The Chevy Volt and the end of Government Motors

You've come a long way baby

So, GM repaid the final $5.8 billion owed in government bailout loans. That's great. Of course, it might have been a bit nicer had GM returned the people's money with actual profits, rather than a government escrow account, but the perception of Government Motors is undoubtedly holding GM back. Paying off this debt helps remove that ugly blemish.

Nevertheless, $5.8 billion is pocket change. GM's real debt to America is ....

Finish: The Chevy Volt and the end of Government Motors

GM not done with hybrid pickup trucks yet

Production will still be limited however

While companies like Chrysler have decided that hybrid pickup trucks are not financially worth pursuing, GM will continue to build full-sized hybrid trucks and SUVs; nonetheless, hybrid technology will not be GM's key technology for meeting future CAFE requirements according to Jeff Luke, chief engineer for General Motors’ full-size trucks.

Instead, GM will focus on aerodynamics, mass and tires as the best ways to improve fuel economy.

Autonomous driving - The key to the future

GM's Miao EN-V Model

GM has seen the future of transportation, at least for large mega cities, and the electric networked vehicle is the auto of the future. Thus, GM is working on a number of EN-V concept vehicles to show off at World Expo 2010 in Shanghai, China.

The all electric EN-V offers a top speed of 25 miles per hour and a range of 25 miles, and some day in the future, such vehicles could significantly reduce congestion and increase parking availability.

However, what is most interesting about the EN-V is its use of Global Positioning System (GPS), vehicle-to-vehicle communications and distance-sensing technologies to achieve autonomous driving, a technology every other automaker and many other companies are now developing into real world possibilities. One day soon, driving will be optional.

Imagine the car sharing model, for instance, coupled with autonomous driving. Why own a car when you can share one that will take you to and from work more safely, efficiently and far more economically than owning and driving a car? Take care of your calls. Write some e-mails. Watch a movie. All while commuting to work.

One day, probably sooner than later, autonomous driving will revolutionize transportation.

Lutz - More GM hybrids on the way

The Sierra hybrid

Due to consumer demand, GM has no intention of abandoning its production of large trucks and SUVs, however, a greater portion of them will be hybrid vehicles Bob Lutz told the AP.

However, the hybrid move isn't necessarily some new vision coming out of GM. Rather GM is making the move to meet new CAFE requirements.

Lutz: GM to continue to build money-losing hybrids

Purely about CAFE

GM will continue to build money-losing hybrid vehicles, but only because of CAFE requirements, according to GM Vice Chairman Bob Lutz. And, to make up for the losses GM will have to increase the prices on the rest of their vehicles.

Fortunately, since GM sold only 800 hybrids in January, they won't have too many losses to make up.

Ultimately, Lutz believes hybrids might one day make up 10 percent of the total US fleet, but only because of fuel economy regulations - apparently future gas prices will be insignificant in terms of creating hybrid demand, at least according to Lutz.

For comparison, Toyota sold more than 12,000 hybrids in January. Likewise, Toyota has stated that it intends to be 30 percent hybrid by 2020.

GM's first dual mode hybrid cars

The Cadillac Escalade hybrid

A few weeks ago GM announced development plans for a new line of smaller, more efficient electric motors that will first be used in GM's dual mode hybrids. Today, all of GM's dual mode hybrids are large trucks and SUVs, however, thanks to this reduction in motor size, GM will be able to add its dual mode hybrid technology to smaller vehicles, including cars.

According to one report, two of the first cars to receive the dual mode hybrid powertrain will the Cadillac ATS and the Cadillac CTS.

Unfortunately, however, it does not appear that these new electric motors will result in any full hybrids the size of a Toyota Prius. Instead, it seems GM will use its mild hybrid powertrain for any Prius-sized hybrid cars.

GM motors into new hybrid investment

Powered by a GM built motor in 2013

With the help of a $100+ million federal grant, GM will invest $236 million into developing electric motors, GM Vice Chairmen of Global Operations, Tom Stephens, said on Monday. Because, much like in 2008, demand for petroleum will eventually outstrip supply, GM is working on a petroleum displacement plan that utilizes energy diversity and energy efficiency as the keys to improving fuel economy.

Because there is "no silver bullet" to displacing petroleum, GM will look to alternative fuels, especially electricity and hydrogen. Still, increasing the efficiency of current vehicles is critical as, according to Stephens, current technologies are going to be around for a long time.

Nonetheless, with the inevitable increased use of electricity and hydrogen comes the electrification of the car, and that means a greater dependence upon batteries, power electronics and electric motors. Consequently, GM is making an investment into developing electric motors in-house as a step towards an ever more efficient electric drive that GM will be able to use in a number of hybrid and electric vehicle applications. Thus, along with batteries and power electronics, electric motors are to become "core technologies" for GM according to Shephens.

GM's first electric motors will find their way into GM's dual mode rear drive hybrid vehicles in 2013. More interesting, however, these new, smaller electric motors will also enable GM to install their two-mode hybrid system into smaller vehicles, rather than just large SUVs and pickup trucks. Unfortunately, Stephens did not offer any details on any such new hybrid vehicles that might use this more compact hybrid drive.

