Wither GM? (And Ford? And Chrysler?)

[poltr1]

A couple of weeks ago, GM rolled out their Live Green, Go Yellow" campaign, which touted their FlexFuel vehicle line. These vehicles can run on either gasoline or E85 (85% ethanol). I see this as too little, too late. Ford has had their Flexible Fuel Vehicle (FFV) line for a few years, although it hasn't been publicized heavily.

The problem is there aren't very many E85 fueling stations nearby. According to one website, there are only 7 E85 stations in Ohio, and 2 of them are in restricted locations and closed to the public.

And, as many of you already know, Ford now has a hybrid vehicle, joining the Toyota Prius, the Honda Insight, and the Honda Civic. Where's GM's hybrid vehicle? Still on the drawing board? Still on the test track?

And now, the April issue of Consumer Reports -- their car issue -- doesn't feature any of the Big Three automobiles in their Top Ten list this year. Why is that? Is there an unspoken bias that Consumers Union has against American cars? (And if there is one, they'd vehemently deny it.) Or are the American automakers too stubborn to listen to them and to their customers, both current and past?

How long is the development lifecycle at GM? Five years? How long does it take to go from concept to production vehicle? Is this too long? A couple of years ago, GM pickup trucks were selling well. Then gas prices went up as a result of Hurricane Katrina, and sales nosedived.


What's it going to take to turn the traditional American car companies around? This is an old question; it's been around for years. If you were the CEO of GM, what would you do?

Here's what I'd do: First, I'd listen to consumer organizations like Consumers Union, and work on building better, more reliable cars. Second, I'd work on changing the perception of GM cars. Third, I'd go back to "The Saturn Way" and implement it across the entire product line. I'd work on beating the Japanese automakers at their own game. (I should point out that I know that Honda and Toyota have plants in the US, so the label of "Japanese automaker" may not necessarily apply anymore.) Fourth, I'd work with the UAW and other unions to create a win-win.

The alternative is that GM continues to falter and eventually go bankrupt. Should that happen, the US would likely go from recession to depression.

Comments

[bikergeek.livejournal.com]

I have long suspected that CR has an editorial bias against American cars. American cars seem to get dinged for stuff that Japanese cars get a pass on.

OTOH there's stuff that the domestic car makers could do to improve the product. Like, letting the engineers do their damn jobs and stop overruling them with bean counters at every turn.

I suspect that bankruptcy for GM is one of those "crazy like a fox" moves: it'll allow them to slough off their considerable legacy costs--notably retiree pension and health benefits--onto the Pension Benefit Guaranty Corporation.

[poltr1]

I knew I could count on you for a quick response.

I remember your experiences with your mom's Ion. And I'm now thinking, "What about the GM service experience?" Sure, Goodwrench denotes technical competence, but what about integrity? There's a negative stereotype I still carry about auto mechanics that I'd like to shake or dispel.

Right now, Charles Kettering's old company -- Delco, now split off and renamed Delphi -- has financial woes of its own. It's big news here, since Dayton is home to a few Delphi plants. There's been talk about renegotiating the contract to cut back on retiree benefits. Meanwhile, people in the upper level of management are getting golden parachutes, in order to provide them an incentive to stay aboard and not jump ship. Grr.

In the interest of full disclosure: There's also an emotional component to this LJ entry, as my dad is a GM retiree.

[figmo.livejournal.com]

There's a talk show on the Speed channel (I get it on satellite) on which they had two execs from GM discussing that very topic. GM feels making cars that can run on either Ethanol mixes or on gasoline is the way to go, rather than in the hybrid direction. GM has been partnering with a few major gasoline companies to get them to produce the Ethanol/Gas fuel.

Meanwhile, it'll be several years before that fuel is expected to be available everywhere in the U.S. Most of the Ethanol is produced in the midwest, which is where GM sells best, and that's the unwritten and unspoken reason as to why they went that route.

My biggest complaint about today's cars is their interior colors, or lack thereof. Remember when you could get a blue, red, or maroon interior? Do you know how hard it is to find a car with an interior that doesn't look like it came from inside an office building (beige, gray, or black)? Even worse are the manufacturers who are putting out cars mostly with silver/gray exteriors. Bleaugh.

Got E85?

[(Anonymous)]

Looking for E85?

Move to Minnesota.

Problem solved.

Seriously, E85 is coming to the Buckeye State. Last year Indiana had 0 E85 stations -- now they have almost 30, I think. This is growing very fast -- we in MN saw our E85 outlets double and our E85 sale triple in 12 months.

See what we at the American Lung Association of Minnesota say about E85 and biodiesel at this website: www.CleanAirChoice.org

Re: Got E85?

[poltr1]

It's one of those chicken-and-egg problems. I think more people would buy flexible-fuel vehicles if they knew they could get E85 nearby. And fuel companies are probably waiting for more flexible-fuel vehicles to be on the road before they commit to installing E85 pumps. Although that may change.

FWIW, neither of my 2 cars -- both Saturns -- are E85-compatible.

In the meantime, if I want the E85 experience, I'll buy a liter of Everclear at the State Liquor Store. :-)

[tigertoy.livejournal.com]

E85 is a great scam for the car companies, because it's been hyped so that it looks like it's doing something about the problem when it really isn't. GM gets credit for making a greener car if that car can run on E85, but almost all the cars that can burn E85 actually run on gasoline (and there are bunches of them out there, because Ford has been selling them for years, quietly claiming tax credits and not trying to make political hay out of it as well), and they will run on gasoline until E85 is both readily available and *cheaper to use* than gasoline. I haven't seen anyone quoting mileage figures for E85 vs. gas, but I assume that's because they're a great embarrassment to the E85 lobby. Ethanol has a way lower energy content than gasoline, so unless the engine somehow burns it much more efficiently than gasoline, mileage with E85 will be way below that with gas (10% EtOH is standard here, and I notice the mileage boost when I get a tank of 100% gasoline), and nobody will use it until it's cheaper in miles/dollar, not just miles/gallon. If the example of leaded gasoline from a few decades ago holds true, people will bitch and whine up an unbelievable storm about how much E85 sucks until it's actually cheaper, and then suddenly everyone will be using it, even cars that "couldn't" be converted to use it.

In any case, setting up a choice between E85 and hybrid engines is a false dichotomy; there is no reason we shouldn't be able to have FFV hybrids with all the advantages of both.