Volt: The Next Phase
By Bob Lutz
GM Vice Chairman
Bob Lutz, GM vice chairman of Global Product Development recently took a drive and checked on the progress of the Chevrolet Volt at the company’s Milford (Michigan) Proving Grounds. The electric propulsion system is now installed in GM’s future global compact car architecture for development and testing. (Left to right, Bob Lutz; Bob Kruse, executive director, Global Vehicle Systems and Integration; Jon Lauckner, vice president North America Product Development; and Andrew Farah, Volt vehicle chief engineer.
It’s been a historic week for us, and I don’t mean in Washington. And let me just say upfront that I know there is a lot of talk online about that subject. But I am not going to comment here about any government loans or hearings or GM’s financial situation — just like I wouldn’t engage you in conversation about it if I ran into you in the produce aisle. We have other places online for that conversation, such as gmfactsandfiction.com.
I would like to give you a brief update, however, on the progress we’re making on the Chevrolet Volt, and I would characterize it as great progress.
We have moved on to the next phase of engineering development for the vehicle. That means that we’ve moved from the Volt test mules using previous-generation Malibu bodies (affectionately known as “MaliVolts”) to test vehicles using vehicles from our next-generation global compact car architecture.
That architecture will not only spawn vehicles like the Volt, but also the Chevrolet Cruze and others like it. And I have to say, after driving it with the Volt system placed within, I feel terrific about the driving dynamics of that architecture. It instantly feels several price classes higher than what it actually is, due to the level of refinement.
The relative quiet and absence of vibration stand out, among other things. The chassis integrity felt outstanding to me… the steering response was good, the brakes were good, the turn-in was good and so on. I think it needs very little in terms of additional tuning. So I have very high hopes for when we get some test vehicles running with the actual Volt production body aboard.
As for the powertrain and propulsion system, I couldn’t be more pleased. It was 30 degrees and windy and flurrying. We started with about a 60-percent charge on the battery pack, to see how it would perform and when the engine would kick on.
To my delight, we went about 19 silent, electrically powered miles before that engine engaged. And when it did, it was so quiet and non-jarring that they had to tell me it had come on, because I wasn’t looking at the tach. Granted, many years in airplane cockpits have taken their toll on my hearing, but still, I can say with impunity that the engine was quiet and not at all intrusive in terms of noise.
Right now, the engine is tuned rather aggressively so that once it did kick on, it tended to cut in and out quite a bit at low speeds. But we will find the right balance to address that — that’s why we’re doing all this development work! I know there were concerns about what it would be like when the engine kicks on, whether it would excite the structure and cause all kinds of vibrations and such, but I have to say it wasn’t an issue. It was wonderfully masked, and will continue to improve as testing continues.
I ended up putting in about 30 miles behind the wheel, and I couldn’t be more pleased with the vehicle, the development, or the team behind it. And they will continue to work round the clock to further refine the Volt and get it on the road — and in your hands — year after next.
Sheth
Wow, if only the media and congress knew you made something other than Suburbans and Hummers. According to the media you guys do nothing but “push” SUVs on the public and pillage the environment while Toyota turns out Tundras that run on solar power and pixie dust. Prepare to be deluged with about 75 comments from GM haters criticizing you for not having this car on the market, for over pricing the car (even though no price has been announced) and for killing the EVI which had a MASSIVE customer base and was supposedly in high demand in the 90s. Same soup warmed over. Most of the public won’t give you any credit
Charles
Hi Bob,
Do you think the Volt will appeal to women who don’t shave their legs?
That was your assessment of who buys a Prius, remember? On Colbert? Right after confirming that you really do not believe carbon emissions cause global warming, you made a crack about how women who drive Priuses don’t shave their legs.
Maybe you could have given that funny little one-liner to Wagoner for his trip to Congress. I am sure some of the congresswomen there would have LOVED a tiny taste of what passes for humor among the execs at GM.
Warming up the Congress with a funny about hairy-legged women driving Priuses is a wonderful way to convince the American taxpayers to give you $50 BILLION DOLLARS to save GM from your disastrous decision making.
And Bob, when asking taxpayers for their money, can you please remind them that you said back in February you believe global warming is a “total crock of sh**”
I think the taxpayers would feel a lot better about handing $50 billion dollars of their money over to GM if they knew that the exec hyping up the VOLT actually believes.
Thank you.
K. Dwight
Bob,
I’m glad to see the progress being made on the Volt and hopefully the batteries are up to snuff and this doesn’t become another fiasco (ex: 4-6-8 Cadilac SeVille or Oldmobile 350 Diesel). I understand the development cycle of making sure not to have another sage as referenced to in the example, but the Camaro has taken way to long to come to market and even though gas prices are coming back down, now the credit crunch. Please try to find a way to match the Honda/Toyota’s with product development cycles. Also, don’t forget to update your Impala line. And WHY did you get rid of the 3800 series… Great engine, great mileage and with a old school 4 speeds, still get 32 plus on the highway in a large car (Bonneville) The quality of the products is come a long way and the quality of the products out of Oshawa and Ft. Wayne. My 2008 Silverado LTZ has great quality and excellent drivability….
Dr. Turkey-Belly
Bob,
Thanks for the update. While I do fear for GM’s short term survival, I believe that after the next year or so, we will continue to see the great strides that GM has made and a return to long run profitability. I am a large shareholder because I am convinced of GM’s long term potential and am very happy to hear news such as this.
Thanks,
Dr. Turkey-Belly
bluebaby
Mr. Lutz
So good to hear from you hope all is well, on a different note how about, Bob Lutz CEO of General Motors? now thats something a lot of us need at a time of change and uncertany.
You are a hero to alot of people for the turn around you made happen a GM, I know you can bring the stock back up to $50.00 with your vision its time for Rick to go and relax.
bluebaby
Joe
Glad to know this is coming along smoothly! I’m a co-op student in manufacturing at the tech center and I’m definitely looking forward to the Volt.
As for the new test vehicles, I haven’t driven a new Delta, but if it’s anything like GM’s current vehicles, I’m sure it’s just as quiet and classy as Bob says.
I’m wondering what the Volt team will do about the engine start/stop… It seems like it would be more efficient to let it run for a bit rather than stress it by start/stopping, but I suppose it’s designed for that, like the current “mild hybrids” (e.g. Malibu).
Mark Bartosik
Wonderful to hear some good news from GM.
Since it was 30 degrees, it would be interesting to know if the production intent HVAC system was operating in this mule, and if so how did it perform?
edvard
Mr Lutz,
To me, these are the kinds of stories that you need to be talking about in DC. I realize that what’s going on this week in Washington is not the subject of this post, but its clear to anyone reading that you’re a car guy, as are the rest of the GM team. But from reading many of the comments made in Washington, its obvious that congress by and large has a topical knowledge of the industry as well as your developments. In order for them to make decisions, they have to have accurate information on hand. Its your job to communicate this to them.
Its clear that what they want to see is a level of confidence, and what I mean by that is being able to discuss matters such as the Volt, Cruze, and other realistic, progressive vehicle programs and doing it with the level of passion that you deliver here and in other media outlets. By doing so, it instills trust and understanding. Perhaps even do as someone mentioned in a previous thread: Drive to Washington in a Volt, or volt drivetrain powered car. Make a powerful, visual statement. Its obvious people focus on small things, like GM execs using company jets to fly to Washington and so forth. If so, then by driving your future groundbreaking products to DC would accomplish the same thing. Perhaps drive a whole fleet of them: Hydrogen, electric, diesel, and hybrid powered vehicles and park them right out front.
In any regards, it is exciting to see the progress on the Volt. Thanks for taking the time to fill us in. Good luck.
Dave Close
As long as I hear things said like “It instantly feels several price classes higher than what it actually is, due to the level of refinement.” I will be suspect that GM just does not get it.
I can see the wheels in their heads turning (grinding) with thoughts of how to put numerous nameplates on the same car. “Refinement” Bob? How about you think in terms of making a single car we want to buy AND can afford AND that you can mactually manufacture, sell and support before you toss that old worn out market-ese of “in it’s class” at us again?
Chevy’s Volt mules have moved to Cruze mode; Lutz drives one | Hybrid Car Blog
[...] Last spring, when General Motors starting track testing its first E-Flex powertrain “mule” prototypes, the cars were based on previous-generation Chevrolet Malibu body shells, the Mali-Volts. The engineering team has now moved on to the next generation of its development cars. The latest batch of testers are now using Chevy Cruze bodies, which is appropriate since both the Cruze and Volt share the same Global Compact Architecture (that is the next-gen Delta platform). In many respects, Volt is a Cruze with the ER-EV powertrain and different styling. I spoke with Denise Grey and Tony Posawatz of GM in Los Angeles the other day about progress and there are a number of E-Flex Cruzes now running at Milford. Some of these vehicles will be heading North soon to do cold weather development. In the meantime Bob Lutz has had a chance to drive Cruze based car and talks about it at the Fastlane blog. [...]
Wendell Mercantile
Mr. Lutz,
What is the real story on the Volt’s range on a single charge? You have been consistently saying that the Volt will go 40 miles on a charge. Every morning for the last month I’ve heard GM public service ads on NPR saying the same thing.
But at a recent press walk around in Manhattan, Mr. Frank Weber, your chief project officer for the Volt, said, “The Volt, which has a range of 40 miles (when all power equipment has been turned off, including air-conditioner, stereo and headlights), is an “extended-range electric vehicle.”
Weber says the Volt will go 40 miles on a charge only with all power equipment turned off. Volt “range anxiety”
So why have you constantly been saying it will go 40 miles on a charge when that is only for the special condition of having all equipment turned off? Since virtually everyone will want to turn on the A/C or heater, sound system, or perhaps even use the headlights at night, doesn’t that mean the nominal range of the Volt on a single charge will be something less? Perhaps only 32, 35, or 37 miles under realistic driving conditions.
Reduced range on a single charge wouldn’t stop me from buying a Volt, but a lack of transparency and honesty on GM’s part just might.
Respectfully,
Wendell “Wendy” Mercantile
Car Fan
Excellent news Bob.
I am so pleased to see someone NOT talking about financial armageddon.
But for me the Volt shouldn’t be GM’s only focus - you have said that Volt wont be turning a profit for quite some time.. and it wont be selling in large volumes for the first few years.
Just like GM made the mistake of only focusing on trucks in the past I see the same thing again with this car.. don’t neglect the rest of your showrooms.
Invest in DIVERSITY - A variety of different platforms and propulsion.. not just the obvious electric front wheel drive sedans.. personally, I will NEVER drive a front wheel drive…I’d rather buy a Lexus GS Hybrid (now thats a HOT car)..
..BMW just showed a 7-series diesel that gets almost the SAME kind of economy GM is expected to get out of the Volt..
