Chevy Volt: Too Much, Too Little, Too Late?

Late last month I had a conversation with a couple of motorheads, guys who know a whole lot more about fixing cars than me. I like to spend time with automotive geeks because they quietly remind me that cars are much more complicated than ever before, particularly anything that has been built since the mid-90s when computer chips began to take over.

Cadillac RanchThough I’m not a wrench turner, my place in the mix is keeping the guys informed about what is coming down the pike, particularly which cars will be hitting showrooms over the next year or two when they’ll likely be making their next new car purchase.

Interested In New Technology

Everyone I know is interested in the newest technology and most know that there is a revolution brewing when it comes to what will be found under the hood. Nobody I know believes that gas engines will be going away, but then I do not hear people clamoring for diesels.

What interests my friends are both hybrid and pure electric cars, particularly those models which can comfortably carry a family, even tow a boat. One guy owns a GMC Sierra that he purchased back in 2000 and expects to replace his truck by next year. But, what he isn’t planning to do is buy a GM product, fearing that the auto giant won’t be around much longer, government guarantees or not.

GM Is Running Behind

Inasmuch as GM is making an effort to recover, the concern that many are having is that they’ll soon be leapfrogged by everyone else. Friends are interested in the Ford Fusion Hybrid but they wonder aloud why the Chevy Malibu Hybrid only gets 26 mpg around town while the Fusion Hybrid gets 41 mpg.

Worse, are some of the comments I’ve been hearing about the Chevy Volt, a vehicle that is expected to go 40 miles on pure electric power before the gas engine kicks in. Some of the concerns about the Volt project include the following:

The car arrives late — by November 2010 when production is set to begin, there will lots of other choices besides the Volt. Nissan is moving up its plugin electric model to 2010 and at least one Chinese manufacturer is expected to sell pure electric cars stateside ahead of the Volt’s release.

The Volt is expensive — with a list price of about $40,000, the Volt costs $10-15,000 more than most other hybrids. When I explain that the Volt is technically an electric car with a gas engine back up, my explanation fails to convince. Even with a $7500 federal tax rebate, some people remark that the price of the Volt isn’t much different from a Cadillac CTS. If they’re going to spend that kind of money, which car do you think they’d rather drive?

Not worth the risk — perhaps the most disconcerting thing about some of the comments I’ve been hearing are people’s perceptions that GM can’t complete the task. Given the negative publicity surrounding the EV1 — GM’s first attempt at an electric vehicle — I’ve heard enough talk about past failures which should be a cause for concern.

Finally, there are enough folks who won’t buy a car from GM now that it is effectively Government Motors. With President Obama dictating how the company is run, people are vowing never to buy a car from a government backed company. “Leave the business to the car guys,” they say and, “Why weren’t bankers fired for mishandling mortgages?”

I would like to help change people’s perceptions about GM, but I honestly cannot do that as I have my own doubts (plus, it ain’t my job). When seeds of doubts have been planted, it can be difficult to remove those weeds. Then again, if car buyers are looking at greener pastures, nothing that GM does will win them back again especially if they remain a ward of the federal government.

Related Reading — GM: The Good, the Bad and the Ugly

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4 Responses to “Chevy Volt: Too Much, Too Little, Too Late?”

  1. diymyrideNo Gravatar Says:

    My friends and I are having this discussion ourselves. The Volt is quite expensive, compared to other hybrids. And with that price, it isn’t surprising to hear comments that GM just might not be able to take the Volt into the commercial market.

  2. MattKNo Gravatar Says:

    Diymyride — Don’t estimate GM (and the federal government’s) resolve to bring the Volt to market. It will be very expensive, but it’ll carry a $7500 tax rebate which means that it will be almost very expensive. Seriously, I doubt that they’ll sell many of these until the price comes down. Priced below $30K & the Volt has a chance. Priced below $25K & the Volt could do quite well.

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