Obama Calls The Volt A Dolt. Is He A Friend Or Enemy Of Michigan And The Car Biz?

This part of yesterday's Wall Street Journal article is what blew me away.

The President basically says the Volt will flop...a sentiment we wholeheartedly agree with.

Too expensive to compete in the sweet spot (Prius/Insight) to make an impact.

Here's the quote:

"His auto team's dissection of what ails GM, on the other hand, underscores how deeply the administration plans to plunge into the finer points of the company's business plan. In a five-page analysis of GM's viability, the team critiqued GM's marquee next-generation project, the electric-powered Chevy Volt, as "too expensive to be commercially successful in the short-term." It notes that much work needs to be done to boost the overall fuel-efficiency of GM's fleet of cars and trucks.

With GM, the Obama administration is interested not just in preserving jobs, but in pushing other policy prescriptions, in particular creating a "company of the future" with clean and energy-efficient vehicles, a frequent campaign theme during Mr. Obama's quest for the presidency."

So here are the larger questions looming...

If the Volt is not the answer short term, and boosting mpg's on the full line of cars is not a short term fix, HOW do they survive and WHY did he bother throwing away like a gagillion dollars on a situation where there is NO fix?

Why didn't the Prez just MAN-UP and have his auto guys tell them this straight up, BEFORE they wasted all that money and tell them they were on their own?

Obama is smart enough to figure out they don't have the products or right mix short term to fix the problem but he doesn't have the guts to lay it on the line and deliver the hard facts to them and to us?

bigmotov - 4/1/2009 1:33:08 PM

+10 Boost

He's a lot of things, but this time, he's a realist and he's right. One model isn't going to save a company. It's the entire lineup...DUH!

PerformanceGuy - 4/1/2009 1:36:30 PM

+6 Boost

I have to agree. If they overprice this thing, then yes it will be a flop. They have to price it similar to the Prius, Insight and other cars like that. Otherwise people will buy those instead of the Volt. I hope GM is not hanging their future on the Volt, otherwise they will definetly go down.

Whelan - 4/1/2009 1:48:31 PM

-15 Boost

Maybe if morons like Obama didnt push for tighter restrictions and alternative energy GM wouldn't have to be forced to produce this car to appease the jerks.

Maybe Air Force One will break down and he will have to stay in England, cause I don't want him back here. Everytime he opens his mouth I throw up a little bit.

100tnega - 4/1/2009 2:02:34 PM

+6 Boost

Good point. I enjoy seeing all those jewel-encrusted supercars in the UAE from our heavy reliance on oil. /sarcasm

Simply put, the new restrictions and conquests into alternative energy was inevitable. The fact that GM built a good car but missed their mark on catering to people who get dizzy and throw up from the President stringing too many big words, was an oversight on their part. But, they're going in the right direction, just haven't gotten on the right road yet.

anataxis - 4/1/2009 2:08:47 PM

+4 Boost

As a note: that wouldn't work anyway- they fly an identical backup 747 wherever Air Force One goes.

tkindred - 4/2/2009 12:24:11 AM

+2 Boost

Hmm, don't you think the entire is being forced into tighter energy restrictions? If everyone lived like how GM thinks we would be doomed.

XYZZ - 4/3/2009 12:15:19 AM

+1 Boost

"...people who get dizzy and throw up from the President stringing too many big words..."

LOL!!! very apt analysis/observation!

100tnega - 4/1/2009 1:51:55 PM

+4 Boost

Turf the Volt. Give me the Converj.

Agent001 - 4/1/2009 2:09:53 PM

+7 Boost

DUDE, The Converj is a Cadillac Volt!