Now ask yourself - What is going on inside BMW or Lexus engineering right now? Are they putting the next 7-series on a battery-powered front-drive platform? ….I DON’T THINK SO!!
MIKE SCHIAVONE
It’s great to see that the Volt is into it’s next phase of testing. This should catch the nye sayers attention!!! It’s up to GM to promote this car and get into our hands as soon as possible. All we can do now is hold our breath and hope that Bob is accurate in his observation of the Volt.
Eric
Mr. Lutz,
I think Autoblog put it most aptly, this would be great news if it wasn’t prefaced with the first paragraph.
Having done a great deal of course work on General Motors through out college, through an unfortunate span (it’s taking me longer than I would like, but I suppose that would be the consequences of changing your mind more than once) I’m continually amazed that the progress General Motors has had. Both from product, innovation and with the corporation. I just spent the better part of a course examining GM from a product and financial stand point, and compared to the last large report I did back during the “American Revolution” campaign the amount of continued innovation, product quality and trimming down of the company have been great. If it weren’t for current economic situation I can’t help but imagine that GM’s position would be entirely different.
I have a copy of “Guts” sitting on my desk to be read over my holiday break, and from skimming a few things in between reading course books and keeping up with what GM is doing, I have to say it’s a good thing you are doing what you are doing. Cutting costs while still developing new product sis a great move in the given situation. While executives would insist on cutting R&D, there would be nothing great about GM’s products if you did that. I can’t help but think if GM (well, when GM) makes it another 6-12 months the tide will begin to change.
Patrick
Bob,
I’m excited to hear things are progressing with the Volt. Keep it going, faster if possible please.
Have you taken any of our esteemed members of congress out to the proving grounds? I think they would enjoy Milford this time of year!
Have any of the senators watched as our teams develop our next products? Products that are designed to meet the requirements which they issued? In addition to just trying to get the vehicle to have good operating charateristics so any person can drive it through any conditions they encounter and keep them safe.
I think letting congress visit with our designers and engineers as they struggle to get mileage, emissions, safety and durability within reasonable costs in a package that people will buy, could open a few eyes. Most have their eyes and minds closed to everything except their agenda, I hope this would open up a few of them to what really goes into the vehicle process. It might not slow down the political grandstanding we’ve been listening to, but they would gain a better understanding of the importance of developing our industry and improving technology to make the world a better place.
Keep the pressure on the Volt team, we need to hit this out of the park. I know they are working hard and I appreciate their efforts.
Robert Wilson
I heard about this rid. Let’s move it up and get it out - first versions go for a premium and then let’s quickly release 2.0, 3.0.
Bob
Nate
Bob,
Its great to hear you post something on the Volt. I don’t agree with your gmfactsandfiction… but I suppose I don’t have to the proof will be in the way the pieces fall.
If GM does get bailed out and the Volt comes to life and production…. what will you do to prod the US Government to upgrade the power distribution networks to accommodate the huge increase of electricity needs over the next 5 or 10 years?
I know the Volt has a gas/diesel generator on it that charges the battery… but I thought the whole point of the Volt was to be able to plug into the grid.
According to my preliminary engineering calculations the energy demand for one Volt charge is quite high compared to the average power usage of the “Average American House”.
My concern as a GM fan and consumer is that in 10 or 15 years if oil prices go up and we have the Volts running…. I (and everyone else in the US) won’t have anyway to plug them in without bringing down the whole power grid.
I honestly think this is a real issue and solving it is a huge priority in the 5 to 10 year picture. I also think that such a measure would be a great step for GM.
That said of course I have to ask when a Volt like drivetrain will be available in other GM cars like the CTS, G8 and Camaro.
As I read your brief comments I hope you fix the “good” brake, the “good” turn in and good steering response…. These things need to be outstanding no just good. Don’t cut corners or go for mediocrity on the Volt PLEASE.
I also must share my recent experience with a few people I know who were in the markets for small cars. Both people considered American cars but quickly realize that there were no high end, small American cars worth spending their hard earned money on. One of them bought a new VW and the other an Acura. When I asked them their reasons were the same “GM doesn’t make anything that excites me and what they do have doesn’t have all the bells and whistles I wanted” And the other one “The interiors on American cars just aren’t that great”
I hope you hear comments like this and make sure the new Cruze and Volt are offered with high end upgrade options and leather seats etc…
Keep up the good work… I hope GM pulls the Volt off somehow.
Kelly (MT)
Thank you for the Volt updates. I’m especially interested in cold weather driving tests like this one. I had planned on buying a Volt in 2010, but my 2000 Subaru’s life was ended abruptly a month ago when it hit a cow elk (that’s right, ELK) on the interstate. I therefore had to go with a 2009 Subaru, and I’m thinking the Volt purchase might not now happen until 2011 or 2012. How the electric car ultimately performs in cold weather is a key factor for me… thank you for providing informative updates like this one. I hope as GM goes through bankruptcy or reorganizes to compete in the coming decades, it invests heavily in green technologies. If the Volt doesn’t come to fruition, I may be looking at a VW instead. Please know that I have been following the Volt’s development for over a year now, and am excited to have one in my driveway as soon as possible! I’ve never owned an American car, but am looking forward to doing so soon. Keep up the great work, Chevy. - Kelly in Montana
David Shannon
Congratulations on the continuing progress with the Volt!!! I am very excited about this development and other developments such as the Cruze that will be out in the not too distant future. I look forward to further testing in the actual Volt body with most everything working and being tested.
Dtomaz
Mr. Lutz on Dec.2 Rick Wagoner wil be testifying before congress again. How about having Rick driving to Washington in a convoy of GM future products lead by the Volt. Remember in Washington as in the auto market preception is KING as Rick, Bob, Alan and Ron discovered this week. Time to sell yourselves as if your life depends on it. Because it does.
Pierre Roberge
Good, that is good news and that is exciting.
Dsuupr
I am very excited about the Volt and hope that GM has the financial ability to pull it off.
Gereon (Germany)
Not only the Volt is an evidence for GM’s development expertise, but also Fisker seems to believe in the viability of GM and its engineering-capabilities. Hope, some Congress-members read this:
http://www.edmunds.com/insideline/do/News/articleId=136407
Beaugrand®™©
“The FastLane blog is your source for the latest musings of GM leaders, like Bob Lutz, on the topics relevant to the company and the auto industry.”
I think the “bailout” or the “bridge loan” is “relevant to the company and the auto industry.”
Good to hear the Volt mules can go 30 miles without breaking down. In the interim, between now and when the Volt (IMHO you’re pinning a lot of hope onto a vehicle that’s going to be too expensive for the target market- e.g., people who are still employed two years from now) is introduced for sale, you might look into offering (in lieu of those hefty rebates) dealer-installed CNG or CNG/gasoline multifuel conversions on those hundreds of acres of unsold, unsaleable SUVs in storage lots. You might bring that up to Congress the next time Rick goes begging (might be a nice touch if Nardelli, Mulalley, and Wagoner pool their resources to charter a bus to get to DC, instead of flying in with the corporate jets that cost you the bailout, last round), it might make them a little more receptive if you have that “green” option.
deborah Thalberg
I’m proud of GM. I’ve followed the company since my first corvette. GM has closed quality gap. Styling has greatly improved. Saturn never looked so good. Opel, European, Car of the year. Malibu’s are selling, in record numbers, in the worst market I’ve ever seen. Go GM go and don’t stop til we can shove news print right up the ny times… Go GM go the country needs you. The world needs your innovation. Go GM go … as GM goes so goes the country. Jan Harrelson (shareholder)
Ted Lewandowski
I for one would like to go to a Chevrolet dealership and leave a deposit for a Volt (if that is at all possible?) but with all the uncertainties about the future of GM - the current reality makes it an unwise decision - it’s kinda a catch-22 for GM at the moment.
However, it got me thinking about the fact that the Volt is ‘only’ 24 months away from production - why GM does not advertise the fact that you can go to a Chevrolet dealership and leave a deposit to be the first to own a Volt?
Advertise it at all the Chevrolet dealerships (at nearly zero cost) so when a person stops by to look at a Chevrolet Cobalt he might find out the Volt is a reality (most Americans have no idea this vehicle even exists). Create a 2 year lease program so that any GM lease customer will have the first option to buy the Volt ( a local Lincoln-Mercury dealer started this type of program years ago calling it ‘pre-trade’ so people would not think they are leasing a car but drive a new car every two years!).
Create a coloring book to give to the kids that walk in with their parents (complete with a package of crayons) showing the development of the Volt - again next to zero cost - lots if goodwill. Maybe even remote controlled model Volts (this could be licensed and produced very easily by hundreds of companies - again at zero cost to GM - lots of Goodwill again.
‘What did you get for Christmas Johnny? Oh man I got this really cool Chevrolet Volt remote controlled model car - a what? This remote-controlled Volt will be a production car a couple of years from now - oh neat - I didn’t know that!’
Smart cars created a program that for $90 you will have first option to buy a Smart - for the people that do not lease a GM car that will be a second option.
Third option could be like a European delivery program - pay in advance for the Volt (pre-order) and save 10% - a substantial amount of money for a car that will likely cost $40k. Again like the Euro-delivery program this gives GM money to produce the car saving operating capital.
That is what GM needs at the moment - people dedicated to create excitement for the company.
Markets have a funny way of turning on a dime when they see it’s not all doom and gloom!
‘Did you hear that GM pre-sold a 100,000 Volts already? No I didn’t know that! Yes you better go to the Chevrolet dealership now so you don’t lose your turn to get one!’
As a currency trader I can tell you it happens all the time in the forex business - it is all perception to what a current exchange should be worth - based mostly on comments and the press.
So when can I go to leave my deposit for the Volt?
Justin Weber
Thank for the update Bob. I appreciate discussion regarding the Volt rather than hearing about GM’s financial situation. Watching TV this week has never been so frustrating. My hope is that in the coming year we do not have to be bombarded with negative news, and instead hear about the things that we are all truly passionate about: I’m talking about great new vehicles!
Miguel Gonzalez
Dear Bob,
Your assessment of the car is quite impressive and very encouraging. Unfortunately, your track record on assessing your own products is, to put it mildly, dismal.
As these difficult times demand drastic measures, take the opportunity to invite objective opinions on the Volt, to see what other angles you and your teams might be missing out on, and make this car the car that will mark the beginning of the turn around, not just for your bonus’ sake, but for the employees, suppliers, shareholders and communities.
Would you drive the Volt to Washington next time?
Jim Klang
I am making a comment on this blog because there appears to be no way to contact GM directly. Perhaps that is a telling statement in itself, but that is not the purpose of this comment.
I know that GM is putting a lot of emphasis on future models like the Volt. With all the negative perception of Rick Wagoner’s last visit to Washington in a GM corporate jet, I would highly suggest that Mr. Lutz put him in one of the development vehicles and have him drive to Washington and park the vehicle in a prominent location for all to see.
