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GM president: Electric cars won't go mainstream until we fix these problems

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#1 ·
GM president: Electric cars won't go mainstream until we fix these problems
CNN Business Perspectives
By Mark Reuss
November 25, 2019

The automotive industry is hurtling toward a future that will change transportation the same way electricity changed how we light the world. Electric and self-driving vehicles will alter the automotive landscape forever — it's only a question of how soon.

Like any revolution, this one will be created by market demand.

Range
Most consumers surveyed during our clinics said they want at least 300 miles of range. And if you look at the market today, which is driven by early adapters, the numbers bear that out. The vast majority of electric vehicles sold — almost 90% — are six models with the highest range of 238 miles or more — three Tesla models, the Chevrolet Bolt EV, the Hyundai Kona and the Kia Niro, according to IHS Markit data.

Charging infrastructure
For EVs to gain widespread acceptance, manufacturers, charging companies, industry groups and governments at all levels must work together to make public charging available in as many locations as possible. For example, we are seeing increased partnership activity between manufacturers and charging station companies, as well as construction companies that build large infrastructure projects, with the goal of adding thousands of additional public charging stations in the United States.

Cost
Looking forward, we think electric vehicle propulsion systems will achieve cost parity with internal combustion engines within a decade, probably sooner, and will only get better after that, driving sticker prices down and widening the appeal to the average consumer. That will be driven by a number of factors, including improvements with each generation of batteries and vehicles, as well as expected increased regulatory costs on gasoline and diesel engines.
*Full Article at Link
 
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#4 ·
Mark Reuss said:
Like any revolution, this one will be created by market demand.
Good to see Mark Reuss become a free market advocate. Is General Motors now going to recommend that governments phase out all tax credits and other subsidies for EVs and charging infrastructure?
 
#7 ·
GM has no direction...A rudderless ship if i've ever seen one
CEO: XT6 will have supercriuse at intro
Engineers: No it wont...it never will
CEO: Zero, Zero, Zero
President: Electric cars wont go mainstream until we fix these problems

at this point I have zero confidence in MB as CEO, she's completely out of touch w/ her own company
 
#8 ·
The one factor he's not talking about here is the drastic increase in price of vehicles forcing most families the ability to own only one vehicle and then using ride-sharing companies for anything that resembles "second car".

Much of the calculation of cost assumes this to happen. Not because consumers demand it, but, because producers will just do it...

There is a larger strategy here (BEV and autonomous driving) that allows a whole industry pivot its workforce and designs into an area where the company has more control than the consumer. It's not longer what the consumer wants, it will be "this is what the consumer will get".

This isn't the first time this happened. There are plenty of industries (look at smart phones as a prime example and the cable TV industry) where this is the case today.

Just like GM wanted to be like BMW, they also want to become like Apple or Comcast.
 
#17 ·
The one factor he's not talking about here is the drastic increase in price of vehicles forcing most families the ability to own only one vehicle and then using ride-sharing companies for anything that resembles "second car".
I don't know one family that has done this, and I live in a major Metropolitan area.

I often wonder where this all ends up. So many promising and exciting conventional programs have been shelved, canceled or killed on the altar of EVs and now the head guy at GM just tells us that the industry is maybe decades away - if ever - from making them "mainstream".

At some point, I'm hoping for a reality check before it's too late.
I would guess the next major recession will force them to reevaluate their thinking, whenever that hits.

Maybe we are seeing a welcomed breaking of the ranks? Maybe Mary's big Chicom dreams are starting to turn into a $h!t show? I hope both.
There has to be someone there with enough sense to see the numbers not adding up!!!!
 
#12 ·
I often wonder where this all ends up. So many promising and exciting conventional programs have been shelved, canceled or killed on the altar of EVs and now the head guy at GM just tells us that the industry is maybe decades away - if ever - from making them "mainstream".

At some point, I'm hoping for a reality check before it's too late.
 
#14 ·
I honestly do not think they are worrying where it will end up at all. They are just using this as an event to allow them to make drastic changes to their business. The IT industry is well known for doing this over and over every decade. They pick a technology, call it a revolution (when it really isn't), make huge changes to their workforce (essentially repeated fire and hire cycles) all in the name of ensuring they are an ongoing concern.

It doesn't matter if either BEV and/or autnomous driving ends up being the "end result". What matters is that it constitutes a major change in the industry they compete in and supposedly forces them to make drastic changes. In reality, none of these technologies may ever see the light of day, but, no matter--use it to enhance our business nonetheless.
 
