Rumor: GM To Put Chevy Volt Program On Hold, Cut Engineering Staff Tomorrow — Nobody has substantiated this, but it is possible. Every time the oil prices plummet, as they are doing, all these “alternative” concepts die overnight after someone runs the numbers and realizes that they are going to lose their ass if the project continues.
UPDATE: GM says this story is a ludicrous hoax. And, indeed, nothing happened. (see comments)
Rumors of tomorrow’s “important changes” at GM have approached a fevered pace, but the latest one we’ve heard is coming directly from someone who’s directly related to someone who could be directly affected if the rumor is true. So, it must be true, right? Anyway, we’ve just been told by the family of a Chevy Volt engineering team member that not only is the untouchable Volt program on hold, GM’s even letting some of the engineering team, aka “the chosen people,” go.
Found by Aric Mackey.
Didn’t they just get $25Billion Loan/Bailout/Whatever and they are asking for more? Further, I thought the Fed $$upport was to allow them to “retool” for energy efficient cars?
Well, with the other bailouts going for Bonus Programs, Dividends, and Buy Outs==there is no reason not to sink the Auto Bailout Money into a revised more powerful Hummer!
Makes me wonder if a brick wall won’t eventually break if enough heads are run into it?
Well, come on, they’re losing their ass even on the conventional cars.
And I bet that research dollars go down in all industries, not just “new energy”.
“In late 2003, GM officially canceled the EV1 program.[12][13] GM stated that it could not sell enough of the cars to make the EV1 profitable. However according to GM Chairman and CEO Rick Wagoner, the worst decision of his tenure at GM was “axing the EV1 electric-car program and not putting the right resources into hybrids. It didn’t affect profitability, but it did affect image.”[14] According to the March 13, 2007, issue of Newsweek, “GM R&D chief Larry Burns . . . now wishes GM hadn’t killed the plug-in hybrid EV1 prototype his engineers had on the road a decade ago: ‘If we could turn back the hands of time,’ says Burns, ‘we could have had the Chevy Volt 10 years earlier.'”[15] In 2008, GM is suffering massive deficits, eclipsing the value of the company, [16] in a market with high demand for electric vehicles.”
http://en.wikipedia.org/wiki/General_Motors_EV1
We could go to wagons and all be wagoners. Rick Wagoner has failed as an executive.
http://farm3.static.flickr.com/2101/2129419503_a94d1c890b.jpg?v=0
While on the face of it I must agree with bobbo, this might be a good thing. They’ve been really pushing to get this ‘volt’ thing out, however in the time they were developing thier project storage technologies have been advancing quickly. Most notably, ultracapacitor technology is really making headway. The time isn’t right for the big guys to get involved cause they move to slow. By the time they get something designed and ready for mass production years can go by, and a few years can make a big difference when technological advances are making leaps and bounds.
Here’s an ev-1 pic:
GM had it figured out and then sold the public out to the oil industry. Now GM is screwed and somebody else will get rich building electric cars. All this after they built the thing to begin with. I’d never buy a new gasoline powered car.
“1990 — On January 3, GM had a press conference at Hughes Corporate HQ in Los Angeles to announce the Impact EV and let the press ride and drive. This was tied to the LA auto show. It was a smashing success. Surveys taken at the show indicated the market would accept a production version so Roger Smith (CEO at the time) announced on Earth Day, April 22, that the Impact would go into production. This was an astounding announcement that caught the Japanese by surprise and that CARB used as a signal to move toward a ZEV mandate for California.”
Entire timeline here:
http://www.evworld.com/article.cfm?storyid=1053
“Clearly, the film presents a problem for General Motors and the California Air Resources Board, especially the latter’s former chairman, Dr. Alan Lloyd, who admits he was a strong supporter of hydrogen and fuel cell technology. General Motor’s duplicity becomes painfully apparent when a spokesperson contends that the 1,100 recalled EV1 will be donated to museums and universities; and those that aren’t will be recycled.
“But they certainly won’t be crushed,” he states emphatically.
Aerial video shot from a helicopter over a remote section of GM’s expansive desert proving grounds in Mesa, Arizona showed hundreds of crushed EV1s, stacked like corpses in a Nazi death camp.”
http://www.evworld.com/article.cfm?storyid=1054
Goofy GM corporate think and bad book keeping. GM is screwed and they screwed themselves and now they want a big bailout from Washington. They want to stack up more corpses, those of the American people. In effect, GM wants to build death camps for U.S. taxpayers.
