Can
the Chevy Volt change perception about GM?
Wednesday, October 1, 2008
The
Volt made a recent publicity stop at NASCAR
For many Americans, the Chevy
Volt has become the savior of the US auto industry. A
made in America foreign oil dependency freedom fighter.
And, one day, it might just be that, but not any time
soon.
In 2013, for instance, if all goes well GM will probably
be making about 60,000 Volts per year.
That won't even dent foreign oil dependency, especially
when the CAFE credits the Volt will quality for will be
used to help gas guzzlers loophole through CAFE
legislation.
In reality, it will probably take a good decade for
economies of scale and manufacturing experience to achieve
cost-effective range extended EVs. So, why is GM pushing
the Volt so hard?
It's obviously not to find buyers.
Because of technological constraints, GM won't be able to
keep up with demand. Finding Volt buyers won't be a
problem for several years, at least not until GM starts
selling a few hundred thousand Volts per year.
In the short term, the Volt is about perception.
The Volt says GM can compete with the Toyota
Prius. In fact, in GM's opinion, the Volt will be
better than the Prius and all other hybrid
cars.
Furthermore, if GM can build better plug-in hybrids,
excuse me, range extended EVs, than Honda and Toyota, then
GM can build better small cars, trucks, SUVs and
crossovers than Toyota as well, right? If you can trust GM
to build a quality revolutionary plug-in, then you can
trust them to build a quality conventional vehicle as
well.
Ultimately, Chevy Volt sales won't save GM, not in the
near term. However, if the Volt can convert a number of
Civic and Camry buyers into Cruze and Malibu buyers, then
the Volt will make GM much stronger.
Maybe even strong enough to turn the Volt into a cheap
range extended EV for the masses some day.
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