When will it be profitable?
At a plug-in conference hosted by GM in Detroit last week, news of rising gas prices was seen as a good thing.
“Every penny added to the price of gas makes alternative power just a little more attractive,” said Tony Posawatz, head of the Volt program. “If petroleum hit $150 a barrel and stays there, he and others agree, the low cost of electricity would make plug-ins fairly competitive on an operating cost basis.”
So, what’s good for the Chevy Volt is good for GM?
Let’s say gas hits a sustained $150 per barrel and $4.00+ at the pump in 2011, during the first full year of Volt production. That would be good for GM? While such gas prices might make the Volt more competitive – after a $7500 tax credit – what about the Silverado, Traverse or Impala, for instance?
Today, GM’s profits are not driven by fuel efficiency. Can the Chevy Cruze and a limited production Volt change the troubles GM felt during the gas spike of 2008?
It seems to me, what’s good for the Volt is not good for GM, at least not any time soon. While higher gas prices might make the Volt more competitive, can higher gas prices really make GM more competitive and profitable without radical changes to their product lineup?
see also........
- BCG Study: What it will take for plug-in cost-effectiveness
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- 2010: An “ominous” year ahead for gas prices?
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- Will the Chevy Volt change GM?
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- 2010: An “ominous” year ahead for gas prices?
- Ring in the new gas pricesLast year gas prices were almost a $1 lower than today, and by this weekend, gasoline prices could be at their highest point since 2008, along with diesel and home heating oil.Analyst Peter Beutel of Cameron Hanover calls the move up an “ominous sign for the year ahead.”Might be a [...]...
- Chevy Volt EV range and fuel economy updated, Part II
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- Many parents will buy learner insurance for their teenagers their first used car shortly after they turn sixteen or seventeen. Once mom or dad has helped their teenage driver find a good and reliable used car it is time to find learner insurance that won’t cost them an arm and a leg for their Child. [...]...
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- Gas prices hit 15 month high
- $3.00 here we comeThe average price of gasoline in the US is now a bit over $2.70, the highest average in 15 months, despite weak demand. Nonetheless, many analysts believe $3.00 gas could soon be the nation’s average.Eventually, however, without an uptick in the economy, gas prices will probably begin to trend downward later in [...]...
- Chevy Volt EV range and fuel economy updated
- The Volt’s lithium-ion battery pack GM finally confirmed that the Chevy Volt will utilize an 8 gallon fuel tank to supplement the Volt’s EV range. So, what does that mean for the Volt’s real world range and fuel economy? Once the lithium ion battery pack drops down to 30 percent of its full charge, then the 1.4 liter [...]...