Ultimately, this press conference left me with many questions, but more than anything I else I wonder, when does GM believe petroleum demand is going to outstrip supply?

A Chinese-owned GM?

Chinese roads are filling up fast

What's the best selling car in China? That's right. It's GM's Buick. And soon China could represent one of GM's biggest markets for hybrid and electric vehicles.

So, what better way for China to capitalize on the Chinese love of Buick and build a robust Chinese auto manufacturing sector than to buy GM when it goes public? We've certainly given them enough money to finance the deal many times over.

While it sounds crazy, a number of automotive analysts believe the possibility is very real reports CNNMoney.

Bailout shock: "stunningly poor management"

The arrogant duo?

Over the years, I've been a pretty big GM critic. Sure, the Chevy Volt gave me some hope - and it still does - but GM's overall efforts towards fuel efficient products has been disappointing. Even after 9/11, GM didn't embrace hybrid cars or small, more fuel efficient vehicles. Instead, they launched a new line of their biggest, foreign-oil dependent guzzlers.

While I've always blamed poor management for GM's lack of visionary leadership, others have blamed the lack of national health care, yen-dollar exchange costs, sky high oil prices, etc.

Today, Steven Rattner, one time Obama Auto Task force leader, told Fortune he was alarmed by the "stunningly poor management" at the Detroit companies and said GM had "perhaps the weakest finance operation any of us had ever seen in a major company."

"We were shocked, even beyond our low expectations, by the poor state of both GM and Chrysler. Looking just at the condition of GM's finances and Chrysler's new-car pipeline, the case for a bailout was weak," claims Rattner.

Sure, America might have had no choice but to bail out most of the US auto industry, but it's time to close the book on the idea that management at GM couldn't have prevented this crisis.

GM's shock and awe campaign

Can GM move beyond its gas-guzzling image?

GM's new marketing campaign is going to "shock Americans into a new awareness about the competitiveness of GM products," according to Bob Lutz.

Via any method of comparison, GM believes, their products are as good as any other automaker. And, according to the latest quality rankings, etc., GM has a case.

But is marketing GM's best path to changing perception?

Several years ago, Bob Lutz claimed it would have been smart for GM to utilize just a fraction of one year's multi-billion dollar marketing budget to fund the production of a Toyota Prius-contender. Eventually, Lutz's realization evolved into the Chevy Volt, however, the Volt won't come close to challenging Prius sales for more than a decade, if ever.

While the Volt won't offer game-changing sale's numbers, it will drive a lot of green buzz, but will it bring new consumers to GM?

Ultimately, GM has made huge strides in quality, but according to a recent automotive supplier's survey, for instance, GM's innovation is still lacking. Obviously, the Volt will help address that issue, at least in terms of perception, but it seems to me that GM needs an innovative fuel efficient vehicle that can sell at least 100,000 units per year.

Possibly, the Chevy Cruze could be that product, however, the Cruze will never appear as innovative as the Prius. If GM can find a way to address that product gap, with a product and not marketing, I'd bet GM's perception problems would need far less marketing "shock".

GM fights Energy Department funding for Aptera?

No funding for innovation and out-of-the-box thinking

So, the government has pumped tens of billions into GM. Likewise, GM has requested at least an additional $10 billion in loans from the Energy Department.

However, GM has been opposing new legislation moving through Congress that would make companies like Aptera eligible for Federal loans because they aren't big enough according to AutoWeek.

So, it's alright for the government to give GM tens of billions of dollars - much of which will never be paid back according to experts - for failing as an innovative automaker, but providing $75 million to an innovative start-up is wrong?

Maybe if GM focused more on innovation rather than lobbying Congress, they could have pulled a Ford and stood strong during this recession.

Mercury pollution: Not the new GM's problem

Now it's just the people's problem

"36 million mercury switches were used in trunk convenience lights and antilock brakes in vehicles built in the 1980s and 1990s. More than half of them are in GM vehicles built before 2000."

To combat potential mercury pollution - most significantly caused by GM - GM joined a partnership to help clean up their mess. However, the new General Motors is no longer responsible for this problem according to the AP, so the new GM has pulled out of this partnership.

Wow. The government, via taxpayers, puts tens of billions into GM. Then the government creates a cash for clunker program to help GM sell vehicles and reduce pollution, and now taxpayers will have to pick up the tab for recycling the mercury of these clunkers.

For media only: Buick plug-in hybrid

The Saturn Vue plug-in hybrid lives

We've known for some time that GM was going to build a plug-in hybrid SUV. Originally, the Saturn Vue was going to be the platform for GM's dual mode plug-in hybrid powertrain, but then GM killed Saturn.

Thus, the new hybrid will based on the GMC Terrain and the Chevrolet Equinox platform and will mate a 3.6-liter V6 flex-fuel engine with a plug-in version of the dual mode hybrid powertrain. Also, it will use similar lithium technology as the Chevy Volt. Expect this new hybrid sometime in 2011.

