The Volt was always worth the effort, but was it ever enough?

Volt versus self-driving cars

There are far more people in the automotive world that I haven’t met, compared to those I have met. And, whether good or bad, I’ve met far more experts from GM than any other automaker, and one of the coolest — by far — was Larry Burns, ex head of R&D at GM.

While discussing self-driving cars — the next great revolution in the auto industry — Burns called the Volt a worthy “pioneering” effort.

“It’s not necessarily about the numbers. We know so much more because engineers are out their pioneering this stuff,” Burns told the AutomotiveNews.

As a constant Chevy Volt critic, I fully concur with Burns. I’ve always respected the Volt as a pioneering effort. Unfortunately, I’ve never respected the Volt as a legitimate response to the growing energy security concerns the US has faced since 9/11, and even before, but only as a piece of such an effort. Like Toyota, if GM had sold 30,000 Prius family contenders last month, much more would have been accomplished than 2,000 Volt sales, subsidized by massive government welfare.

Oddly enough, however, maybe the Volt, hybrid and plug-ins won’t really matter anyway — at least in terms of consumer acceptance. Like Burns I fully believe that self-driving cars are primed to result in an explosive new automotive business model, multiple models actually. In fact, I believe that Burns is underestimating self-driving car potential, but that’s another story.

Until then, despite my criticism, the Chevy Volt was, and is, a worthy pioneering effort.

Too much hype too early, despite long term potential

OMG. Did you hear? A Chevy Volt burped!

It seems like the Chevy Volt has been around for years already, yet it’s only been on the market for a little over a year, and hasn’t even achieved 10,000 total sales. Still, the Volt is in the news almost daily.

GM and fans of the Volt might claim all the Volt hoopla — much of it negative — is mostly just political shaninagans, and that all this political spin has hurt Volt sales. Hence, today’s Volt production shutdown announcement has been treated like a major news story.

But I don’t blame politicians for the media circus that the Volt has become. If you’re going to blame someone, you have to blame GM because they set up the big tent for this circus years ago.

Not that long after the movie Who killed the electric car was released and the Toyota Prius was proving itself to be more than just a marketing gimmick, GM’s reputation was taking some serious shots. Something needed to be done.

So Bob Lutz approached Jon Lauckner about a new electric car. But based on GM’s experiences with the EV1, particularly the range anxiety supposedly caused by such vehicles, Lauckner balked. Instead, he came up with the basic framework for the Chevy Volt’s powertrain — a vehicle that could function like an EV and use only electricity for the bulk of average commutes, but that wouldn’t be limited by range anxiety.

In theory and in terms of marketing, Lutz realized the Volt concept was a home run and he made it his baby. And, when the Volt debuted at the North American International Auto Show, Lutz’s hype-hope was fulfilled. The Volt was exactly the PR move GM needed at exactly the right time. Almost immediately, few cared that GM didn’t have an answer to the Toyota Prius because GM didn’t need one anymore. In one swift move GM leapfrogged Toyota and the Prius, at least perceptually.

And GM hyped the hell out of the Volt, and I helped.

But, as the Volt moved closer to production, it became more and more obvious that the Volt wasn’t really a very good Prius answer — a common topic on this blog for years — which is part of the reason GM concurrently developed the Chevy Cruze. But the Volt hype — the automotive revolution — didn’t ebb, it just flowed ever greater.

Remember the 230 campaign?

The Volt was the second coming of the car. That was the perception, a perception that GM loved to promote and perpetuate.

The sad thing, however, was that GM knew — has always known — that the Volt would only be a niche car for some time, yet they promised, promised, and promised. To a large extent, they began to build their image around the Volt, or at least the perception of the Volt.

Then bankruptcy hit.

We’ll never know how much bankruptcy hurt the potential of short term Volt sales, but I think that angle has been over-played, at least to some extent. For instance, I’d bet most potential Volt buyers aren’t Republicans, so Republican hate can’t be that much of a problem for Volt sales if Democrats are key buyers.