“In effect, GM wants to build death camps for U.S. taxpayers.” //// hah, hah. Too close not to call “Hitler” on this one.
You know, one might start to wonder just what in the heck America does do right?
How long can we keep coasting, slower and slower until we stop and start rolling backwards?
For grins–I said something much worse than “death camp for taxpayers.” Just not as catchy.
I’d just read the WIRED blog about how the Volt would save GM
http://blog.wired.com/cars/2008/11/the-chevy-volt.html
J/P=?
GM dumped the EV1 in favor of buying the Hummer line. Then coincidentally (sure it was) we had this little war over in Iraq. And the US Army chose to replace Jeeps with Hummers. So GM basically got corporate welfare for adopting the most fuel inefficient vehicle design, and abandoning its electric vehicle line. Ten years later, GM pretends to be going green again with the Volt. And after a well timed decline in gas prices (thanks to how the gas refineries do business), they now have an excuse to back out of that too. I expected that this would happen, only not this soon. It was probably the Japanese car maker entries into this line, that spooked the gas industry to drop prices early. Not only will they kill the GM Volt and the Tesla. But all the hybrid and pluggable lines to come.
“Analysts on average expect GM to post a $3.51 per share third-quarter loss before charges. The largest U.S. automaker lost $51 billion from 2005 through 2007, and posted losses of more than $18.7 billion in the first half of 2008.” economictimes
Let’s see, $51 billion in losses in two years and $18.7 billion in 6 months this year. They are opening a new plant today. “MOSCOW/ST PETERSBURG, Nov 6 – U.S. automotive giant General Motors will launch its first wholly owned Russian factory on Friday, as foreign car makers hope for rapid growth despite the financial crisis slashing demand.
As the crisis has choked off the flow of credit in recent months, many Russian banks have stopped granting car loans.” I predict that will cost them billions of dollars to lose billions of dollars even faster than they are losing them now.
Hogan: The driver says it’s water, Schultz says it’s water, now Klink says it’s water.
Newkirk: What do you think it is, Colonel?
Hogan: With those three men of integrity, I know one thing.
Newkirk: What?
Hogan: It ain’t water.
GM could fuk up water.
Let’s face it, GM and Ford will never go out of business, no matter what. They do too much for the US Military, to be allowed to fail. They’ll get bailed out, just as Chrysler once did. These major automakers would rather risk near financial ruin, than to switch to making all electric cars. Because they know that one they did that, they’d virtually kill their “after market” sales of parts and lubricants. Electric cars don’t grime up or wear out parts as fast. And don’t need brake, steering, or transmission fluids, brake linings, exhaust pipes or mufflers. And that stuff is all gold to their bottom line. They only want to sell you a car, that keeps you coming back for more stuff to keep it running. If they built electrics, and made the batteries right, they may not see you again for ten years.
That’s just typical.
The one time the US car industry (at least GM) seems to have a lead, they screw it.
I was looking forward for their success, because europes car manufactures are getting lazy and need some kick in the butt from overseas.
Oil for the lamps.
Hogan convinces Klink that there is oil underneath the camp in order to discourage the Germans from building a synthetic fuel plant there.
Klink: This move is General Burkhalter’s idea. He is a General of the Third Reich, the Fuhrer’s right hand man. Are you suggesting that he is a liar?
Hogan: How do you think he got to be the Fuhrer’s right hand man?
A bunch of GM liars are now roaming around Washington looking for fast cash to keep GM floating as it tries patching holes in the hull. It’s a Titanic so forget about it. It’s headed for the ocean bottom. It’s worthless and the Russian plant is a total loss. Wagoner should be put on trial.
Look at where one of the most major us industries now that was the underpinning of American prosperity
Between the clueless upper management that was a legend in its own mind and union leaders look where G.M. is now
In the 1970’s fuel economy issues and opec’s abuse became more than apparent
GM’s answer – lets load up old trucks with options , evade rules of safety , pollution and gas mileage , call these vehicles SUVs
Then use our marketing machine to sell these
They both aught to be shot
You would think that between the unions and upper management that the functions of the american auto industry was to provide retirement benefits to unionized workers and huge bonuses to the auto execs – as opposed to building quality , reliable vehicles that consumers want to purchase
“They do too much for the US Military, to be allowed to fail.” Funny, the military needs resources to win battles and now losing is akin to winning. GM can support national security by losing another $50 billion and we’ll all be safer and more secure too. We can all be useful idiots as well. Let’s just build concentration and work camps while we are at it. Hey, a new use for empty GM plants. Maybe Wagoner can land a job running the nationalized auto plants as director of human resources and we can put skulls on the crash test dummies to see how crashes impact real bone heads while we are at it.
