Chevy Volt cost $750 million - 12/10/08

Electric cars are playing a big part in the Detroit automakers plans for the future, although with all there financial problems you wonder if they will continue with their plans.  The problem for GM is the Chevrolet Volt will not be profitable for years.

GM DEO Rick Wagoner told a congressional committee recently the Volt will not be in production till 2010 and will not be fully cost competitive.

Some experts believe even though electric cars will not help the bottom line immediately, these programs will be important to the survival of automakers around the world.

Money is running out to build regular cars and trucks, but the big three automakers continue to fund projects like hydrogen fuel cell and electric vehicles.

The business plan GM sent to congress showed them spending over $750 million to develop the Volt, which is mostly for battery research.  What happened to the EV One they developed years ago for a fraction of that amount?

GM executives say the Volt’s extended range electric drive technology will not be profitable till 2016.  The Volt is designed to run on total electric power for the first 40 miles, then switch to a gasoline engine to charge the batteries if needed.  Most people never drive over 40 miles in one day so at the end of the day they simply plug it in for an overnight recharge.

The big three automakers all claim that they want to be ahead of the trend for electrification of cars and trucks and that battery technology will lead the way to the development of electric vehicles.

It is hopeful that expensive high profile projects like the Volt can lead to less expensive battery technology and find ways to save fuel on lower tech vehicles.

GM hopes to be the technology leader in the industry and if they can do that, it could change the public’s opinion that GM is slow to adopt new technology like hybrids and electric vehicles.

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