#15 · (Edited)
Zero, zero, zero. Yes we can? Mary and Mark should really be on the same page about this.

I recall when the Volt was getting ready for production that GM's research said that most people only drive XX amount of miles and that the Volt would have sufficient electric range for most driving needs. Interesting how times change!
 
#16 ·
Zero, zero, zero. Yes we can? Mary and Mark should really be on the same page about this.

I recall when the Volt was getting for production that GM's research said that most people only drive XX amount of miles and that the Volt would have sufficient electric range for most driving needs. Interesting how times change!
Maybe we are seeing a welcomed breaking of the ranks? Maybe Mary's big Chicom dreams are starting to turn into a $h!t show? I hope both.
 
#22 ·
Newsflash: Electric cars (GM) won't go mainstream, until you make them drop dead good looking. People buy stunning cars because they want them, not because they 'need' them. It's called lust, and it is one of the most powerful forces in the universe. If the Cadillac Escala was full electric with a range of 300 miles plus, I'm pretty sure Cadillac could sell them.

Just make desirable cars GM. It's not that difficult. Audi, Porsche, Jaguar, Tesla etc are all making striking looking EVs, but GM?...crickets...crickets...crickets. Oh, and VW will have the ID3, ID4, and ID6, very attractive 'mainstream' EVs, in the showroom very soon. Unlike GM, VW will at least make a decent attempt to sell countless thousands of these.
 
#23 ·
You also need an ad campaign, which GM has had occasionally but the good stuff gets shut down quickly. GM needs a Mulally but they don't think so because inbreeding is too much fun.

Tesla sells because it's COOL.:cool::cool::cool::cool: It's a fad car, a clique car. Musk and Friends created that, word among The In Crowd was TESLA IS COOL. So the trendies go to them. I'd expect my trendie cousin to get one. And she will, if COOL overrules her cheapskate gene. But she would NEVER EVER buy a GM. Or any American make. They're just not cool. Ya know?
 
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#32 ·
How is it when a new article comes out and the first comment is negative almost every other comment that follows are also negative? But, it could also go just the opposite where the first comment is positive and more positive would come. Do we have a bunch of sheep here? Do we have to gang up on GM? Crazy world we live in!
 
#40 ·
There is no question that GM hopes to ride a Chinese wave for the adoption and sale of electric vehicles in order to drive down the cost of the cars, components or both. Unfortunately, As Reuters reported two days ago (November 25) China’s electric vehicle sales dropped 46% because the Government cut back on subsidies. The Chinese Government has a dilemma they are awash with coal to generate electricity, they have some petroleum resources but need to import over 7M barrels per day from the Middle East. Not the most stable supplier.
No doubt this is affecting GM's plans as well.
 
#41 ·
The sad part is, all of what Reuss said is right.

WHY did they bet the farm on Electrics anyway? Fighting the market is like trying to defy gravity. Jacking prices up is similarly ill-conceived. Has anyone done a "what if" analysis on this? What if we sell only a third of what we expect, and people keep buying the gas vehicles still available - in greatly increased volumes - because there are no better alternatives?

Is this not a distinct possibility?

At my house, we are adding a 4th vehicle soon for another teenager. No one is in the market for an electric. Too expensive for the kids that don't drive much, and not enough range for the earners who drive 100 or so miles each day. No market here, and not even close.
 
#47 · (Edited)
There's a market but that market isn't the type of EVs that GM pissed away all of their credits making.
https://www.cnet.com/roadshow/news/...rst-edition-sold-out-price-msrp-reservations/
The Menlo is not what EV buyers want, either... so don't bother with that here.

GM knows how to make a high performance EV.
They've been in the EV business for a decade, but the corporate will is very weak.
Looks like Ford is about to be the beneficiary of their weakness.

It's absurd that GM invented this almost 20 years ago but has yet to put one in production.

 
#48 ·
A little concerning since GM has stated 20 new full EV vehicles coming by 2022 which is two years away.

Are the 20 GM electric EV s 8 years too early?

Not sure the public relations dept is actually doing their job.

I always respect Mr Reuss but this article was not a smart move .


JMO
 
#53 ·
I'm more think GM is counting trim levels as models.

BEV CC RWD truck
BEV double cab RWD truck
BEV CC AWD truck
BEV double cab AWD truck

Boom. 4 new models.
 