This would satisfy the Congress’ requirement for a humble person from a humbled company requesting significant help from the American people. It would also show that GM is looking to the future and willing to show the world that they are going to be part of it.
The Volt would certainly not be the right vehicle for this long distance trip since it would require frequent and timely electrical boosts to get super highway efficiency. These electrical boosts would also have to come during the daytime, which the electrical utilities would like to avoid. It could be used, however, to have Mr. Wagoner drive from the airport after arriving on a commercial flight.
Wouldn’t it be great if each of the Big Three execs came to the Capitol driving prototypes on which they are willing to bet the future of their companies and American taxpayer backing.
motech
sounds great!!!
im really looking forward to the volt.
lets make it a reality!!!
Jarek
I’m in marketing, and obviously congress was doing a little grandstanding last week. BUT image is everything these days, if I was you I would DRIVE a mule of the Volt to the next meeting and when they ask you how you got their you can tell them “i got here in the Volt, this is our future this is Americas future.
Andy Thomson
I don’t know if you saw Saturday Night Live last night but they did a skit where the Chairs drive to Washington for the Dec 2nd hearings. .
I got thinking that might be a good idea Robert Wagner could drive the Volt prototype. Then have all the people like me that care about the auto industry follow them. They have million man marches in Washington. Lets take thousands of domestic cars.
Andy
Ted Lewandowski
I just read that Nissan/Renault will be leasing the batteries to the their plug-in hybrid vehicle customers so they won’t have to pay a huge cost to change or upgrade their batteries as battery technology improves - is this something that GM is considering? I could make the Volt affordable to more people - I mean with the economy projected to be in prolonged recession how many customers can afford a $40k car?
GM also needs to think about offering a CNG flex-fuel vehicle (cng/gasoline/E85). The retrofit to any existing model would be simple and it could earn GM some positive press for being leading edge in their planning - this car could also bridge the gap before the Volt arrives.
Like my other comment posted on this site - offer the vehicle on a two year lease with the buyer having first option to buy the Volt when it will be available.
E.G. The Chevrolet Aveo Flex-Fuel X3 - running on on CNG it will probably qualify to be close to zero emission vehicle (ZLEV). Where I live we have no E85 available but plenty of CNG stations. I would not only fuel with CNG because of the environment concerns but to stick it to OPEC.
The Volt should also have this capacity available - it will cost nothing to engineer this into the car during the preproduction testing process.
GM needs to be prepared for $1.50/gallon gas in 2010 or $5.00/gallon gas - if the price is $1.50 (more than likely as it is already below the $2.00/gallon) then what other features will persuade me to pay $40k for a new ‘untested’ model from GM? If it had CNG fueling capacity it would certainly get my attention and I’m sure a lot more people then the GM bean counters show to be potential customers.
Narg
I am enjoying so much reading about the Chevy Volt and the future of GM. I do hope Congress does help out, at least a little if not entirely. Loosing GM would be a grave mistake for America.
I just this week purchased a Traverse. Not that I don’t want or like the Volt, but the Traverse is more my style at this point in my life. I had to ask GM for a little help on this purchase, to which GM responded quickly and very nicely. So I’m once again a very happy GM owner (my 6th one!) The Traverse, like the Volt, is so much unlike the American cars of the past that anyone that doubts what GM can produce today is just un-educated and unaware of the reality of the GM of today. I personally witnessed the changes, they were amazing. As is every new model that GM produces.
Bob, thank you for your efforts. And, thank you for pushing the Volt into production. I hope to see the success of the Volt trickle into other GM products in the future. I think the power train would be a grand idea in other cars, like the HHR for instance. And eventually into larger utility vehicles like the Traverse.
Gary Dikkers
Lutz said: “But I am not going to comment here about any government loans or hearings or GM’s financial situation — just like I wouldn’t engage you in conversation about it if I ran into you in the produce aisle.”
Mr Lutz.
Why not? If we ran into each other at the local airport, that would be a good topic for conversation, after of course, we talked about the weather, the price of Jet A, and why you let that crosswind push you sideways just before touchdown. “A bit gusty out today, isn’t it Sir?”
But seriously, I think it would be good for you to talk with ordinary people about GM’s situation. You need to hear viewpoints other than what you get discussing it in the executive suites at the Ren Cen or over cocktails at the Bloomfeld Hills C.C.
From what Nancy Pelosi said this morning, it seems GM, Ford, and Chrysler will have to go back to Washington in 10 days or so to show Congress “The Plan.”
Obviously Mr Wagoner won’t be flying in the G4 this time., so let me offer you an idea on how to get from Detroit to Washington with the most media impact:
Rick and Bob’s “Cannonball Run” to save GM
My road atlas says it’s about 530 miles from Detroit to Washington, D.C. That should be about 9 to 9.5 hours of windshield time for you and Mr Wagoner.
I suggest that both of you drive together in a Chevy Cobalt, taking turns at the wheel. (You will be tempted to drive a Corvette ZR-1, but please, resist the temptation. If you don’t want to take a Cobalt, the biggest upgrade I’d suggest is a Chevy HHR. It’s important you connect with common people.)
Leave at 2100 EST for your all-night run, and when you leave the Ren Cen, arrange a big departure ceremony. (Think Charles Lindbergh’s departure from Roosevelt Airfeld on Long Island when he left for Paris in 1927.) All your support staff should be there to see you off, as well as legions of workers from your Michigan assembly plants cheering you on. As you and Rick climb in the Cobalt with the briefcase containing “The Plan,” you both can make a few remarks about how you’re ready to drive through the night to Washington to save the company. A good effect would be for someone to hand you two Thermos bottles filled with strong coffee, a bag of ham sandwiches wrapped in wax paper, and a package of Oreo cookies to munch on just before you pull out.
You PR department will of course have notified the press. I’m sure even CNN will be there to provide live coverage as Rick climbs behind the wheel of the Cobalt for his first turn of the trip south, and provide steady coverage as you work your way southeast through Ohio, Pennsylvania, West Virgia, and Maryland. Everytime a camera points at one of you, take the chance to tell them, “We’re hitting the road to save the company.” and then hold up the briefcase holding “The Plan.”
After the Michigan State Police escort your Cobalt to the Ohio border, I’m sure the Ohio troppers will be there to take over. In fact, the Pennsylvania and Maryland troppers will be ready tp pick up your escprt as you cross into those states, and I’m guessing you won’t have to worry about a speeding ticket for the entire run to Washington.
Be sure to have the Cobalt equipped with a CB radio and take your cell phones. You will no doubt pick up your own convoy of 18-wheelers to escort you across Ohio and Pennsylvania, and the all-night DJ’s on the trucker radio stations (WSM, WBAP, and WWL to name a few.) will want to interview you as you charge through the night for your rendezvous with destiny in front of Senator Dodd and his committee. (Be sure to tell the DJs you love country music and grew up listening to Hank Williams (That would be Hank Sr. of course).
Each time you pull into a truck stop for bio-breaks and to refuel, be ready for interviews with the media, and always have some interesting anecdotes ready about how your mission is going, and whether you think you make it in time to take your seats in front of the committee. Also have information about how the car is running and its fuel burn rate ready to give the press.
Whe you pull into Washington early the next morning, stop at a YMCA to freshen up before your appointment in front of the committee. (As always, seek the common touch during your “Cannonball Run” to save the company.)
After refreshing yourselves at the YMCA and having breakfast at a Waffle House (above all, stay away from the expensive Washington restaurants where lobbyists and politicos hang out), head on over to the Capitol Building. As you pull up and stop in front of the Capitol, again be ready for a multitude of cameras and reporters to greet you. When they do, make sure your ready with how many gallons of gas your Cobalt burned during your Detroit-Washington “Cannonball Run.” Hold up the briefcase containing “The Plan” as you get out of the car and charge up the Capitol steps.
Take the chance to turn your next appearance in front of Congress into an event that will attract sympathy from ordinary people across our great nation — the people whose jobs you are determined to save. Played right, you could make this one of the major media events of the century.
Best regards,
Gary Dikkers
Denny
700 billion to bail out banks who made poor decisions (to put it mildly) causing a hugh economic tailspin in credit and consumer confidence, but not 25 billion in loans to help three of the biggest employers and top investors in research and development this country has? GM was doing ok, even in light of gas prices that knocked out the core business of the domestic automakers, before the financial world pulled the roof in over their heads. It amazes me Washington can keep a straight face while pretending they would recognize a viable reorganization plan if it hit them in the face. Actually, come to think of it, it doesn’t.
I cast my vote today in the form of a new Saturn. Long live the Big 3! Here’s to the next 100 years, General Motors.
Sheth
I think its funny that people here think Congress is actually concerned about facts with regards to GM’s products. People in Congress had an agenda and that agenda unfolded last week in front of the TV cameras. Showing up in the Volt would not help anything because the media would simply report that GM is showing prototypes of vaporware while Toyota is “thriving” by selling hybrids today. In the minds of the media there are only two categories of vehicle- small, efficient cars and gas guzzling V8 SUVs. According to the media no one wants midsize sedan with a four cylinder engine or a pickup or a crossover. The lecturing in DC all had the same theme: Americans are begging for small, efficient cars and you guys arent delivering. While the facts show that the Malibu gets better mileage than the Camry the facts had no place in the discussion that took place last week. As far as Congress and the media are concerned if its not a Prius its not worth considering efficient.
For those who think showing the Volt will change everything I would like to note that GM critics such as George Will are currently blasting the Volt as a waste of time. He had no praise for the Volt on This Week on ABC and said it was stupid for GM to be betting its future on a $40k car that wont make a profit. In the minds of many GM is wrong no matter what. In the end, GM will likely get the money once those in Congress are finished grandstanding and “protecting the taxpayer” and the facts will never come into play. To this day it amazes me that politicians and the media refuse to acknowledge that import manufacturers make trucks and SUVs. Whenever GM’s problems are mentioned they show footage of unsold SUVs at a lot while everytime an import manufacturer is mentioned they show a compact car or hybrid as if thats all they sell. I saw two news segments last week that were essentially ads for Toyota and Honda. Both (one on ABC and one on NBC) praised import manufacturers for their US operations and noted how they are doing well in spite of the downturn. The ABC piece praised Toyota for paying workers while their plant was idled due to lack of demand even though the Big 3 are being criticized for the jobs bank. The NBC segment said while Detroit is laying off workers Honda is thriving and opening plants in the US to build fuel efficient vehicles. No mention of the slumping sales at Honda and Acura or the fact that Honda makes SUVs that are doing as poorly as American branded SUVs.
The media and our “leaders” in DC are not going to acknowledge the progress that has been made or the complexity of the issues facing the US auto industry. While banks get billions with few questions asked many seem to feel the line needs to be drawn when industrial companies ask for aid from the government.