The Volt’s problem is that it’s too expensive for what it offers. A similarly sized and styled Cruze is half the price, and the Cruze’s fuel economy isn’t cut in half during winter. On the highway, the Cruze offers even better fuel economy than the Volt. Moreover, the Volt and suggestions of 230 mpge were simply ridiculous. While early adopters will seek to hypermile and prove these numbers plausible, the data suggests that mainstream users will only average maybe 60 mpge. The Prius can almost do that without having to charge, at half the price, and without a serious hit in fuel economy on long trips.

Sure the Volt can use electricity, and that is a great competitive advantage, but when a huge amount of electricity is still coal-powered — a source dirtier than even Canadian tar sands according to some studies — what’s really being gained?

I know some will say reduced foreign oil dependence, and they’re right. For those committed to ending their personal foreign oil dependence, the Volt does offer more than the Prius, but at a cost. Furthermore, from a societal or national perspective, the Volt comes up seriously short compared to the Prius. Last month, for instance, the Prius sold 22,000 units, the Volt just 1,000. Consequently, the Prius is having far greater impact on overall foreign oil dependence compared to the Volt, and with the cheaper Prius C and the plug-in Prius on the way, those Prius sales are only going to go higher.

In fact, that’s exactly why I’ve argued for years now that the Volt can’t be an excuse not to serve up a real apples to apples Prius competitor. GM needs both a legit Prius contender, and the Volt. In the interim, I would even argue a Prius competitor was more important, but GM was most focused on image and perception and long term potential.

Today, however, hype can’t cover up Volt sales, or the lack thereof. And when GM shuts down Volt production for a month and a half, that early Volt hype is easy to turn against GM. Anyway you slice it, GM over-promised and under-delivered the Volt.

Nevertheless, the Volt is still a great idea. In the long run, it might actually live up to the hype, but when you try to fight a real product that makes sense today with concepts and hype, you’re bound to eventually get burned, and GM simply over-hyped the Volt far too early.

One of the greatest things about SUVs with third row seating is the fact that you not merely have additional room if you end up with more than the normal amount of passengers, nevertheless you also get the additional room if needed by being able to either take out or fold down your third row of seats. Another thing to be familiar with is that these big motor vehicles might be gas guzzlers, however the trade off for a lot more room might be well worth it.

Here is a look at some of your selections when it comes to SUVs with 3rd row, both new models and some that you may find on the used market.

GM provides its always popular Chevrolet Tahoe, which has been among the best selling and widely used SUVs on the market for quite some time. The Tahoe comes with a V8 engine and might be had in both two wheel drive and four wheel drive versions. This really is the quintessential large SUV.

If you want to go even larger than the Tahoe, the next step up might be the Chevrolet Suburban. The Suburban is amongst the oldest SUVs and has been produced for over fifty years. Whether you are towing a large payload trailer, or perhaps hauling the entire soccer team to a match, the Suburban gets the job done.

Ford also has SUV’s with 3rd row seating. It offers both the large Expedition as well as the smaller option, the Explorer with third row seating. Another Ford offering with a third row seat is the Ford Flex, which also provides the option of having the 3rd seat being split and having the ability to fold 50% of the seat down. You can carry up to seven and the seats may be placed in a variety of configurations. Ford has a large selection of SUV’s with 3rd row seating, which makes it worth a look as a brand.

Chrysler provides a full size SUV in the Dodge Durango as well as a smaller SUV in the Jeep Grand Cherokee, however exclusively the Durango features a 3rd row. One thing to note is that the Durango does feature an optional class leading Hemi engine which can help haul up to 7 passengers in a hurry.

Dodge also offers one of the most economical SUV’s with 3rd row seating in the Journey. The Journey may achieve up to 27 miles per gallon on the highway, which makes it a great option if fuel price is high on your list of priorities.

Should you prefer a Japanese SUV, then the Honda Pilot provides 3rd row seating to the table and actually has a surprising amount of space for adults in the 2nd and 3rd rows. This is also one of the highest rated SUV’s with 3rd row seating when it comes to safety.

There are many choices when it comes to SUVs with 3rd row seating, and its actually about what else you are looking for. With some research and looking you could find the perfect SUV for you.