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#59 ·
The optics on this article are horrible. To me, it comes across as either a) a precursor to them telling the market they are out of electric vehicles, or b) someone wanting someone else to fix their problems. Interesting that the Europeans, with Tesla, Ford, Nissan, Honda, etc. are all ramping up electric efforts, and GM seems to be providing excuses for why we have not seen anything from them lately. Didn't they come out a few years ago and state that we would be seeing a batch of new electric models in the next few years? At the very least we should be reading about those by now.
 
#60 ·
^^^ Given GM has already exhausted their tax credits, I believe they're just waiting for the rest of the manufacturers to catch up before they show off their next EV.
 
#61 ·
Look what happened in Hong Kong yesterday. These are folks familiar with trusting the Chicom dictators with agreements. I'm not sure if Mary and the BoD have ever heard this song before, but they ought to listen to it and may want to learn the words before betting the entire ranch, (which they and others have pretty much already done), on the promises of their Chicom "partners".


 
#68 ·
Electric Cars are never going to become "Mainstream" because they are not even close to the best solution for reducing "Well to Exhaust" energy usage and overall emissions.

Hybrids offer a lot of reductions for lower costs and are have achieved market acceptance as Toyota's recent Hybrid Sale Prove

October 2019 Highlights - Sales Figures are for Oct 2019 and YTD Oct 2019 with Percentage Increases
Hybrid sales up 57.1 percent; Toyota division hybrid sales up 62.0 percent and Lexus division up 33.0 percent
RAV4 37,499 362,121 87.30% 35.80%
RAV4 Hybrid 9,460 72,341 137.30% 76.50%
Corolla 10,233 127,604 -51.70% -46.30%
Corolla Hybrid 1,873 12,923 New New
Camry 26,593 284,476 0.02% 3.60%
Camry Hybrid 1,668 22,061 13.50% 16.40%
Prius 6,679 56,937 5.90% -24.30%
Highlander 18,857 199,025 -8.20% -1.10%
Highlander Hybrid 1,556 14,633 66.20% 23.10%
Lexus RX 8,049 71,980 26.60% 8.90%
Lexus RX Hybrid 1,451 12,568 2.50% 6.10%
RAV4 Prime 39 Mile Range 40 MPG 5.8S 0-60

October 2019 Highlights
Toyota Division:
RAV4 sales increased 10.3 percent, marking a best-ever October; led by RAV4 Hybrid with 9,460 units sold
Prius sales up 5.9 percent
Total Toyota division hybrid sales up 62.0 percent

Lexus Division:
Total Lexus division luxury SUV (LUV) sales up 14.5 percent; marking a best-ever October
Total Lexus division hybrid sales increased 33.0 percent

Main Reason for RAV4 Hybrid success is the very low cost premium ($850) over the ICE RAV4 (Note: Hybrid is AWD Only) and even the $2,250 Premium over the FWD is less if the Hybrid Standard Alloys and Dual Zone are accounted for.
RAV4 LE FWD $26,970 $2,250 Less than Hybrid
RAV4 LE AWD $28,370 $850 Less than Hybrid
RAV4 LE Hybrid $29,220 Alloys/Dual Zone + AWD over FWD

Voltec/Plug-In Hybrids are far superior in overall cost and market acceptance and Toyota just announced the Plug-in RAV4 Hybrid with 39 Miles of EV Range and 5.8s 0-60 performance and 90+ MPGe (RAV4 Hydrid is ~40 MPG)

Hybrids can deliver ~30% reduction in "Well to Exhaust" energy usage and overall emissions AND actually sell in large numbers making their "real world" impact better than BEV's, with "Voltec"/Plug ins even more efficient and more marketable/livable for most buyers.

Had GM introduced a SUV version of the Volt, at least 5 years ago (love to know the real reason for this decision), it would have been ahead of Toyota and would have established the Voltec Equinox/Terrain as dominate players in what is now the hottest segment in the industry - instead GM has once again been totally "owned" by Toyota.
 
#70 ·
Bear in mind that the Corolla Hybrid is new and that these sales numbers are much better than they have been in the past (and that Compact and Mid-Size Cars Segments are shrinking) - the trend is turning to Hybrids over BEV's since many are now realizing that they are a viable alternative to BEV's.

This trend will only get stronger as Hybrids and Plug-ins get more efficient and cost effective.
 
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