Chevrolet Volt: GM’s Last Chance To Go Green?
May 19th, 2008
A 2010 deadline forces manufacturer to work overtime
After losing $1 billion on the development of the EV1, General Motors completely dropped any serious discussion on building a green vehicle. However with gas prices hitting new highs and competitors starting to adjust production to consumer demands, GM is starting to feel the pinch in their pocketbook - the auto manufacturer recorded a $15 billion loss in 2005.
That’s enough to get anyone to shift gears from their current business model into a more consumer-centric one. SUVs are losing their appeal as gas prices continue to rise. GM has recently decided to drop production on a new sedan and minivan in order to support the $8.1 billion research and development budget focused primarily on green vehicles.
One of the biggest obstacles for GM will be trying to cram years of research and development into a short timeframe with the promise of an electric vehicle in 2010. In order to get the Volt into production, GM is going to have to push their 22,000 engineers to the limit to develop an incredible battery for a an incredibly hyped electric vehicle. Ford and Chrysler have already started to put out hybrid vehicles and Toyota is leading the pack with hybrids in both their Lexus and mainstay Toyota fleets, so this could be a do-or-die scenario for the American giant. Can GM successfully migrate from gas guzzler to gas free and still produce a reliable vehicle? We’ll have to wait and see how things unfold.
