Monday, December 26, 2005

Re: "GM drawing on the past as it attempts to speed development of hybrids"

I was just reading AutoWeek's article, GM drawing on the past as it attempts to speed development of hybrids, and it seems that GM is even more dysfunctional than I have previously thought.

Saying something like that can be dangerous because, in America, there are many devout GM followers. While I criticize GM quite often, it's not because I think GM is technologically inept. I think GM is corporately inept. When it comes to technology I think GM is just as capable as any other auto maker. It's vision where GM is lacking, and that boils down to corporate leadership.

Having said that, I think that GM is even more dysfunctional than previously thought because of the double talk coming out of Detroit. How can GM's Bob Lutz state that hybrid cars don't make economic sense when GM's Larry Nitz, a 30-year GM veteran and executive director of GM's global hybrid powertrains states, "Fuel cell vehicles are always fuel cell hybrid vehicles because they have battery packs. The same people that work on the hybrid batteries work on the fuel cell batteries. The same people that do electric motor controls for the hybrid system do motor controls for the fuel cells, too."?

So, the future IS hybrid vehicles, even to GM? So, why the lies and deception? Is this the model for corporate America? Is this the model for success?

Perhaps GM is just too old of a company, run by an ancient belief in the good ole boy's network. The rich might still run America, but average Americans aren't as blind as we used to be, and change is inevitable.

Toyota has been making the fuel cell argument in support of its hybrid vehicles since it started selling the Prius hybrid car. I've often stated that Toyota is laying out the fuel cell vehicle future right now, with every hybrid it puts on the road.

On the other hand, hybrid critics have long stated that fuel cell vehicles, not hybrid vehicles, are the future. Yet hybrid technology is integral to the fuel cell vehicle. Thus, the more work that is done on hybrids - even gasoline electric hybrids - the faster fuel cell vehicles become reality.

So, what exactly is the point of hybrid critics?

Let's be clear about another thing. Pure hydrogen vehicles ARE NOT the future, and if GM believed, or still believes, its path to fuel cells would begin with pure hydrogen vehicles as an interim step to fuel cell vehicles, then GM really sucks.

Pure hydrogen vehicles just aren't all that fuel efficient. That's a fact. Ford has noted that the best way to create fuel efficient hydrogen vehicles would be to create hydrogen hybrid vehicles. Once again hybrid technology is a critical component.

Yet, GM's boldest hybrid move to date has been hybrid lies.

Now I realize that GM has legacy costs that make R&D more difficult, and that is a serious problem, so serious that it's going to cost at least 30,000 their jobs. Nonetheless, GM has a multi-billion dollar yearly marketing budget. Couldn't some of that have been used for R&D, especially after 9/11?

Let's face it, in hindsight, GM and Ford should have started taking fuel efficiency seriously in the 80's and 90's - not just because of gas scares, or political problems in the Middle East, but because of simple market share. When does year after year of declining market share finally make you think, huh, maybe we should try something different?

Yet, even after 9/11, GM is still barely doing things different. In many respects, GM's very survival is still dependent upon gas-guzzling vehicles. High gas prices, too bad. Foreign oil dependency, too bad. Helping to finance terrorism, too bad. Polluting the environment, too bad. That's GM today.

Unfortunately, it's average Americans, not rich shareholders and corporate executives, that will pay the real price for this ineptitude.

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