General Motors (GM): Electro-Shock Therapy
General Motors Corporation (NYSE: GM) investors, as well as auto industry trackers, will want to read Jonathan Rauch's "Electro-Shock Therapy" in the July 2008 issue of Atlantic Magazine. Mr. Rauch was given unprecedented access to all personnel involved in GM's company-wide commitment to have a market-ready electric car by late 2010. GM personnel note the Chevy VOLT, as the car is named, will not be a hybrid per se, but will be the first mass market electric car with a range of 40 miles per charge, enough to cover the daily commute of 75% of American workers. The car's small gasoline engine will be used to recharge the battery, while only electricity will be used to power the wheels. GM is trying to wow consumers by manufacturing an affordable electric car that will sever the connection between driving and the gas pump.
GM lost the engineering and publicity wars on electric cars to Toyota's Prius years ago. Toyota has been eating GM's lunch ever sense. According to GM's VP Bob Lutz, it's payback time. Using the same rhetoric President Kennedy used to launch the Apollo space program and race to land on the moon, GM has sectioned off the Volt division and given it complete decision-making and spending authority to reinvent not only the electric automobile, but also the company itself. In one Volt engineer's words: "Go big or go home."
Yes, there are problems with the weight to power ratio in the battery. And yes, production of both the battery and the car body are being rushed towards production without the normal period of evaluation. But GM has staked its future on the Volt, and unlike my colleague Michael Rainey who isn't that positive on the Volt, there's reason for at least cautious optimism, a quality currently in short supply coming out of Detroit.
GM lost the engineering and publicity wars on electric cars to Toyota's Prius years ago. Toyota has been eating GM's lunch ever sense. According to GM's VP Bob Lutz, it's payback time. Using the same rhetoric President Kennedy used to launch the Apollo space program and race to land on the moon, GM has sectioned off the Volt division and given it complete decision-making and spending authority to reinvent not only the electric automobile, but also the company itself. In one Volt engineer's words: "Go big or go home."
Yes, there are problems with the weight to power ratio in the battery. And yes, production of both the battery and the car body are being rushed towards production without the normal period of evaluation. But GM has staked its future on the Volt, and unlike my colleague Michael Rainey who isn't that positive on the Volt, there's reason for at least cautious optimism, a quality currently in short supply coming out of Detroit.











Reader Comments (Page 1 of 1)
7-02-2008 @ 5:35PM
Kent Beuchert said...
The Chevy Volt is defined by GM as an electric car with a range extender, in this case a small gas or ethanol powered engine. The claim that it's being rushed to market without the normal evaluation is totally absurd. Evaluation is a function of the amount of testing performed, not simply calendar time, which has no significance, per se. In the case of the Volt, there are far more engineers testing this vehicle than any that GM has ever built. Rainey has penned some articles that make me doubt his competence to have an opinion about this technology. Calling this a moon shot is rather
silly - the only unknown here was the behavior and lifespan of the battery pack and we now know that BOTH of the candidate battery packs have passed all tests with flying colors. It obviously coming down mostly to a matter of costs as to which company wins the contract. As for Chapter 11, I feel that this is long overdue for the automakers. It's become abundently clear that the unions have destroyed the market share over the past 40 years and , despite accounting for only a small portion of the work these days, are still fixing labor rates and are as non-competitive as ever.
GM needs to go bankrupot and shed the union albatross on their shoulders. Of course, the unionized media won't report it that way.
7-02-2008 @ 6:23PM
Mary F. said...
When the top execs at GM cut jobs, close plants, and generally thumb their noses at the rank and file, they are showing their selfish greedy sides.
Accepting salaries the size of which is not in proportion to their personal effort, then on top of that taking bonuses, just because they were voted on during a period of prosperity, they show their immorality and unconcern for the shareholders and the employees who will be on unemployment before long. Shame, Shame, Shame. But the GM execs aren't the only ones. Apparently higher education teaches them to be greedy and selfish and inconsiderate of everyone else. Sorry state of affairs.
7-02-2008 @ 7:37PM
DON said...
WHEN IT COMES DOWN TO BEAR KNUCKLE...USE THE PROVEN TECHNOLOGY AVAILIABLE AND SUPPLIERS. MAKE NEW ONE LATER. THIS WILL CUT YOUR LAUNCH TIME..YOU NEED TO DO IT
NOW....GET RID OF YOUR EGO AND PUT YOUR
GEEK SQUAD ON...PUT OUT A FASTER TIME TABLE
TO HIT THE MARKET....DON'T WORRY ABOUT THE MISS. JUST GET A HYBRID ON ALL YOUR LINES.....YOU CAN DO IT.....WORK TOGETHER TEAMS...FROM PRODUCT TO MARKET...I KNOW YOU CAN HAVE ONE RUNNING IN 30 DAYS.
7-03-2008 @ 1:34PM
A D said...
It's sad that opinions of self loathing and complete nonsense like Mary Fs exist.
The Volt has nothing to do with the pay structure at GM. The current state of GM and so many other industries has nothing to do with the structure of the undusrty but more to do with the complete incompetence of the political parties in this nation. There is nothing wrong with Americans defending Americans. Too bad the parties in DC are the ones that won't do it.
Let's face it, we've been lied to for years. The Japanes claim there is no manipulation of currency, investigate their interest rates and employement rates. Then come back here and tell us that you too know what liars Japan is.
And who is paying for their lies? All of us whether we want to or not.
One day soon those of you that get a smugness out of driving a Camry will find your job and paycheck gone too. Thank yourself for shooting yourself in the foot.
9-08-2008 @ 3:23AM
Crispin said...
Electro-shock theraphy. It's a great discovery.