Saturday, October 28, 2006

GM's I-car Campaign set to challenge Toyota on hybrid vehicles?

According to unofficial sources cited by the Detroit News, GM is ramping up to challenge Toyota's lead in hybrid vehicles. So, are they serious?

Last year, Toyota sold more than 235,000 hybrid vehicles. GM, on the other hand, has yet to sell one single full hybrid. Sure GM offers a few mild hybrids, but mild hybrids are not going to challenge Toyota's hybrid vehicle sales lead.

Still, GM might have a secret weapon, the I-car.

The I-car isn't just a hybrid vehicle, but a plug-in hybrid vehicle. If Toyota were to develop a cost-competitive plug-in hybrid vehicle before Toyota, I think it could be a game changer. While some hybrid critics have argued that plug-in hybrids are even more of a niche product than current hybrids, poll after poll has demonstrated that Americans are very intrigued by plug-in hybrid technology.

Still, it won't be easy. Toyota hasn't been particularly bullish regarding plug-in hybrids thus far because of costs and battery issues. So, does GM have a secret weapon? Is their past experience with electric vehicles going to finally pay off? Is GM demonstrating even more vision than Toyota regarding the potential of hybrids?

Simply building plug-ins won't be enough, however. If current hybrids are too expensive for most consumers, imagine adding $6000.00 to the price tag. Americans aren't going to buy. Sure, the technology will probably pay for itself over the life of the vehicle, but that isn't the way American consumers think.

Consequently, the success of the I-car program will come down to cost. Can GM convince the Feds to not only offer tax incentives for hybrid technology, but also extra incentives for plug-in technology? Obviously, the government is probably much more interested in adding new incentives that could help an American automaker, unlike the government's lack of interest in helping Toyota hybrid buyers.

Such incentives might make a plug-in hybrid cost-effective, especially an American-made plug-in hybrid. Many Americans want to do something about foreign oil dependency, but many Americans refuse to buy a hybrid from Toyota or Honda. Unlike Toyota and Honda, GM has real power to really rally this customer segment around not only supporting GM and American workers, but fighting foreign oil dependency, pollution and global warming.

Can GM play this hand correctly, or will they just fold amidst a temporary drop in gasoline prices?

Even better than GM going green, are the choices that would open up to American consumers interested in green options. A hybrid battle between GM and Toyota would force every automaker to get very serious about clean technologies, and this competition for green supremacy would make hybrid technology not only better, but cheaper.

Before the end of this year, GM is supposed to announce this new strategy. Let's hope GM isn't just serious, but ready to launch this program as soon as possible. This could change everything for GM, and for America.

Make me a believer, GM, make me a believer!

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1 Comments:

Blogger PortalResources said...

Please give us an electric car alternative - we can decide which fuel we want to burn to generate power - solar/wind/coal/gasoline/hydrogen it really does not matter to the car.
- Bring back EV-1

Thank you.

8:19 PM  

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