Brady Turley
Charles, Well I think there are those in the public that would agree with Bob when he said global warming is a crock of sh*^, because lets face it, it is a crock. Anyways, good to hear the Volt is coming along well, too bad you screwed up the body. I’ll buy one when it looks as good as the concept.
Augie Churchill
Ted Lewandowski: “I just read that Nissan/Renault will be leasing the batteries to the their plug-in hybrid vehicle customers so they won’t have to pay a huge cost to change or upgrade their batteries as battery technology improves - is this something that GM is considering?”
That’s an excellent idea Ted. I hope it’s something GM takes under consideration.
The big advantage of leasing the battery would be, as you point out, to lower the upfront cost of buying a Volt. It would also offer the advantage of allowing GM to swap out the battery as technology upgrades. Battery technology is advancing fast, and if after you’ve had your Volt for three years, a better, more technologically advanced battery becomes available, GM could upgrade the one that came with your car under the original lease, and then recycle the lithium, cobalt, and tantalum in the battery that came with your car.
It would also open up to Volt owners the possibility of leasing from third-party battery suppliers.
Wendell Mercantile
“We started with about a 60-percent charge on the battery pack, to see how it would perform and when the engine would kick on. To my delight, we went about 19 silent, electrically powered miles before that engine engaged.”
If a 60% charge took you 19 miles before the range-extender ICE came on, that means your range on a full charge would have been about 32 miles.
That’s only 80% of the 40-mile range on a single charge you’ve been touting to the media for the last year. Since it was 30 degrees, windy, with snow flurries, is the explanation for reduced range that you had the heater on?
Ted Lewandowski
Gary Dikkers ‘Cannonbal Run’ plan is brilliant - that is exactly what GM needs - more people that think outside the box.
However, I should point out that he forgot to mention that they would be wearing dark sunglasses and will need to have a half a pack of cigarettes on the dash with a mandatory stop at Bob’s Country Bunker to listen to a little Hank Williams played by the ‘The Good Ole’ Boys’ - oh wrong movie - sorry.
I think a better plan would be to have Bob fly in himself and forgot to lower the landing gear for dramatic affect - gee that never happened before right Bob?
On second thought the ‘Cannonbal Run’ plan sounds better!!!
Ted
I was really amped up about the Volt (pun intended) until I heard the $40,000 + price tag ! That knocked it off my list. I turn in my leased 2006 G6 GTP Coupe in December, and frankly there was nothing in the GM stable I wanted, so I bought a lightly-used 1997 Aurora. Man, is that car solid ! No squeaks or rattles like my G6 has at 28,000 miles ! It shifts better, runs smoother as well. Perhaps you should buy a used Aurora, disassemble it, and relearn what you’ve apparently forgotten how to do, build a solid high quality car. A less expensive car should have less fancy options, but should not be built with less quality.
When you learn that I’ll come back.
Alan Smith
I am sorry to hear about your problems, GM is an important American icon that needs to survive. Although a victim of the economic down turn in the construction industry, I do have little sympathy. Times are extremely tough for you, your clients, and Americans as a whole. I recently had to sell my ’07 Silverado because of a layoff and when I found a new job it was an 80 mile a day commute. I wish I could have kept my truck but the 20 MPG would not pencil out for my commute. This is the problem many people are confronted with and unfortunately the root of your problems. While your products are great, being slow to adapt to the changing need has caused some extreme hardships. This with the raising costs of labor has priced many of your models in your lineup out of the general peoples reach.
I was looking forward to the release of the Volt, a truly visionary approach to the future of cars. This car really is the reason that I want you too and feel you need to survive. Hybrids as traditionally know are a great first step and in my opinion all cars should be a Hybrid. The Volt takes it to the next level and reverses the thought that my petroleum motor need to be the work horse, and may not need to run depending on the commute. It is great.
Some thoughts for going forward. I heard about the possible “caravan” to DC. While I have to say it is a great idea compared to the previously poor appearance, please do it in a smart manner. I would suggest limiting the number of vehicles. Obviously for security it is wise that the CEO’s don’t ride together, but have busses for general people and as few cars as possible. I would also recommend taking only Hybrids as possible, or Bio-Fuel, to demonstrate a new beginning.
As the construction industry has had to do, have further talks with the unions about pay reductions. I think this is a great year for bargaining as some pay will be better then now pay if the company falls. In a business sense I would also look at abolishing the unions, go back to the right to work concept. We have labor laws to do what unions where first formed to fix. Now they are about profit, and unfortunately not yours. I also think it would be wise if the CEO’s also do similar to the Financial giants and announce reduced pay, or compensation.
If you product a viable business plan at Congress, I and most Americans would and will support a bill to aid your industry. I think you have a tough road to travel and I hope you come out the other side leaner and Greener.
Charlie H
Sheth writes, “Wow, if only the media and congress knew you made something other than Suburbans and Hummers.”
It seems to me very ironic that you post that in this thread, when GM doesn’t actually “make” the Volt. Prototypes and mules, certainly, but no production car for sale. And, at the announced production volume of 10K in 2011 (the Volt’s first year), it will be hard to say that GM makes the Volt in any meaningful way in 2011, either.
Next up from GM, an old-school “sports coupe” with a whopping 25mpg highway and GM is prepared to build in the order of 10K/month. In a couple of years, maybe, an E-REV in quantities of 1K/month. Tell me which one matters; the one that’s due in volume in the Spring or the one that’s dribbling into the market two years down the road?
And, let’s remember, GM killed their last old school “sports coupe” in 2003 because of low sales. Explain to me, again, why I want my tax dollars spent bailing out GM?
Sheth also writes… About George Will…
George Will is right… GM was deep in trouble when embarking on the Volt program and deliberately green-lighted a vehicle that would not help GM’s bottom line in any reasonable time frame. It was a bad business decision. GM needs some good small cars that they can build profitably. They need good vehicles across the entire line that they can build profitably. GM needs flexible manufacturing and better automatic transmissions and better aerodynamics on the current product line. They don’t need a Hail Mary play that turns a profit 5 years after GM implodes. GM does not need a compact car that seats only 4 and costs $40K, even if Uncle Sam incentivizes it.
John Mercer
Bob,
The new about the Volt is great, but it is distressing to hear people complain that the style has moved so far from the original prototype. I am sure you are way ahead of me, but just in case, has anyone thought to make the original body style a Cadillac? That body style fits much more closely to the Cadillac style, and no one expects a Caddy to get as good gas mileage as a Chevy. That way, we could have our cake and eat it too.
Chia350
To CHARLES:
Thanks for being an avid GM follower!! And a note, the Prius is driven by people who want to appear green. It still has a tail pipe, engine, and pulls up to the pump. Mostly by grungy tree huggers, who don’t shave their legs, either male or female.
As for the VOLT, great job. Great look. Very sporty. People already buy more GM cars and trucks than any other manufacturer, and this one will be no different!
GREAT JOB GM!!
Joe
In response to Ted:
“I bought a lightly-used 1997 Aurora. Man, is that car solid !”
_______________________
I currently drive a 1998 Chevy Lumina sedan (I’ll probably upgrade to a Volt or a Camaro in a few years), and even with over 122k it’s solid as a rock… Nothing major has broken down; I’m still amazed at its condition. Hopefully cars like the Volt will stand the test of time like my old Lumina… I hope it doesn’t take 10 years for the public to finally recognize the quality of GM’s vehicles.
Avi
Dear Bob,
Isn’t there any visionary in the all staff of GM?
Dramatic situation needs extremely dramatic solutions and GM has the solution!
There is an applicable dramatic plan that will take GM out of bankruptcy with strong support of the Congress, as well.
GM needs “the visionary” and to use GM’s inside knowledge.
For example: plan that can be based on two applicable basics:
1. The New Car Fuel Vision - 1 / 100 (gal/mil) hydrogen/hybrid plan
2. Financing - 25% sell/rent 4 years program (based on the German 1981 financing program)
Both bases are GM’s inside knowledge! Why not to use it?
It will make the Congress fans of the bridge loan, (which will become a guarantee more than loan).
Can’t you find among the all staff of GM the person that can issue such dramatic but an applicable plan?
Dennis
Wendell
Your making an assumption that 60% means a complete discharge to 0% before the ICE comes on. However tho get the type of life cycle needed out of LIth Ion batteries the discharge window and full charge window may in fact end up being say 40% to 80%. So since the value was not given as to the minimum discharge state your analysis is flawed. I do know that the above statement is factual and the batteries are not cycled from 0% to 100%. (0% to 100% cycling will shorten the batteries life by years, which is why GM chose a 40 mile target VS a 100 Mile target or more.) Now what the actual window is is unknown as of yet and it appears GM is not prepared to say.
This is the same reason the proposed plug in Toyota prius is expected to go 6 miles on charge before its ICE takes over. For 6 miles why bother. The reason their only getting 6 miles is they didn’t want to redesign the entire car and build it around a significant size battery. Their plan is just to hang a bandaid pack in the trunk.
ToddA
Mr. Lutz,
We appreciate your continuing updates and the general openness surrounding this program at GM.
With other manufacturers offering electric vehicles now that provide substantially more than the proposed 40-mile all-electric range of the Volt, one is left wondering why GM’s offering, still two years off, will fall so far short of this 2008 reality.
Affordability is key, so offering the Volt as some high-end offering at over $30K is not going to fly.
If you want to be seen as cutting edge, you have to be hanging it out a good bit farther than current descriptions of the Volt would seem to imply.
Your company is on the edge of the abyss. Apple could buy you lock, stock, and barrel with its cash on hand. It’s time to really push the envelope or pack it in. As a Michigan resident, I certainly hope you choose the former option.
Wendell Mercantile
“So since the value was not given as to the minimum discharge state your analysis is flawed.”
Dennis,
I get your drift, but my analysis is not necessarily flawed. It is accurate with respect to the information Mr Lutz provided about his test drive.
He left with a the battery at 60% charge and the ICE kicked in at 19 miles. That means the battery pushed the car for 19 miles before the computer sensed the battery at some minimum discharge level and told the ICE to start. If the car can go 19 miles in full electric mode with a 60% charge (as the computer is set up today), that extrapolates to 32 miles with a 100% charge.
Whatever the case, I think GM should quit touting “40 miles on a single charge” until they have done more operational testing and evaluation and can provide the real number under actual conditions.
“Now what the actual window is is unknown as of yet and it appears GM is not prepared to say.”
If they are not prepared to say, they should quit saying the car can go 40 miles on a single charge.
Ted Lewandowski
The Volt’s trip computer should also have the capacity to calculate how many pounds of CO2 the vehicle SAVED in emissions when it operates in battery mode (including cumulative results for the life of the vehicle).
