#volt

Bob Lutz may have left GM, but TTAC’s not through with the man of Maximum just yet. One quote in particular, from an “exit interview” with gm-volt.com, exemplifies the kind of candor that seems likely to disappear from GM along with Lutz. Possibly for good reasons. Well, good PR reasons, anyway. After all, with Lutz unable to deny that GM will lose money and/or battle sticker shock with its forthcoming Volt EREV, he’s the kind of guy who will tell the unspeakable truth instead of playing coy like a good PR man. To wit:

How do we get the cost down without in any way diminishing the value of the car in the eyes of the customer? By just doing some more elegant engineering than we did the first time around where we inadvertently did some belt and suspenders stuff because we wanted to move fast. Now as we look back at the car we say ‘gee I wish we’d done his different,’ …’ gee I wish we’d done that different’ because this is a very expensive solution and we could have done that for a lot less money.

That faint sound you just heard was Ed Whitacre expelling fillet of rattlesnake out his nose after reading that little nugget. Meanwhile, you’ve heard it from the horse’s mouth: the Mk.1 Volt will be expensive, unprofitable, and unpolished. Or, to use a PR term, “belt and suspenders.”

Former EV-1 driver and “science guy” Bill Nye hams it up while promoting GM’s Volt Extended Range Electric Vehicle. And actually, according to a recent gm-volt.com interview with Bob Lutz, GM now prefers that you refer to the Volt as “an electric vehicle with range extension.” Huh? Sounds like they’re gonna need a science guy to break this one down…

Patent drawings of what appears to be a compact/subcompact MPV bearing the Chevy Volt’s grille have surfaced at GMInsidenews, setting off much speculation as to what it all means. And boy is there room to speculate. Initial impressions are of a Chevy Orlando/ Buick Granite with a Volt-alike grille, but upon closer inspection the line drawings appear to show a smaller vehicle. After all, Orlando is supposed to offer a seven passenger option, and it’s hard to imagine sitting aft of those rear doors. And yet the Volt drivetrain was built around GM’s Delta II platform, which underpins both the Orlando and Granite (in concept); why would GM downsize its expensive EREV to the Aveo’s Gamma II platform before building out Delta II variants?

GM’s government-installed Chairman/CEO Ed Whitacre hasn’t been wildly popular with Detroit insiders, earning dismissive raspberries from more than a few corners of the industry’s peanut gallery. But now that his reign of executive terror is over, Detroit seems to be learning how to stop worrying and love the former AT&T man. As Whitacre prepares for his first visit to Washington DC as head of GM, the local media and other members of “Team Detroit” are making their peace with Whitacre. So what lies beneath the new united front?

Production of Chevy Volt “integration models” began last week, as Hamtramck tools up for final production of GM’s wundercar, but GM still isn’t saying anything about the car’s two most important features: the pricetag and EPA rating. The General has hemmed and hawed on the Volt’s price over the last several years of hype, but it hasn’t ever been shy about touting an “expected” 230 MPG rating. Because apparently it’s the EPA’s job to clear up GM’s misleading marketing claims. So what is the deal with that 230 MPG number, anyway?

In typical Carlos Ghosn style, the father of the Nissan EV throws down the gauntlet. gm-volt.com quotes him from a talk with reporters:

“Frankly, I mean so far there is no competition. Let’s be serious. It’s not because someone is coming with a prototype and one car that this is competition. The question is how much capacity are you building. What I am sure is that in 2011, I am going to be the only one on the market”.

In that regard, Ghosn has put production capacity where his mouth is with Nissan planning on 500k in global sales by 2012: “The numbers are big,” Ghosn said. As a frame of reference, GM has indicated production of 8k Volts in 2011, and an ability to ramp up to about 50k annually thereafter. Did GM bet on the wrong horse with its smaller battery but range-extending generator equipped Volt? GM NA Prez suggests that might well turn out to be the case.

As GM tools up for production of its Volt extended-range electric car, Automotive News [sub] has noticed something interesting: workers at GM’s new battery pack assembly plant are not represented by the United Auto Workers. Located in the heart of UAW territory (Brownstown Township, MI), the Volt battery plant represents the very jobs that local politicians and GM leadership hailed as the green future of the auto industry. When the plant opened, GM Chairman/CEO Ed Whitacre waxed eloquent about the opportunities:

The development of electric vehicles like the Chevy Volt is creating entire new sectors in the auto industry – an “ecosystem” of battery developers and recyclers, builders of home and commercial charging stations, electric motor suppliers and much more. These companies and universities are creating new jobs in Michigan and across the U.S. – green jobs – and they’re doing it by developing new technology, establishing new manufacturing capability, and strengthening America’s long-term competitiveness.