Certainly, it is a good sign that GM continues to move forward with its hybrid vehicles, but it's hard to accept this new hybrid - or most of GM's hybrids - as anything other than PR fodder and/or a CAFE hedge when GM's product head, Bob Lutz, claims green cars are more about the media than reality.

Have GM's hybrids and plug-ins become a joke?

With Bob Lutz claiming that only 5 percent of the population will be interested in vehicles like the Volt, or this new Buick plug-in, how seriously can GM be taking this market? It seems quite clear, based on Lutz's statements, that GM's endeavors into the Volt and other plug-in vehicles are more about PR than reality.

Bob Lutz: Still a hybrid bear

Still irrelevant according to Lutz?

Bob Lutz. Love him or hate him, he's one very interesting guy. Over the last few years I've had a chance to meet Lutz a few times, and even though I disagree very much with him on many issues, I still cannot help but like the guy. Moreover, even though I disagree with him, I have total respect for his straight talk.

Still, that doesn't mean that Lutz sticking around at GM is a good thing. Lutz, over the years, has been clear about a few things. For instance, global warming is a joke and the Toyota Prius, and hybrid cars in general, are a pretty stupid idea.

Now that Lutz is largely leading product development at the new GM, his opinions are ever more important. Unfortunately, Lutz recently told CNN that "green car" mania needs to be kept in check, especially now that gas prices are under $3.00 per gallon.

"There's about 5% to 10% of the customer base in the U.S. that desperately wants a hybrid," he said. The rest, he insists, just want the best vehicle they can afford, including gas.

And, to an extent, Lutz is right, at least for now. Yet, this is the same Lutz that terribly underestimated the Toyota Prius. Also, this is the same Lutz that said no one could have foreseen last summer's gas price hike.

Perhaps Lutz is correct. Green cars don't provide a profitable business case for US automakers. Unfortunately, if gas prices rise faster than GM again expects, then GM doesn't make a profitable business case for existing in America.

Dedicated GM hybrid sedan coming

Will its tech top the Fusion hybrid?

GM is working on a new dedicated hybrid sedan according to reports. Unfortunately, there are few details regarding this new hybrid.

Certainly, it is good news to learn that GM is working on a dedicated hybrid. Still, it will be interesting to see if a dedicated hybrid sedan offers a more compelling consumer case than either a Ford Fusion hybrid or a Toyota Camry hybrid.

Nonetheless, the king of hybrid cars is still the Toyota Prius. Why not take on the king?

GM's HUGE green move

GM is America's new green company!

A week ago I asked Will the new GM be as pathetic as the new GMAC as I ripped on the dis-ingenuousness of GMAC's new marketing campaign. Also, in the last few weeks - probably the last few months - I have spent much time criticizing GM, largely for too much green marketing and too few green products.

Well, here I go again.

GM is now contemplating its next big move to change America's perception of the company, turning the GM logo from blue to green.

Amazing! Just slap a green logo on a 15 mpg gas guzzler and, suddenly, it's environmentally friendly. Of course, maybe GM is just trying to remind America of the tens of billions of greenbacks the government has sunk into the company.

Another step towards GM's lithium BAS hybrids

Lithium powered in 2010?

By the second half of 2010 GM should begin rolling out a few new hybrids with its upgraded BAS mild hybrid system. And the lithium-ion batteries for these new hybrids will be powered by Hitachi.

Today, Hitachi announced that it is planning to significantly increase production of its lithium ion batteries in advance of an expected significant increase in demand. So far, GM alone has already ordered enough cells for 100,000 hybrid vehicles.

Will the new GM be as pathetic as the new GMAC?

Another reason to dislike GM?

Not that long ago, but before the gas price boom of 2008, GM's Bob Lutz stated that GM could have used a fraction of one year's marketing budget to produce a Toyota Prius competitor. Instead, GM invested that money into ads promoting its latest round of gas guzzlers as Toyota went onto sell more than 1,000,000 Prius hybrids and counting.

Today, GM's largest shareholder is the government, via the US taxpayer, and the government has vowed to put $50 billion more into the new GM beyond the many billions it put into GM to save the automaker from bankruptcy. Hopefully, this time, GM is smarter about the way it spends money.

But, if the new GM is like the new GMAC, also known as Ally Bank, I think it might be time for liquidation.

The new Ally Bank commercials portray Ally Bank as this fair, new bank, unlike all the other banks that screwed over customers and then needed massive bailout money. Unfortunately, however, Ally Bank is GMAC, the same financial unit of GM that received some $20 billion from the US government to keep the doors open.

This is the kind of of company - the kind of ethics - that the government is going to invest, ultimately, almost $100 billion into?

Would GM gain anything from a rebadged Prius?

GM's next green dream machine?

OK. GM has crushed the idea of using Toyota's hybrid technology numerous times. Nonetheless, there is another rumor out today that Toyota and GM are discussing the possibility of re-utilizing their joint NUMMI venture to rebadge Toyota Prius hybrids for GM.

