General Motors' upcoming plug-in hybrid, the Chevrolet Volt, at this juncture appears to be priced at a level that guarantees it will not be a game-changer -- which says something about the state of electric-car technology, or at least the technology's deployment, as of early 2010.

GM plans to sell the car for about $40,000, not including a $7,500 tax credit, and at that price level it remains to be seen whether enough consumers will purchase the car for its more-fuel-efficient transportation technology, if not its more-efficient economics.

A recent post about the much anticipated Chevrolet Volt generated an unusual number of comments, and most readers seemed pretty optimistic about the battery powered car. I'm sure this makes the beleaguered executives at General Motors (NYSE: GM) breathe a little easier. But I wonder if those readers will maintain their optimism now that photos of the actual production Volt have been revealed.

As you can see, the production Volt doesn't look much like the original concept (see below for the original). The real world Volt looks much more like a Japanese hybrid (I see a Honda crossed with a Malibu) -- which is to say it looks like a smooth jelly bean that somehow got wheels.

I'm sure the design makes sense in terms of efficiency and air flow. But this Volt is far from what was implied by the original model.

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.

There's an upside and a downside regarding major auto companies and the quest to develop vehicles with increased fuel-efficiency.

The upside: Auto makers are positioning themselves to carve out niches in fuel-efficient technology and design, The Wall Street Journal reported Monday (subscription required).

The downside: Auto makers appear to be exhibiting a 'herd mentality' on the current propulsion technology -- hybrid engine cars with both a modest electric power source and a mainstay internal combustion engine.

An electric hybrid focus

Following up on its successful electric-gasoline Prius hybrid, Toyota (NYSE: TM) announced it will make hybrid engine systems available on all models by 2020, The Journal reported. Meanwhile, Honda said it would import new hybrid technology to the U.S. to compete with Toyota and Ford (NYSE: F) plans to double its hybrid lineup next year, and Chevrolet's (NYSE: GM) Volt hybrid that will go on sale in 2010.

Economist David H. Wang said investors and consumers should not be overly optimistic or pessimistic regarding the sector's concentration on electric-fuel hybrids.

General Motors Corp. (NYSE: GM) stock finished the day up nearly 11%, or $1.09 to $11.35 after two days of losses. It seems that overall sentiment for blue chip stocks was stronger today as buyers looked for bargains. With the recent slide in oil prices, including another decline today, many stocks previously hit by the runup in oil prices, like car companies, found themselves back in favor.

But that's just the beginning. Ray Young, GM's chief financial officer, spoke with analysts Wednesday evening at a JPMorgan automotive conference, saying efforts are being made to speed up cost savings. GM, he said, may be able to reap more of the $10 billion in projected savings this year instead of in 2009.

With the faster savings, the plan to boost GM's liquidity seems more plausible, and the solvency problems less severe. Young's announcement came right after Moody's Investors Service lowered GM's credit rating, and seems it was indeed small comfort. Some analysts believe that the chance of a bankruptcy is lower than is priced in, despite balance sheet and operating concerns.

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.

General Motors (NYSE: GM), believe it or not, is working toward alternative propulsion systems as energy prices continue to be seen at new highs (while still showing wild volatility), and the electric Volt is just one of its efforts. What will power the electric vehicles of the future? That's a billion-dollar question, since batteries are probably the largest barrier to really commercializing the fully electric vehicle -- from any manufacturer.

GM, according to sources this week, wants its fuel cell technology -- a leading contender for high-energy batteries -- to be commercialized as soon as possible. If fuel cells could be refined even further than where they are today, the economic and practical viability of totally electric cars could be seen soon. So far, talk like that has been full of hot air. But then again, automakers see pent-up demand for this technology as gas prices go absolutely nuts. Oil stands right at $100 a barrel right now. You make the call.

If GM does not get there first, you can bet the competition will -- and will feed the insatiable consumer demand that lies waiting in the proverbial wings. The good news here is that innovation and speed will happen as the race to be first in this "fuel cell" space becomes more heated. As history has shown, in the end, the winner will be the consumer, much to the chagrin of oil producers.

Venture capital is flowing, engineers are chomping at the bit and layman sources claim that mechanical components of the Chevy Volt are already being road tested on the streets of Detroit. General Motors (NYSE: GM) is not letting anything get in the way of its plans to place a successful electric car on the streets of America and the world by 2010. A report by RedHerring outlines the broad and powerful collection of top tier companies which are coming together to help GM bring its mission to fruition.