As long as they do so without UAW representation, apparently. Needless to say, if GM can get away with using non-union workers at a crucial plant that’s supposed to represent the firm’s future, things aren’t looking so good for our friends in organized labor.

Volkswagen has announced [via Autoblog] that “in response to requests by many customers,” the Passat CC will now be available with seating for three in the back seat. The lesson: even the people who spend more money for a more-fashionable but less-practical version of a mass-market car want that extra seatbelt just in case. Which begs the question…

This week saw the Volt’s price point issues return to the public eye, as GM’s Chairman and CEO made it clear that he takes the government’s $7,500 tax credit for granted. But Whitacre’s dissembling revealed once again GM’s fundamental problem with the Volt: getting people past the sticker shock. Though GM’s short-term viability doesn’t hinge on the Volt selling like gangbusters, it’s clear that the Volt’s initial success or lack thereof will be a crucial factor in GM’s ability to hold a successful IPO and extricate itself from government ownership. Which, according to The Big Money‘s Matt DeBord, is one of the reasons the government should expand the Volt’s credit of $10k. Another reason: the Volt’s competition is too good!

with the base Prius selling for just over $20,000 and the base Honda Insight hybrid for under $20,000, the feds may have to start thinking about how to enable innovative electric and gas-electric plug-ins to survive. The EPA mandate to raise fleet fuel-economy standards to average of 35.5 mpg by 2016 looms, and a component of that target should be EVs and plug-ins. Otherwise, carmakers may abandon the tech, leaving it stillborn to cynically massage their fleet numbers by importing small cars from foreign operations to North America—cars they know Americans will only grudgingly purchase and that may force the government to chuck the 35.5 requirement.

In case you were wondering, Ed Whitacre’s assessment that the Volt will “make a margin” at a price point “in the low 30s” is the GM Chairman/CEO’s second big lie in as many weeks. Well, lie might be a bit harsh. Gross and willful misrepresentation is probably more accurate. GreenCarReports‘ John Voelcker got in touch with a GM spokesman who confirms what we all pretty much knew from the get go: GM “has not officially announced final Volt pricing, a price in the low 30’s after a $7,500 tax credit is in the range of possibilities.” In other words, we’re back to the same old $40k-ish number that GM execs have been throwing around for ages. Unless GM is talking about the electric-only (non-range-extended) Volt that Bob Lutz recently confirmed. But what about the margin thing?

We’ve got a two-for-one deal on today’s wild-ass rumors, as neither seems likely to amount to much. First off, GM’s Jon Lauckner caught a headline at the WSJ by conjecturing that the Volt’s price “could be notably lower” than the anticipated $40,000. “We have until this summer to figure that out,” Lauckner said. Meanwhile, The Atlantic‘s Daniel Inviglio ran a few numbers, and came up with some rough estimates about possible amortization compared to a Toyota Prius at different price points ($40k, $30k, $25k). Even at $30k, according to Inviglio’s analysis, you’d have to drive 3,350 miles per month to see an economic benefit over the Prius. Yikes!

Getting a car like the Volt on Jay Leno’s Garage seems like a no-brainer. America’s patron celebrity of car obsession has the gearhead credentials to help explain the Volt’s positive attributes, and the enthusiasm to draw a very different crowd than the usual Volt fanboy sites. And yet from the first, the Volt’s visit to automotive Valhalla seems to have chief engineer Andrew Farah in permanent flinch mode. Leno is never overtly hostile (alá Letterman), but from his comparison of the Volt to a 1916 Owens Magnetic, to his assessment that the Volt is “not a tiny car,” you can’t help feeling that he thinks it’s all a bit of a joke. It’s a four-seater. Literally. They’re shooting for a 2,900 lb weight goal. Your mileage may vary. The hood is held up with a stick. What is the deal with that? Like any comedian, Leno’s only as good as his material. Luckily, the yawning chasm between the modest reality of the Volt and its relentless hype is fertile ground indeed.