Although General Motors admits it will miss its goal of 500,000 electric vehicles on U.S. roads by 2017, the company says the future will be driven by electrification. That’s despite a resurgence in the popularity of trucks and SUVs, which have been cash cows as of recent for GM.
General Motors currently has 180,034 electric vehicles on the road. In comparison, Chevrolet and GMC sold 235,927 Silverados and Sierras in the first four months of 2015 alone, according to The Detroit Free Press. Consumers often have no problem paying anywhere from $45,000 to $80,000 to step into a full-size truck, or SUV but, have a hard time swallowing the costs of alternative propulsion even after federal tax incentives.
GM’s statements of a continued focus on electric vehicles despite the consumer preference are meant to appease its stakeholders and government regulators, making all parties aware GM is focused on reducing fossil fuels and painting a greener landscape.
“GM will take a leading role in the auto industry’s transformation as it undergoes an unprecedented period of change,” said Bob Ferguson, GM senior vice president for global public policy, said in the report.
The 2016 Chevrolet Volt, the upcoming Chevrolet Bolt, 2016 Chevrolet Hybrid and Cadillac CT6 plug-in are all small stepping stones in the continued allegiance to electrification from GM. And they’re needed if the company plans on complying with the 54.5 mpg federal standard to go into effect by 2025.
What does this mean? GM is being smart. Very smart. Responding to Americans love affair with big SUVs and trucks makes the bank. Included in GM’s $5.4 billion investment across U.S. manufacturing facilities is a $1.2 billion investment for the Arlington, Texas assembly, responsible for 300,000 GM branded SUVs just this year.
In the meantime, the focus on EVs allows GM to counter the thirsty SUV market, striking a harmony between fuel efficiency and what consumers currently want. Everybody’s happy.
But as consumers, we’re a strange group. As soon as gas prices rocket towards the “F” word, we’ll all want fuel-efficient cars again. But GM is covering its bases there too. Investments in mixed material usage like high-strength steel, aluminum and more are making even some of the largest cars lighter, and leaner.
And that’s a win-win for everyone.
Comments
I just don’t understand, how an electric car still has traditional light bulbs (taillights) and not LED’s?
Because they are trying to keep cost down. The electric use of the Volt is not enough to really make a major impact on the range and the normal lights are not all that inefficient to start with.
Now if this was a car where you could add another $10K to the price LED would be no issue but because they are working hard to get this car near $30K every penny counts.
In time they all will have LED and it will not be any big deal. They are showing up on cheaper cars just now. Just wait till people have to replace them.
How much more would GM spend to make those taillights LED? I doubt that it’ll cost more then 5 bucks per unit (cost), just add that 5 bucks to total and watch how people appreciate it while building a better image for Chevrolet. 2000 Cadillac DeVille was probably the first production car with LED taillights, it’s been 15 years since, and every time i see them, I don’t recall on seeing a taillight not working or even half of the taillight not working. Volt is an Icon and pioneer for Chevrolet, people that buy them make an average of over 100k yearly, I don’t think that its the right model to cheap out on.
You have to consider what all a MFG has to look at when pricing a car in the value segment like Chevy is in.
I knew people who were advisers to GM on the new Camaro on things that were important or not. One thing was the smell of leather seats. They asked how important that was to the buyers.
Why you may has well because the smell is not natural and has to be added at an additional cost. So yes even if these lights were only $5 they would be considered. The fact is they are more than that.
When pricing a car in the Chevy class it is very important to get as much as you can into the car but you have to be careful to keep the price reasonable and competitive. So each and every part and option is looked at. If you are not careful a car like the Volt or Cruze could end up costing well over $35K and be priced out of the market.
The little things add up and can price you out fast so care has to be taken. As the LED lights get cheaper being used on the more expensive cars they will show up on the cheaper cars as they are just starting to now.
There is a limit to what people will pay for a Chevy and they have to remain in that range. They could do a bunch of hot button tricks like these lights and skimp on the interiors or other areas of the car like some of the others do then pay the price for cheaper quality of the overall car.
GM is not cheaping out here as the money they would have used on the lights will go into a better interior and better suspension parts like the last Cruze and it will bring a better car for the passengers and driver than just some LED lights.
You have to pick and choose.