Nissan and Toyota had Better Worry About the Volt Fires And So Should You

You have to be wondering how closely Toyota and Nissan are watching the NHTSA investigation into the Chevy Volt fires.  Actually, all car makers should be watching for fallout very carefully.  But specifically, Toyota just started taking orders on the Plug-in Prius.  And the Nissan Leaf has been competing (sales-wise) with the Volt from the beginning.  And consumers are not going to make a distinction between any of the car makers when it comes to battery fires.

They've seen too many cases in laptops and phones now of spontaneous combustion to ignore the issue.  Mind you, the opposite argument could be made, that they have gotten used to the risk of having batteries that could overheat near them on a constant basis.  But I doubt it.  There's something different about the batteries in electric and quasi-electric cars (the size!).

Imagine if consumers stop trusting large battery packs.  What will the automakers do when it comes to the new fuel efficiency guidelines if they can't sell at least some electric or extended range electric vehicles?  They are all working on them.  Imagine if all the research investment, time and money, has been wasted in the effort as they have to pull up and wait for a new generation of batteries to come forward?  Imagine what that will mean when they lobby for a postponement to the new fuel economy laws?

I can see it now.

"I'm sorry senator, we really would like to build and sell electric cars, but we just can't yet.  The technology isn't there.   I'm sure you understand why we can't put voters, err... I mean drivers at risk just to meet these fuel economy guidelines." - any car maker lobbyist in D.C.

In case you're not familiar, the NHTSA was conducting crash tests on the Chevy Volt (5-stars!).  They put one through it's paces (i.e. smashed it up, really good!) and then placed it into storage.   A few weeks later, a fire broke out in the battery pack (the coolant line had been severed) and burned up the Volt, plus several nearby cars.  Since then, in cooperation with Chevy (General Motors), they have subjected several other Volts to similar circumstances in an effort to start more fires.  They were successful (smoke and sparks, at least).

GM says this is a known factor when dealing with these battery packs.  One of the safety measures they've outlined is to discharge the battery pack after an accident to keep a fire from starting.  But the NHTSA didn't follow their guidelines and that's why the fire occurred.  In the meantime, they emphasize their cars are safe (noting the 5 star rating they received) but just in case anyone's nervous, they will let them drive a loaner for free while the investigation continues.  A 'handful' of customers have done just that.

Competition Between Leaf and Volt Heating Up

Everybody's talking about the competition between the Nissan Leaf and Chevy Volt (Detroit News, AutoBlog, GM-Volt, etc...).  But really, does it matter all that much that the Volt outsold the Leaf this past month?   Does it matter that the Leaf has been outselling the Volt since May?  Does it matter if either company makes their 10,000 sold in the first year?  Not really.

The difference between the two cars is profound.  GM may call the Volt an extended range electric vehicle, but the Leaf is all electric.  That means they are very different.  The Leaf does not have a gas option, meaning it can only go 70-100 miles on one charge. The Volt can go only 30-40 miles on electric before switching to gasoline (to charge the battery, but still it's running on gas at this point).  The Volt is $5-10 thousand dollars more than the Leaf.  But when you can get 1000 miles on 11 gallons of gas, maybe that's worth the extra money to those people who can afford the $35 thousand just to be able to choose between the two.

In their first year, the Volt and Leaf are depending on similar buyers; very financially sound; environmentally minded; and risk-minded individuals.  These people are willing to take a risk on something new, something they want to support.  They know there will be issues, but they are OK with being the guinea pigs.

The real question isn't how many of these people either company gets to buy (although I will say the more that buy, the better off the company is).  It's how, or even if, they are going to transfer to the more general public.   At these prices, maybe they won't be able to.  But if they don't, that 10,000 sold maybe the best they can do every year.  And considering both companies are planning on ramping up production to 5X or more, that's what really matters.

In order to sell 50,000 of these two cars a year; in order to make these cars ultimately profitable, and not just green flags to wave; in order to help transition our gas powered vehicle fleets into something a little less dependent on oil; that's what matters.

GM Invests $325 Million Into Retooling Plant for Electric

GM is going to put $325 million back into their Warren transmission plant, an effort to retool the plant into making electric parts.  This will create or save 418 jobs at the plant, which currently builds transmissions for large crossovers like the Enclave, Acadia and Traverse, as well as the Malibu sedan.

