GM brings its electric car gamble to market

General Motors (NYSE: GM) will introduce its Chevy Volt tomorrow. The Wall Street Journal writes that the car is GM's "most important model in decades -- and possibly the key to its survival."

While the Volt may be the best electric car in the world, it will not be out until late 2010. The rest of this year and 2009 are projected to be the worst in decades and could cut over $1 billion a month from GM's cash reserves.

Will the Volt come too late? The easy answer is no. Toyota (NYSE: TM) and a number of other car companies are already selling hundreds of thousand of hybrids. They get tremendous fuel-efficiency on their own. Whether an "all electric" car will dislodge other companies from their low MGP positions is unlikely.

Of course, most other large car firms are working on electronic vehicles of their own. GM may find the market crowded.

The Volt is GM's "Hail Mary" pass. If management can get the company's expenses down enough and GM can bring in small cars for its Europe operation, the combination may be enough, barely enough, to keep GM independent.

Douglas A. McIntyre is an editor at 247wallst.com.

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