G.M. at 100: Is Its Future Electric?
http://www.nytimes.com/2008/09/14/au...es/14AUTO.html
THE Chevrolet Volt is expected to be the icing on General Motors’ 100th
birthday cake this week. The much-promoted sedan, which will operate as
an electric car in typical local driving, is intended to provide a
jump-start for the company’s second century.
The timing of the Tuesday event is fortuitous, for much more is riding
on the Volt than whether a new model using experimental technologies
will be a hit. For if the Volt succeeds, it could put the troubled
company on a whole new path after 10 decades tethered to the
internal-combustion engine. If it fails, it could drag G.M., and perhaps
the entire struggling American auto industry, even further behind Asian
competitors.
It was on Sept. 16, 1908, that William Crapo Durant filed the
incorporation papers that formed G.M., with a revitalized Buick as its
foundation. The centennial should be a time of joy at the company. But,
with losses since 2005 approaching $70 billion, and Toyota having
accelerated past G.M. into the No. 1 spot in global auto sales, the
company’s staff won’t be dancing in party hats.
Instead of toasting the glory days when G.M. owned half of the United
States car and truck market — its share peaked at 51 percent in 1962
amid suggestions that it should be broken up under antitrust laws — G.M.
executives are looking expectantly ahead to November 2010. That’s when
the Volt, expected to break cover this week in close to final form, is
due to reach customers.
By mobilizing its formidable marketing resources, G.M. has piqued
interest in the Volt. Anticipation is high; when unauthorized photos and
surreptitious video footage emerged recently, they spread across the
Internet with viral intensity. (The photos and video can be seen at
autobloggreen.com.)
The interest goes beyond the usual curiosity about the styling and
features of a wholly new model. The public, like industry veterans and
seasoned experts, seems to grasp the potential: the Volt could revive
Detroit’s fortunes while loosening OPEC’s stranglehold.
Burt Rutan, the aerospace visionary whose accomplishments include the
Voyager round-the-world aircraft and who is also an electric-car
enthusiast, is among the believers. “I expect the Chevy Volt to be both
a success and a transportation game-changer,” he said.
Though electric cars were common in the early 20th century, gasoline
models had won out by the 1920s. Since then, the concept has surfaced
again and again, but never in a car with mass-market appeal. Still,
throughout the 20th century G.M. was developing breakthroughs in
electrical systems — coil ignitions, electric starters, computerized
powertrains and digital infotainment systems — that mainly ended up
advancing its fossil-fueled vehicles.
But at the same time, G.M. researchers were quietly investigating
alternatives to internal combustion. In the 1960s, the research and
development staff experimented with fuel cells, hybrids and plug-in
electric cars.
By the mid-1990s, G.M. took a gamble that electric propulsion was ready
for public consumption. It leased 1,100 two-seat EV1 commuter cars,
based on the Impact electric concept car.
The EV1 was stymied by its short range — sometimes only 50 miles on a
charge. And unlike the Volt it had no backup power if the batteries ran
down. Yet the EV1 had a devoted following, and lessees protested when
G.M. took back the cars to crush them. G.M. called the EV1 a $1 billion
learning experience.
Those lessons, and recent knowledge gained developing vastly superior
lithium-ion batteries, are the Volt’s great enablers. But despite
widespread enthusiasm for G.M.’s brilliant 2007 Volt concept car, there
are growing doubts about the Volt’s chances of success.
Some of that uncertainty can be traced to G.M.’s reluctance to put its
cards on the table, potentially ceding a competitive advantage more than
two years before the car goes on sale.
But there is also considerable doubt about whether lithium-ion batteries
can meet the public’s high expectations for range and durability. It is
clear that both Toyota and Honda, which have done lithium-ion research,
are taking a wait-and-see approach toward lithium-ion — and may actually
be moving to other technologies. (All current hybrid cars use
nickel-metal-hydride batteries, an older but hardly ideal technology.)
Finally, there are questions about the cost. G.M. executives concede
that they are revising the price upward. While the company initially
hinted at a $30,000 starting price, executives have recently suggested
that the Volt might end up in the mid- to high-$40,000 range.
What is not in doubt is that the Volt will be a four-passenger,
front-drive compact sedan. But the high-style design of the Volt
concept, which captivated crowds at the 2007 Detroit auto show, has
given way to a more conventional look that fits without flamboyance into
the Chevrolet family. Recent spy photos reveal that the roof has been
raised and the window sills altered, presumably to provide a more usable
passenger cabin.
G.M. still stands behind its pledge that the Volt will be able to travel
at least 40 miles with no exhaust emissions on a fully charged battery.
The sole propulsion source is a 160-horsepower alternating-current
motor. The 1.4-liter gas engine runs only when necessary to power a
generator, which in turn supplies electrical current to both the battery
pack and the drive motor.
The concept had a turbocharged 3-cylinder; the production car will have
a naturally aspirated 4-cylinder.
Electric motors, generators and engines are old hat at G.M., in contrast
to the Volt’s lithium-ion battery pack, a leap into uncharted territory.
