General Motors will stay the course with fuel-efficient vehicles and technology despite seriously low oil prices. Oil hit a 13-year low this past Tuesday, when prices checked in at just shy of $30 at $29.93. And analysts think it’s going to go lower in 2016.
With that news, Automotive News had a few questions for GM powertrain boss, Dan Nicholson. According to him, GM will not drop fuel-efficient vehicles and their technology despite low oil prices keeping gas very cheap.
Though, he did say it has the automaker rethinking if customers will be willing to pay the price for future fuel-efficiency technologies.
“We were hopeful when oil was $100 and even $60 per barrel. The customer will do the math and see their way through if there is a payback,” Nicholson said.
The oil plummet couldn’t come at a worse time. The 2017 Chevrolet Bolt EV will go into production later this year as the brand’s first purely electric vehicle. Though, a ballpark $30,000 price tag may sway more than a few consumers into the EV.
GM is expected to roll out its upcoming nine-speed automatic transmission for front-wheel drive vehicles, and a ten-speed auto for rear-wheel drive trucks and SUVs it has co-developed with Ford later this year, the latest in powertrain efficiency.