Regardless of the fact that I'm 99.9 percent certain such a partnership would never happen, what would GM have to gain by such a venture?

Almost certainly, GM wouldn't make any money off these hybrid vehicles, and I don't think they would provide any more green PR than the Chevy Volt is already providing. Even worse, these cars would cast much doubt on GM's upcoming lithium-powered BAS hybrid powertrain.

Am I missing something? Why won't this rumor just go away?

2012: GM's hybrid offensive begins?

Was the dual mode Vue hybrid a contender?

GM has been talking about a big increase in it's hybrid vehicle portfolio for a number of years now. Today, GM reiterated those plans of 14 new hybrid vehicles by 2012.

Since that statement, MotorTrend has tried to guess GM's future hybrid line up. Sadly, outside of the Chevy Volt, not much looks that impressive. Hopefully, 14 different models, some rebadged, will collectively help GM move some hybrids and provide some scalability for these technologies.

Ultimately, however, there are still some key questions. First, can an updated BAS System with lithium really make GM's mild hybrids that much more compelling? Second, will the dual mode hybrid powertrain ever be cost-effective, especially in smaller SUVs and crossovers that might not need all the functionality that the dual mode hybrid powertrain provides?

Regardless, I'd prefer just one or two new hybrid models, each capable of selling at least 50,000 units per year, instead of 7 more that each sell 10,000 units, or less, per year. Thus, I'm hoping, possibly beyond hope, that GM has at least one hybrid wild card up its sleeve.

2015: 77,000 Volts per year to change GM's image

Mostly a marketing tool for the next decade

I don't hate GM. Still, now that US taxpayers are into GM for many tens of billions of dollars, it's hard not to look at GM in anything other than a critical light. And, unfortunately, it's very easy to find criticism with GM.

Last week a JD Power supplier survey found that of the top 10 automakers, GM was considered to be the least innovative. Then, today a UM study claimed that GM is not prepared for a significant move towards fuel efficiency.

So, what does GM have for the future? Well, it has the Chevy Volt, a very compelling vehicle, but a vehicle that GM will only be producing 77,000 units of per year by 2015. How can that really help GM become more fuel efficient and competitive?

It's all about marketing. Aside from the CAFE credits that the Volt will provide for GM's guzzlers, the real purpose of the Volt for the next decade is about image, not profitability. The Volt is an "image-changer" that will help change GM's image as an automaker lacking innovation into an innovator, without actually selling lots of innovative vehicles, noted an IBD article this weekend.

Hopefully, one day GM's auto business will be as innovative as its marketing.

GM preparing for high oil prices

More Volts coming?

Once the US breaks out of recession many, including GM, believe that oil prices are going to rise. Consequently, GM is preparing for oil prices over $100 per barrel. That means an increased focus on "electric cars and biofuels" according to the AFP.

Unfortunately, there aren't many more details about GM's future plans. Sadly, however, GM has been spinning the biofuel tale for years now, with few positive results. Today, GM's flex fuel vehicles are more about CAFE credits than fighting oil prices.

In terms of electric cars, we know about the Chevy Volt. So does this mean more Volts, or is GM going to broaden it's battery-powered portfolio? Hopefully, new details will be available soon.

Innovation: Is GM capable of quality hybrids?

Can the Volt buck the trend?

Many times I've read that GM is going to set the new standard of hybrid and electric vehicles with the Chevy Volt. It will be the most innovative technology on the road many have claimed.

While I find the Volt to be revolutionary, at least in concept, I've long worried that it won't make financial sense for most consumers, especially in the short-to-midterm. Moreover, I've never felt the Volt was an excuse not to produce more hybrid cars like today's Toyota Prius.

Yet, the real question might be, is GM capable of such revolutionary innovation?

According to a new JD Power supplier survey, GM is considered the least innovative of the top 10 automakers.

Buick plug-in hybrid coming?

The Saturn Vue plug-in hybrid

Now that Saturn is dead, at least as far as GM in concerned, the Saturn Vue plug-in hybrid concept is also dead. Not long ago, however, GM announced that the dual mode plug-in hybrid technology powering the Vue hybrid would find its way into another GM brand.

According to some, that new brand will be Buick, although this rumor has not been confirmed by GM.

While I'm glad to see GM's dual mode hybrid plug-in hybrid powertrain remain alive, I have worries about its potential. Currently, GM's dual mode hybrid vehicles have not sold that well. Thus, it seems a little doubtful that adding even more expensive plug-in technology to such vehicles would offer much change.

On the other hand, the Saturn Vue is built on a much smaller platform than GM's current dual mode hybrids. So maybe there still is hope.

CNBC Powerlunch: GM's hybrid sales are a green barometer?

GM's wildly popular mild hybrid?

I'm a big fan of CNBC. In fact, it's probably my favorite TV station, even though they have an obvious Wall Street perspective - which often means a conservative, Republican slant. Still, I think overall, they usually keep this slant in check.

