On Monday, General Motors (GM) filed for chapter 11 bankruptcy protection. Several questions exist as to the future of the company and their various product lines. National Public Radio’s All Things Considered host Robert Siegel interviewed CEO Fritz Anderson about the company’s direction given the bankruptcy proceedings. Among the topics for discussion was the future of GM’s Chevy Volt, they plug-in electric hybrid which may be the salvation of the company going forward. Mr. Siegel mentions that some liken the Volt to the iPod, claiming that it will single-handedly turn the company around. Mr. Henderson disputes the notion that one product will be responsible for GM’s recovery.
In the interview, Mr. Henderson stated that the cost of the Chevy Volt remains undetermined. He acknowledges that it is a first generation vehicle and will subsequently bear the brunt of some of the associated research and development costs. The car’s lithium-ion battery represents one of the major costs, but as production ramps up, the cost should fall. According to Mr. Henderson, the objective of the first generation is to get to the second generation where improvements and a potential drop in the price can occur. When pressed by Mr. Siegel on a number, Mr. Henderson would not commit to a specific price. However, he points to the $7,500 tax rebate for cars of its kind as a further incentive. By launching under the Chevrolet brand, GM’s goal is to reach out with its “broadest, deepest, and most important volume brand.”
Mr. Henderson sees the Volt as a technological statement for GM and a reflection of what the company can produce. For a company that has lost market share and is seen as a laggard by many, the Volt may indeed be their iPod. If it fails, it could turn out to be the vehicular equivalent of Betamax.
[image source: NPR]
Posted in 
Tags: 
