[racy]

Full link here: http://www.detnews.com/apps/pbcs.dll/article?AID=/20080320/AUTO04/803200347/1148/AUTO01

GM prepared to take loss on Volt

Carmaker to stick with plug-in through initial sales; admits mistake in early hybrid strategy.
David Shepardson and Eric Morath / The Detroit News

NEW YORK -- General Motors Corp. could some day sell more than 500,000 Chevrolet Volts annually worldwide, but the company is preparing to lose money "for years" on the range-extended electric vehicle, Vice Chairman Bob Lutz said Wednesday.

While speaking to a group of Volt fanatics at the New York International Auto Show, Lutz said it was a mistake that GM didn't beat Toyota Motor Corp. to market with hybrid vehicles even though the Detroit automaker had electric vehicle technology dating back to the 1960s.

He said GM won't make that error again, even if it means losing money on initial Volt sales.


"We won't make a dime on this car for years, and the board is OK with that," he said. GM was hesitant to go to market with hybrids a decade ago because he said the automaker was likely to lose $250 million a year selling such vehicles.

Lutz said being late to the market with hybrids has cost GM billions in sales because it lost its image of having superior technology.

GM's initial estimates of 60,000 to 100,000 annual Volt sales could grow five-fold, Lutz said, adding that the car is a "game changer" on par with the Ford Model T.

More than 100 Volt fans accepted GM's invitation to attend the New York show and meet executives.

Mark Haines traveled from Melbourne, Fla., to hear more about the Volt. An electrical engineer who built his own electric vehicle, he said he'll be among the first to buy a Volt.

 

[johnny smallblock]

Good. GM's got the message. Now let's try to beat Toyota to the punch.

 

[Whitesky]

As others have stated, just take any loss from the advertising budget. Not that I'm fond of making treehuggers happy, this is a p-r move.

 

[mrgto]

At some point they won't though. I fear they won't be able to keep up with demand for the product.

 

[Saturn69]

As others have stated, just take any loss from the advertising budget. Not that I'm fond of making treehuggers happy, this is a Page Ranking move.

I'd rather be a tree-hugger than an camel-hugger. This car has nothing to do with tree-huggers, it's about energy independence.

Oh yeah, and good decision GM

 

[ohmywrd8]

You have to spend money to make money....

 

[stevecmh]

the most important thing is to get the out there.. and if they have to take a loss at least they are ready

 

[nascarnate326]

Now let's try to beat Toyota to the punch.

Soooo important, I hope GM realizes this. Late to the game isnt going to cut it.

 

[steinravnik]

As others have stated, just take any loss from the advertising budget. Not that I'm fond of making treehuggers happy, this is a p-r move.

That sounds reasonable, this thing should sell on word of mouth with little advertising.

 

[TruckMan]

I'd rather be a tree-hugger than an camel-hugger. This car has nothing to do with tree-huggers, it's about energy independence.

If it's about energy independence, then why would it matter how much it costs? I thought it was the government's responsibility to set national policies and GM's responsibilty to make a profit?

 

[likearock00]

GM is getting used to losing money on vehicles by now! What's one more to add to the fold?

Hopefully the rest of the lineup will finally add some cash to the already limited bank account. These next few years are going to be pretty bleak sales-wise, I hope they can pull this off without going too much further into the hole.

Awesome vehicle with amazing technology. I can't wait to see the next chapter in automotive history for GM!!

 

[Ambalanche]

It's important they beat Toyota to the punch, but it's also important they do it while still producing something superior and dependable at the same time.

 

[el es juan]

perception is priceless......

 

[Wolfman01]

I'd rather be a tree-hugger than an camel-hugger. This car has nothing to do with tree-huggers, it's about energy independence.

Oh yeah, and good decision GM

Thank you. It's long overdue for people to simply ignore the environazi crowd, and start recognizing the REAL and VIABLE solution that these vehicles will help this country move forward to - energy independence. That is a matter of national security.

 

[TruckMan]

Thank you. It's long overdue for people to simply ignore the environazi crowd, and start recognizing the REAL and VIABLE solution that these vehicles will help this country move forward to - energy independence. That is a matter of national security.

Not the "national security" farce again...

So how will isolationism help us? All our manufacturing costs will sky-rocket, and this helps us how? Or is energy the only thing we should be independent on?

More efficient cars will not make us energy independent! The gas companies will still buy Mid East oil because it will always be the cheapest.

 

[greenchevelle]

As others have stated, just take any loss from the advertising budget. Not that I'm fond of making treehuggers happy, this is a p-r move.

agreed. I also like your picturel.

 

[Avalanche13]

I'd rather be a tree-hugger than an camel-hugger. This car has nothing to do with tree-huggers, it's about energy independence.

Oh yeah, and good decision GM

Become independent buy buying Lithium from China and batteries from Japan. I'd rather hug camels than rice.

This car is about CAFE and image. If GM sells 200k of these 100+mpg beasts they'll easily be able to slip 10k Tahoe/Suburbans in.

 

[Jay_mac332]

Not the "national security" farce again...

So how will isolationism help us? All our manufacturing costs will sky-rocket, and this helps us how? Or is energy the only thing we should be independent on?

More efficient cars will not make us energy independent! The gas companies will still buy Mid East oil because it will always be the cheapest.

I dont think that was his point. We are not thinking of isolation, we are just simply thinking about not having such a huge dependence on middle east oil. You cannot deny that the introduction of a car that DOESNT run on gas will make us less dependent on a very messy region.

So, yeah, that would mean that those countries would have less leverage on us, hence making our security better. Im not saying that we are out of the woods yet, because I think it is going to be quite a while until we eliminate our need for petrolium. What I am saying is that the Volt is a step in the right direction, because the fact that we are DEPENDENT on foreign oil creates an economic juggernaut that we dont need.

Cars that do not run on gas will definetly be able to help with our political interest. The less gas we need is the less that we need the middle east. So the Volt is definetly a plus for national security.

 

[Saturn69]

Become independent buy buying Lithium from China and batteries from Japan. I'd rather hug camels than rice.

This car is about CAFE and image. If GM sells 200k of these 100+mpg beasts they'll easily be able to slip 10k Tahoe/Suburbans in.

Yes, because of what those Chinese men did on 9-11.

 

[Wolfman01]

I dont think that was his point. We are not thinking of isolation, we are just simply thinking about not having such a huge dependence on middle east oil. You cannot deny that the introduction of a car that DOESNT run on gas will make us less dependent on a very messy region.

So, yeah, that would mean that those countries would have less leverage on us, hence making our security better. Im not saying that we are out of the woods yet, because I think it is going to be quite a while until we eliminate our need for petrolium. What I am saying is that the Volt is a step in the right direction, because the fact that we are DEPENDENT on foreign oil creates an economic juggernaut that we dont need.

Cars that do not run on gas will definetly be able to help with our political interest. The less gas we need is the less that we need the middle east. So the Volt is definetly a plus for national security.

I couldn't have said it any better.