The Chevy Volt may be the most exciting car coming from General Motors, but costs remain a barrier to wide-scale adoption, according to Bob Lutz, the company's vice chairman and design guru.
During a Web chat last week, Lutz said gasoline prices will need to go significantly higher in the U.S. before the car can become "generalized." His comments were reported on Thursday by GM-Volt.com, a site not affiliated with GM.
"The Volt technology is very exciting, but costs will have to come down before it can become generalized, and U.S. fuel prices will have to rise to world levels, meaning $5 or $6 per gallon," Lutz said. That was in response to a question about GM's plans to use the Volt power train, called Voltec, with other vehicles.
The first edition of the Volt, due late next year, will deliver a jump in fuel economy, offering over 100 miles per gallon. The car runs 40 miles on a large lithium ion battery and then uses a gasoline engine for longer trips.
GM executives have said before that this first-generation technology will be expensive--unconfirmed reports have put the price at about $40,000 before federal tax credits for plug-in electric vehicles.
The company is already working on bringing the costs down--particularly for the battery components--for the follow-on editions, according to the company.
Several automakers are betting on plug-in electric vehicles, which will start to come to market over the next year. This week's Frankfurt Motor Show showcased several electric and gas-electric concept cars.
Studies have shown that electric cars are less polluting than gasoline cars, particularly if vehicles are charged at off-peak times. They also allow more people to "fuel up" with a domestic source of energy.
But the high costs of battery components and range limitations of all-electric cars mean that plug-in electric vehicles will remain a small slice of the overall market, according to experts.
The Boston Consulting Group earlier this year released an analysis that predicted electric vehicles are likely to have 3 percent market share in 2020, compared to a projected 20 percent share for hybrid-electric vehicles.
An executive from Toyota, which has sold more than 2 million hybrid Priuses, said this week that it will take until 2020 before electric vehicles will be suitable for the "mass market."
General Motors high-profile Chevy Volt car program has not been compromised by the company's financial woes, according to a company vice president.
Jon Lauckner, GM's vice president global program management, on Thursday published an update on the Chevy Volt on a GM blog in an effort to dispel rumors and concerns that GM was pulling the plug on the gas-electric Chevy Volt.
"It is one of the highest, if not the highest, priority programs in the company and that hasn't changed, nor has the commitment of resources to fund it. In fact, with the successful completion of each development activity, we have more confidence than ever the Volt will start production as planned in late 2010," Lauckner wrote.
The update was posted on Thursday, one day after GM revealed that it has postponed construction of a new factory in Flint, Mich., that was slated to build an engine for the Volt and Chevrolet Cruz, another fuel-efficient car. Many people read that as a sign that the car itself would be postponed.
GM CEO Rick Wagoner earlier this month in front of a car that has the electric powertrain and battery pack of the Volt in a body of a Cruz.
(Credit: GM)"This has no impact on our production timing for the Volt or the Chevy Cruze. Moreover, our global manufacturing process is flexible enough to construct this plant within a year, and the planning activities that require less cash upfront are continuing in Flint," Lauckner said.
The Volt is being designed to run 40 miles on a charge and have a gas engine that acts as a generator to recharge the batteries for longer rides.
On Friday, the federal government announced an agreement to provide up to $17.4 billion in loans to bring GM and Chrysler to commercial "viability."
GM CEO Rick Wagoner held a press conference on Friday where he thanked President Bush and said that GM can meet the conditions of the loans.
In a statement following Bush's announcement, GM said it is "fully committed to leading in energy-saving vehicles and technologies."
Cash-strapped auto giant General Motors has put plans on hold for a new factory to build the Chevy Volt engine, according to a report.
The Flint Journal of Flint, Mich., reported on Wednesday that the move is part of GM's efforts to reduce expenses as it appeals to the White House for federal aid.
General Motors' Chevy Volt. GM decided to delay plans for a new factory to build the engine.
(Credit: GM)"Given the situation that GM is in right now, all expenditures, anything that involves capital, is under review," GM spokeswoman Sharon Basel told the newspaper. "And such as the case with the Flint engine plant."
Basel added that GM still plans to start production of the Volt, a gas-electric car, in November of 2010. GM calls it a range-extended electric vehicle because it runs on batteries. The engine acts as a generator to recharge the batteries for rides beyond 40 miles.
Three months ago, GM announced that it would construct a new plant to manufacture the engine for use in the Volt and the Chevrolet Cruz, another highly touted fuel-efficient car.
The engine could still be manufactured at another plant in Flint, the city's mayor told the Flint Journal.