The 400-pound T-shaped pack provides 16 kilowatt-hours of electricity
(equivalent to 21 horsepower for one hour), and is nestled between and
behind the seats.
After studying lithium-ion batteries for decades, G.M. began working
last year with two organizations to move them from the lab onto the
road. The development partners are Compact Power, a subsidiary of the
Korean battery maker LG Chem, and Continental Automotive Systems of
Germany, using battery cells designed by A123Systems of Watertown, Mass.
G.M. recently decided which of two competing lithium-ion chemistries it
will use and which company will make the batteries, but it has made no
public announcement.
The Volt is such a departure from the fossil-fuel age that there are
different views on how to categorize it. Mr. Rutan calls it a “proper
hybrid” because owners have the option of driving on electricity or on a
combination of electricity and gasoline. Most engineers prefer “series
hybrid,” which means an electrically driven car that employs a second
form of power conversion to supplement the battery’s energy reserve.
G.M. hopes to distinguish the Volt from ordinary hybrids by labeling it
an electric car. Plugging into a standard household socket for six or so
hours to charge the batteries, and topping off the 12-gallon gas tank,
will provide 400 miles of driving range, G.M. says.
An electric car that spews no emissions and consumes only a few pennies’
worth of energy commuting to work, while also capable of several hundred
miles of range, is the better mousetrap that appeals to green advocates
and auto industry pundits alike. The actor Ed Begley Jr., a former EV1
leaseholder who owns a Toyota Prius, said: “I think the Volt’s going to
be good for everybody. None of us needs a sledgehammer to install a
carpet tack. By that, I mean most trips are short — to and from work, to
a restaurant or store.”
Mr. Begley said he and his wife used their Prius for long trips, and an
electric car (a 2003 Toyota RAV4 EV) in town.
“The arrival of the Volt and other electric cars will reduce not only
America’s dependence on foreign oil, but also the smog I experience
every day in L.A.,” he said.
Chris Paine, who wrote and directed the documentary “Who Killed the
Electric Car?” concurs. “G.M. seems motivated and ahead of the
competition,” he said. “It’s a cultural shift of huge proportions for a
vast auto company to embrace the concept of a car that’s more than an
internal-combustion engine.
“Of course, there are huge technical and financial challenges,” he
added. Still, “The price of oil and consumer interest in change should
make the Volt a success.”
Industry watchers are more cautious in their optimism. Csaba Csere,
editor in chief of Car and Driver magazine, said, “The Volt could put
G.M. in the most positive light it’s enjoyed in 30 years, but its
success depends on solving two issues: battery durability and cost.”
Mr. Csere (pronounced CHED-uh) noted that lithium-ion batteries had
proved successful in laptop computers. “But to serve the car world,
they’ll have to last 10 years, versus the typical two- or three-year
laptop lifespan.”
Manahem Anderman, president of Advanced Automotive Batteries and an
electric-car consultant, is also unconvinced. “Without three or four
years to test battery life in both the laboratory and in the field,
prudent engineering steps have to be bypassed,” he said. “Lacking
long-term data, G.M. might have to include the cost of a battery
replacement in the Volt’s price.”
Mr. Anderman added: “Rushing to deliver 60,000 electric vehicles per
year poses a phenomenal risk. The business case for a vehicle with a
$10,000 battery is problematic. I predict G.M. will end up building only
a few thousand of them.” He said he did not expect the Volt “to be
either a commercial success or a long-term benefit” to G.M.’s image.
An auto industry analyst, Jim Hall of 2953 Analytics in Birmingham,
Mich., takes a more sanguine view. “You’ve got to consider the Volt an
investment in new technology,” he said. “As was the case with the Prius,
G.M. won’t earn a profit during the life cycle of the first-generation
Volt, but they will gain a foot in the door with this new technology.”
G.M. has said that its next-generation Saturn Vue hybrid, due in fall
2010, will also receive lithium-ion batteries and be capable of plug-in
recharging.
Robert C. Stempel, the former chairman of both General Motors and Energy
Conversion Devices, the Michigan company that developed the
nickel-metal-hydride battery, relishes what lies ahead. “The Volt has
the possibility of being one of the most successful vehicles in G.M.
history,” he said.
While the Volt is on track to be the first quasi-electric car capable of
replacing the conventional sedan, there is no guarantee that it will
trump the Prius to become the new green-car king.
Mr. Hall said: “If G.M. were alone in this initiative, the Volt probably
would be enough to boost it back to the top of the technological heap.
But in Toyota City, there’s a seven-story tower called the Electric
Powertrain Building. And Chrysler has a hybrid project called ENVI
that’s progressing more quickly than expected. So the best that can be
hoped is that the Volt will move G.M. to the front row of companies with
contemporary propulsion technology.”
Maintaining front-row status is the key to a G.M. that thrives in its
second century. David Cole, the chairman of the Center for Automotive
Research in Ann Arbor, Mich., put a fine point on what lies ahead. “The
plug-in hybrid is the most notable technological advancement of the past
50 years,” he said. “G.M.’s challenge is making them profitable and
continuing to invent a broad range of advanced vehicles.”
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