001

100tnega - 4/1/2009 3:21:01 PM

+3 Boost

001,

Just saying that they should stick to introducing/testing new tech in their high-margin, low-volume marquee vehicles. I'm not really understanding their whole inverted halo strategy.

inspirion7 - 4/1/2009 4:21:20 PM

0 Boost

I remember Audi back in the 80's and how turncoats ran in every direction, Audi almost pulled out of the U. S. due to poor exposer and product. They hung in there without any help from the on lookers. That is what happens, everyone loves a winner, and to chick shit to make a stand even if it is apparent the one being looked at is making strides.

topneuro - 4/1/2009 2:31:09 PM

0 Boost

The rationale of condemning the impact of the Volt in the car market as compared to Hybrids just on the basis of price is analogous to statement 100 years ago that internal combustion car will never catch on because they are louder, more expensive and slower than horse carriage. I am not a big fan of the Volt (not a ZEV); there are other more promising electric ZEV from Subaru, Mitsubishi and other companies that are cheaper but like the Volt not yet available in USA. The Volt is not a quick fix for GM nor is the "people's car" but it is a step in the right direction.

inspirion7 - 4/1/2009 3:01:26 PM

+1 Boost

GM is doing what should have been done a good while ago. By the way, where did the price of the Volt come from? Did GM actually state what the price of the vehicle would be?

The Volt from the very beginning will not make GM a profit. Once the tech pass down through out the company, like any other product, it will share cost. Obama isn't nor will he ever be a part of the automotive industry. As far as I'm concerned, this is a April 1st prank.

By the way, the MSRP of the Chevy Volt remains a mystery. Despite the concept being unveiled more than 2 years ago, and the thousands of articles, comments, and interviews about it, the exact price of the car remains unknown.

GM claims they don’t know how much they will charge yet either. They say it will depend on the price of gas in November 2010 when the car is launched.

“We’re not wishing for higher petroleum costs, but the economic viability of what we’re doing only gets greater with higher fuel prices,” said Bob Kruse, GM’s director of EVs and HEVs, “$1.50 gallon gas is not helping our business case.”
Another apparently unresolved financial aspect of the car is whether the battery packs will be sold or leased to the customer. Kruse noted the possibility of separately leasing the car’s battery still remains an option.

And by the way, Agent 001 doesn't speak for me or never will. Like me, this is all about opinions and speculations.

mini22 - 4/1/2009 3:25:17 PM

+1 Boost

The Volt is going to be sold at a loss.The theory being it is supposed bring customers into GM showrooms. When gas was $4.00 a gallon there was a business case for the Volt. Right now,unless the government puts a heft tax on gas the average consumer is not going to go for a hybrid as much as before,let alone an electric vehicle.People are intereted in immediate gratification. That is human nature.The only other way to change buying habits is for automakers to not offer those gas guzzelers for sale in the 1st place or institute the scrap fro cash plan asap.However the Volt is not going to save GM on it's own. GM has to have more appealing cars then just the Volt,Cruze,and Malibu that sell in high volume.Maybe GM has to be just Cadillac Chevy and Buick and that's it. I'n now for the Bankruptsy option.That will get rid of those bondholders and legacy costs.

Whelan - 4/1/2009 3:49:13 PM

-1 Boost

If they had lower operating costs the car could be sold for less. Maybe the administration should look towards firing the head of the UAW too. Oh wait, he is in bed with Unions. What about the heads of the banks not offering loans. Oops he got his cheap mansion from them. How about getting help from his associates...oh right, none of them pay taxes.

inspirion7 - 4/1/2009 4:13:04 PM

-2 Boost

I do wonder why this administration pick and choose who to fire and who to give money to cart blanche. Isn't it -as they would say "transparent" who gets what, and who gets questioned? Believe me, if the $200 million + bonus fiasco didn't blow up in their face, we wouldn't have an issue with AIG or the banks and all would have been on the D.L. We haven't seen the last of gaafs and this is just the 3rd month, 45 more to go...

MrBratwurst - 4/1/2009 4:49:03 PM

+3 Boost

Obama is looking good in this picture.

EL34 - 4/1/2009 9:26:57 PM

-2 Boost

Obama looks good???

He looks like a Socialist hunchback lookin' for some B-ball.

Must be practice time.

bmwdrvr - 4/1/2009 6:36:18 PM

+2 Boost

Im confused about this once again, for one other than GM's trucks and SUVS, they are fairly fuel efficient cars across the board. Better than the competition in some cases, you would think the way the government and others talk about them that everything has a V8 and gets horrible gas mileage realist or not that makes no sense. Realistically epa ratings arent GMs problem, maybe at one point but certainly not in 2009 its perception. They make quality, stylish, competitive, reliable cars with good epa ratings maybe not across the board just yet but they are certainly competitive. The Volt wasnt desighned to fight the prius or insight on price (the insight by the way makes no more sense than civic hybrid and if im not mistaken actually has lower epa ratings) They are really missing the point in my opinion, and the bigger picture.