“This investment in the future recognizes the excellent work force and operation of this plant,” said GM Manufacturing Manager Gerald Johnson. “While we aren’t sharing many details about this product, I can tell you that this investment demonstrates how GM, working with our UAW partners, continues to innovate and bring new electrification solutions to our customers.”

The move is part of the current contract with the UAW, which states they will invest in the plant.  It's possible the parts being built will be for a mild hybrid system (start-stop) set for the Malibu next year.

Volt Accused of Not Going All the Way

Is it or is it not? That is the question being asked this past week as news comes the Chevy Volt may not be as electric as it claims to be. Edmunds says GM has lied: "it isn't as electric as GM has been saying for the past three years."

Electric, Hybrid, or Neither?

GM has fired back in a statement: "There is no direct mechanical connection (fixed gear ratio) between the Volt’s extended-range 1.4L engine and the drive wheels. In extended-range driving, the engine generates power that is fed through the drive unit and is balanced by the generator and traction motor. The resulting power flow provides a 10 to 15 percent improvement in highway fuel economy." and "If the traction motor is disabled, the range-extending internal combustion engine cannot drive the vehicle by itself."

Seemingly at the heart of the debate is what the Volt can call itself. GM claims the Volt is an electric car (ignore the gas engine behind the curtain, please). Edmunds (and others like the NY Times) claim the Volt is a hybrid, really a plug-in hybrid.  But that's not really the problem here.

Back Story, the Birth of an E-REV
The story I have had in my head based on all I've read and learned about the Chevy Volt E-REV goes like this. The Volt is a plug-in hybrid vehicle, but a variation within that framework, one I had come to realize deserves a new name to distinguish it from other plug-in hybrid vehicles. The Volt runs on electric power alone for 40 miles (electric power you have stored up overnight by plugging in). After that, the electricity is produced by a small gas engine which supposedly just recharged the battery pack.

Shocking Truth?  Or Just Media Bias?
It's shocking, to me and others, to find that story isn't quite true. According to Edmunds, the gas engine is assisting the electric motors at highway speeds (at or above 70 mph ). Kicking Tires points out "there's a power-split device similar to the type in hybrids from Toyota and Ford. "

It doesn't really matter if the car can only move if the electric motor is also running.  ("The engineers say yes. They say the arrangement produces a slight increase in efficiency, but they emphasize that it's not as if the gas engine takes over from the electric drive. The electric drive is indispensable, at high as well as low speeds, they say." Source: MSNBC") What matters is GM has been clear for years now the gas motor would not be capable of pushing the car.

Truth or How Dare They?
And the real kicker, does this mean the gas engine will kick in at highway speeds even in the first 40 miles? Can you really call a car like that an E-REV? What's exciting about the Volt is the ability (if you only travel less than 40 miles a day), you can own an electric car without the 'range anxiety' an all electric car brings. The Leaf goes for 100 miles, but after that you need to recharge. In other words, you need to find a plug and about 4-8 hours of time. The Volt just needs to pull into a local gas station if you don't have a handy plug.

And that's why most of the questions I've seen about the gas engine are 1) can it be even smaller? and 2) what if you don't go over 40 miles for a year or two?  Doesn't the gas go stale?

That's the way people are thinking about the Volt.

Truly an Electric for 40 miles or not?
But if that's not true, if your commute involves highway driving at 70 mph, and the gas engine is going to turn on anyways... Well, now we have a real problem.  This is what the true furor is about.

Consumers are hoping for an electric car for most days, but a gas car when you need it to go farther. What if they don't use gas for a couple of years? GM has said they have thought of this and it won't be an issue. Now I'm wondering if this is why they were so confident about that.

"The buzz around the internet — and at this event — suggests the world will soon come to an end because the Volt isn't what people thought it would be, that it's somehow a lesser vehicle. I don't see it. Once the engine starts, the point is efficiency." (Source: Joe Wiesenfelder at Kicking Tires)  With all respect to Joe, that's not the point at all of the Volt.  A true plug-in hybrid electric vehicle will be more efficient than an E-REV.

