By Tony Posawatz
Chevrolet Volt and Global Electric Vehicle Line Director
It’s a very good question that many are asking and my short answer is: it’s going to take a plug-in ecosystem. One automaker, tech company, research institute, etc., cannot do it alone.
I read a great piece in the December 2008 Harvard Business Review entitled “Reinventing Your Business Model.” It’s an overview of how innovative business models create success, citing Apple’s business model for the iPod as one example.
Everyone knows what an iPod is, but did you know it wasn’t the first MP3 player on the market? Other companies launched similar products in the late 1990s. “Apple did something far smarter than take good technology and wrap it in a snazzy design. It took good technology and wrapped it in a good business model. Apple’s true innovation was to make downloading digital music easy and convenient.” That business model included design, hardware, software, iTunes and service - essentially creating an ecosystem for the iPod.
GM is working with strategic partners to do the same. In order for plug-in electric vehicles to become mainstream, a plug-in ecosystem must be in place when vehicles like the Chevy Volt hit the market.
Since most of us aren’t scientists, you might be wondering what I mean by ecosystem. In simplest terms, an ecosystem is a unit of interdependent entities. In this particular case, we believe there are four pillars that make up a plug-in ecosystem and that must be in place to assure the Volt’s successful commercial launch:
- relevant plug-in vehicles that drive customer demand and are connected;
- enabling technologies like advanced batteries and sophisticated software controls;
- a capable/green grid; and,
- plug-in ready communities with supporting policies.

Strategic partnerships with key stakeholders define and create the ecosystem foundation, as well as help contribute to the new “green economy”. Such stakeholders include: local and federal governments, electric utilities, regulators, Clean Cities coalitions, local employers, universities and early electric vehicle adopters.
GM is focused on the first two pillars: plug-in technology leading vehicles and the enabling technologies. In terms of the Volt, we’re working with key suppliers to ensure every system and component on the vehicle is as efficient as possible, from battery cells and electric motors to low-rolling resistance tires and energy-efficient components.
We’re partnering with organizations like the Electric Power Research Institute (EPRI) to focus on electric power generation, delivery and use. EPRI and the utility companies are working together to ensure that plug-in vehicles are seamlessly integrated into the power grid. Together, we’re focusing on addressing issues that ensure safe and convenient vehicle charging, public education, and the public policy requirements to enable a transition from petroleum to electricity as a fuel source.

GM also is working with early-adopter cities, such as San Francisco, to develop policies and enablers to make the community plug-in ready. Some of the challenges that need to be addressed include consumer incentives to make the technology affordable; public and workplace charging options; consumer-friendly electricity rates and renewable electricity options; government and corporate vehicle purchases; supportive permitting and codes for vehicle charging; and other incentives such as high-occupancy-vehicle (HOV) lane access.
A few weeks ago, the U.S. Department of Energy announced $2.4 billion in economic stimulus funding to produce plug-in hybrid electric vehicles and batteries in an attempt to have one million vehicles on the road by 2015. Using this plug-in ecosystem business model, GM is aggressively working to garner our share of the total industry volume on the road in that timeframe. The Volt team is clearly focused on delivering the future. Why, you might ask, are we so focused on the future and putting all the right pieces in place? The future is where we will be spending the rest of our lives, and the future will be “electric”.
(Editor’s Note: The following audio clips are excerpts from a recent Web presentation on developing a plug-in ecosystem. The participants are Tony Posawatz, Mark Duvall, with Electric Power Research Institute, and Bob Hayden, a clean transportation advisor with the City and County of San Francisco.)
If you’d like to learn more about out what it will take to make plug-in electric vehicles successful, join us back here tomorrow (April 3) at 4 p.m. EDT to chat with my colleague Britta Gross, our director of electric vehicle infrastructure commercialization. She’ll also field questions and comments from our friends over at EVWorld.com, GreenCarCongress.com and GM-Volt.com. In the meantime, I look forward to hearing from you.