Separately, Chrysler said on Wednesday that it will close down production for a month in a bid to lower its expenses, according to reports.
Both Chrysler and GM--which are said to have explored a merger--are suffering from a sharp drop in sales in the past few months. They are seeking to reduce their costs and secure "bridge loans" from the U.S. government.
The Chevy Volt was the centerpiece of General Motors' centennial celebration on Tuesday with executives heralding the electric car as the first step in the reinvention of the automobile.
GM Chairman Rick Wagoner introduced the plug-in hybrid car in Detroit, showing a production version with a different look than the concept car rolled out in January 2007.
A front view of the production electric Chevy Volt shown publicly on Tuesday. Click image to enlarge.
(Credit: GM)
The company also released photos and a number of technical details, including a projected top speed of 100 mph and two in-car touch-screen controls. The five-door sedan, which GM calls an extended-range electric vehicle, is scheduled to be available for purchase in the U.S. in late 2010.
"The Volt symbolizes General Motors' commitment to the future, just the kind of technical innovation our industry needs to respond to tomorrow's energy and environmental challenges," Wagoner said in a speech to a gathering of partners, customers, journalists, and employees.
The car will be able to drive 40 miles on its lithium-ion batteries. An internal combustion engine--able to run on gasoline or E85, a blend of ethanol and gas--will extend the car's driving range to hundreds of miles.
Wagoner said that the auto industry is in the early days of a transition from mechanically-driven to electrically-driven vehicles, a trend that financially ailing GM intends to lead.
High-profile design guru and vice chairman Robert Lutz drove the Volt onto the stage before journalists swarmed to get a closer look at the car.
Another image of the Chevy Volt released by GM at its debut. Click on image to enlarge.
(Credit: GM)In the GM FastLane blog, Lutz said the Volt's introduction on Tuesday should quiet naysayers who said the Volt program was "vaporware" or GM "green-washing" meant to improve its public image.
Lutz also addressed the design changes, which were meant to make the car more aerodynamic and fuel-efficient.
When photos of the production Volt were captured and circulated last week, many commenters seemed disappointed, complaining that the Volt resembled existing fuel-efficient sedans.
"I submit that while it's typically design that makes an emotional connection with buyers, in this case, the Volt is going to be bought for emotional reasons, but it will be for the emotion tied to the technology contained therein," Lutz wrote.
He said the Volt will help reverse GM's fortunes and, if accepted by consumers, make an impact on society's concerns over energy security and the environment.
Tech specs
Most Americans will be able to drive their daily commutes entirely on the batteries, charging them at night for about 80 cents with electricity priced at 10 cents a kilowatt-hour, according to GM. It takes about eight hours to charge via a household 120 volt outlet and three hours on a 240 volt outlet.
A look at the interior controls of the Chevy Volt. Click image to enlarge.
(Credit: GM)GM estimates that it will cost about 2 cents per mile to drive while under battery power. By contrast, it calculates that people pay 12 cents per mile for gasoline at $3.60 a gallon.
Overall, GM figures that a Volt will cost one-sixth what it cost to operate a gasoline car. Charging the car daily will consume less annually than running a home's refrigerator and freezer units, the company said.
GM has also sought to make the interior fit with the car's high-tech image.
There will be two touch-sensitive screens, as well as a configurable liquid crystal instrument display.
A 7-inch touch-sensitive liquid crystal display provides navigation, and a touch screen controls in-car climate and "infotainment." There is an optional navigation system with an on-board hard drive for maps and music.
The Volt's 220 lithium-on batteries can store 16 kilowatt-hours of electricity and deliver the equivalent of 150 horsepower and a quiet ride.
Update at 2:45 p.m. PT with additional technical details: The projected acceleration is zero to 60 miles per hour in 9 seconds, according to GM representatives. The battery life--a significant question facing all new lithium-ion battery vehicles--will be 150,000 miles or ten years. The Volt will come in a variety of colors.
General Motors at its centennial celebration in Detroit on Tuesday is expected to showcase the Chevy Volt, a plug-in hybrid electric car that carries the heavy expectations of reversing GM's slide and slashing consumers' fuel use.
Buzz around the Volt picked up last week when photos of the production car were captured, showing a less sporty look than the original concept car. But what are the environmental and cost benefits of the Volt?
The Volt will be able to run 40 miles on lithium-ion batteries and get a range of 400 miles from an internal combustion engine that charges the battery. The four-door sedan with a hatchback is set for release at the end of 2010.
Click on the image to see photos of what is said to be the production version of the plug-in hybrid Chevy Volt.