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Other factories have come to or reopened in Detroit and jobs are not as difficult to find as they once were. As it happens, 5% of all new manufacturing jobs in America came from Detroit. Michigan University predicts that 20,000 jobs will be added to the state’s labor force in 2011 and that a further 26,000 service sector jobs will be added.

While job opportunities in Detroit are definitely improving, the Detroit property market is still down and out. In fact, the value of property in Detroit is at an all time low. This facilitates a perfect opportunity for a person who is looking for a home to buy. Detroit not only provides many job opportunities but also low cost housing.

Everyone wants to live in a nice house. However, as we know the majority of people cannot afford to purchase the home of their dreams or they discover that the house of their dreams is situated in a city with few to no job opportunities. Detroit is unique in that it has a growing job market as well as very low cost housing.

There are many condos and houses in Detroit that are available for well under $60,000. those that are looking for a cheap place to live in Detroit would benefit from looking in in Wayne, Tuscola or the City of Detroit itself. The city of Detroit has extremely low cost housing; however, this is the only part of Detroit where the value of property is going up instead of down, so a person interested in Detroit investment property should make a move sooner rather than later.

Whether you want to to invest in real estate or simply buy a house for the family, Detroit is one of the best cities to buy property at the moment.

A person should take advantage of the fact that America, in general, has not come out of the economic downturn. The Federal Reserve is keeping mortgage interest rates at low until the economy makes a full recovery. Many analysts are anticipating an economic recovery in late 2011; once the economy is on the upswing, interest rates on mortgage loans will go up again. A person that is looking for affordable property in a prosperous city then do not pass up the Detroit property market is a must.

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Knowing the importance of a brand

Ewanick thinks that now design and quality is more significant with the auto bailout. The style of the Cadillac has kept it going. It is unique and customers want that. Product recognition is something automakers have to worry about. Too numerous automotive brands are trying to just advertise product. Brands need room and dedication from corporate in order to grow on the public, as “people buy brands, not necessarily products,” said Ewanick. Chevrolet previously used Americana in its advertising, and while that business may not continue in the very same vein, Ewanick believes that Chevy gets it – a type has to have soul that goes far beyond the numbers.

Factory incentives continues to exist

Ewanick thinks factory incentives will continue to appear. Such deals should simply play a subordinate role to the brand story. Automotive brands are remembered via style, quality, efficiency and dependability. This will drive the sales while discounts are simply a bonus. Focusing on brand strength will require that automakers rekindle a dialogue with customers. Stories are what automotive marketing used to get to customers before. Younger generations of auto buyers are being targeted by brands like Chevrolet’s Corvette SS and Stingray. Targeting with brands nevertheless works. It shouldn’t be stopped.

Customers still respond to understanding, so do not use discounts

It is good to have sales each and every so often. This will be good simply until the consumer realizes you will find only ever sales. The auto bailout – where those teetering corporations that were “too big to fail” fed upon taxpayer dollars for sustenance – damaged the reputations of automakers nationwide. Fleeting customers will buy when the price is too low to ignore, however this method fails to capture the lifetime buyers upon which America’s automotive industry used to depend. Each automaker should focus on what their customers are hoping to get in a vehicle.

Additional reading

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Even dealers suffer from a mysterious lack of marketing

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For the record, GM’s 8 models are: Cadillac, Buick, Pontiac, Chevrolet, Saturn, GMC, Hummer, and Saab. You could take Saab out of that pack as the Swedish automaker (though fully owned by GM) builds couple of vehicles in North America. Still, GM includes Saab in its marketing and advertising schema so we’ll maintain them in for argument’s sake.

Clearly, Cadillac is GM’s luxury division; Chevrolet is it is spending budget or “All American” division; though GMC is the truck division. Beyond that, there is certainly a lot muddling of divisions, but Buick can be a maker of “near luxury” autos (Cadillac lite) even though Hummer is GM’s specialty truck division. The Saab line is really a bit confusing as it when was a legitimate European division. Now, the make is chiefly featuring rebadged GM and Subaru cars with small original models to show for it. Finally, Pontiac and Saturn duplicate a great deal of what the other divisions do, despite the fact that the Saturn mystique of “no haggle pricing” gives the make a specified aura to it. That leaves Pontiac.