800over - 4/2/2009 1:01:09 PM

+3 Boost

Please tell me about this so called "competition" that gets worse fuel economy. Fleet wide GM doesn't get great fuel economy.

BobW - 4/1/2009 8:09:21 PM

-1 Boost

Obama is no friend to business. On top of that he doesn't know anything about business. He's been a community organizer (teaching urbanites how to complain to local government to get additional hand-outs), college law professor (those who can, do, those who can't, teach), an Illinois state legislator (one term I believe), A less than one term US senator and finally president. Oh yeah, he did write two books--about himself! What part of that resume makes him fit to make the monumental business decisions needed today?
My view is what Obama knows and does very well, is promote Obama. I can't see that he's actually fit to run numerous Fortune 100, multi-national corporations and a country at the same time. Of course there's no real evidence that he can manage anything outside the scope of a community. If that!
Be afraid, be very afraid.

EL34 - 4/1/2009 9:20:58 PM

-2 Boost

"Obama Calls The Volt A Dolt. Is He A Friend Or Enemy Of Michigan And The Car Biz?"

You know this Socialist swine went all the way to England on Air Force One to give the Queen a stupid iPod. He also brought his own chef and a buddy just to play basketball while he's visting England for the G20.

bama the idjit wouldn't know a great car if it landed on his head.

EL34 - 4/1/2009 9:25:46 PM

-2 Boost

Let me tell you people about the Toyota Prius.

Toyota does not make money on the Prius.

The only reason Toyota builds the ugly thing is to keep the American demonic Socialist environmentalists off their behind.

Toyota makes their big bucks off the Tacoma and Tundra that do not do one damn good thing for the environment.

bama the Socialist sap!!!

XYZZ - 4/3/2009 12:36:27 AM

+1 Boost

what rock were you living under the last few years? or were you out on pluto or uranus?

the prius was sold at a loss initially, but it HAS been profitable the last few years. enuff so, toyota is cranking out more hybrid models than everyone elso combined.

the tacoma has been profitable for years. the tundra, open question. yes the building cost is less than the invoice, but until the profits AMORTIZE the $1+ Billion of the new factory, it's not yet 'profitable' on a long term basis.

MBCLS07 - 4/1/2009 10:16:28 PM

0 Boost

What makes people think the government can run a car company any better than they do Amtrak? Or public education? Or medicare? Or, well I could go on and on.

EL34 - 4/1/2009 10:27:36 PM

-3 Boost

Basketball Obama is destroy the economy because of all the money he is printing with nothing to back it up.

Two years from now interest rates will be 15% to buy a car and 20% to buy a home and 25% for credit cards.

EL34 - 4/2/2009 2:23:54 AM

-3 Boost

1UAW-

My solution is less government.

0bama needs to stick basketball and stay out of matters he knows nothing about.

inspirion7 - 4/2/2009 4:12:17 AM

-1 Boost

Exactly. Very simple. Can anyone answer this question. What has the government done well?

800over - 4/2/2009 1:07:51 PM

+6 Boost

EL34
The less government gingle. What a joke. The amound of money spent by the government went up under every government. Democrats and Republicans alike. And your racist basketball comments are getting old.

pennfootball - 4/2/2009 10:37:53 AM

+1 Boost

The Volt's development costs are 3 billion dollars. Thats what he is talking about with price becasue GM thinks it's a good idea to build a factory for the battery instead of buying from Korea where the LG sourced li-ion lump comes from. Its a political ploy to use the Volt as a hybrid scape goat showing the world GM caan make a good car kinda...sorta...not really... Thank god Wagoner steped down isince he was at GM he lost over 82 billion dollars in losses since the year 2000. They have been going out of buisness since the 1970's. Kill GM sell Corvette brand. No one wants any of their cars and the cadillac CTS is small and not as good as they make it out to be. The Camaro can't even handel better then a lighter Mustang that has a cheeper solid rear axel. It's a shame.