(Credit: General Motors via TheCarConnection.)GM has not offered many details on the Volt's fuel economy and didn't respond on Monday to a request for more specifics. But early estimates indicate that the Volt will deliver a significant boost in mileage and be cheaper to operate than a gasoline car.
Plug-in electric cars also stand to reduce, although not eliminate, air pollution.
"The Volt story has gotten much more interest than other (GM) product introductions because it represents such a dramatic departure. Historically, things were more incremental," said David Cole, the chairman of the Center for Automotive Research in Ann Arbor, Mich.
GM says the Volt will get the equivalent of 50 miles per gallon on longer trips where an expected four-cylinder engine will be engaged.
But mileage will improve substantially if a person stays within the batteries' 40-mile range. GM designers targeted a 40-mile battery range because most people drive less than that in a day.
In all-electric mode, drivers can expect the equivalent of about 100 miles per gallon, said David Goldstein, the president of the Electric Vehicle Association of Washington D.C.
In a mixed mode, where the gasoline engine kicks in, Golstein thinks that overall mileage for a 100-mile trip would be about 50 miles per gallon, but would go down to 35 miles per gallon for a 200-mile trip because the gasoline motor is working more.
Compared with a gasoline car, plug-in hybrids like the Volt stand to be cheaper to operate. Goldstein estimates that people will pay between 2 and 6 cents per mile with the Volt, depending on electricity rates.
A detail on the Volt's styling.
(Credit: GM)That price per mile estimate for the Volt is less than the 15 cents per mile that a typical gasoline car costs, calculated Scott Sklar, an alternative energy consultant at the Stella Group.
Comparing the cost per mile of a gasoline car with a battery-powered vehicle is complicated by the fact that many regions in the U.S. have different electricity tariffs that depend on usage and time of day.
Martin Eberhard, the founder and former CEO of Tesla Motors, is one of the first customers of the all-electric Tesla Roadster. After a few months of driving, he reported in his blog that the cost per mile of the Roadster is between 2 and 6 cents per mile.
From an environmental perspective, plug-in hybrids have the lowest greenhouse gas emissions over their product lifecycle compared with other transportation technologies except all-electric vehicles, according to a recent analysis done on the future of transportation published in August by the Massachusetts Institute of Technology.
That's because electric motors are more efficient than gasoline engines, said Goldstein. Also, electricity generation is several times more efficient than the energy conversion that happens in a car, said Cole.
Similarly, the the Electric Power Research Institute and the National Resources Defense Council (NRDC) last year concluded that adoption of plug-in hybrid electric vehicles would lower global warming emissions, improve air quality, and reduce petroleum consumption by 3 million to 4 million barrels per day in 2050.
Road blocks?
But for all the promise of the Volt, there are some real engineering and business challenges.
The biggest technical issue is the reliability of lithium-ion batteries, in which nearly all auto makers are investing.
The useful life of these batteries is still not totally clear, as they haven't already been tested in vehicles for decades.
One business model that automakers are looking at is a leasing option, where consumers would lease a plug-in hybrid electric car's batteries for 10 years, said Cole. After that, the battery would be replaced and potentially used in less-demanding applications such as power grid storage.
A drop in the price of petroleum, which has fallen dramatically since earlier this year, could also put the brakes on the investment in engineering to make plug-in hybrid vehicles less expensive.
Recent reports said that GM is planning to charge about $40,000 for the Volt, more than what was originally anticipated. For the price to go down, there needs to be a multi-year ramp-up in battery production.
"Anyway you look at it, out of the box, this is going to be expensive. These are going to be expensive batteries," Cole said.
In its report, MIT estimated that plug-in hybrids will be commercially competitive with gasoline cars in eight to ten years.
The battery will weigh 400 pounds, be 5 feet long, and be placed under the car, Bob Boniface, GM's Chevy Volt design director said in an interview. Boniface said GM had to make a break from the initial concept car design to improve the aerodynamics and fuel efficiency.
The Volt is a series hybrid, which means that the car's internal combustion engine only charges the battery, rather than drives the car directly. That means an automaker can design engines that run on different fuels.
Cole said that the biggest environmental pay-off from this design will come once ethanol from nonfood sources, called cellulosic ethanol, becomes commercially viable.
A car that uses E85 fuel, a mix of ethanol and gas, could get 400 miles per gallon of gasoline, he said. There are a handful of pilot cellulosic ethanol plants in the U.S., but none are producing at large scale.
For GM, the Volt is meant to help change its image as a vendor or SUVs and other trucks, while giving it important technical know-how in fuel-efficient cars.
"All GM brands are candidates to receive this technology," said Cole.
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