Actually that should be one of the arguments before Congress - most cars emit about 29lbs of CO2 per one gallon of gasoline - so in the course of 100,000 miles ONE Volt could potentially SAVE 145,000 lbs of CO2 (when operating solely on the batteries compared to a standard vehicle that averages 20MPG).
Should list this stat when selling the cars (on the MSRP sticker) as well - most of the European manufacturers have adopted this standard to make it easier to choose the most green car for consumers.
Beaugrand®™©
Actually, badging the Volt as a Cadillac makes sense, and would (almost) justify the $40,000 price tag.
Charles
Chia350,
Priuses are driven by people who want the best gas mileage possible from an affordable, environmentally friendly car. GM is desperately chasing it’s success. GM would LOVE to have a car like Prius on the market right now - it would allow them to tell they story they’re trying to tell today but can’t. That’s why you’ve got execs posting here about products two years in the future and acting like they’re available today.
What’s the difference between a Prius and the Volt? One you can actually buy, today. The other will have a rumored limited run of 10,000 for sale in another 2 years for an estimated $40,000. That is, if GM survives.
By the time the Volt comes out, Toyota will already be two steps ahead. They will have extended their lead. Don’t get too excited about the Volt until you consider that no other car company is sharing such detailed plans as what’s in their pipeline as GM is, for one reason — they don’t have to. GM is so desperate they have no choice but to show their hand now, and try to hype it up.
I’m glad you’re so proud of GM and so disdainful of environmentalists. You have certainly found a place you belong. The guys running GM agree with you that global warming isn’t real and this whole ‘green technology’ thing is just about grungy tree huggers.
Keep it up and you’ll discover that even grungy tree huggers like to be treated with some respect. Don’t expect us to just BUY the Volt, we’re gonna shop around. There are going to be lots of green choices on the market by 2011, and I doubt they’ll cost $40,000.
angelina J
Hi Bob,
I just want you to consider one thing-I drive a Prius and I shave everywhere….Still breathing?
Brett J
If the Vice Chairman sees fit to drive the showroom floor model but not also the ‘overuse/abuse’ tested models, will he know what a poorly serviced running model will say about GM to the general public? But in business knowing your horses at the track is a big key to success initially and you did say that your senses would’nt be up to snuff without technicians. Sounds like fun, ‘I want to try one!’
Joe Gakenheimer
Great Bob, glad you do shop for your greens. But, you are beginning to conjure up some excitement in me; the Volt and more so the Cruze is catching my attention. Being an Ohio resident, I can’t wait for the Cruze to make it into production. The Cav/Balt is getting a little old, even the SS which is pretty sweet, but it is about time to move on. Hopefully, you guys will push up production a bit for the U.S. market because the pics I have seen from on other blogs gets me thinking GM can build not only a nice compact car, but truly a world class compact.
MyFatFace
GOOOOOOOOOOOOooooooooooooooooooooooooooooodddddddddddddd!!!!!!!!!!!!!
Now tell it to CONGRESS !!!
Tell Rick to elighten them and to be move lively and bowl them over with quality scores and MPG figures, and the new, greener products, too.
If he cannot be more convincing and with a realistic thought out plan, send someone esle, just get the damn thing done.
Philip Lavietes
Bob, sounds like the Volt is making progress, but I agree with another Blogger that it needs to be put together with an overall product line, not just one product in a large GM basket of mostly the same as before. GM products are better now than before. I used to buy exclusively GM cars until I had to take my 1987 car back to the dealer to have the hinges replaced so my doors wouldn’t fall off and then the dealer kept the car for three days instead of the initial promise of one day. I rent cars regularly and have been impressed with your new cars. However, old impressions die hard and your car lineup is not really distinguished from your competition. Your plan for the bailout should distinguish GM as an innovator and put your cars into the context of overall transportation solutions including public. The overall US Transportation infrastructure needs work and how to invest in that infrastructure is a big question. For example, could there be a way for your electric car, and hybrids to tie into a power grid that could give your cars extended range and also directional control so that the cars could be directed along dedicated pathways reducing accidents and reducing the power required for each trip? All I hear about in infrastructure is building more roads and expanding metro trains which were the solutions for the 20th century. What would be a good 21st century transportation solution. How could the auto companies be the leaders to transform us to that solution. More hybrids may be part, but you will be seen as following Honda and Toyota. It is time for GM to lead again, if it wants to survive.
Laramie Jordan
I like the idea above suggesting Rick and Bob make an overnight “Cannonball Run” from Detroit to Washington for Rick’s next appearance before Congress when he has to show he has a recovery plan in exchange for the bailout money.
Driving a run-of-the-mill Cobalt, non-stop from Detroit, would show they have confidence in their vehicles. Taking the wheel themselves would show they are “hands on guys” ready to do what it takes to save the company. Think of the goodwill that would generate among GM’s employees.
edvard
Chia350,
Sorry, but me and my Wife dive one and don’t match the person whom you assume drives them. The fact is that ours is now almost 8 years old and actually delivers around 50MPG is something I don’t think anyone could complain about.
jg
There are some of us who will never buy a Chevy. GM needs to offer an upscale version of the Volt, and you already own the best name for an electric car: Electra! A Buick Electra could do more for GM than Tiger Woods ever did.
Sheth
CharilieH:
I am well aware that the Volt isnt for sale now. My point is that according to the media GM hates the environment and wants polar bears to drown while Toyota makes nothing but “fuel efficient vehicles that Americans want to buy”. I guess thats why Toyota’s sales are down 10% for the year and they have slashed their profit forecast.
The Camaro is slated to get 26-27mpg on the highway which is the same as the 370Z that Nissan recently unveiled. Please explain to me how the Camaro could be considered an inefficient vehicle. My V6 sedan only gets 26mpg on the highway. The media favorite Camry only gets 28mpg and makes less hp. Sorry, but the Camaro isnt a gas guzzler. I would call an M3 or Lexus IS-F a gas guzzler however. For the record the last gen Camaro was killed because it was on an old uncompetitive platform and GM didn’t have a suitable replacement RWD chassis at the time. The Mustang has sold relatively well since the demise of the F body cars and Nissan continues to make the Z. In case you missed it Hyundai is preparing to launch and affordable sports coupe next year. If others are competing in this segment there is no reason for GM to sit on the sideline.
You should note that “your tax dollars” will either be loaned to GM or given to the banks with no strings attached. You will not be getting a refund. There are two possible sources of the $25B and both have been appropriated already which means it will not come back to taxpayers.
You say that GM would be stupid for making the Volt if its not profitable but most of the Toyota loving critics say GM was STUPID for not pursuing hybrids when they wouldn’t have been profitable. The pundits and armchair CEOs praise Toyota for selling the Prius at a lost in the name of “innovation” and “environmental responsibility” but you say GM shouldn’t do the same with the Volt. That makes no sense to me. You are saying GM should only focus on hugely profitable segments which means you want them to sell only SUVs and luxury models. They aren’t going to make tons of profit on a Chevy Cruze or Pontiac Vibe.
Kyle
Take the new Cruze/volt mules (and a few regular Cruzes with the 1.4 and the plug-in Vues) to DC for the next hearings. I would suggest that Richard Wagner lead the caravan drive out himself in the cars. Also, follow Angus MacKenzie’s suggestion at Motor Trend and have Lutz accompany various members of the House and Senate on a road test of the vehicles. It you have any problems like MacKenzie suggests this is fine. Keep being transparent and follow your current disclosure strategy. Telling Congress about the problems might be an asset. This will send the right message. Bring your support trucks and take care of the problems as they come.
Sheth
Charles,
I hate to inject any reality into your world but the truth is Toyota and Honda do not go around affirming the existence of global warming. If Toyota cared about global warming they would not have invested $1B into a new Tundra plant and spent over $100M blanketing airwaves in advertising. How many Prius commercials have you seen on TV? Not many. Toyota is a business and their goal is to crush competitors and make money. The Prius helps them do those things. Even though its not profitable (or barely) it gives them cover while they introduce vehicles like the Tundra, Sequoia, LX570, FJ Cruiser and Lexus IS-F. Its a smart strategy because people like yourself seem unwilling to pay attention to anything Toyota makes that isn’t a hybrid and embrace the myth that Toyota cares about the environment more than GM.
Another issue is that you believe that the entire battle for efficiency begins and ends with the Volt and Prius. This is shortsighted to say the least. Yes the Prius is here today but GM has two mode technology on buses and SUVs today. When you find a Toyota hybrid system in a diesel bus let me know. It is true that Toyota has a higher mileage car than GM has in 2008. It’s also true that GM has invested in TWO (not one) hybrid systems and GM has TWO versions of the Vue that are more efficient than any Toyota SUV. It’s also true that Toyota has announced no plans to adapt Synergy Drive to its largest gas guzzlers which get about 13mpg in the city. If Toyota is as “green” as environemntalist seem to think they would do something about their gas guzzling V8 powered trucks. Instead they assume the public is too naive to notice they have the most inefficient trucks on the market. It’s also true that GM is using 6 speed autos and direct injection in more vehicles than Toyota. Both technologies improve mileage and DI reduces cold start emissions. You might want to ask Toyota why they restrict direct injection to expensive Lexus models when GM offers it on a $23K Cobalt SS.
You are also overstating the popularity of “green” cars in the US market. The Pruis is the ONLY hybrid to ever acheive significant sales success and hybrids are currently less than 3% of the market. A large SUV like the Tahoe outsells every hybrid on the market except the Prius on a monthly basis. You also falsely claim that only GM makes announcements about products in advance. Not true. Toyota has given information about the next gen Prius over the past year or so. We already know it will have more power, slightly better power, solar panels, more space and a Lexus twin. Toyota has also made announcements about a plug in variant that will be provided to fleets in 2010 and we know they are shooting for far less electric range than GM is at this point. Honda has also leaked out information on the Insight long before it went on sale.
Dr. Turkey-Belly
Wendell Mercantile:
No it does not. Battery charge and mileage are not linearly related.
Dr. Turkey-Belly
bluebaby
Her in so. cal. give us CNG everyone loves the idea to fill @ home with a converter from the utility co.
Ted Lewandowski
Bob,
Have you guys considered using solar panels in the roof to not only recharge the batteries when the Volt is parked (for up to eight hours at work) - but to keep the interior cool by circulating the hot air out of the car.
Most car interiors are damaged from interior temps going up to 140 degrees during the summer - not to mention added safety in the event someone like a toddler is left unattended in the car for several minutes.
With the cost of flexible solar panels dropping every month this would not add much weight (if any as there would be no paint) or cost - and the added VALUE would be significant.
At minimum GM would have the same feature as the new plug-in Prius that will be out before the Volt hits the showrooms.
