http://www.washingtonpost.com/wp-dyn/content/article/2007/01/07/AR2007010700904_pf.html


GM Introduces Plug-In Electric Car

By Sholnn Freeman
Washington Post Staff Writer
Monday, January 8, 2007; A07





DETROIT, Jan. 7 -- General Motors Chairman G. Richard Wagoner Jr. on Sunday 
unveiled an innovative prototype, the Chevrolet Volt -- a plug-in vehicle that 
derives its power primarily from electricity rather than gasoline -- as the 
world's automakers take on global warming and U.S. dependence on foreign oil.

Wagoner's announcement underscores the depth of GM's previous miscalculation on 
alternative vehicles and the degree to which the U.S. automotive landscape is 
changing. In 1990, GM introduced the concept of an all-electric car, the EV1. 
The vehicle made it to U.S. consumers but didn't survive through the decade.

GM hasn't given a date when consumers can buy the Volt because the advanced 
lithium-ion batteries needed to power the vehicle -- similar to technology used 
in cellphones -- are still years from widespread use in automobiles.

Still, Wagoner and other GM executives have pledged to give the electric-car 
technology high priority within the company's massive product development 
operation.

"In the end, this is all going to be about delivering on these products," 
Wagoner said.

The world's auto executives meeting here at the Detroit auto show say that any 
big push into alternative vehicles will have to come from the automakers 
themselves. The executives said it isn't clear yet what role Washington will 
play under the new Democratic-controlled Congress. Some Democrats have proposed 
higher federal fuel economy standards. Wagoner reacted strongly to calls from 
Washington lawmakers for government-mandated increases to as high as 40 miles 
per gallon from the current level of 27.5 mpg for passenger cars, with a lower 
level for trucks.

"That's simply impossible," he said.

Wagoner, and other executives, said the industry is doing its part to confront 
the nation's energy problems through bigger investments in advanced technology.

Analysts in Detroit say any moves in Washington could come to a standstill, 
given the auto industry's unified lobbying position against major increases in 
fuel efficiency.

"The new Democratic Congress does not weaken the lobbying ability of U.S. 
automakers," said Sean McAlinden, an economist with the Center for Automotive 
Studies in Ann Arbor, Mich. "With new plants in Mississippi and Texas, they 
gain a couple of new senators. With the push for ethanol, you gain a couple of 
ag-state senators, in places like Iowa and Nebraska."

GM put its electric-car plans back on track after being stung by the rising gas 
prices after Hurricane Katrina in 2005. Higher gas prices ended the boom in 
sales of large SUVs, which have supported the Detroit automakers. They've also 
watched from the sidelines as the Prius gas-electric hybrid has brought a 
windfall of positive attention for the Toyota brand.

"The domestic industry spends hundreds of millions to cultivate image," said 
Harley Shaiken, an economics professor at the University of California at 
Berkeley. "What they've been slow to realize is that fuel efficiency is 
increasingly sexy to many Americans. Even if you don't buy a Prius, you have 
the sense that Toyota is with the program."

GM killed off its previous electric vehicle after corporate officials balked at 
more than $300 million for further development. At the time, GM nearly had the 
alternative-car market to itself. GM has played catch-up to Japanese rivals 
Toyota and Honda, which seized the advantage, turning their electric-car 
know-how into today's hybrid cars.

GM's Volt would use its battery pack and electric motor as the primary source 
of power. The small three-cylinder engine, serving as a generator, kicks in to 
recharge the battery when power starts to fade. As envisioned, the Volt would 
have a top speed of 100 miles per hour. It would have an all-electric range of 
40 miles, more than what many Americans typically drive in a day, making it 
possible for some people to commute to and from work without using a drop of 
gasoline.

Though the battery technology is still early in development, GM officials say 
they are pushing ahead. "We are taking a calculated gamble on this," said 
Robert A. Lutz, GM's vice chairman of global product development. "We are 
making the bet that the batteries will be available."


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