Bob Lutz has apparently climbed down from the parapet of passing all costs onto the consumer... that is, when it comes to green tech. In fact, GM appears to be considering subsidizing the cost of its hybrids for consumers. The world's number two automaker has three hybrid transmissions in the works: a simple bolt-on starter/alternator combo called BAS, a BAS+ system that uses li-ion batteries instead of nickel metal hydride, and a dual-mode system with two electric motors that will debut later this year in the Tahoe and Yukon. The dual-mode is the priciest of the bunch, carrying a $10,000 premium per vehicle for a 25% fuel economy savings. Even though GM has licensed the technology to BMW and DaimlerChrysler to keep the costs down, Lutz declares that "if we price it at full cost recovery, I'd say we probably would sell -- not very many." Lutz didn't give any indication of what kind of subsidy might be offered to entice buyers, saying the question is "How much do you want to do and how much financial pain can you endure?"

Lutz also said that "nearly every Cadillac product could feature a hybrid variant as early as the next two years," but none of the hybrids detailed are meant for the Volt. That car is an electric car with range assist, not a hybrid.

[Source: Automotive News - sub. req'd]