Pontiac, like the recently killed off Oldsmobile identify, is likely 1 on the most vulnerable from the correct “American” makes. Saturn will survive since its dealer network is tops and consumer satisfaction ranks up there with Lexus.

Ultimately, the Saab identify will likely die initial. Outside from the U.S., especially in Europe, Opel is a known identify and an essential GM make. Word has it that some of Saab’s production will shift to Germany and particular rebadged Opels will start to sport the Saab name.  Let’s just say after that occurs, there’s little reason to continue creating Saabs. Let the Saab identify die with dignity. Why spoil it by selling rebadged Opels as Saabs?

Personally, I feel GM really should leave well sufficient alone with its remaining American models. I wasn’t in favor of Oldsmobile’s demise and I am not in favor of killing off trusted makes. GM is retooling its operation as old designs are killed off and as new or revived models step in. Seem for your Chevy Camaro, Pontiac Firebird, Saturn Sky, along with the Buick Enclave to help spark their respective divisions to renewed glory. Am I living a pipe dream? Perhaps, but at least my imagination is going in a positive direction.

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For your record, GM’s 8 brand names are: Cadillac, Buick, Pontiac, Chevrolet, Saturn, GMC, Hummer, and Saab. You could consider Saab out of that pack because the Swedish automaker (although entirely owned by GM) builds few vehicles in North America. Still, GM includes Saab in its marketing schema so we’ll maintain them in for argument’s sake.

Clearly, Cadillac is GM’s luxury division; Chevrolet is it is spending budget or “All American” division; even though GMC may be the truck division. Beyond that, there is certainly a great deal muddling of divisions, but Buick is often a maker of “near luxury” vehicles (Cadillac lite) though Hummer is GM’s specialty truck division. The Saab line is often a bit confusing as it the moment was a accurate European division. Now, the make is chiefly featuring rebadged GM and Subaru autos with small original types to show for it. Finally, Pontiac and Saturn duplicate a lot of what the other divisions do, despite the fact that the Saturn mystique of “no haggle pricing” gives the make a specific aura to it. That leaves Pontiac.

Pontiac, like the recently killed off Oldsmobile name, is likely a single of probably the most vulnerable in the true “American” makes. Saturn will survive because its dealer network is tops and consumer satisfaction ranks up there with Lexus.

Ultimately, the Saab name will most likely die first. Outside on the U.S., specially in Europe, Opel can be a known name and an significant GM make. Word has it that some of Saab’s production will shift to Germany and particular rebadged Opels will begin to sport the Saab name. Let’s just say once that happens, there is certainly tiny reason to continue producing Saabs. Let the Saab name die with dignity. Why spoil it by selling rebadged Opels as Saabs?

Personally, I feel GM ought to leave nicely sufficient alone with its remaining American brands. I wasn’t in favor of Oldsmobile’s demise and I am not in favor of killing off trusted brands. GM is retooling its operation as old versions are killed off and as new or revived types step in. Seem to the Chevy Camaro, Pontiac Firebird, Saturn Sky, along with the Buick Enclave to help spark their respective divisions to renewed glory. Am I living a pipe dream? Maybe, but at the least my imagination is heading in a positive direction.

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President Obama didn't come to Detroit last week to drive a 2011 Chevrolet Volt off the assembly line at General Motors Co.'s Hamtramck plant; he came to tacitly declare a success of the federal bailouts of GM and Chrysler Group LLC.

But, like his predecessor George W. Bush when he stood on the deck of an aircraft carrier and infamously summarized the then-fledgling Iraq war as a "mission accomplished," President Obama is a smidge premature in effectively closing the books on the controversial bailouts and proclaiming victory.

True, GM and Chrysler are barely a year removed from bankruptcy and seem to be in improving health, despite a far from resolute rebound for the auto industry as a whole. Both companies' empires are much slimmed-down and their debt all but eliminated. Their executives talk commitment to the new-age business practices that, at least in part, had to be forced upon them.