Nonetheless, the silliness that sometimes oozes from the mouths of some of the CNBC talent is disappointing - usually from the mouth of Caruso-Cabrera. For instance, a few minutes ago, PowerLunch used GM's hybrid vehicle sales to point out that green vehicles aren't a good direction for the US auto industry.

Are you kidding me? Since when has GM been a hybrid leader? A green vehicle leader? How could any intelligent person suggest that GM is a hybrid potential barometer?

Today, the majority of hybrid owners buy hybrid cars, especially the Toyota Prius, because they want to do something for the environment. They want to fight global warming. These buyers are willing to pay extra to stand up for their beliefs and convictions.

Most important, these people would never buy a huge SUV, even if it is a hybrid, such as the Chevy Tahoe hybrid. 20 mpg just doesn't cut if for most of today's hybrid buyers.

Aside from GM's large hybrids, GM also offers a few mild hybrid vehicles that offer a mile or two per gallon more than their conventional counterparts. Again, that's not much of a statement, is it? If GM was a real hybrid player, they'd have a Prius competitor. They don't. End of story.

Yet the Powerlunch crew believes that GM's hybrid sales are a good barometer of green vehicle potential? Can they really be that clueless?

The new GM will be lean, but will it be green?

Volt-style marketing the future of GM

When GM debuted the Chevy Volt a few years ago, Bob Lutz told the automotive world that GM would handle Volt development in a new way. Volt progress, or problems, would be shared in an open and transparent manner.

Some have called this openness a marketing gimmick designed to create a Toyota Prius-like green halo around GM, without actually having to sell the vehicle. Like it or not, however, this openness is no longer going to be restricted to the Volt. Instead, this openness will be the driver of all GM products and plans according to CEO Fritz Henderson.

The new GM, according to Henderson, will be dedicated "to building on only the very best of our recent progress in fuel efficiency, world-class quality, green technology development and outstanding design." Moreover, it will begin by "engaging with you, our customers and critics, our partners and champions, who are interested in our progress."

This morning even President Obama claimed the new GM "will be full of promise".

Still, while GM should emerge from bankruptcy much leaner, will it really emerge much greener? Without doubt, green technologies are the auto industry's main buzzwords, but can GM truly derive profit from these green technologies? For instance, if the Volt isn't going to be profitable for at least another decade, what other green technologies will bring out the "promise" of the new GM?

Hopefully, if GM lives up to its new promise of openness, we'll soon learn just how GM plans to turn green technologies into a viable game plan for the future.

Why do you want bankruptcy for GM and Chrysler?

Will it make GM stronger, smarter?

The other day I read that 2 out of 3 Americans want GM and Chrysler to go into bankruptcy? Why?

To punish the UAW? Bondholders? Corporate boards and executives? All of the above?

Ultimately, do Americans believe that bankruptcy will make these automakers stronger? Or, do they hope they will simply just disappear?

Even if these companies successfully emerge from bankruptcy, does it change your opinion about their new vehicles, particularly autos like the Chevy Volt?

How the UAW helped kill hybrids, small cars and GM

Partners or enemies

My father spent his working years in a union. My wife is in a union. I don't hate unions, but over the years, I've always wondered how workers and companies could be expected to succeed when the workers and companies habitually acted as if they were in battle against each other.

In terms of the auto industry, I've long been interested in the principle of kaizen, which is so pervasive in Toyota's auto business. This philosophy of continuous improvement has enabled Toyota to develop more reliable automobiles more quickly than their US counterparts. And it has represented the antithesis of the UAW.

According to a fascinating Newsweek piece, this adversarial relationship killed GM's early '80's interest in developing a new kind of car company focused on small cars - even hybrid cars - that could compete with the Japanese, while creating a new relationship between the UAW and GM partially based on incentives and success. This was to be the future and the salvation of GM. It was called Saturn.

The original idea didn't survive, but the reasons for its failure were not just limited to corporate ineptitude, but the stubborn, refuse-to-adapt-to-the-future UAW mentality. However, had the original intent of Saturn succeeded, according to Newsweek, many analysts speculate the US auto industry wouldn't just be free from the tentacles of bankruptcy, but far more successful and fuel efficient.

The General has no lithium supply fears

Lithium supply will not limit EVs

Every company always has to put their best foot forward. To do otherwise, often times, would lead to the end of your business. So companies often wear rose-colored glasses when projecting their business viability forward.

Nonetheless, it was noteworthy today that in a Volt battery update conference, GM stated bluntly that lithium supply constraints would not hamper the Volt, nor the electrification of the automobile.

Chevy Volt on track, even ahead of schedule

Batteries to become a core business for GM

As you read this, GM isn't just finalizing 80 prototype Chevy Volts that will be used this summer to get the Volt ready for final production, GM is also concurrently working on 2nd and 3rd generation Volts.

Why? For instance, according to Denise Gray, the Director of Global Battery Systems Engineering, GM is already realizing that electronic systems, for instance, could lead to cheaper prices for 2nd and 3rd generation Volts.

