Does GM have the right products?

Will the Volt make sense?

When the Chevy Volt goes on sale in late 2010, there will be no shortage of buyers. In fact, there will probably never be a shortage of Volt buyers. Of course, for many years, there will be a shortage of Volts as supply chains are slowly developed.

However, can the Volt move from fad to mainstream, especially when tax credits for such vehicles expire? Will the Volt be cost effective for hundreds of thousands of average consumers every year within the next decade?

According to a study by the Boston Consulting Group, plug-in hybrids and EVs are not going to make financial sense until long after 2020.

Conventional hybrid cars, on the other hand, such as the Toyota Prius that outgoing product guru Bob Lutz hated so much, will make much more financial sense by 2020, even without tax incentives.

Thus, can Tom Stephens, whom will replace Lutz, fill GM's hybrid void with a vehicle that can directly challenge the Prius, in terms of not just fuel economy, but cost?

Since Stephens' specialty has been powertrains, rather than just design, a new focus on additional powertrain solutions seems possible. Dare I say even inevitable?

With California's EPA waiver now a very strong possibility, the Volt and Flex Fuel cars are not going to be enough to ensure GM's survival. A cheap small hybrid seems an absolute requirement, and Stephens actually gives me hope that such a GM vehicle is now a possibility.