Sheth
Those who are adamant about how imports are far more efficient might want to check out this link.
http://consumerguideauto.howstuffworks.com/the-american-gas-guzzler-myth.htm
The reality is a little different from the nonsense being pushed by the media and Congress. Its amazing that one can be a sitting congressman and not have enough sense to research such basic facts before a hearing. The management in DC is far less competent than anyone running GM.
Ted Lewandowski
In addition while were at discussing leading-edge technology - why make the Volt body panels out of outdated steel - using aluminum (maybe recycled to be even greener) would save at least 400 lbs of body weight (increasing MPG by at least 5%) - and furthermore why add 200 lbs of paint on top of that? The aluminum can be clear coated (exactly what mountain bike manufacturers have been doing for years). to achieve a natural silver beauty saving not only significant overall weight but when the savings cost of not painting each car is factored in - it would probably balance out in terms of the additional cost of the aluminum.
Also with about 600lbs LESS of dead weight to move - the Volt could theoretically go another 5 miles without changing anything to the batteries - plus with roof solar panels in place there would still be some recharging taking place during the 40-45 mile electric range of the Volt (45 minutes exposure at 60 MPH) so that could extend the overall distance possibly by another 5-10 miles.
HotCarNut
And I have to say, after driving it with the Volt system placed within, I feel terrific about the driving dynamics of that architecture. It instantly feels several price classes higher than what it actually is, due to the level of refinement.
Given that the Volt will be several price classes above it’s other siblings I’d say that that kind of refinement should have been expected and demanded, not a pleasant surprise. Yes, I realize that it’s supposed to be a technological showcase, but it does actually need to be a good car too.
Bob Kaesser
Why is it that GM could build the EV1 in 1996 that could get almost 100 miles on a single charge, with no added gas engine, and using lead/acid batteries?
Yet today, they can’t build a electric car that can get over 40 miles on a single charge, even with the much more efficent lithium-ion batteries.
Perhaps GM should have kept a few EV1’s rather than calling all of them back off of lease, smashing, and then shreading them.
Charles
Sheth, I didn’t claim Toyota is perfect. But their execs never called global warming “a total crock of sh**” or insulted women who care about the environment by saying they must not shave their legs.
Oh and also, Toyota is not asking me and all the hairy-legged women of America to write them a fifty billion dollar welfare check. I feel pretty good predicting that if that check gets written, your beloved Mr. Lutz won’t be around to spend it.
Yes of course Toyota is a business. They’re what you might call a “successful business.” GM, on the other hand, is a failure. Sorry to “inject any reality into your world,” Cobalt SS aside. What on earth is a Cobalt SS? I’ll take the Lexus though, thanks.
Sheth
Charles:
Lutz was very clear that he had his own opinion on global warming but that was not the company’s position. It is silly to think that you would rule out buying a GM vehicle because you don’t like one of their execs. For most people it’s not that personal at all since they are primarily concerned with the competence of the product. Lutz made it clear that he wants the Volt to succeed and THAT is what counts. MAny people share his views on global warming’s causes. It is foolish to pretend that his view is some far out perspective totally out of touch with the mainstream. I think we can all agree that people are generally looking for more efficient vehicles (and that doesnt mean they all want subcompacts) but the reasons are more related to savings than concern about global warming. Today’s vehicles are very clean by historic standards. While a Tahoe pollutes more than a Prius that doesn’t mean the Tahoe is dirty. That would be like calling the person who got the bronze medal in the 100M dash “slow” because they came in third place. The environmental radicals don’t want to concede that modern technology has made cars quite clean compared to their predescessors. I also find it amazing that a country that largely eschews urban living and public transportation has so many people who are now suddenly concerned about “imported oil” and global warming and want to blame the Big 3 for both issues. The Big 3 have not forced anyone to buy a vehicle they don’t want nor have they precluded anyone from living in a city with an excellent public transportatoin system. Americans want to drive as much as they always have but with no impact on the environment. Sorry, but our car based lifestyle is just as much to blame for these problems as anything GM has ever done. Not that you would accept blaming anyone but GM for anything.
“Yes of course Toyota is a business. They’re what you might call a “successful business.” GM, on the other hand, is a failure. Sorry to “inject any reality into your world,” Cobalt SS aside. What on earth is a Cobalt SS? I’ll take the Lexus though, thanks.”
Toyota is a successful business largely because they dont have to deal with the healthcare costs American automakers have to in the US. In addition, Toyota has made a killing in the wide open US market while GM and others have not had the same access to the Japanese market. Many people dismiss this by saying GM couldnt make a car that would sell in Japan anyway but a quick look at GM’s success in Europe blows that argument out of the water. If GM can design and sell cars that Europeans will drive I suspect they could do the same in Japan if they had the same access and opportunity. Toyota is very lucky that is can control 45% of its home market which is nearly closed to foreigners AND come to the US and expand unfettered. If GM wasn’t paying pensions, healthcare costs and didn’t have unions they would likely be as profitable as Toyota. Perhaps GM shoudl relocate to Tokyo in order to compete successfully with Toyota because the United States doesn’t believe in national healthcare and consequently many US companies (especially manufacturers) are falling behing their foreign counterparts.
If you dont know about the Cobalt SS you must not read about cars. Its a 260hp sports compact that has won a few comparisons recently and is being called the best FWD compact on the market from a performance standpoint. It’s also a lot cheaper and more fuel efficient than a Lexus.
Actually GM isn’t a failure as of today. Lehman Bros is a failure. Washington Mutual is a failure. Nissan was a failure when it had to be rescued by Renault. MAzda was a failure when it was going bankrupt and had to be rescued by Ford. Jaguar was a failure until saved by Ford. Companies that are still in business and turning out quality products aren’t usually called a failure.
Charlie H
Sheth, I looked at the howstuffworks article. In his desire to “prove” another baseless perception gap, the author completely left out a few game-changing vehicles… the Prius, the Camry hybrid, the Highlander hybrid and the Ford Escape hybrid. These vehicles are all standouts.
Nor does GM offer anything like the Yaris… and never mind the official EPA figures, which it seems are difficult to achieve in real-world driving. The Yaris combined rating is 32mpg vs the 30mpg of the Cobalt XFE. People actually driving the Yaris report an average of 38mpg. That’s not highway fuel economy, that’s the overall fuel economy for all drivers who took the time to report to the EPA. The automatic Yaris isn’t quite as thrify but users still report an average of 35mpg in their real-world combined driving.
Moreover, the XFE is almost an exercise in substanceless marketing symbolism… how many manual Cobalts does Chevy shift each year vs automatics, none of which have received the XFE treatment? Few Cobalts are actually on the road with XFE capability.
Digging deeper into the report, we find all kinds of differences that help us understand the perception that Toyota and Honda are genearlly more fuel-efficient than Detroit. The 4Runner, for example, until recently, was principally sold with a 4-cylinder engine. Sure, Toyota has upsized it and now offers a relatively large number of models of SUV but with generally tiny ship quantities (something like 800 units/month for the Sequoia). Detroit has spent so much money and time hammering the “need” for big iron into people’s heads that Toyota has got to think that selling nothing but small cars is just leaving money on the table. They are, after all, a business.
Still and overall, Toyota’s fleet looks a lot greener to me. Go do a weighted average of units actually shipped and see what you come up with for a real corporate average fleet economy.
Finally, here’s the big thing… Toyota may or may not be “green” and I really don’t care but they do offer cars - like the Prius and the Yaris - that give me the personal transportation I need with the outstanding fuel economy that I want.
And, while Toyota execs may not spend a lot of time warning us about global warming, neither have they been caught out calling it a crock… I’d say that probably helps their green image quite a bit.
Gerard
Charles,
Have a sense of humor. No need to sound like you have the Statue of Liberty’s torch up your rear. I believe in global warming and drive a small car, but I still find Mr. Lutz’s comedic remarks in the spirit of fun. He can have his own opinion. It’s when greenies start whining that middle-of-the-road people lose sympathy. Toyota management contributed to the automaker legal fight against California’s effort to offer heightened CAFE requirements much sooner than the EPA’s. Toyota, along with Nissan, heavily invested in full-size V-8 truck development with the intention of expanding annual sales figures substantially. The Sequoia, Tundra, QX, and Titan are just a few examples of large and thirsty Japanese trucks that do their part to stain our air and atmosphere.
Onto the Volt…
Like the Prius, the Volt is a single item and not part of an existing product. The Prius’s astonishing commercial success has been that it is a well-built machine, technologically impressive, and visibly distinct. It’s an environmentally friendly compact and a fashion statement. The Volt has the potential to be an image-shaper. The 2010 Prius will continue to use to older nickel-based battery form, leaving some leeway to get a step ahead in the public’s eye. Keep the price reasonable and make the car dependable. I’m stating the obvious, but that summarizes the need US automakers have overlooked time and again.
I look forward to seeing the Volt in action, as well as seeing the next generation of Chevy products continue to come in. The Cruze looks especially promising.
Dennis L.
I understand that buyers are lining up for the VOLT .The money crunch could be reduced some by starting a pre-production DEPOSIT to reserve numbered production VOLT’s the sooner a deposit is put down the faster you get your car IE $10,000 first 1000 ,$5,000 for next 5000, +++++etc Same for the Malibu.
jc
Hey Charles;
I wonder how much trouble the domestics would be in if America decided to implement an import system like Japan’s, China’s or Korea’s. Seems to me that American auto makers aren’t fighting on a level playing field. And as to the bail out, Toyota & all the other Japanese automakers have benefited from their governments actions, wether its a protectionist economy or devaluing their yen. The Japanese go to great expense to protect their industry. It’d be very different if America were like the most of countries in the rest of the world.
SaturnBob
Overpriced gimmicky inneficient electric cars at the expense of your other divisions? Shame on you. and shame on you GM for what I read this morning:
http://www.bloomberg.com/apps/news?sid=amIqBBYGRh5Q&pid=20601087
THATS’a plan? Gee, I guess everyone forgets when GM claimed bankruptcy back in 2004 and as well threatened to cut Saturn, Pontiac or Buick. Well, here we go again. Lets not even think about Lutz or Wagner taking a pay cut (ref: Iaccoca) in order to receive Gov aid as was specifically suggested by those who offered aid last week and turned down by these out of touch corporate mogols.
Saturn, in particular has been bastardized by GM since falling under it’s corporate wing in 2004. In 2007, GM began revamping Saturn’s entire line-up by merging it with it’s European Opel brand, giving Saturn a whole new product line. Yet GM never put much money or interest in marketing this new line up which resulted in what every good marketer knows: if nobody knows you have it, nobody will care.
Today is GM’s ONLY division with 99% of it’s current portfolio derivative and shared with it’s Euro counterpart(everything except the Outlook).
Pontiac, Buick nor GMC can make this claim. And it is my belief that while GM continues to produce shoddy, inefficient gas-guzzling US built products, Saturn should not go unrecognized for it’s heavy potential - if properly handled - to change the public’s poor perception of GM.
