
The Washington Post has just published one of the most intensive and thoughtful articles about the Chevy Volt and what it means for GM I have ever seen. The story is based on an interview with GM vice chairman Bob Lutz.
The story begins pointing out that the Chevrolet Camaro SS is GM’s latest muscle car that flies in the face of all the environmental talk going on these days. “Sexy with charisma,” says Lutz, but admits “Some people don’t care for those kinds of descriptions today — it’s a different time.”
Lutz counters “But we have new vehicles, too. We have the Volt. We are committed to the electrification of the automobile. We know this is the time.”
Extensively described is how the Volt came to be. The author confirms what we already know, Lutz didnt commission the Volt to fight global warming which he calls a ‘crock.’
“If you look at most of the mainstream media, you get the impression that 95 percent of Americans today want a vehicle like the Chevrolet Volt or a [hybrid such as the] Toyota Prius,” says Lutz. “And that, by God, the reason General Motors is in trouble, is that we have not offered a vehicle like that. But when you look at the reality, at today’s fuel prices, most Americans still want a conventional car.”
Lutz says why the Volt was really developed, “Because it is an important symbol. We need it. It has a chance to change our image.”
However, Lutz intends the Volt to lead the way for a pure electric future. He says the Volt not only represents GM’s commitment to change but call it “the first generation of an electric vehicle from GM” leading to successively more enhanced Volts eventually resulting in a pure electric with more than 150 miles of range.
Lutz recounts what happened when Toyota first introduced the Prius in Japan in 1997. The GM board met and asked if they should do the same thing.
“Somebody said, ‘Do we have [hybrid] technology?’ ” recalls Lutz. ” ‘Oh, yeah,’ was the answer. ‘Oh, yeah, we got the technology. We’ve been building hybrid prototypes since the late ’60s.’ ”
However, it was decided the cost, then about $600 to $700 million wasn’t justified as it was expected the cars would lose money. Wagoner decided ‘We can’t do that’ and the decision to not go forward with a hybrid program was made.
After watching the Prius’ halo effect drive sales of other Toyota cars and make the company a media and environmental sweetheart, by 2006 Lutz had finally had enough.
He told GM VP Jon Lauckner, known as ‘the Wizard’ he wanted a “game changing” electric car that would leapfrog the Prius and deliver 150 miles of pure electric range. Lauckner said it would be “too expensive” and furiously scribbled calculations that would be his solution of the Volt’s range extender design.
It is written that GM’s plan to build a limited first year run of 10,000 copies of the Volt at around $40,000 exudes caution. Lutz isn’t worried though. He expects all 10,000 cars to be purchased quickly by “well-heeled electric car die-hards.” This will lead to economy of scale cost reductions that will eventually get the car into the $25,000 to $30,000 price range he says.
Producing the car he feels is an absolute necessity for GM. “We’re talking about our image here — about remaking GM; it is essential to get this done,” says Lutz. “We can’t make any mistakes with the Volt.”
Lutz believes an artificial market is being created for electric cars driven by “influential environmentalists and the intellectual establishment” who want electric cars to succeed, and Obama’s stated goal of 1 million electric cars on the road by 2015.
Lutz although excited about the Volt is already mourning the loss of the high-power, gas-guzzling, dazzling machines of old. “In time, the government is going to legislate out of existence cars like the Camaro, the Corvette, the Cadillac CTS — all these acclaimed vehicles that have lately gotten rave reviews from the automotive press around the world,” predicts Lutz. “So, ultimately, we are driven by legislation into the kind of excitement provided by the Volt.”
And for demand. He says “it’s probably just 5 percent of the public that desperately wants something environmentally sound and is willing to pay a premium for it,” and notes “the customer will never recover the premium paid for the hybrid system in fuel economy.”
Lutz believes the electric car marketplace is skewed to the coasts. “I would say the East and West Coast intellectual establishment kind of lives in its own world. When you get to the broad American marketplace, excitement is still kind of defined in the way it used to be.”
And with that the 77 year-old Lutz set off on his 60 mile drive home saying “nice afternoon for a drive.”
Lutz, GM, and the country it appears are thus ambivalent about the greening of the automobile.
Source (Washington Post)




