Thursday, November 06, 2008

The Volt or bust? Should GM delay the Volt?

Can GM afford the Volt?

Tomorrow, GM is going to be making some big announcements related to how the automaker is burning through cash faster than anticipated. New cost-saving measures are forthcoming.

Already, GM has hinted at product delays, but the Chevy Volt has been an untouchable golden goose in those plans, but is that wise?

As a Volt advocate, I would be disappointed with a Volt delay, but I would find it understandable and forgivable. Aside from PR, the Volt can't make money for GM for many years, and GM needs money today. Thus, shouldn't GM's near term focus be on products that can immediately provide a return on investment?

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6 Comments:

Blogger Noz said...

Maybe this is GM's golden opportunity to stop selling garbage and concentrate on the future.

All that money they are burning could probably be saved if they stopped spending it on their archaic POS fleet of other cars.

For example, why on earth, on this day and age, would a company like GM be heralding the return of a POS lik the Camaro?

They deserve what they get....

10:20 AM  
Anonymous Anonymous said...

My Corolla is accumulating miles and will probably last until 2010. I really wanted to buy a Volt when it dies. Looks like they'll lose my sale to whoever else has a plug-in to market at that time. Oh well, it was difficult for me to trust GM anyway. Sorry y'all, ain't no runnin' from your karma.

10:41 AM  
Blogger Dahcredyns said...

The Camaro is an iconic car for many Americans and, truthfully, it would probably make money. Does that justify the effort?

I don't know. The entire auto industry, worldwide - at least if they sell in the US - is, largely, completely dysfunctional. Our automotive culture simply doesn't make sense. It's not rational, logical, or functional. it's driven by lust and ego more than common sense.

Yet, I digress.

So, are you saying that GM should keep its focus on the Volt at all costs?

When I say a delay, I don't mean anything major. I just mean pushing the launch back about a year

Still, for GM to "deserve what they get" has a huge effect on the rest of the US economy - an impact that would affect all American taxpayers.

Really, a bailout is the lesser of two evils. If GM is made stronger and able to survive this recession, the Volt will get built. I'm just arguing that I'd rather have a financially sound GM selling the Volt, rather than GM limping along as it rushes the Volt.

10:48 AM  
Blogger Dahcredyns said...

anon-

Karma, that's an interesting way of looking at it. There are a lot of Americans out there with bad karma as well.

Still, this might be a period of time where GM, where Congress, where consumers can unite and right our karma. I think it's worth trying to turn this crisis into an opportunity to do the right thing.

10:53 AM  
Blogger Noz said...

Dahc,

I disagree...there are so many other beneficial things autoworkers can do instead of building cars that there really shouldn't be a hit on the economy at all.

We have so many problems that require so many people to solve, build, etc....that they would be fully employed for a LONG LONG LONG time.

The problem is greed...that's what is going to screw the economy. It's like this....automakers would see their cars crushed and lose everything than help others. I'm using the analogy in the sense that they'd rather screw everyone over rather than allow a new birth of an entirely revamped industry.

As for the Camaro...we can't afford V8 gas guzzlers....regardless of icon. Those days need to be past us and fast. It is ego and lust. It really is....I mean look at all the douche bags running around for no reason in their Beemers, V8's, etc...all that resource lost for what? So they can feel good about getting to 60 in 5 seconds and not 8?

I'm serious....we do not need the auto industries to survive...it's archaic philosophy.

11:08 PM  
Blogger Dahcredyns said...

One interesting approach I've heard is, let the Big 3 go into bankruptcy. Instead of giving the Big 3 $50 billion, use that $50 billion for retraining and re-educating the autoworkers that lose their jobs.

And, eventually, 1 or more automakers would emerge from bankruptcy, so not all auto jobs would be totally lost.

Still, that's a scary change for many.

9:42 AM  

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