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Resistance to GM’s Volt
April 23, 2008
Holman W. Jenkins Jr. can’t decide “whether GM is a genius or a dolt for developing the Volt.” The Wall Street Journal columnist writes today, “America's biggest near-dead car company called in reporters this month to boast—boast!—about its willingness to lose money on its forthcoming electric car.” Jenkins says GM told the reporters it would deliver a plug-in Volt by 2010, “Whatever it takes….”
What it would take are batteries with sufficient power-to-weight ratio and life expectancy. Jenkins reports that “GM says it has a battery package in hand, and will have to squeeze 10 years of testing into two to make its schedule.” But, he adds, cost is no object, paraphrasing GM vice chairman Bob Lutz as saying that “GM intends to beat Toyota at its own game of selling bogus green symbolism to Washington and Hollywood.”
One would think that stakeholders, whatever their political leanings, would be resistant to selling “bogus green symbolism” at a huge loss. But Jenkins detects a motive. GM, he suggests, will “throw its lobbying clout behind a final set of CAFE rules designed to disadvantage its rivals.” It will bribe customers to drive money-losing Volts off the lot in order to offset the higher fuel consumption of its bigger, more powerful, and profitable vehicles.
See related post, "Hummer vs. hybrid."
Posted by Rick Nelson on April 23, 2008 | Comments (4)