I was under the impression that it cost an automaker around $1B+ to bring an all new car to market.
Guion probably has the exact figures.

If my employer put a bank of plugs out in the parking lot, I would consider a Volt as a DD.

OutsiderIROC-Z

I thought it would have been way over $750M by now...