Chevy Volt cost-competitive by 2016?
A Congressional updateDuring Congressional testimony today, GM CEO Rick Wagoner was asked when the Chevy Volt would be cost-competitive to gasoline vehicles. Depending on sales volume, Wagoner stated that by 2016 or 2017 the Volt might be cost competitive.
Of course, this might not be in terms of sticker price, but in terms of overall ownership. For instance, a cheaper gas car plus the cost of gasoline versus a more expensive Volt and its energy savings. Likewise, it would take many years of profitability to recover the R&D and manufacturing start-up costs.
While that's good news, it also demonstrates that hybrid vehicles, such as the Volt, can't save GM or any other Big 3 automakers any time soon.
posted by Dahcredyns at
8:43 AM
4 Comments:
That assumes CAFE standards stay the same, and there is no CO2 tax, and any other sensible measures that the US could take to stop externalizing the costs of auto pollution, oil consumption, etc.
We are all paying to auto pollution and oil dependency, but we'll remain ignorant of those costs until the government starts forcing Detroit to account for those costs in the cost of autos.
i agree, but that isn't going to be an easy sell, especially in this economy.
wagoner actually discussed that during testimony today in his statements about fuel economy differences between the US and Europe. essentially, he stated that if gas cost as much in the US as it does in Europe than our fleet fuel economy would be just as high as europe if not higher.
Well, that is what leadership is all about. If we want to continue to stick our heads in the sand about exactly the thing Wagoner talked about, then we will continue to avoid solving the big problems.
I agree with Wagoner. Fundamental supply and demand agrees with Wagoner, and we can't expect US consumers to somehow ignore market rules. The government must lead by forcing all cars to include the costs they have been ALLOWED to externalize.
There is nothing intrinsic that says the price of cars cannot include the costs of pollution and oil dependency. That is strictly policy, a question of market rules. There would be nothing radical about disallowing Detroit and other car makers to externalize those costs.
It is time for leaders to make this fundamental correction to our auto market rules. As Wagoner said, Detroit has no chance of surviving while making smaller more efficient cars, without those rule changes. The market won't allow them, until we change the market rules. So, what do we want to do?
BTW, I'm all for the bailout, but I don't think it will be sufficient to transform Detroit.
the bailout only gives them a chance.
you and i are in agreement....just saw some breaking news. looks like a tentative bailout plan is working through congress.
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