Ignoring the yet untapped potentials of Saturn and depriving it of widespread advertisement will not and has not benefited GM.
Saturn’s portfolio which has always countered all other GM’s product lines, emphasizing on fuel efficient, safe and stylish vehicles paired with excellent customer experience is a one of a kind for GM and is in line with GM’s goals for the future. Discarding the Saturn division would only be cutting off GM’s own nose to spite an already tarnished face.
Ted Lewandowski
Hi Bob,
Happy Thanksgiving to you and your family!
_________________________________
I just want to add something about the current GM management philosophy - although this is just my opinion - I finally figured it out that GM’s RUNAWAY TRAIN MODE OF OPERATION is to ACTUALLY GO INTO BANKRUPTCY AND FILE FOR CHAPTER 11 to FORCE the UAW to major form of wage concessions to make GM competitive with Toyota/Honda/Nissan/VW.
This is not going to happen until you shock them that you might be actually going out-of-business.
There is NO OTHER WAY GM is going to be competitive if the current wage and pension structure remains in place - silly of me not to figure this out before!
So Rick get back on the G4 and fly back to Congress just to show us ‘how out of touch management is’ - now that I know your reasoning - brilliant!!!
Also I am certain you will need to produce (and sell) 80,000 VOLTS just to break even on the R&D investment - 10,000 in the first year breaks down to an allotment of 200 - YES TWO HUNDRED - for EACH of the 50 States! That represents only 400 Million in SALES - FAR SHORT of the 25 BILLION that GM is requesting in LOAN/GUARANTEES.
Eric P
Bob - Keep going with the Volt, man! Great car.
Well, I know you shouldnt comment on rumor, but if I may. Please dont kill Pontiac. If you consolidated Saturn into Pontiac, you would have one very strong brand, not 2 mediocre ones. The next Aura would be the next G6, the Astra would be a much better G3, and the Vue would be a good Buick (same dealership as Pontiac).
For whatever reason, America doesnt combine tradition with innovation very well. Change that.
Eric
john erickson
bob lutz
there is one simple way to sell more cqrs than you can build. OFFER 12 YEARS AND 120,000 MILES FOR YOUR POWERTRAIN WARRANTY TO PROVE YOUR FAITH IN GM QUALITY. YOU SHOULD HAVE BEEN AT THIS POINT LONG AGO…………….
Rooster
Bob,
May I suggest that when GM next briefs Congress, you explain the important role GM is playing in moving the nation away from imported oil — and thus increasing national security. Consider the following:
In 2003 U.S. passenger cars consumed 74,590,137,000 Billion gallons of gasoline which roughly equates to 3,825,135,200 Billion barrels of oil. In 2003, the US imported 4,101,870,000 Billion barrels of oil. If every passenger car in the United States had been a E-REV with a 40 mile electric range like the Volt, then 78% of the demand for passenger car gasoline would be eliminated according to the BTS survey. That equals 2,983,605,000 Billion barrels of oil, or 72.7% of all net imported oil for the year.
Furthermore, according to the same BTS survey, an additional 12% of daily commuters drive between 40 and 60 miles per day. If they too drove a E-REV with performance like the Volt, their equivalent gas mileage would have been 150 MPG or greater. That is nearly 7 times the 2003 average passenger car fuel consumption of 22.3 MPG. Thus the next 12% of American drivers who consumed approximately 459,016,220 Million barrel of oil in 2003 would have consumed less than 68,523,316 Million barrels of oil. That equals to another 10% net reduction in imported oil. Ignoring the remaining 10% of American commuters who drive more than 60 miles per day, the first 90% have the potential to eliminate more than 82% of net imported oil by driving a E-REV like the Volt.
Wendell Mercantile
“No it does not. Battery charge and mileage are not linearly related.”
Turkey-Belly,
You sure? If it’s not then GM should program the Volt so that its ICE kicks in even sooner.
On Lutz’s test drive, he took off with a battery at 60% capacity and was able to drive 19 miles before the ICE kicked in. (With a pure linear extrapolation that means he would have be been able to go 32 miles with a battery at 100% capacity before the ICE kicked in. That’s 8 miles less than the single-charge number of 40 miles Lutz has been giving the media for the last 18 months.)
If what you say is correct and the Volt can really go the 40 miles Lutz claims on a 100% charged battery, that means it would travel 21 miles (40 - 19) as the battery drains from 100% to 60%.
If it can go 21 miles on the first 40%, and only 19 miles on the last 60% of charge, then Volt engineers should program the ICE to kick in even sooner. The last 60% of charge in the battery seems to be far less efficient that the first 40% ~~ if the Volt has an actual range of 40 miles on a single charge.
Perhaps the ICE should be on all the time, operating at a super-efficient constant RPM to turn a generator that always supplies current to the induction motors at the wheels. That might be more efficient and less costly. The Volt could then use a smaller, lighter, less expensive battery whose primary purpose would be to supply a burst of energy when accelerating. A true series hybrid.
With a lighter, less expensive battery, GM could bring the Volt into the price range of more people, as well as bumping the mileage up because of lighter vehicle weight.
Craig H
Instead of flying to Washington in a jet, drive there in a Volt.
Buy up the Tesla, Wrightspeed X1 and Aptera. Improve them and manufacture them.
Design a GM electric 5 door Yaris. The new American VW bug.
Better to design and build one car well, than ten poorly. Simplify your product line.
Have a clear and workable strategy to moving most of product line to electric or natural gas by 2020 or sooner. And follow through.
Ask for even more cash from Washington and truely commit to moving away from oil economy. Better to do it now, while there’s some cash on the table. Later, the oil won’t be there. The cash won’t be there. GM won’t be there.
Convert some auto manufacturing facilities into wind turbine and solar panel factories.
Put the “motors” back in General Motors. Ditch the engines.
Prosper.
kbanginmotown
Dear Bob,
Gruetzi! I have a suggestion on HOW GM should make the case for loans to congress.
.
I propose a convoy of GM vehicles representing Christmas Past, Christmas Present and
Christmas Yet-To-Come.
.
This convoy should leave Detroit on Tuesday and stop at auto plants in Michigan, Ohio, and
Pennsylvania along the way.
.
Christmas Past: Classic Pontiac GTO and Chevy Corvette
Christmas Present: Chevy Malibu and other high-mpg vehicles
Christmas Future: Chevy Volt *on flatbed trailer* (it won’t happen unless help comes)
.
This can help spotlight the work that GM has done, and will continue to do on behalf
of the US consumer.
.
Good Luck!
kbanginmotown
raamatupidamine
what’s the difference between germans and americans? germans make cars, americans make money. or atleast try to make money. because the problem is, people buy cars. so whoever makes good cars makes the money. i don’t want to be rude or anything but as long as GM continues to produce shitty low tech cars that look cheaply made GM is finished. and what the hell is up with the names?? why not come up with a name and stick with it. every new model has new name. why on earth?
Best Regards,
Raamatupidamine
http://www.youtube.com/watch?v=ubjqUP0nTeE
Michael B.
Hello Bob, I am worried about negative comments on the media about the VOLT:
- 40 miles is a joke. Others are already able to achieve much more than that and Volt is only for 2010.
- Why a “big” electrical car like that? Others are smaller and so more efficient…
- GM is waiting for a battery capability that will never exist…
Please make sure to address this, to avoid a negative image for the vehicle that is not yet born and is advertised as the hope of the hole GM…
Tks.
Sheth
Charles:
A few corrections:
Toyota sold almost 200k Tundras iin 2007. That means it was more successful than the Prius and FAR more successful than the Yaris. The Tacoma and Highlander are also high volume vehicles. I don’t believe Toyota should be priased for the failure of some of its larger models to gain traction. If Toyota could sell more Sequoias it would do so. Unfortunately for them GM’s full size SUVs are seen as the benchmark for the segment. I don’t believe in using CAFE ratings issued by the government that are sales weighted. Why? Because it rewards companies like Nissan and Toyota for making unsuccessful products with poor fuel economy. Its important to look at the fuel economy of the models that are actually offered as opposed to sales weighted averages. If Toyota makes trucks with worst in class mileage but those vehicles languish on dealer lots they end up with a better CAFE rating than GM even if GM’s trucks have best in class mileage simply because GM sells so many more trucks. As for the 4Runner I will remind you that it hasn’t had a four cylinder for many years. The current model gets poor mileage with V6 and V8 engines. I also find it laughable that you would say Toyota built trucks simply because Detroit convinced America to buy trucks. Toyota builds trucks because thats what customers want. This is why nearly 50% of the auto market consists of trucks and crossovers. Its silly to pretend “most” Americans are shopping for hybrids and subcompacts when the sales figures do not support that.
The Yaris’ mileage is slightly better than the Aveo, its a matter of a few mpg. The Yaris has hardly been a big seller for Toyota compared to the Camry and Corolla. In some months it’s been outsold by the Highlander and ES350.
I would also like to point out that contrary to your belief most Americans do not monitor the public comments of auto industry execs. You infer that people will be more inclinded to buy TOyota because Lutz doesn’t believe in man made global warming but the reality is most people are not familiar with Lutz or any other high ranking GM exec. People are going to judge GM on the products offered, not Lutz’s personal opinion. You love Toyota based on your belief that they care passionately about slowing global warming even though no statements have been made to support this notion. For all we know Toyota execs may agree with Lutz on this issue but they know their products are what people truly care about in the end.
Eric P
Bob - Another crazy idea I have mentioned in the past. Being in NY, I would love to see a Longer Wheelbase Chevy HHR taxi! Even if its only 3-4 inches longer, thats good room compared to newer Altima and Malibu cabs I have been seeing. Put a tamer version of the Cobalts turbo 4. That engine gets 22 mpg city…I bet you can get 25 city if you tweak it.
It would look cool in bright yellow and be an attention getter!
billy candle
I am proud to be part of the workforce here in Lordstown, Ohio, the future site of the Chevrolet Cruze. General Motors and the UAW have made great strides over the past couple years to set in motion many cost saving labor agreements. I’m confident both sides will continue to do what is needed during these turbulent times (most understand is due to collapsing economies across the globe) to save our company. That being said I suggest the company and the union investigate the upcoming layoff of hundreds of workers in January. It doesn’t support our cost saving corporate environment we’ve established to lay off hundreds of employees (many with very high corporate senority) the company will be contractually liable to pay extended wage and medical benefits to and retain recently hired workers (some with less than one year) they could lay off with no obligation. If we make smart decisions now it makes a brighter future for all of us.
Gary Dikkers
Mr. Lutz,
Here’s a suggestion for GM as the senior staff stays up late working on “The Plan” to present to Congress later this week:
Divorce Volt from its Chevy badge
1. The Volt is not “Chevy-like” and needs its own badge to be equally appealing to the blue-collar demographic that has typically bought Chevys, and the country-club and carriage demographic that has typically bought Buicks and Caddies.
