GM backs hybrid vehicles despite losses

[Canuck]

GM backs hybrid vehicles despite losses
By James Mackintosh in London
Published: September 20 2005 03:00 | Last updated: September 20 2005 03:00

General Motors expects its new hybrid fuel-saving vehicles to incur losses but is developing them in the belief they will improve its image, the US carmaker's top executive has said.


Rick Wagoner, chairman and chief executive, said in an interview that no manufacturer was able to make money on hybrid petrol-electric vehicles, sales of which are booming in the US.

But he said GM was pushing ahead with hybrids to improve its environmental credentials in the same way that rival Toyota, the second-biggest carmaker after GM, benefited from the success of its Prius hybrid hatchback.

"Our hybrids will lose money," he said. "It is early stage technology and the volume is low."

GM is planning to launch hybrid versions of its Chevrolet Tahoe and GMC Yukon large sport utility vehicles in late 2007, followed by hybrid pick-up trucks, using technology developed jointly with Daimler- Chrysler and BMW of Germany.

But Mr Wagoner said unless petrol prices hit $8 a US gallon - triple the current level - it would be hard to persuade customers to pay enough to cover the extra costs of building hybrid vehicles, which require an electric motor and battery as well as an engine.

http://news.ft.com/cms/s/dd5e1a86-29...00e2511c8.html

[asim]

It may lose money, but it does miles of gain in the image factor. That way once you have some good hybrids, they start thinking all of your cars are fuel efficient.

[paul3230]

GM should have gotten on this bandwagon earlier..but at least they got something coming out in 06/07

[plane]

Where are the high efficiency GM diesels?
Where is the high mileage version of the Cobalt?
What about an Aveo that can grab 50 miles per gallon?
You did it years ago with Suzuki. Just do it now!
Leave behind the dinosaur image and step into the 21st Century!
Give us something that is competitive with the Civic and Corolla.
It won't take two more years and it will boost GM's image significantly.

Or are we witnessing the 1970's all over again?

[Cortazzo]

Now, do they lose money on the components or on the whole car? I can't image they'd lose money on a tahoe even with the hybrid components.

[gmfan3]

Originally Posted by plane

Where are the high efficiency GM diesels?
Where is the high mileage version of the Cobalt?
What about an Aveo that can grab 50 miles per gallon?
You did it years ago with Suzuki. Just do it now!
Leave behind the dinosaur image and step into the 21st Century!
Give us something that is competitive with the Civic and Corolla.
It won't take two more years and it will boost GM's image significantly.

Or are we witnessing the 1970's all over again?

"Leave behind the dinosaur image and step into the 21st Century!"

where was the support for the EV1?

also, gm has more than 1 million E85 capable vehicles on the road today, almost 350 hybrid-powered buses in 22 U.S. cities, and extensive fuel cell research.

then gm had technology advances like night vision, onstar, 4-wheel steering

dinosaur image because they didn't jump on the hybrid bandwagon and start claiming outrageous mileage numbers....indeed!

fyi,
Data from independent product-testing organization indicates that hybrid cars get less than 60 percent of EPA estimates while navigating city streets. In real-world driving test, the Civic Hybrid averaged 26 mpg in the city, while the Toyota Prius averaged 35 mpg, much less than their respective EPA estimates of 47 and 60 mpg.

is a hybrid really a cost savings? example:
if u average 15000 miles a year and at $3 per gal,
30 mpg (regular car) = $1500 per year
50 mpg (hybrid) = $900 per year

seems like a big difference until u factor in the initial cost of the vehicle which a hybrid typically costs $4000 to $6000 more than their regular gas only version. that would take 6-10 years to recoup the cost.

read: http://www.mixedpower.com/modules.ph...rticle&sid=740

diesels seem to be the better bet at this point.

[timman]

How can a company that supposedly cannot make money, invest in hybrid vehicles at a loss and expect to be profitable? ...hummm????...maybe they are not in as bad a shape as you'd think...is someone "pulling the wool"? In the end someone will blame the UAW...somehow...I'm sure.

[drew770]

Originally Posted by timman

How can a company that supposedly cannot make money, invest in hybrid vehicles at a loss and expect to be profitable? ...hummm????...maybe they are not in as bad a shape as you'd think...is someone "pulling the wool"? In the end someone will blame the UAW...somehow...I'm sure.

GM's money issues is an open book. The UAW have brought in their own accountants to go over the GM and Delphi's books and found nothing abnormal.
No one is going to blame the UAW!!!!!!

[SSrevolution]

Originally Posted by Canuck

"Our hybrids will lose money," he said. "It is early stage technology and the volume is low."

Uh Hem.

How in the blue hell do you think Toyota got started? Did they lose money on their hybrids?