Anyway, that's some of what GM stated today in a Volt battery update, which I'll cover in greater detail later. However, GM did confirm that the Volt is on track for its 2010 launch. In fact, the Volt is even ahead of schedule in some aspects of development.

Cruze hybrid will kick ass

An insightful attack on the Prius?

OK. There is no hybrid version of the Chevy Cruze. In the future there will probably be a range extended plug-in Cruze, much like the Chevy Volt. However, such a Cruze is years from reality.

Still, why not put GM's BAS hybrid technology in the Cruze? Even better, speed up plans for lithium-powered BAS hybrids.

Many Americans believe that GM simply cannot compete with Honda and Toyota when it comes to cost-effective, fuel efficient vehicles that people want to drive. Couldn't the Cruze have been an opportunity to change the way people think about GM? Isn't the lack of such a hybrid a significant reason people doubt GM's efficiency efforts?

Can the Volt save GM from bankruptcy?

Irrelevant or GM's Ace card?

CNBC's Phil Lebeau reiterated his belief that bankruptcy is not in the cards for GM. According to Lebeau the government made up its mind about saving GM some time ago. Check out this video of Lebeau on this issue, which includes a Chevy Volt test drive.

Yesterday, President Obama's task force drove the Volt and reviewed GM's EV plans. Since Congress built its plug-in tax credits around large battery plug-ins, such as the Volt, it does seem as if bankruptcy was probably never very likely.

Could bankruptcy make GM 'green motors'

Only bankruptcy left?

"Recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet our obligations and sustain our operations raise substantial doubt about our ability to continue as a going concern," reports independent auditors for General Motors. Thus, according to GM, liquidation may now be inevitable.

Could bankruptcy lead to a new lean and green GM? Is the General dead?

GM sales down 53 percent: Only bankrupcty left?

One of GM's hybrid trucks

Let's face it. GM is in serious trouble. Then again, so is the American economy in general, as well as most of the world's automakers.

Earlier this morning I argued that if GM was building as many hybrid cars today as Toyota, GM's finances would still be in shambles. Even if GM was making as many hybrids as Toyota, and as many small cars as Honda, I'm confident they'd still be bleeding billions per month.

Of course, I'd love it if GM were making as many hybrids as Toyota - I've been begging for it on this blog for several years. Still, neither small cars nor hybrids would have really helped GM's finances in today's environment. They just aren't very profitable, nor very coveted by most Americans, especially when gas is only a couple of bucks per gallon.

Anyway, is bankruptcy the only way to right this wayward ship? Not according to GM. Check it out.

Hybrid cars would have kept GM viable?

Cheap oil built this country

Over the weekend, White House Chief of Staff Rahm Emanuel claimed that America was facing a "day of reckoning" regarding health care and energy dependence while discussing GM's financial plight. Emanuel blamed GM for not investing in fuel efficient technology and for instituting an outdated health care plan (as if the UAW had no part in that).

So, am I to assume that if GM had started building hybrid cars at the same rate as Toyota, it wouldn't be in financial trouble?

That's just nonsense. Even when gas was $4.00 this summer most Americans still weren't sure that hybrids were worth the extra costs. Had GM invested in such technology, they'd be better positioned for the future, but their financial woes would be just as bad.

And, obviously, health care is an issue. It's true that GM gave too many benefits to the UAW. Still, how much of America's health care woes are simply related to our obese, lazy lifestyle?

While it's true that America is facing its day of reckoning, it's not all about GM's failures or national health care, it's about every day Americans getting off their asses and taking some personal responsibility.

An incomplete viability plan and a request for more bailout money

How much will it take to save GM?

GM is preparing to submit its viability plan, but it won't include the needed concessions from the UAW and bondholders, although those concessions are not absolutely required right now. Nonetheless, GM is already acknowledging that it will need more money.

Originally, GM had requested $18 billion when it first went before Congress. Thus far, Congress has approved about $13.4 billion for Congress already. So, it will be very interesting to see if GM needs only about another $4 billion, or if GM asks for much more.

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.

Volt's father to retire this year

Bob Lutz at the Volt's NAIAS debut

GM's product chief and Vice Chairman Bob Lutz is set to retire at the end of this year.

The legendary Lutz was one of the main drivers of GM's Chevy Volt program, but he will not hang around long enough to see the vehicle hit the streets in late 2010. The 76 year old has had enough.

A fierce critic of global warming and the Toyota Prius, Lutz has often been on the wrong side of issues covered by this blog. In fact, I used to refer to him as "Lutz, the putz".

Still, having had the opportunity to be around Lutz a few times at various auto events was a priceless experience for this blogger. Nobody made a press event more entertaining than Bob Lutz, even if you did disagree with him.

Imported battery and engine to power Volt

A few Volt lithium battery packs

When the Chevy Volt hits the streets next year it will be powered by both imported batteries and and an imported engine according to the UAW.