2. The Volt should stand as its own brand. I’m sure you already have in development a hatchback version, a two-seat sports version, a compact pickup version, and perhaps a version tailored to small businesses.
3. Simply call all of them the “General Motors Volt” and differentiate each by model and function.
Establish a new paradigm for selling cars
4. You need a new paradigm for selling Volts. Its important you get the Volt away from the legacy your traditional dealer network carries after years and years of putting profit above customer needs and service. (You may not realize it, but GM’s dealer network has hurt your company as much as the car quality over the last two decades.)
5. That new paradigm for showing and selling the Volt should look something like the way Apple sells iMacs.
6. You should establish Volt showrooms at major malls and separate them away from the traditional dealers that line the highways into and out of most American cities.
7. As you break the Volt away from the legacy of your traditional dealer network, you should also begin selling them through the Internet. In fact, the paradigm you’ll eventually want is to make them only as demand comes from your mall dealers and through the Internet. The desirable model would be to build them, only as customers order them, and then advertise your ability to custom-build them to customer specs. If someone wants one painted purple with yellow lightning bolts, be ready to build it.
8. Those mall showrooms should be staffed by a new breed of car salesmen whom you have trained and indoctrinated to put customer service above all. They should be sharp and professional and held to strict GM standards unlike those who staff most of your current dealer showrooms.
9. The mall locations will allow casual passer-byes to see the Volt in a clean, consumer friendly environment as modern and up-to-date as the Volt will be. Parked outside the mall, you can keep models ready for test drives.
It’s time for a new paradigm of selling cars, and the Volt is your chance to break out of the pack and make that change.
Joe D., Cleveland OH
Bob,
I second some of the people here who would like to see Rick drive to Capitol Hill in a Volt. In fact, I would encourage him to save all of his fuel reciepts from the Detroit - Washington DC drive, and show milage, fuel costs, and drivetime to congress. I think it would send a tremendously strong message to our lawmakers and our country that GM is in fact on the right path, they just need a little help to get through the next year.
Dr. Turkey-Belly
Just bought an Enclave. I LOOOOOOVE IT.
Andy
Mr. Lutz, I double dog dare you to drive the Volt to D.C. for the hearings on Thrusday and Friday. Seriously.
Ted Lewandowski
18 BILLION is what GM asked for today - that’s enough money to keep GM in business for exactly 45 days beyond running out of its own operating capital (GM is currently spending 75 MILLION PER DAY).
Planning to sell 10,000 VOLTS in the 1st year (sometime in 2010 - at least 24 months away) is not going to save GM either.
GM Europe (Opel) has great line of diesels - why isn’t Saturn using these engines in the Outlook and Aura is beyond me - these motors already have been certified to strict European emission standards as well as low-sulfur diesel standards (less than 50 PPM) and be 50 State compliant here without any major modifications.
Install - if not make the option available - for most models Chevy/Pontiac/Buick/Cadillac/GMC.
How about a Chevrolet HHR that gets 50 MPG - MY POINT is GM NEEDS TO DO SOMETHING NOW - not just wait for the Volt to make its debut.
To reduce inventory costs these diesel models would be special orders and be built once a customer places a non-refundable 25% deposit or pays for the vehicle in full (10% savings would apply to the second option as GM would essentially have the car paid for before it was built saving its operating capital - similar to European Deliver Programs that Volvo and Saab offer).
Mr. Lutz you should even consider appearing on TV - similar to what Lee Iaccoca did 25 years ago.
Right now GM is a faceless corporation - no American can relate to it - but having you make a plea to buy an American car would be a significant and I’m sure a successful selling tool.
B Knotts
I’d rather have a small sedan with a four cylinder diesel, six-speed manual transmission and rear wheel drive.
Keep it simple.
Balaji
Its time that GM focusses on Cars which run on multiple fuel options other than petrol given the volatility in the world’s oil prices. When can we expect the Chevy Volt to hit the Indian Market - even though the market is pretty price sensitive the confidence in GM as a pioneer in technology is never lost .. Hope you guys get the necessary funding to keep the business running
DH
I’m just wondering why I wasted 2 minutes reading a blog post from a guy who doesn’t believe in global warming and who has driven his company into (soon to be) bankruptcy.
Gerald McEachern
Bob,
If your still following this thread, you should be setting up a meeting with Ted Lewandowski and Gary Dikkers. Great ideas, guys.
But as much as I love cars, I hate to say it, the present automotive paradigm is nearing its dreary end. (Toll highways with cars backed up for miles, decaying infrastructure, long commutes, single-driver commutes, trillions of dollars of bloated steel vehicles idling at stoplights, millions of square miles of [yes!] global warming inducing parking lots, obscene quantities of our last remaining fossil fuel reserves disappearing every hour we drive…which is why, Bob, you’d want to take the chopper to work.) Even with e-cars, the model is dying. We need a paradigm shift in transportation as great as the shift from the Texas Instrument calculator to the current iMac.
So Bob, where’s the Moore’s Law for transportation? The real problem is, we’re all trapped in a legacy technology (an individual mode of transportation) that we can no longer afford. The industry is the problem. So are we, the consumers. Forget about the government (they’re just us, in a different suit). We won’t shed the paradigm (expanding our physical persona by 20 times thanks to our cars) until we’re absolutely forced to do so, or until someone with enough vision can convince us there’s a better way.
The Volt? Simply another line extension. Two decades ago Steve Jobs and Steve Wozniac of Apple computer got it right: it’s not the computer, it’s the interface. Simply put, he personal vehicle as we know it is the wrong transportation interface for the future. The whole idea of personal transportation needs a total paradigm overhaul. Now, which transportation company has the guts (Bob) and the foresight to take that on?
Have enjoyed reading all the postings in this section. Doubt I’ll hear from you Bob, but do contact Ted and Gary!
Gerald McEachern
P.S. Bob, me again.
You might also want to invite Philip Lavietes. He’s moving toward the paradigm shift.
MrMark
I appreciate GM for posting these comments. My guess is that about one-third are true believers (“Go America!”); one-third are overall satisfied with GM and lament its decline but want to see it survive; and one-third divided between skeptics (I’ll believe the Volt when I see it) and those indifferent enough to say ‘let GM go.’
I count myself somewhere in the last third - skeptical because the Volt seems like a cynical gambit (an eleventh hour “hail Mary,” as someone said) and contemptuous because I’m angry that we as Americans squandered our distinguished industrial heritage in a few short decades. Now we find ourselves noncompetitive in many areas of manufacture or altogether forced out of our own markets and those abroad.
How did it come to this? With regard to GM there is no mystery. It seems that the company is designed to fail in a competitive global marketplace where foresight and innovation are prized and inefficiencies (notably labor discord) are punished. Business school case studies have elaborated many lessons by contrasting the organizational culture at GM with that of Toyota. The problems are systemic, structural, and cultural, they say. To me it is irreparable; GM will not change. The bailout is a non-starter.
As an urban planner, GM and the other behemoths roaming the earth looking for low-hanging fruit are a reminder of the larger story of how American industry failed our communities. The fates of business, people, and places have always been directly connected by local institutions, personal relationships and not least philanthropy. What was good for GM (and Kodak and Bausch) was good for the neighborhood.
Not so much anymore. Detroit and Flint, Utica and Rochester, and all of the dependent supplier communities have long felt the pain. Decimated by plant closings and haunted by the main streets that illustrate how painful has this drawn out death knell been for the formerly glorious 19th century American cities. These former engines of innovation are reminders of a time when America was the global leader, and a concrete signal that we are no longer.
In these cities I see willful neglect. Not just neglect of places that have propelled us to greatness in the 20th century, but the patrimony of American spirit and competition once represented by GM. In the 21st they are dragging us down.
I don’t know whether the Volt will ever make it to market, but in the longer run the question is mooted (at least to me). On the Volt alone this company cannot rebuild its legacy, and on GM – and even Chrysler and Ford – America can no longer stake a claim to leadership in the durable goods industrial sector. RIP.
gtjeff
While the Volt is a novel idea, the bottom line is priced at over $40,000 this vehicle will be nothing more than a niche product, especially when $ 25,000 hybrids are readily available on the market. This vehicle is not going to save the company.
If your company is really thinking strategically, you will maximize the fuel economy of the next generation VOLUME Cobalt (drop the mediocre Cruze name). Spaceframe construction with plastic panels would send your competiton back to the drawing board. You have the tooling sitting unused to make inexpensive, light, fuel efficient cars, the real question is why is it not being utilized?
Wendell Mercantile
gtjeff said: “While the Volt is a novel idea, the bottom line is priced at over $40,000 this vehicle will be nothing more than a niche product, especially when $ 25,000 hybrids are readily available on the market.”
You’re exactly right gt. What GM needs to do — if they can’t solve the problem of high battery price — is jump ahead of the competition with a lightweight, turbo-diesel, series hybrid.
That would be like the Volt, except the small turbo-diesel would run at a super-efficient constant rpm turning a generator to supply current to electric traction motors at the wheels. That would allow for a lighter car and a much smaller battery. The smaller battery would be in reserve to buffer the power and also to supply brief surges of current when starting from a stop and accelerating.
That would allow GM to both reduce the weight of the car and lower its price to compete with the gasoline hybrids. They’d probably be looking at a car in the $25,000 range that gets 75+ mpg.
Johnny Blaise
It’s nice to hear that the Volt is coming along so nicely. I can’t wait to purchase my very own when it comes out. I have faith everything will work out and fully support GM. For those of you familiar with the film Who Killed the Electric Car, well those who did are rolling in their graves.
jlf
What some euphamistically refer to as GM’s “image problem” has always been low and in decline because of their long term strategy of lobbying to reduce CAFE, exploit tax loopholes, and push heavy vehicles. But denouncing global warming as a crock? creating the HUMMER brand? Now that “green” is starting to have some meaning in the public conscience, this is going to hang around GM’s neck for decades like the Exxon Valdez, and the public will greet any marketing spin created now with heavy skepticism.
I’m just an average consumer, but my cynical impression of GM’s new green strategy is:
- When Volt is finally released it will be on a curve two orders of magnitude behind the Prius
- GM’s report talks about increasing fleet efficiency, but where is the weighted fleet efficiency, and please put that in context to foreign fleets.
- 50% vehicles to be flex by ‘12: Really? When there is no place to buy it outside the midwest? Maybe those vehicles will accept normal gasoline too, and no one will take advantage of the flex fuel capability.
- No mention of any investment in Hybrid technology.
I guess GM’s “green plan” is to buy foreign hybrid engines (or maybe just rebrand foreign hybrids), use flex fuels in the midwest (70% of it’s energy comes from gasoline input), and introduce a niche plugin (who’s energy