GM to gov't: $2.6 billion for more Volt hybrid models, please
by Sebastian Blanco on Apr 2nd 2009 at 11:00AM 
GM's updated business plan, released yesterday, says that the company hopes to build three new hybrid models, including two Chevy Volt spin-offs, using $2.6 billion in loans from the U.S. government. General Motors is asking for the money as part of the DOE program to help companies develop and build more efficient vehicles. Fisker and Tesla are just two other automakers that have applied for funds from this program, which was recently fast-tracked. All told, GM is asking for $10.3 billion under the program. GM has already shown off the Volt's powertrain, known now as Voltec, in other vehilcles - see: Cadillac Converj - and have always said that the Volt would be just the first in a line of plug-in vehicles using the technology. The loan request is separate from the general bailout funds that GM is currenty discussing with the Obama administration.
Gallery: 2011 Chevy Volt
[Source: Reuters]
Reader Comments (Page 1 of 1)
jharlan 11:22AM (4/02/2009)
I would have to ask how and when are they going to pay the taxpayers back for this (and other) loan(s)? What do they have for collateral? How is a company losing a couple of $ billion a month going to ever pay back anything? They have let the whole dam company get down so far I wonder if it has a positive or negative cash value? The whole train is roaring downhill at break neck speed. Do the taxpayers have the brakes to stop it? They are bankrupt and so are the taxpayers. Chapter 11 NOW!
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Arun 12:07PM (4/02/2009)
Why not sell the research done till now to some other company, so that the car is still possible for the masses. It might fund GM too and platform sharing will make the car much cheaper. I know its difficult to sell of good work but in times like this 'what has to be done has to be done'. Even if GM sells the Volt alone and with the market condition they will need a lot of time to make up for the $2.6B.
And with the $2.6B fund some electric car company startup, they will be efficiently be able to utilize all the amount.
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why not the LS2LS7? 12:27PM (4/02/2009)
All of the big 3 have already asked for many billions under this DOE program already. No new excitement here.
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oldraven 12:54PM (4/02/2009)
At least they asked, and the money was already set aside for this purpose. Tesla just assumed they were going to get it and told the public that they were going to receive funding for their Sedan, without finding out if it was true or not. It's the same pool of money both companies were looking to dip into.
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jake 1:03PM (4/02/2009)
Tesla already had their application in a while ago and they went through the vetting process making it to the 26 "substantially complete" applications out of 75. So they are getting a little cocky (probably a little early though).
Tohe 1:12PM (4/02/2009)
A fair question to GM is: why are Tesla and Fisker able to produce feasible electric vehicles at a fraction of the cost of your volt operation? As far as I'm concerned GM is a pension company just looking to write off checks. I'm not comfortable with the idea of GM receiving a cent more from our treasury. GM can go as far as I'm concerned.
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leo 1:53PM (4/02/2009)
Tohe..
Yes, that's an interesting question. How much of this funding is sequestered for pension purposes? I can imagine that the pension contributions of the entire board goes into the 10s millions alone. Obviously, money well spent ;) Here, GM have their hands tied, unfortunately. However, time to let this dinosaur go, I'm afraid. I can hear the thunderball coming. Cut the slack, downsize and rebuild it -what happens to most other mutlinationals in times of crises. I just don't get it with the D3. My sympathies go to the supply sectors, but by my calculations, most of the suppliers should have gone to the wall already...
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Tohe 3:28PM (4/02/2009)
Good point about executive pay. I know many will compare Wall Street with Detroit, but there is no comparison. One is got a future ahead of it while the other does not. The administration is between a wall and a sword here. The want a leaner GM, but they know firing people won't be popular. So why not just let GM + Chrysler go and give incentives to innovative companies like Tesla and Fisker so that they can rehire some of this task force, the rest could move onto green jobs to develop infrastructure etc. The government could design their infrastructure in such a way that would facilitate jobs for these folks in building the grid, trains etc etc. This effort just needs good orchestration, that's all. Throwing money at Detroit will only hurt everyone involved in the long run.
Jimbo 2:23PM (4/02/2009)
I like the idea of the Volt, but why is it proving so costly to GM? Hyundai is said to be developing a similar system while Ford and Toyota are developing ones based on their existing hybrids. All of them seem to be on track and not requiring nearly the investment that GM is making. Heck, Fisker is a fraction of the size of GM and they are making a plugin-hybrid that is good looking and not outrageously expensive for the performance. It seems like GM is using the Volt as yet another way to shakedown the taxpayers for more money.
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jpm 2:42PM (4/02/2009)
This ungodly amount of money that GM requires to build a hybrid shows just how bloated, bureaucratic, and inefficient a corporation they are. I supposed they burned the blue prints and drawings for the EV too. What a shitty company, they deserve to go bankrupt. But it's fucked up because all those workers had nothing to do with it. The damn management is at fault.
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oldraven 3:40PM (4/02/2009)
The management that is at fault are mostly retired and enjoying their pensions right now. The labour agreements and lack of funding for those agreements have been in the works for decades.