If the gas engine only 'assists' the electric motor after you are in 'extended range', then the furor over the name calling (what's in a name, after all?) will be over in my mind. The gas engine is already on and what difference does it make that the engine is not only recharging the battery pack, but it's also helping move the car a little bit increasing the efficiency.

What's in a Name
The E-REV definition separates the Volt from an all electric car. It also separates it from a plug-in hybrid (like the one expected from Toyota in the next year or so). But only if the gas engine doesn't assist at high speeds in the first 40 miles. If it does, then the Volt will need to be relabeled as a plug-in hybrid. Because that's what it would be, whether GM wants it to be called that or not.  Toyota and Ford hybrids already drive at low speeds on all electric power as just hybrids.  The difference maker for the Volt was being able to go any speed up to 40 miles (you're miles will vary).

Sidenote:
BTW (To Mark Phelan at freep) who says "If you don't believe Parks and the independent testers who've driven the car, though, ask the federal government. It has approved the Volt for a $7,500 tax credit that only applies to electric vehicles. Hybrids need not apply." That's not true. The credit is not to 'electric cars' and the Toyota Prius plug-in will probably qualify for the tax credit.

Read More
To read more on the controversy: Money Times, IB Times, US News, Kicking Tires, Earth Techling, GM, freep
Join the Discussion at Clean MPG

Mild Hybrids Make a Come Back in 2011

GM is working on a second generation of mild hybrids to be available in the third quarter of 2011. They have a mid-sized sedan (they won't say which) for the US and another in China. The source (via Autonews) was Larry Nitz, GM executive director of hybrid and electric powertrain engineering.

That's great news and important if GM wants to meet the upcoming guidelines on fuel efficiency for their fleet of cars in the US. Not every car can be a hybrid or a plug in the coming years. Mild hybrids give a much smaller boost in fuel efficiency, but the cost to implement it is also a lot lower. A start-stop (gas engine turns off at stop lights) system paired with regenerative braking and a much smaller battery pack and you can boost acceleration using electric power rather than more gasoline.

More than likely, the more powerful part will come from a new generation of battery pack (maybe lithium-ion?). Nitz said the benefit would be about 20% in fuel economy.

GM lost most of they mild hybrid line-up when they dropped Saturn.

GM Invests in Bright IDEA

GM is investing in Bright Automotive. GM will become a minority owner in the company, while Bright will gain access to GM technologies, and advanced engine and transmission systems, for its vehicle. Bright is working on building a plug-in hybrid commercial vehicle.



I'd say this was significant on a few fronts. A promising company built on creating a plug-in hybrid for commercial purposes is exciting on its own. Commercial vehicles can be perfect fits for electrification. With frequent stops, hybrid commercial vehicles can double or triple their gas savings. The IDEA saves 1,500 gallons of fuel per year vs its competitors while driving 40 miles on all electric and getting 40 mpg in standard hybrid mode.

But it also allows GM to expand on its use of its hybrid technology and parts. By expanding the user base, they can start cutting the costs (increasing scale and all that). Maybe that means they'll be able to cut the MSRP on vehicles like the Volt sooner rather than later.

And, it's a good sign for GM to be investing in others, not just itself. Looks like they are recovering. Either that or they are expanding too fast...

Press release follows:

Detroit, MI and Anderson, IN (August 3, 2010) — Bright Automotive and General Motors today announced they have agreed to pursue a strategic relationship and that GM has provided funding to the Indiana automaker. This is the first funding action by the newly-formed General Motors Ventures, LLC, and it will help accelerate Bright’s production of the IDEA, a revolutionary plug-in hybrid commercial vehicle.

“This relationship is an important step forward for Bright, and a strong endorsement of our highly experienced automotive team and our incredible vehicle,” said Reuben Munger, Bright Automotive Chairman and CEO. “With this deal, Bright gets financial support that puts us on the fast-track toward mass production of the IDEA. And perhaps just as importantly, we gain a strategic partner that is a world leader in electrification.”

The companies signed a memorandum of understanding in July. General Motors Ventures LLC provided funding to Bright this week, and the two companies intend to complete the formal agreements later this year. Upon completion of the agreements and other terms, General Motors Ventures would have a minority stake in Bright Automotive (www.brightautomotive.com) and Bright would have access to GM technologies, and advanced engine and transmission systems, for its vehicle.