GM does plan to eventually produce both the batteries and the engines in the US but, according to the latest reports, there are no concrete plans for when and how that happens. In fact, the new engine plant planned for Flint might even be put on hold indefinitely.

Likewise, there is no proof, for example, that GM can cost-effectively produce lithium batteries in the US.

At least the Volt will be assembled in the US.

Should Obama save the Big 3 at any cost?

25,000 per year for years now

Last night I was watching an interesting NOVA program called The Big Energy Gamble and how AB 32 is going to drastically change the auto market in California. Essentially, if California moves forward with AB 32, automakers will need to sell many millions of hybrid cars or EVs in California alone, in order to meet CO2 emissions requirements.

And, there are many states considering similar laws if California's continues to move forward.

Toyota, the king of hybrid cars, is well on its way to helping California meet its goals, and Honda is ramping up its hybrid production as well, although even Honda has some serious work ahead.

The Big 3, on the other hand, seem pathetically far behind. Possibly, Ford has some plans, but as the automaker has only been able to make 25,000 Escape hybrids per year, and has the same 25,000 cap for the Fusion hybrid, I have some serious worries. Sadly, GM and Chrysler seem even further behind.

Yet, as the bailout deadline approaches, the UAW is already calling on Obama for help. If this were the end of all bailout talk, a little extension wouldn't be a bad idea, but this is just the beginning.

GM's latest prediction for 2009 auto sales, for example, is even worse than 2008. According to Big 3 Congressional bailout testimony, GM's prediction for 2009 is unsustainable if it continues for a few years, regardless of any bailout money. UNSUSTAINABLE. The auto industry, as we know it today, would collapse.

Even if things get better, the Big 3 are still in no position to make a serious stab at fuel economy, especially if the requirement is as aggressive as AB32 - something Obama has supported. According to an economist from Moody's during Congressional testimony on the bailout, the US auto industry will need about 100 billion over the next few years just to survive.

How much more it take to make the Big 3 green?

Not one of the Big 3 has yet developed a cheap hybrid to challenge the Prius. Do they really believe that millions of Americans are going to be able to afford $40,000 Volts in five years? Will GM even be making 100,000 Volts per year by then?

President Obama's plans for an energy moon shot should move forward, and I'm sure it will, but should our moon shot be limited to the Big 3's ability to make it happen? Might it not be better, for instance, for the government to regulate standards and requirements, put all incentives in the hands of consumers, and let ALL automakers COMPETE for consumers, even if it means the UAW loses 1/2 its workforce because its products don't compete?

Or, should Obama save the Big 3 at any and all costs and make the Big 3 essential to our moon shot?

A good time for a hybrid truck?

The GMC Sierra hybrid

Sales of big trucks are on the rise. Thanks to incentives and cheap gas, consumers are again interested in big vehicles.

Could this help launch GM's large hybrid pickups, which will hit dealerships early next year?

Probably not since the sales of hybrid vehicles are tanking, and GM won't be able to offer the kinds of discounts on hybrid trucks as it can on conventional trucks. Plus, consumers are returning to trucks because gas is cheap, which means fuel economy is less important.

Ironically, as truck sales increase, it would seem this is a bad time to launch a new truck.

GM's plans for the bailout money, for the future

Hard to get excited about hybrids like the Tahoe

Just checked out a video that GM is using to trump up support for the bailout of the US auto industry, something I already support, although tentatively. Yet, this video demonstrates the problem with the Big 3 and with GM. Too much tomorrow. The next big thing, such as the Chevy Volt, is never here today, it's always tomorrow.

No doubt, quality at GM has improved greatly over the years, and massive restructuring has been achieved and more is forthcoming. Cars like the Malibu are solid winners. And, next year, GM will have 9 hybrid cars available for sale, far more than anyone else. Yet, will any of them ever sell at least 50,000 units per year?

And, as exciting as the Chevy Volt is, it will still lag far behind Toyota Prius sales for at least another decade. In fact, while the Volt will be a game changer, it probably won't hit its game-changing stride until close to 2020. By then, it might not be quite as unique as it is today.

The Chevy Volt might be the best green vehicle selling at least 100,000 units per year in 2016, but America, at least those doubting GM, want to see GM challenge the Prius with a vehicle that can sell 100,000 units today.

Carpe diem, GM. Carpe diem.

Isn't a Volt delay inevitable?

All about the battery

GM is on life support. Without government money, bankruptcy is inevitable. Yet, GM has made it clear that not only is work on Chevy Volt development ongoing, but that more resources and money are being put into the Volt - the icon of GM's future.

Still, the most critical element of the Volt's success - the lithium-ion battery - is dependent upon technologies not wholly owned by GM. Ultimately, the battery supplier is almost just as important as anything GM is doing.

Isn't it, therefore, reasonable to assume that Volt suppliers might proceed cautiously and slowly until the viability of GM is guaranteed?

Vue 2 mode hybrid launch date scrubbed?

Dependent on the bailout?