The only way we’re going to see electric cars mass produced in the US, is if their production is government mandated (as California tried to do). Like how the safety feature we all enjoy today (safety glass, seat belts, airbags) were mandated. We didn’t get those out of any generosity of the major automakers. In fact they’ve fudged on total safety glass use, just to save $2.50 a window.
http://tinyurl.com/6adrfs
The federal government is going to get stuck with the busted corporate (AIG, GM, et al) pension obligations. It’s like England, with U.S. treasury funds leaving the U.S. to prop up bankrupt corporate fraud around the world and everybody acting like it’s good for America because it’s good for GM. Obama will be forced to release billions of dollars to GM to support a failed auto plant in Russia and the Russians will laugh all the way to the bank as GM goes bankrupt and loses billions in treasury funds. It’s a corporate police state with the U.S. media as PR firm. They’ll get billions for telling the public about the need for CHANGE.
Looks like none of you have ever been tracking the Volt through Doc Lyle’s blog – not an industry “analyst”.
http://tinyurl.com/5m87l4
He’s at least halfway confident the Volt and future gen EV’s will be somewhat insulated from the cuts to be announced, today. And it’s pretty much a finished product, already.
What a disgrace. This had better not be true. If it is, we’re doomed.
Hey, it makes me wonder how much free enterprise we have in this country. Big business is not allowed to die even though it makes really bad decisions? Even in bad times the little guy loses and the big guy gets bailed out! What kind of free market is that??
We’re not doomed. The people losing the billions of dollars are doomed. Buy a Ford or Mopar and the liquidation of GM means nothing. It’s worthless. It’s beyond worthless in another way, it is morally bankrupt and corrupt as the numbers prove. Ford could be next, but I believe Ford can survive because it has a different corporate culture. If the government gives GM a dime, then we are doomed. At least that didn’t happen. Well not yet at least.
Profit profit and more profit at all cost.
Seems we reward bad (overly greedy) management decisions which are usually motivated by personal desires of wealth and power. As to the health of the companies involved, I really do not think those responsible for the bad decisions care. In the end the workers loose everything – pension (what’s that?), 401K (need money to live on and pay the bills while finding another job – after the government(s) take their cut plus early withdrawal penalties), savings, etc.
As an earlier post mentioned, we reward bad corporate decisions with large bailouts at taxpayer expense while the little people get screwed again.
I hope there has been some very productive research in personal lube, we’re going to need it when the bill comes due.
I have driven a DeLorean. Cramped, noisy, underpowered piece of crap. Styling was good, stainless steel was “interesting” until you needed any body work.
Failure.
“When schemes are laid in advance, it is surprising how often the circumstances will fit in with them.” Osler
Merge AIG and GM. Call it AIGM and MSNBC can tell everybody how swell it is and they can do a global IPO and Warren Buffet along with Dairy Queen can invest. “We’ll be bigger than GM.” Get some Sandhill VC cash and we can build an electric car. It can be a bundled product with a search engine, insurance and drive train run on Energizer batteries. With a Google Map built in the dash, you’ll always be able to find a Dairy Queen and Burger King. You want fries with that? Maybe we can run it on hamburger grease and french fry oil. Coneheads!
I don’t get it, I thought Volt was ready for production. That’s when you let go of some of the engineering staff (especially the crappy ones). Then you decide what their next projects will be.
I’d think that GM hasn’t lost it ability to release a car and keep putting new year labels on the same hunk o junk (The all new 2009 Volt, 2010 Volt, 2011 Special Edition Volt…)
Glen, your timeline’s a bit out of whack. AM general has been making Humvees for the US military since 1981. GM bought the civillian Hummer brand from AM General in 1998. The EV1 was killed in 2003.
The two seem to have little relation and it was never a nefarious plot for government contract. AM General still makes the military vehicle, though a next gen program is under way to replace it.
If they cancel the program they are as shortsighted as they are accused of being.
The Japanese, Koreans will just continue to eat their lunch.
The best and most honest coverage of GM’s demise is, and has been, the “GM Death Watch” series of editorials over at “The Truth About Cars” blog. They call a spade a spade over there.
http://www.ttac.com
Don’t you just love it when our government bails out the outsourcing assholes that created this recession? If we keep this up we might find ourselves unable to print enough money fast enough to keep up.
…and in 4 to 8 years we will forget who did this to us and vote them in again for another round.
Suicide, built Chevy tough