GM's Volt: More ice-breaker than game-changer in electric car tech

Will the Volt provide the jolt that turns General Motors' (NYSE: GM) around?

In the interpretation of one critic, Chevrolet's Volt plug-in hybrid may end up being not so much a game-changer as an ice-breaker.

Stock Analyst C. Leonard Bauer, whose ownership of high-performance sports cars through the years has been exceeded only by, perhaps, Mario Andretti, says he doesn't expect the Volt, Chevrolet's extended-range electric vehicle, to overwhelm the public or generate rave reviews from critics, but those two conclusions still won't blot out Volt's positives.

"The key point, and one many have overlooked, is not the Volt, but the infrastructure behind the Volt," Bauer said. "The Volt as a model will most likely underwhelm, but the processes GM has put in place will pay dividends when advances occur." Bauer added that he does not own shares in or have a rating on any auto manufacturer.

Amped-up R & D

GM, Bauer says, has now committed a large amount of resources to electric and hybrid technologies, whereas previous commitments were modest. Moreover, "it would take an act of idiocy or $10 a barrel oil" for GM to dismantle its current research platform. Bauer expects neither, and as a result, he expects the 2nd, 3rd and 4th generations of Volt and its companions to achieve both battery power storage and power delivery advances not possible during GM's previous electric vehicle projects.

Why is Bauer so bullish on tech advances this time around? "Concentration of assets," Bauer said. "It's one thing to have 20 or 30 researchers working on a problem. It's another thing to have 100 or 120 researchers trying to find a solution. Eventually, someone's going to do something different or wrong, and, bingo, a better battery or process is discovered."

GM says the initial Volt model, promised to showrooms by the end of 2010, will have a range of 40 miles on a full charge. The Volt will also have a range of 400 miles when using its internal combustion engine, which also can charge its batteries. Predictably, GM has been beyond secretive regarding the Volt's revised design, but they did release a small, partial view, published at AutoWeek.com.

And regarding price, Bauer said it's too soon to evaluate the Volt's relationship among price, mission and value. "We have to learn more about the Volt's performance characteristics and overall durability, including drive-train, and the type of energy market the Volt enters," he said. "A $3 per gallon gasoline market is considerably different from a $6 per gallon market."

Auto Sector Analysis: We'll leave a discussion of product timing and previous failed efforts at electric tech by U.S. automakers for another day. For now, GM's Volt displays initial clues that suggest an alternate-propulsion tech advance -- but let's see how far the car runs on a full charge, first. Stay tuned.

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