GM asking Department of Energy for $2.6 billion to build hybrids?
by Jeremy Korzeniewski on Apr 2nd 2009 at 3:20PM 
Click above for high-res image gallery of the 2011 Chevy Volt
General Motors released an updated business plan to Congress on Wednesday, and one of the main points of interest surrounds the automaker's request of an additional $2.6 billion for the production of the Chevrolet Volt and two additional variants based on the same Voltec powertrain architecture.
The report doesn't spell out what the two new Volt-like models would be, but there's speculation a production model based on the Cadillac Converj concept (possibly as a 4-door sedan) might be in the works. Offering the Volt's high-tech and expensive powertrain at a Caddy-level price point makes plenty of sense as it would allow GM to subsidize the cost of its development and lower the price of production.
These funds would reportedly come from the Department of Energy's $25 billion Advanced Technology Vehicle Manufacturing Program and is separate from – and in addition to – the ongoing negotiations for bailout funds between General Motors, Chrysler and the U.S. government. The total amount GM has requested under the D.O.E. program now stands at $10.3 billion.
Gallery: 2011 Chevy Volt
[Source: Reuters]
Reader Comments (Page 1 of 3)
tankd0g 3:25PM (4/02/2009)
Hey, if you're going to give it to a billionaire Google founder, you might as well give it to everyone that asks.
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JDMlover 3:27PM (4/02/2009)
Hey while their at it........i need 2.6 billion to build the house i always wanted.
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Sea Urchin 3:28PM (4/02/2009)
Ahhhh GM is asking EVERYONE for billions.
By the way, i want $100 a day as an incentive to go to the bathroom, as opposed to doing it on myself.
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Jake B 3:52PM (4/02/2009)
Except for that doesn't really improve the economy or reduce emissions of vehicles on the road. So why would they do that
Mike 4:08PM (4/02/2009)
Why then, JakeB, didn't automakers clue in years ago and begin making things more fuel efficient? Why didn't they clue in back in 2000 or 2002 and start making everything a hybrid?
The reason? They didn't feel changing their business model. And now that their business model has failed due to blind commitment to it, they want the gov't to give them funds for cars that not alot of people are gonna buy.
I own a 2nd gen Honda Civic hybrid, and its amazing....I can't imagine someone who wouldn't want to drive it.
BoxerFanatic 4:29PM (4/02/2009)
@mike...
A FWD hybrid econobox, probably with an automatic trans?
You can't imagine someone who wouldn't want to drive it?
Me. No imagination required.
why not the LS2LS7? 4:34PM (4/02/2009)
Mike:
Because that isn't the part of the market that sells.
The F-150 is still the biggest selling vehicle.
I know you would love for everyone to want a super efficient car, but apparently they don't want one. Automakers have to make the cars people want. Getting ahead of the curve (putting efficiency far above other factors) can lead to financial ruin as well as getting too far behind.
Jake B 4:45PM (4/02/2009)
That is real neat, do you feel smug? Because you are.
Aprime 5:11PM (4/02/2009)
The F-150 isn't, the F-Series is.
Sea Urchin 5:17PM (4/02/2009)
@ Boxer???????????
Civic is an EconoBox????? New Civic is the size of old Accord. How can a car that was a mid size sedan be called an econobox?
Why don't you just admit it,"I am fat, my azz is so big i do not fit into a regular car anymore, i need an F-150"
caddy-v 12:34PM (4/04/2009)
Seaurchin,
"By the way, i want $100 a day as an incentive to go to the bathroom, as opposed to doing it on myself"
Being as how your so full of shi# that $100 a day would'nt even cover the toilet paper.
Alex 3:30PM (4/02/2009)
GM: Can i bum a cigarette?
US: Here you go.
GM: Got a light?
US: Jesus, you want me to smoke it for you while i'm at it!?
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Matt 9:21PM (4/02/2009)
lmao
GM: "I also need someone to wipe my bum..."
Yikes 9:45AM (4/03/2009)
Alex, and the story continues.
GM: Can i bum a cigarette?
US: Here you go.
GM: Got a light?
US: Sure.
GM: Please clean up my ashes after I'm done.
US: No problem, will form a committee, hire some Czars....
izorro 3:32PM (4/02/2009)
I'm sorry, but GM failed miserably I don't see how they need more money after all the money they've been given...I supported the bailout but this just really makes me sick...
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Bobmarley 3:42PM (4/02/2009)
-1 for supporting the bailout
izorro 4:49PM (4/02/2009)
That's my fault but one can't be too quick to judge.
JZeke 3:33PM (4/02/2009)
Its hard to believe that GM had the temerity to expect the Volt to come in at $30k. I mean regardless of negative press, they do have 100 years of experience in automobile product development. Wouldn't it have been prudent to develop the technology for their showcase brand - Cadillac - first? I mean, who would question a gorgeous Cadillac hybrid sedan at $65,000? A Chevrolet that isn't a Corvette at that price however does not make sense.
Basically they're asking the taxpayer to fund their poor decision making practice. Yes their latest cars are quite good, but that doesn't excuse them for making reckless boardroom mistakes.
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Luis 3:44PM (4/02/2009)
Actually, no. With this technology they need to get it in the hands of many people. It's not a luxury item - it's something that people want to feel good about while saving money at the pump. Luxury hybrids have not done that well, just as performance hybrids haven't.
The Prius has done well because it is 1. attainable and 2. it looks different.
JZeke 4:13PM (4/02/2009)
The technology behind the Volt is so advanced that it can't easily be made to satisfy the demands of many on its first try. Even the the first gen Prius took baby steps. The name "Prius" is Latin for first. Toyota understood the risks of their target market.
GM is being very bold trying to leapfrog the already evolved Prius with a new product. For that reason, and understanding that these leaps don't come cheaply it would've been wiser to position the technology higher in the market.
I would argue that luxury hybrids haven't been stellar in the market simply because they don't offer a compelling advantage over not going hybrid - aside from the cachet.
The Fisker Karma plug-in is rumored to achieve 100mpg. Not to mention its incredibly sexy. In comparison, a Lexus LS600h gets around 22mpg and looks, well boring. Its easy to see why the reaction to the LS has been fairly tepid, while Fisker's yet unproven car is deluged with orders in comparison.
However you're totally correct about the Prius. However its now clear that GM will not be able to leapfrog the Prius at the Prius' price point.