Shad Balch, environment and energy specialist for General Motors Corporation, spoke about how GM is “reinventing the automobile” to repay U.S. government loans by 2012 at a Malibu Rotary Club meeting last week.
Balch said that starting in 2011, GM will downsize by offering fewer vehicle brands (it will terminate the Saturn and Hummer), cutting 10,000 jobs and limiting CEO and board of directors’ salaries.
A new product line of GM will feature fuel-efficient vehicles that run on energy sources such as E85 Ethanol, electricity and hydrogen instead of gasoline, he said. The main new vehicle is the Chevy Volt, a four-seater powered solely by electricity.
The Volt will utilize lithium-ion batteries, which are expected to become cheaper to manufacture once economies of scale take effect. GM will manufacture the battery so that it will have complete control of its quality, Balch explained. The battery will also be a source of domestic jobs and of income when it is exported to other countries.
The Volt is expected to cost in the vicinity of $40,000, with government-approved subsidies lowering the price to about $32,500. In the U.S., the Volt will reportedly qualify for a $7,500 tax credit and is scheduled to appear in dealer showrooms by late 2010. GM’s new electric vehicles are currently being tested in California by organizations that operate fleets, such as Disney and Virgin Atlantic.