tango - 4/2/2009 3:47:23 PM

+1 Boost

With respect, the title of this post is erroneous. For starters, President Barrack Obama himself has said nothing of the sort. It is the team that was sent to analyse the car companies that has opined. Secondly, while opining, they never even said that the Volt was a bad idea, let alone a "dolt". They were simply saying that it is too expensive to form a basis for the overall recovery of the company as a whole. The last time I checked, it was the magazines and the websites that had been claiming that it is the means by which GM will turn around. This vehicle is the first of its kind and will be a testbed of things to come. Things that will no doubt mean more for the turnaround of GM. They also recommended that more work needed to be done with the lineup to improve fuel efficiency. Right now, GM's upcoming cars have some of the smallest, most efficient engines in its recent history. When was the last time a GM V6 was less than 3000cc? We're seeing them appearing now. If by some miracle GM does EXACTLY what is to be done and it starts recovering, it will not be over night. Have patience. Also, have patience with your President. Like him or not, he is here to stay and he has a mountain of work ahead of him. He will not solve every single problem bitched about on these pages, but in due time, what will be, will be.

ad8n - 4/2/2009 6:34:02 PM

-3 Boost

The auto industry is far too complex for simplistic analysis of its problems. Unfortunately the Obama administration is only capable of simplistic analysis, which is why they're screwing up the economy and the car companies.
The Volt has great technology. We don't know how much GM plans to sell it for, and depending on the price of oil and competitive products it may command a premium: let's face it, the Prius wasn't cheap either compared to other vehicles in its segment.
Also, there are no short term solutions in the auto industry. The reason for this is over regulation thanks to the politicians in DC. Obama, are you listening? I doubt it, because he's probably out somewhere campaigning.

NannerPus - 4/2/2009 7:00:32 PM

+3 Boost

Are you trying to sound stupid?! I'm not even an Obama fan, but anyone with two brain cells knows that the economy was fcuked up when he got there and so were the car companies. And, how do you know what type of analysis the administration is capable of? Bush is the one who prayed on his decisions without any regard for facts. He surrounded himself with like-minded friends who went along with whatever nutbag scheme he came up with. Why would Obama listen to your silliness?

Jordanski - 4/2/2009 7:24:43 PM

+3 Boost

"Obama Calls The Volt A Dolt. Is He A Friend Or Enemy Of Michigan And The Car Biz?"

No, he just has common sense. I swear the Prius PWNS that thing in like every single way possible.

inspirion7 - 4/3/2009 2:49:20 PM

0 Boost

If Obama uses common sense, then must be a recessive gene. We haven't seen it. All we see is a pre-packaged figurehead that needs a stage and pre selected crowds, a telePrompter and media to prop him up.

Jordanski - 4/3/2009 10:25:17 PM

+3 Boost

If Obama doesn't have common sense by simply referring to the Chevrolet Volt as a 'Dolt', then what would Bush say? I can't stand people whoo continuously criticize Obama.

He hasn't even been in office for a year yet. If people keep on complaining, then why didn't Americans vote for McCain?! The whole world's economy is f'd up. (There's not much we can do about it right now.) Jeez, give the poor man some time to sort a few things out. This shit isn't gonna fix itself overnight.

Jordanski - 4/3/2009 10:39:18 PM

+3 Boost

IMO, Toyota is more of an American company than General Motors and/or Chrysler will ever be.

GM has been brainwashing the public with their restructuring bullshit.
I'd rather put my money into a company like Toyota; at least I KNOW it's REALLY a Toyota and not something I'd probably never consider buying.

Here's a quick list with the marques and foreign counties the GM Bailout money would probably end up in.

Chevrolet [GM Daewoo Joint Venture] (Models: Aveo, Optra, Captiva etc.) - South Korea
Pontiac [Holden Commodore] (Models: Pontiac G8) - Australia
Saturn [Opel/Vauxhall] (Models: Vue, Sky, Astra etc.) - Germany, Great Britain
Saab - Sweden

Same goes for Chrysler; since a pretty big chunk of em was owned by Benz a little while ago, and now there in the hands of FIAT.

You'd better think twice about which cars really ARE domestic.