Volt Jump-Starts GM
America impressed the world with Yankee ingenuity during most of the twentieth century. More recently, the U. S. of A. taught the world about marketing. From selling cigarettes to soda water, the United States dazzled the planet. Ironically, the former Big Three marketed themselves into dire straits with high profit SUVs, trucks and muscle cars. When seeking sympathy for their situation, car makers claim they gave Americans what they wanted. But why were soccer moms so eager for 4-wheel-drive mall monsters? Could it have been the advertising?
While the big wheels turned and the profits rolled in, the world changed in two important ways. Both trends will push car makers well into the new century. New communications technologies pierce international borders creating communities that never existed. People learn how interconnected we all are and about the problems we share. Cell phones and the Internet make broadcasting a push-button operation. Citizen journalism and individual communications make it increasingly difficult for corporations to act in purely selfish ways. Profits depend on global trade and international responsibility. People in America ask, if the Chinese can make electric cars, why can't Detroit?
But the Chinese want American cars! And China's race to economic powerhouse put the brakes on Detroit's SUV joy ride. This second trend dominates world markets in three ways.
China's oil thirst makes U.S. cheap gasoline a thing of the past. Gains in U.S. oil production, wherever they come from, will do little to dent global oil prices. Burdensome U.S. government oil subsidies will draw increasing criticism as the country's debt soars.
China's huge market for cars and its mounting pollution problems mark a great opportunity for American innovation. Chinese people do love American cars, but if other manufacturers offer cleaner, cheaper cars, Detroit will loose.
International car companies will need manufacturing bases in China to compete, whether through Chinese partnerships or stand-alone operations. Chinese manufacturing will be necessary to save money with economies of scale and shipping. Wise car companies will partner with Chinese battery and car manufacturers, taking advantage of the Chinese government's financial support.
While the challenges are huge, so are the opportunities. GM, if it follows through with 2010 delivery of Volt, may emerge at the top of the hybrid heap. Designers at General Motors hope to produce a visually appealing car. Volt doesn't look like a hybrid. It doesn't look like a Prius. While not exactly the concept car, the production model follows sight lines similar to many other American cars. Volt might be considered a hot car. Let's call it the Tesla effect. The high-end Tesla roadster blasted the reputation of electric cars as dowdy, slow, sluggish electric cars of the past. Volt could be considered a sports sedan. Marketing savvy coupled with innovation might bring forth a car America can love. Even if it is good for us!
Volt differs from Prius in an important way. Prius uses a gasoline engine aided by an electric motor. Computer control switches between them as needed. Electric power works mostly at low speeds, while at highway speeds the gas engine takes over. (This is not true of Prius plug-in modifications.) Volt should be able to drive at highway speeds, within its range, like a pure electric car. When the batteries get weak, the gas engine runs a generator that powers the batteries and the motor. To simplify, the Volt is an electric car that carries a gasoline generator to extend the range.
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