Punishing GM for killing electric car

Wouldn't be that hard.

The State of California could concoct some law whose real effect would
be to punish GM for its perceived perfidy. When the Governator goes, it
will become politically feasible.

 

[drivel snipped]

Begone troll.

 

In "Bret Ludwig"

But would be really stupid.

 

I do not blame GM because they were responding to "political" pressure
when they did it. The oil companies still do not want to see this
happen and they run the government more or less. This is why they (Big
Oil) see hydrogen cars because they can make, transport and sell that
too. (today most hydrogen fuel comes from oil processing because there
is not other easy way to do it.

 

No, it would be smart.

 

How are the oil companies going to punish GM? They should fear the
government, even the state government, a lot more than Big Oil.
California could easily figure out some way to **** with GM's profits
or marketing in California.

 

It is not about them (Big Oil) punishing GM. It is about trying to
punish GM for something that was being influanced on them so it is not
really their fault.

 

Nuremberg said differently.

 

Not a valid comparision and a poor answer. GM is no saint but they too
are subject to someone pulling their strings too. GM was the messanger
here not the real cause behind its death. John Q. Public and techology
in general was not ready for a electric car then and not really now
either because of its current limitations. They have some more way to
go before they are seriously viable. BTW, GM was playing with electric
S10 in the 90's. I know because I saw a few on them and did some
contract work on the machine the tested the motors for them. Same
problem though, limited range and cost/weight of batteries.

 

In this case you had a product that already existed and a number of
people (like 500) that were offering cash for them.

Electric cars are not for everyone but there is no question some
people want and can benefit from them.

 

500 is not worth the trouble in the scheme of things for GM, it needs
to be in the tens of thousands and then some to even begin about being
profitable one day.

 

I think that GM had some nifty technology but it was too expensive.
They saw that they would be forced to keep building these cars and
selling (leasing) them at a loss while they drew sales away form
profitable car lines and cast the rest of their business in a bad
light.

Ironically, GM is being punished for their short term mentality.
Punished not by the government or consumer activists but by the
market. Huge, fuel-guzzling vehicles have a large profit margin,
until the day comes when they start sucking the wells dry. GM walked
away from electric technology which could have formed the basis for
successful, cost effective hybrid vehicles. Instead, GM spent money
redesigning their huge, truck-frame SUVs which rolled out just in time
for $78 oil.

For the record, I don't think pure battery powered road cars are
economically viable with any foreseeable technology. The high price
and operational limitations can not be overcome in the near future.
Hybrids OTOH, are economically viable now (barely) and give up little
in utility.

 

Bullshit.

Electric cars do not have to be truly cost-effective for a modest but
definite market to exist. Is a Ferrari cost-effective? My guess is
there is a market for a $100,000 electric car in Hollywood and the
Hamptons. Especially if there were a hybrid gen set module that could
be swapped out for some battery storage.

GM was being jerky and they should fear the legislature.

 

Nice thoughful comment

 

This is where you are dead wrong because they have to be profitable to
produce as GM is a mass producer and it is not profitable to make a
small quanity of them. Do not compare them to a hand built car market
manufacture because this is like trying to compare apple and oranges.

 

Big difference. A 100lk Ferrari doesn't cost the manufacturer
anywhere near 100k to produce and their whole company premise is to
sell very few and very expensive cars. The electrics cost GM 100k to
produce so they had no profit and GM is set up to sell a bunch of
moderately priced cars. If you think this market exist why aren't you
out raising capital and building it yourself?

Steve B.

 

Smart to those with a collectivist orientation.

 

GM can't "kill" the electric car. Any fool who wants to attempt that
business is free to try. There are already several vendors, though
most are little more than garage customizations or fancy golf carts..

Remember back to the early 1970s when the U.S. Department of Justice
was proposing to break up GM into its constituent parts because it was
"Monopolizing the auto industry." So if GM is a monopoly, then if GM
had continued to sell its electric car at a loss, it might have been
construed as a violation of antitrust legislation, selling at a loss
to force out smaller electric car companies. GM would be tarred as
abusing its "monopoly" power, selling at a loss to run other electric
car companies out of business.

GM can't win. They're condemned when they screw up, and they're
condemned when they succeed.

RK Henry

 

You are very very very naive. Each car cost much less than 100k to
produce. The total R&D amortized out per vehicle may have been that,
but since over 1000 vehicles were produced, that would put the program
cost at $100,000,000. I seriously doubt GM spent that much.

The fact is that GM was offered a huge sum for all of the
already-produced cars at the end and showed their ass to this offer.

Ferrari is owned by Fiat and in fact is subsidized as far as their car
production goes. Where Ferrari makes a profit is their extremely high
tech light nonferrous foundry program, but the cars lose money. My
guess is Corvette is a net-net loser too. But they make it up on the
logo program.

 

Your are the one nieve. It cost atleast 100K a car to make them back
them and likley more as that stuff was pricey then to build with. If
it had been possible to make a profit, GM would have built them but
the timing and costs were all wrong. Today, 70% of the cost of
building of a new vehicle is labor costs with health insurance along
adding about 1500 a car and climbing. No way you could build a cheap
all electric one today either. (not at GM's labor costs)