Back in April I found myself sitting next to Bob Kruse, Executive Director of Vehicle Integration and GM Performance Division, at a dinner hosted by GM for a media update on the Chevy Volt.

Turns out Kruse had been driving the soon-to-be-released Saturn Vue dual mode hybrid, a vehicle Kruse was pretty excited about. In fact, he told me that although the numbers had not yet been finalized, the Vue dual mode was testing 70 percent more fuel efficient than a conventional Vue in city driving.

More important, by the end of 2008, GM would begin selling the Vue dual mode, Kruse confirmed.

Today, GM notified me that the Vue dual mode hybrid is set to go on sale some time in Q1 2009. This Vue of GM's future, it seems, is now completely dependent upon an automaker bailout.

F Wall Street - Give GM the money

At least GM has something to offer

I've not been a big fan of an automaker bailout, unless used to make the Big 3 significantly more efficient. Earlier today, I even argued the bailout MUST include strings.

Well, I've changed my mind. Give GM the money.

Does GM deserve it? I don't care. If not for the Wall Street-created financial crisis GM wouldn't need any bailout money. Instead, we could just be angry at them for not making enough fuel efficient vehicles.

Still, if GM was selling two hybrid cars as successful as the Toyota Prius - for as long as Toyota has been selling hybrids - GM would STILL be facing bankruptcy.

GM is facing bankruptcy because of Wall Street. Yet, Wall Street is leading the charge to bankrupt the US auto industry? Please. The automaker bailout isn't even chump change compared to the money being spent on the chaos caused by Wall Street. At least GM sells a real product, unlike the expensive lies Wall Street sells.

Chevy Volt untouchable (updated)

Volt and the EV1

Early reports coming out of Detroit indicated that, despite program cuts at GM, the Chevy Volt  would continue to be untouchable. As the Volt has become one of GM's best PR tools and its marquee brand for the future, this news was expected. 

And, with $25 billion in DOE fuel efficiency loans available, the Volt is the ultimate candidate. So, continuing the Volt program might not even cost GM very much.

Following this post GM announced that it would actually increase spending on the Volt program. Of course, is that because of DOE money? Regardless, without government help, GM won't be able to continue producing the Volt. So, for now, it's all about the bailout.

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?

GM's hybrid sales momentum crunched?

Down from 1,000 per month

"The momentum that General Motors was starting to get with its hybrid sales hit a major speed bump last month," reports Autobloggreen this morning.

In September the Chevy Tahoe hybrid and the GMC Yukon hybrid combined, achieved sales of just over 1,000 units. In October, despite the edition of the Cadillac Escalade hybrid, total sales of all three of these hybrid vehicles dropped to 795 units.

I don't know that I'd call 1,000 units per month momentum, but I think it's obvious that large SUVs - whether hybrid or not - have no future.

Black October over - Next for the Big 3?

October was scary, but is the worst over?

So, October was a pretty scary month for US automakers, and it now appears inevitable that the Big 3 will become the Big 2. But, is that is bad as it gets? Is the worst over?

Before addressing the dark side, there were a few a bright spots in October. GM, for instance, stated that despite massive financial concerns, the development of the Chevy Volt will continue as planned. And Ford, according to Consumer Reports, has basically caught up to the best automakers in quality. Moreover, the Ford Fusion hybrid might be a more solid hybrid than the Toyota Camry hybrid.

Still, with the economy possibly crashing into a recession, financial issues could become much worse for automakers, especially US automakers whom have been hit particularly hard by the dramatic decline in gas-guzzler sales. So, even if these automakers avoid bankruptcy, will they really be able to afford producing significant numbers of new, fuel efficient vehicles? When will a US automaker produce 100,000 hybrid cars per year (including the Volt)?

Tax credits for plug-in conversions - Another congressional failure?

More proof Congress is inept?

In my opinion, Congress was very motivated by the Chevy Volt when it came up with its tax credit plan for battery-powered vehicles. GM is an important American company, so this protectionism isn't surprising.

Yet, already, plug-in hybrids and other electric vehicles have caused some auto analysts to question the importance of automakers as we head into the future. If the future of the automobile is electrification, then the most important technology for that future is batteries. Those whom control this technology might just be the drivers of the future's auto industry.

Today, there are hundreds of hybrid vehicles that have been converted into plug-in hybrids via A123Systems - also an American company. Why not reward a company like A123 for these conversions? With hundreds of thousands of hybrids - plug-in conversion ready - on US roads now, A123 would be in a position to become a major player in the electric future TODAY if the government provided tax incentives for conversions.

But why do today what you can always do tomorrow, right?

GM to ask Toyota for help to fix business?

Seeking some kaizen

Toyota has always been known for it's kaizen-influenced business model, or the constant move towards efficiency in all elements of its business. From manufacturing to developing new automobiles, such as hybrid cars, kaizen influences every aspect of Toyota's corporate culture.

CNBC just reported that there are now rumors that GM might seek some sort of assistance from Toyota to help turn GM's business around. Is GM seeking some kaizen?