"Funding early-stage start-up companies is a new way of doing business at GM to accelerate the introduction of innovative technology to support our core automotive business and give us a competitive advantage," said Jon Lauckner, President of GM Ventures. "In this case, our funding of Bright Automotive will accelerate the introduction of advanced propulsion and light-weight technologies in the commercial vehicle market."



“We talked with several leading automakers, but GM clearly had the right vision, the most capable technology, and the closest alignment with our business approach,” said Michael Brylawski, Bright Automotive Executive Vice President. “We are thrilled to work with GM to create American jobs, stimulate technology development, and build an innovative American vehicle that will help reduce oil dependence and cut costs for businesses.”


In developing the IDEA, Bright started with a clean sheet of paper, listened to customers, and took a novel approach to product development that focused on light-weighting, aerodynamics and a highly efficient drivetrain. The result is a multipurpose vehicle for business fleets — the first designed to be highly efficient and provide a clear economic benefit.

The IDEA delivers a positive total cost of ownership to fleet customers by providing significantly greater fuel efficiency than current fleet vehicles in its class. The IDEA operates in electric mode for 40 miles before switching to an estimated 36-mpg hybrid mode for 100+ mpg potential based on daily driving behavior. Bright Automotive provides details on the IDEA at www.brightautomotive.com.

Funding through GM Ventures will allow Bright to begin ramping-up the development of the production program for the IDEA in the third quarter of 2010. Bright continues to seek a low interest loan through the Department of Energy’s ATVM program. Financial terms were not disclosed.

GM Increases Production of Volt in 2012

A pre-production Chevy Volt nears the end of the line

GM has decided to increase production from 30,000 to 45,000 on the Volt in its second year (2012). GM just opened up pre-orders a few days ago on the Chevy Volt. If they decided to up production by 15,000 units, to me, that means they are having very strong pre-sales.

At $41,000, you would think the Volt was not going to be a high production vehicle. But at 45,000 units a year, you can't label the Chevy Volt as 'green washing' either.

Expect a nice trickle down effect on suppliers, too.


Press Release follows:

DETROIT, Mich. – General Motors today said that thanks to strong public interest in the Chevrolet Volt, the 340-mile extended range electric vehicle, it will increase U.S. production capacity of the groundbreaking new car by 50 percent, from 30,000 units to 45,000 units, in 2012.

The announcement came as U.S. President Barack Obama toured the Detroit-Hamtramck facility, where the Volt is being produced now for sale later this year.

“The Chevrolet Volt provides drivers with the latest technology, outstanding innovation, and something no other electric vehicle can provide – peace of mind,” said Edward E. Whitacre, Jr., GM Chairman and CEO. “We are very proud to host the President of the United States at this plant, where the future of the American automobile industry is being built today by the men and women of General Motors.”

The expanded U.S. production capacity is the latest in a series of positive developments for the Chevrolet Volt. This week, participating Chevrolet dealers in launch markets began taking customer orders for the 2011 Chevrolet Volt, following the release of retail and lease pricing. The brand also recently announced unprecedented battery and vehicle limited warranties to bring value and peace of mind to Volt customers. And the number of U.S. launch markets for the vehicle recently was raised from three to seven. In the past few weeks, more than 25,000 people have joined the Chevrolet Volt enthusiast list.

The Volt offers a total driving range of about 340 miles and is powered by electricity at all times. For up to the first 40 miles, the vehicle drives gas- and tailpipe-emissions-free using electricity stored in its 16-kWh lithium-ion battery. When the Volt’s battery runs low, a gas-powered, engine/generator seamlessly operates to extend the driving range another 300 miles on a full tank.

The Detroit-Hamtramck plant received $336 million in new investment to prepare for production of the Volt, part of more than $700 million GM has invested in eight Michigan facilities to support Volt production since 2008. This includes a 33,000 square-foot battery systems lab in Warren; a battery assembly facility in Brownstown Township; and supporting engine and stamping operations in Grand Blanc, Bay City, and three plants in Flint.

