The recovery plan that GM submitted to the government depends heavily on the downtrodden automaker’s ability to turn itself into a leaner and greener company. Earth2Tech.com reports that the company validates its intentions to create jobs for Americans and help combat climate change by referencing the following:
The Michigan assembly plant planned for the Volt battery pack, and a nearby lithium-ion battery development program. What’s the one vehicle it names in the stated plan to introduce 14 new hybrid models by 2012, and 26 by 2014? Oh yes, the Volt (two other extended-range electric vehicles based on the Volt are also said to be in the works).
The company says it’s now aiming to have alternative-fuel models account for 66 percent of total sales by 2012, up from the 55 percent goal outlined in the draft submitted to Congress in December. Despite its high hopes for the Volt and the next generation of vehicles GM says it can build with related technology, the little car is no match for GM’s debt load and financial woes. For those, the company says it needs another $16.6 billion in government aid. Otherwise, GM claims it could run out of gas as early as next month — long before the Volt ever makes it to market.
What’s the problem with GM’s recovery plan depending so much on one vehicle? Well, the Volt isn’t expected to turn a profit until at least the second generation….not good news for a company that’s hurting for money now. If GM wants to "green" its image, it could start by producing a lot more smaller, more fuel efficient cars now.
Producing smaller, more fuel-efficient cars now? And they will retool their dozens of factories to produce these new designs…..with what money? It takes time to do these things, and GM has to worry about survival at this point. Let’s not knock the Volt and evaluate its impact before it has even had a chance to roll off the assembly lines and into the showrooms.
I’m not knocking the Volt, really. I hope it does well. I want one already! It just seems to be a little bit of a concern that all GM’s eggs are in that one basket.