Two new research projects targeted towards electric car development were recently announced by General Electric (NYSE: GE) and are specifically geared towards the needs of the Chevy Volt. GE has been asked to design high density electric capacitors and hybrid drive train components in pursuit of our first generation of truly plug-in electric cars. It would seem that GM, GE and the Department of Energy are not willing to settle for an automobile with simple hybrid status. The goal would appear to be full blown electric automobiles at a price within reach of the public. Once the car is built, add the current advances in solar technology and you'll have an automobile that can be charged from a solar powered battery array at home.

MOST NOTEWORTHY: European banks, Voltaire, Perfect World and Aspreva Pharmaceuticals were today's noteworthy initiations:

• Morgan Stanley assumed coverage of Credit Suisse Group (NYSE: CS) with an Overweight rating, Deutsche Bank AG (NYSE: DB) with an Equal Weight rating and UBS AG (NYSE: UBS) with an Underweight rating.
• Voltaire Ltd (NASDAQ: VOLT) was started with a Buy rating and $29 target at Goldman Sachs, with a Neutral rating at JP Morgan, with an Overweight rating and $12 target at Thomas Weisel and with an Outperform rating and $15 target at RBC Capital. Thomas Weisel said the market gives Voltaire very little credit for its strong position in the rapidly growing Infiniband switch market and RBC Capital believes the stock has impressive growth and gross margin momentum.
  
• Perfect World Co Ltd (NASDAQ: PWRD) was initiated with a Positive rating at Susquehanna, as the firm is positive on its growth potential in the online gaming industry in China.
• Aspreva Pharmaceuticals Corporation (NASDAQ: ASPV) was initiated with a Sector Perform at RBC Capital, as the firm believes the current valuation is not attractive, and recommends $17 as an attractive entry point. The firm set a target of $22 on the shares.

OTHER INITIATIONS:

• Drugstore.com Inc (NASDAQ: DSCM) was started with a Market Perform rating at JMP Securities.
• Wachovia started shares of BladeLogic Inc (NASDAQ: BLOG) with an Outperform rating and $17 target. The stock was also initiated at Morgan Stanley with an Equal Weight rating and at Citigroup with a Hold rating and $27.50 target.
• Lehman initiated Spirit AeroSystems Holdings Inc (NYSE: SPR) with an Overweight rating and $43 target.
• Goldman Sachs started shares of Marsh & McLennan Companies Inc (NYSE: MMC) with a Sell rating and $25 target.

Last week I wrote about GM's plans to bring its hybrid Volt to market in 2010. As I mentioned in that post, the competitors won't be standing around waiting for General Motors (NYSE: GM) to catch up. In fact, Honda (NYSE: HMC) and Toyota (NYSE: TM) are already preparing for a 2009 green-on-green smackdown.

According to Newsweek, both corporations have big plans to grab a lion's share of the green market. Honda, still licking its wounds over the failure of the hybrid Accord, is pulling that model out of their green lineup. To take its place, the company will introduce an entirely new marquee, one that will (hopefully) outrun the Prius in fuel efficiency and price. The company hopes to sell 100,000 of this model a year, a quantum leap beyond its current hybrid sales.

Toyota, the clear leader in the field to date, is treating its Prius as a new brand, much as it did with the Scion line. By 2009, look for compact, midsized and crossover models under the Prius moniker.

J.D. Powers estimates that by 2011 there will be 75 hybrid models in America's showrooms. And I'm betting every one of them will be better looking than Honda's original ugly mutt hybrid, the discontinued Insight.

So what is InfiniBand? It's cool technology to speed up the transfer of data.

And one of the leaders in the space is Voltaire, which helps improve the performance of data centers.

Now, the company has filed to go public.

The company has struck deals with biggies like IBM (NYSE: IBM), Hewlett-Packard (NYSE: HPQ), Sun Microsystems (NASDAQ: SUNW) and NEC. What's more, Voltaire has about 250 customers.

Revenues have ramped from $15.4 million in 2005 to $30.4 million in 2006. As for Q1 of this year, revenues hit $8.6 million, although the company is still losing money.

So how big is the InfiniBand market? According to a study from IDC, the market for InfiniBand switch ports is expected to grow from $95 million in 2006 to $468 million in 2010.

The lead underwriters on the IPO include JPMorgan and Merrill Lynch. The proposed ticker is VOLT.

You can find the prospectus at the SEC website. And if you want to check out more recent IPOs, click here.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.