Besides direct GM jobs, the Volt has helped spur additional supplier employment and investment. Earlier this month, battery cell supplier LG Chem/Compact Power Inc. broke ground on a $300 million, 650,000 square-foot plant in Holland, Mich., to support Volt production, creating 400 jobs. In addition, the Volt helped start an electrification trend. Since its debut in January 2007, other automakers have announced 30 plug-in hybrid or electric vehicles.

2011 Chevy Volt Price

2011 Chevy Volt, $41K for an E-REV

All the speculation is over as the Chevy Volt price has finally been revealed. And at $41,000, the E-REV from GM is not going to be a car for everyone.

The price is not surprising, but it is a bit disappointing. I was hoping that with the lower than expected price tag on the Nissan Leaf, GM would be forced to bring it down to at least the mid $35,000 range. Keeping it under forty thousand would have been something.

But, you could also point out that GM is pricing the Volt closer to what it truly costs them to build (at least for now). With an all new battery type, engine type, production plants, etc... the Volt has been an expensive car to build. It's likely that GM will lose money on the Volt for years, something a company just out of bankruptcy and government loans needs to be careful about.

The Nissan Leaf lease is almost identical to the Chevy Volt lease. By matching the Leaf lease, GM is hoping to compete with Nissan. The lease terms are supposed to entice customers who are reluctant to buy into an unknown type of car.  The $7,500 federal tax credit is applied to the cost of the car when you lease, which is why the price is set so much lower.  If you buy the car outright, you have to get the tax credit yourself, if you qualify.

The Nissan Leaf qualifies for the $5,000 tax credit in California for being a PZEV, but the Volt does not.

Others reacting to the price announcement:
Detroit News
GM-Volt
Edmunds Blog Green Car Advisor
Autoblog Green
Hybrid Car Blog
Hybrid Car.com
Clean MPG Forums (Price, Lease)
GM Fastlane
Straightline

Still interested?  Head to www.getmyvolt.com to place your order. The website will let you see where you are on the waiting list. GM will build 10,000 Volts in the first year, 30,000 the next. Then we'll see where the demand is and whether they'll expand on the production.

GM has created a website, www.getmyvolt.com, which will let customers start placing orders today with dealers in launch markets.

Interestingly, GM is already pushing back on the comparison to the Volt.  With only 100 mile range, the Leaf may be a bad comparator, but would they rather the comparison be with the Prius?  At almost half the price, would that be good for them?

Read more about the Volt, the lease terms, and how to order:

SAN JOSE, CA – Starting today, participating Chevrolet dealers in launch markets will begin taking customer orders for the 2011 Chevrolet Volt, the industry’s first electric vehicle with extended-range capability.

Chevrolet is so confident in the overall value of the Volt that the brand will offer a lease program on the Volt with a monthly payment as low as $350 for 36 months at Manufacturer’s Suggested Retail Price with $2,500 due at lease signing, including security deposit based on current conditions, which could vary at time of delivery. The benefit of the $7,500 tax credit is included in the reduced lease payment, with the tax credit going to the lessor. The Volt’s MSRP will start at $41,000 ($33,500 net of the full federal tax credit, which ranges from $0-$7,500) including a destination freight charge of $720. Customer deliveries of the Chevrolet Volt are scheduled to begin in launch markets late this year with initial production limited.

“The Chevrolet Volt will be the best vehicle in its class…because it’s in a class by itself,” said Joel Ewanick, vice president of U.S. marketing for General Motors, who made the announcement at the Plug-In 2010 conference. “No other automaker offers an electrically driven vehicle that can be your everyday driver, to take you wherever, whenever. The Volt will be packed with premium content and innovation, standard.”

The Volt will be initially available to Chevrolet customers in California, New York, Michigan, Connecticut, Texas, New Jersey and the Washington D.C. area. To be among the first to purchase a Volt, customers can visit their nearest participating Chevrolet Volt dealer. A Volt dealer locator will be available later today at http://www.getmyvolt.com. The dealer will begin the order process, which will be followed up by contact from a dedicated Volt advisor who will be available to answer any questions and keep the customer apprised of the progress of their order. For customers needing general Volt information, Chevrolet will have a team of Volt advisors available to answer questions starting today at 1-888-VOLT-4-YOU (1-888-865-8496).

