GM to launch Buick plug-in SUV in 2011
* Vehicle would use technology developed for Chevy Volt
* South Korea's LG Chem to supply lithium-ion batteries
* Balance sheet robust, offers chance to focus on products (Adds vice chairman comments, details on plug-in, byline)
By Soyoung Kim
TRAVERSE CITY, Mich., Aug 6 (Reuters) - General Motors Co [GM.UL] unveiled plans to launch a plug-in SUV for its Buick brand in 2011, its latest move away from gas-guzzling vehicles in response to higher fuel-economy standards.
The new five-passenger Buick crossover is expected to be the first commercially available plug-in hybrid sport-utility vehicle by a major automaker, and would follow GM's heavily touted Chevrolet Volt plug-in car into the market.
The Chevy Volt, slated for showrooms in late 2010, and other electric vehicles including the Buick plug-in are key to GM's effort to reinvent itself and win back consumer trust after the automaker emerged from bankruptcy in July.
GM Vice Chairman Tom Stephens, announcing plans for the Buick hybrid at an industry conference in Traverse City, Michigan, on Thursday, said the company's "robust" balance sheet following its bankruptcy restructuring gives it flexibility to focus on product development.
"We've been given the opportunity of a lifetime and we know the hard part is just beginning. We have to convince consumers to give us a chance," Stephens said.
Major automakers, including GM and Toyota Motor Corp (7203.T), have been ramping up plans for a range of electric vehicles to meet higher U.S. fuel-economy standards and increased consumer demand for fuel-efficient vehicles.
GM Chairman Ed Whitacre said on Wednesday the automaker would use some of the funding left from its bankruptcy reorganization to accelerate key vehicle launches, after delaying projects since late last year in order to shore up cash.
The Buick plug-in will use some of the same technology GM is developing for the Chevrolet Volt. It will be powered by next-generation lithium-ion batteries to be built by South Korea's LG Chem (051910.KS) and its Compact Power unit, based in Troy, Michigan.
LG Chem is also supplying lithium-ion batteries for the Volt, one of the most eagerly awaited GM vehicles.
Stephens said GM is running a fleet of about 80 pre-production Volts, which are meeting initial targets. The automaker is designing the Volt to run 40 miles on a battery pack that can be recharged at a standard electric outlet.
"They are undergoing rigorous tests as we speak, and we're getting very positive results," he said.
Unlike traditional hybrids such as Toyota's Prius, which are powered by a battery or by the gas engine depending on driving conditions, plug-ins such as the Volt are designed to be powered by electricity at all times.GM’s Chevy Volt challenges environmentalists
General Motors announced today that its electric car, the Chevy Volt, will hit showrooms in late 2010. That is soon, and it’s exciting. The Volt is estimated to get 230 mpg. The electric motor is said to have a 40 mile range after which the gas engine takes over. The Volt can be recharged from a standard home outlet.
I am encouraged by GM’s announcement yet skeptical as to whether environmentalists have the dedication to buy the Volt and other electric cars that are coming out at the same time, like the Nissan Leaf. My reason; the Volt is expected to cost about $40,000 which, according to the Associated Press, makes the car’s cost prohibitive even if gas hits $4 per gallon. Joe six-pack is not going to be buying many Volts.
This is an excellent opportunity for those that are very concerned with global warming to make a statement and to do enormous good. Economics teaches us that if there is a demand, suppliers will meet that demand, innovate to capture more of the demand, and lower their prices to capture still more. Environmentalist need to buy the Volt, the Nissan Leaf, and other electric vehicles to create the market that will incent automakers to innovate further and to reduce their costs.
I am skeptical that environmentalists have the dedication to lead by example and create the market for electric cars. I suspect they will wait, hoping for government subsidies that may never come.
This is the second electric car announcement in recent weeks by a major automaker (that I know of). Environmentalists will be able to make a huge difference on global warming, if they are willing to put their money into their cause and buy these cars.
Environmentalists, will you support your cause?
GM says Volt will be landmark fuel savings vehicle
NEW YORK — Troubled auto giant General Motors said Tuesday its new electric sedan, the Chevrolet Volt, will be marketed in 2011 as the first mass produced vehicle capable of achieving three-digit fuel savings.
It said the Volt was expected to achieve city fuel economy of at least 230 miles per gallon (370 kilometers per 3.8 liters), based on development testing using government fuel economy methodology for labeling for plug-in electric vehicles.
"From the data we've seen, many Chevy Volt drivers may be able to be in pure electric mode on a daily basis without having to use any gas," said GM chief executive Fritz Henderson.
The Volt, which is scheduled to start production in late 2010 as a 2011 model, is expected to travel up to 40 miles (64 kilometers) on electricity from a single battery charge, the company said.
It may be able to extend its overall range to more than 300 miles (483 kilometers) with its flex fuel-powered engine-generator, it added.
"So, a vehicle like the Volt that achieves a composite triple-digit fuel economy is a game-changer," Henderson said.
According to US Department of Transportation data, nearly eight of 10 Americans commute fewer than 40 miles a day.
"The key to high-mileage performance is for a Volt driver to plug into the electric grid at least once each day," Henderson said.
The Volt is part of a trend in the beleaguered US automobile industry to move towards smaller, more environmentally friendly cars as customers abandon large and fuel-guzzling sport-utility vehicles.
GM is now majority owned by the US government after it emerged from bankruptcy on July 10.
