How GM Beat Tesla to the First True Mass-Market Electric Car

[hybridy]

now this is nice press

http://www.wired.com/2016/01/gm-electric-car-chevy-bolt-mary-barra/

It’s that a car company as lumbering and gigantic as GM, with infrastructure and manufacturing capacity on an epic scale, has gotten there first—and is there now. Tesla is nimble, innovative, and fun to watch, as companies go. But the Bolt is far more significant than any offering from Tesla ever could be. Why? Think of the old saw about how long it takes to turn an aircraft carrier around: It’s slow, and there’s not much to see at any given moment. But the thing about people who actually manage to turn one around is: They’ve got a freaking aircraft carrier.

[401don]

With gas so cheap in the U.S. the timing couldn't be worse, but I would think the real market for this car right now would be Europe.

[artds]

With gas so cheap in the U.S. the timing couldn't be worse, but I would think the real market for this car right now would be Europe.

We're still 10 months away from the first sales of these vehicles, and the impact of fuel prices on this vehicle's success will depend on the price of fuel over the next 5 years. Also, it takes 3 years to develop these kinds of vehicles, and nobody in Jan, 2013 could have told you what the price of oil would be in 2016

[JBMcB]

With gas so cheap in the U.S. the timing couldn't be worse, but I would think the real market for this car right now would be Europe.

Thanks to the completely stupid regulation known as CAFE, car companies *have to* make these kinds of cars, even if nobody wants or buys them.

[SyGolden48236]

Thanks to the completely stupid regulation known as CAFE, car companies *have to* make these kinds of cars, even if nobody wants or buys them.

That is a very true statement.

[Scottathew]

With gas so cheap in the U.S. the timing couldn't be worse, but I would think the real market for this car right now would be Europe.

I don't really think timing things to the price of gas makes sense.

I remember years ago when the price went down for a little while my friend bought a big ass truck. I asked her, if you're struggling financially, why buy the expensive gas-guzzling truck? Her response was that, "gas is so cheap right now so it doesn't matter".

I was shocked at how dumb she was not to realize how wildly the price fluctuates. It seems like it may be low for the immediate future today, but when you're purchasing a vehicle you need to make the decision a little more long-term, especially if your finances are tight.

[DeLemur]

Thanks for posting. The battle between Silicon Valley/California and Detroit is going to be serious and local auto need to take it seriously, not like past challenges. New energy driven auto and driverless auto are areas we need to win in. Glad a techie publication says GM is winning right now.

[401don]

I don't really think timing things to the price of gas makes sense.

I remember years ago when the price went down for a little while my friend bought a big ass truck. I asked her, if you're struggling financially, why buy the expensive gas-guzzling truck? Her response was that, "gas is so cheap right now so it doesn't matter".

I was shocked at how dumb she was not to realize how wildly the price fluctuates. It seems like it may be low for the immediate future today, but when you're purchasing a vehicle you need to make the decision a little more long-term, especially if your finances are tight.

By no means was I implying GM had any control over the timing of the launch coinciding with low gas prices. I simply said it was unfortunate, which it is. The initial buzz and sales when a new vehicle launches are very important. Trying to revive that later when gas prices increase is obviously much more difficult, not to mention the competition will have caught up.

[Wesley Mouch]

By no means was I implying GM had any control over the timing of the launch coinciding with low gas prices. I simply said it was unfortunate, which it is....

Unfortunate, yes. But consequential? I'm not so sure.

Today's young people want a solution to perceived Global Warming -- but even more they want to do what's right for the environment. They're obsessive-compulsive about water use -- even in Detroit where its the smallest of problems. The cost of the Bolt is getting down to where it might be reachable by mass audiences. If it can be affordable, it may do well regardless of whether is saves money. In spite of my free-market leanings, saving money isn't everything, is it?

[GPCharles]

How is our electrical grid, which crashed in 2003 and was termed hopelessly out-dated at that time, going to support all of these electric cars?

Is the environment better off with burning hydrocarbons at a few power plants better than multiple sources, i.e. automobiles?

[bahbay]

GPCharles
You bring up an interesting and important point. I feel that the solution lies in a restructuring of electrical production and distribution.
The future of electrical generation could quite possibly be decentralization of production even though it is being delayed by for-profit municipal energy vendors. Speaking for myself, I produce about 25% more electrical power than my house and other structures consume. I plan to purchase either a Tesla X or 3 and calculate that, even allowing for keeping an EV charged, I will still produce more than I use.
The fact that, historically, electrical production and distribution has been treated as a commodity for the profit of investors at the expense of the general public is being subjected to closer scrutiny. More recently there are those, like myself, who maintain that energy needs to be treated as a shared resource more closely akin to air and water.
I am 71 years old and was born on a farm that is now the site of a very large office building on the corner of 12 mile and Haggerty. I have shared the love affair with the internal combustion engine my whole life. My current car is a 20 year old Lexus LS400 with 227,000+ miles on it. Nevertheless, I look forward to the inaugural years of electric automobiles as one of the most technologically exciting times of my life.
So, finally, I feel that there will be a move away from the "few power plants" you mentioned at the end of your post and toward a more decentralized, more economically sustainable, and a more easily accessible elecrical power sourcing.
Thank you for your stimulating and thought provoking posting.
As usual, my best wishes to all who contribute here, no matter your perspective.

[K-slice]

How is our electrical grid, which crashed in 2003 and was termed hopelessly out-dated at that time, going to support all of these electric cars?

Is the environment better off with burning hydrocarbons at a few power plants better than multiple sources, i.e. automobiles?

Charging at non-peak hours mitigates stress on the electrical system, not to mention the blackout you reference happened over 10 years ago and we haven't seen anything close to it since .

And yes the environment is better off when we burn hydrocarbons en mass at power generation plants. The larger the generation capacity, the more efficient it is. Also, wind power is now cheaper than coal and solar soon will be as well, making the environmental impact of electric cars even less.

[Lowell]

So reads the cover of WIRED for February with GM CEO Mary Barra looking studly beside her 200 mile range, 0-60 in 7 seconds, $30,000 'electric car for everyone' Chevy Bolt.

If you're a fan of Detroit, meaning GM and the American automakers as well as the struggling city, the rave article is as good news as any of the New York Times Detroit-gasm articles you will read about creatives from Brooklyn and beyond being drawn here by our surprising rising from the ashes mystique.



Actually it's far more significant IMO because the health of that part of our economy is essential to our social health. Its downfall was key to ours; its recovery still key to ours. The story tells how the usually slow-moving stodgy GM beat Silicon Valley chic Tesla in the race to the affordable long range electric vehicle.

[[Later... Started this as a new thread as I just got discovered it when I got my hard copy a couple of days ago. Making me wonder why I subscribe to print anymore!)

[Jimaz]

How GM Beat Tesla to the First True Mass-Market Electric Car

[Lowell]

Oops^ thread merged. Thanks Jimaz.

[Gorath]

The all electric Nissan Leaf has been around for 5 years now with a sub $30,000 price [[after rebates). They've sold about 200,000 globally in that time. All electrics aren't selling like hotcakes.