The Chevrolet Volt is the only electric vehicle that can operate under a range of weather climates and driving conditions with little concern of being stranded by a depleted battery. Volt has a total driving range of about 340 miles and is powered by electricity at all times. For up to the first 40 miles, the Volt drives gas- and tailpipe-emissions-free using electricity stored in its 16-kWh lithium-ion battery. When the Volt’s battery runs low, a gas powered range-extending engine/generator seamlessly operates to extend the driving range another 300 miles on a full tank.

Depending on their tax situation, Volt owners can qualify for up to $7,500 in U.S. Federal income tax credit, as well as other potential state and local tax credits, depending on location. Owners in certain states may qualify for the added convenience of High-Occupancy Vehicle (HOV) lane access.

While the Chevrolet Volt will come standard with a 120-volt charge cord that will provide owners with the ability to charge their Volt directly from a standard home electrical outlet, a total of 4,400 Volt buyers in launch markets could be eligible for a free 240-volt charging station, including home installation. The installations are part of a program developed by the U.S. Department of Energy (DOE) to install approximately 15,000 240-volt home charging stations across the U.S.

Technologies Keep Volt Customers Connected

When it comes to advanced technology, Volt customers are on the leading edge. The 2011 Chevrolet Volt has standard technology features that link and entertain in innovative ways, starting with standard seven-inch touch screen navigation and an energy-efficient Bose premium audio system.

The Volt is the first GM vehicle to offer five years of OnStar Directions and Connections service, which includes Automatic Crash Response, stolen vehicle assistance and connected navigation, all standard. Volt will expand on OnStar’s foundation of leading-edge safety and security technology through the introduction of an OnStar-enabled mobile app that connects the vehicle to the owner’s smartphone.

“We wanted to make the Volt ownership experience unlike anything we’ve done at Chevrolet, because the Volt is unlike any vehicle we’ve offered,” said Tony DiSalle, director of Chevrolet Volt product marketing. “We want customers to fully enjoy the Volt lifestyle by providing unprecedented connectivity to their vehicle through the Volt mobile app.”

Unprecedented Warranties Bring Value and Peace of Mind

Volt owners will be provided outstanding battery and vehicle limited warranties. The Volt’s 16-kWh lithium-ion battery is covered by an industry-leading transferable warranty of eight years or 100,000 miles. In addition, Chevrolet will provide:

3-year / 36,000-mile bumper-to-bumper coverage
5-year / 100,000-mile roadside assistance and courtesy transportation
5-year/100,000-mile limited gas engine coverage
6-year/100,000-mile corrosion protection coverage
The Volt also has an array of standard safety features, including eight air bags -- dual-stage frontal, side-impact, knee, and roof-rail side-impact - and StabiliTrak electronic stability control with Traction Control. The Volt is constructed of 80 percent high-strength steel for additional safety and protection.

Chevrolet will also provide customer assistance via a Volt advisor available 24/7 by phone or Internet. Dealers will also provide on-site dedicated Volt service and sales experts who will be able to address inquiries.

Volt Pricing to be Set on Tuesday... Will the Volt Flop Before it is Produced?

We'll finally have a clue as to whether or not the Chevy Volt; often cited, advertised, overexposed, etc....; will succeed or not. The MSRP will be announced Tuesday at 12 PM ET on July 27. Ever since the Volt was a prototype, this has been the biggest question on everyone's mind. It's all well and good to make a prototype that gets great reviews. It's even better when a plug-in hybrid is designed as a production vehicle. Even in bankruptcy, GM has promised the Volt for the fall of 2010 and has kept to that timetable. It's been pretty remarkable.

And along the way, GM has garnered praise for its forward thinking and the progress it is making to move the US away from its oil dependence. But all that could backfire on Tuesday if GM announces a price and everyone realizes this car was made only for millionaires and will be a fringe luxury car. Green-washing will be the claim and it will stick.

What is the Volt?
If you don't know it (and what rock have you been hiding under?), the Chevy Volt is GMs upcoming Extended Range Electric Vehicle (E-REV). GM promises the Volt will travel 40 miles on all electric power, but the small gas engine will 'extend' the range for another 300 miles. Your mileage will vary depending on driving conditions, but that's the basic idea.

After you get home, you can plug the car back in and fully recharge the battery pack, giving you another 40 miles of all electric drive.

The Competition Already Exists
The Volt may be the first production plug-in hybrid vehicle to hit the road to truly make an impact. Others exist, either in post-production re-work or in smaller companies making a few hundred a year. But the Volt will the first plug-in from one of the major auto maker who's willing to make tens of thousands a year.

So it's easy to see why the price tag for the Volt can be seen as the comparison point for all upcoming plug-ins. But it already has some competition. Since plug-in hybrid electric cars can be thought of as the midway point between all electric and hybrid electric vehicles (EV and HEV), GM has to keep the price lower in order to compete with the people who are already buying a Toyota Prius (mid $20-30,000) and the electric Nissan Leaf. I'm sure it won't exceed $40,000, not when the all electric Nissan Leaf was set at $32,780. With federal and state tax breaks, you can buy an all electric car for about $20K.

President Obama Praises the Chevy Volt

President Obama Next to Chevy Volt

President Obama, even as BP finally cuts off the flow of oil into the Gulf (maybe!), was visiting the ground breaking of a battery plant in Holland, MI. The Compact Power (Compact Power is a subsidiary of LG Chem) battery plant will make the battery cells for the Chevy Volt. The Chevy Volt will be the first of it's kind, an Extended Range Electric Vehicle (E-REV).

The battery plant was partially built using federal funds of $151 million and matched by the company. The plant will create several hundred jobs over the next few years as construction finishes and workers are hired.

Powered by electricity, the battery pack can be recharged by a small gas engine designed only to recharge the battery. So, you can travel for up to 40 miles on electric power, then you can keep on going as gas engine kicks in.

The Volt goes on sale later this year in select states.

According to Obama, the US will have the capacity to build 40 percent of the world's batteries by 2015.

Ford will also be purchasing batteries from the Compact Power plant.

GM Warranty for 100,000 Miles on the Volt Battery

GM is guaranteeing their Volt battery for eight years, 100,000 miles. That's a pretty good guarantee. And GM hopes it will be enough to alleviate the worries new Volt buyers may have about the new battery types.

The 16kWh lithium-ion battery found in the Volt isn't based off of new technology, but it is expensive. If it failed (and there was no guarantee), it would cost thousands to replace.

Used Volt buyers a decade from now... they may have something to worry about. But that's the risk people take when they buy used. If you bought a used gas-only car and the transmission died, it's going to cost. So, buying a used hybrid or E-REV like the Volt should be the same, right?

The warranty covers the battery components, the liquid thermal management system, charging system and electric drive components and is transferable at no cost.

The rest of the warranty is extensive:
100,000 mile/5-year transferable Engine Limited Warranty (for Range Extender)
100,000 mile/5-year 24/7 Roadside Assistance Program
100,000 mile/5-year 24/7 Courtesy Transportation Program
36,000 mile/ 3-year no deductible Bumper-to-Bumper transferable warranty
100,000 mile/6-year corrosion protection

One last note: the graphic is a bit ridiculous. The comparison to the Tesla is warranted, but a better comparison would be to the Prius battery warranty, not to cell phone batteries. Yes, cell phone batteries are lithium, but really...

GM Will Have a Warranty on the Lithium-Ion Battery Pack in Volt

I can't say that the warranty Toyota and Honda put on their battery and hybrid engines was the key to their successful launch of hybrid cars in the US. But I can say this, without them, they would have failed.

Even though we know now battery failure occurs at an extremely low rate, people still ask about it and worry about it a decade later.

Customers would not have lined up to make the Prius one of the top ten vehicles sold in the US if they were worried the battery, which cost thousands to replace, didn't have the warranty.

So, it's no surprise to hear GM knows this and is working on their own warranty plan for the Chevy Volt, their plug-in electric hybrid with lithium-ion batteries. Especially since lithium-ion batteries are a lot more expensive than the batteries found in Toyota, Honda and Ford hybrids.

Details of GMs plan are expected to be announced on Wednesday (DetNews).