As we move to production, one of my roles is to create a successful business model that seizes on the consumer energy for the concept car to build a product and brand that people can’t wait to own.
Because, at the end of the day, we want the Chevy Volt to be a commercial success … a volume product. Yes, we want to make an environmental technology statement. But, we also want a car that sells and that people aspire to own.
We believe people will want a Chevrolet Volt is because it’s a car that says so much about their commitment to the environment and their love of advanced technology. Or, because it’s a car that looks cool … or could potentially avoid ever costing them money at the gas pump. Whatever their reasons, we want consumers to know that purchasing a Volt is a smart choice … one they can feel good about.
And, isn’t that why people buy vehicles? Because unlike many other consumer products, your car says something about who you are.
And, we’re doing research now on who our Volt customers are likely to be, and what their expectations are for an extended range electric vehicle. And, we’re taking those needs into account as we develop the vehicle. For example, most consumers wouldn’t sacrifice a radio for more electric range… so neither will we. We’re actually working with our supplier to find ways to lower the amount of electricity the Volt’s radio will use. We’re creating a vehicle and a business model that will work … and we want to make as few sacrifices as possible, because in the long run, we believe it will lead to even more enthusiasm for the Volt.
Then, we need to build on our positive electric vehicle momentum so that the excitement and pride around the Volt transcends the vehicle, to impact the Chevrolet brand … and eventually impacts the entire company. We want consumers to see the Volt as the game changer it is not only for our business, but for the way the world drives. Once they do, we can build on that success with other creative E-Flex models – but one step at a time.
Another step in the journey to electrify the automobile will be fuel cell vehicles. Now, a lot of people are confused by this … but yes, a hydrogen fuel cell vehicle is an electric vehicle. It drives on electricity that is created by the fuel cell. In fact, electricity and hydrogen are actually interchangeable, and a fuel cell is, in some ways, like a battery that stores electricity in the form of hydrogen.
We have begun engineering of a fuel cell variant of the E-Flex system. Built on the same architecture and using many of the same components, this version couples our next generation fuel cell system with a smaller lithium-ion battery to provide up to 300 miles of petroleum- and emissions-free electric driving range.
And, right now, we’re in the process of putting this next generation fuel cell technology on the street with our Chevy Equinox compact SUVs. The Equinox Fuel Cell has a 150 mile range, refuels in 5 to 8 minutes, and is a full-fledged electrically-driven zero emissions vehicle.
In January, we began by delivering more than 100 of these vehicles to customers in California and the East Coast, including here in Washington DC. Just last month, we handed two DC area families the keys to test vehicles. And two weeks ago, the Department of Energy took delivery of another test vehicle for employees here in Washington to use and evaluate in its fleet.
The findings of this massive test drive will help us define our product and market introduction plans for production fuel cell electric vehicles.
As I said, at GM, we believe that electrically driven vehicles are the best long-term solution for addressing society’s energy and environmental concerns. At the same time, we’re working on a range of real-world, real-time technologies that will make a difference… in some cases, a tremendous difference… in promoting energy security at home, and addressing climate change globally.
But to do this, it’s also important that we have an honest conversation about what’s required to bring these technologies to market in volume … and that’s where I’d like to conclude.
We, as automakers, need to take the lead … no question… and we are … by developing responsive, relevant technologies and then driving down their costs. We understand this. But there are important roles for others, as well.
For example, plug-in vehicles must be seamlessly integrated with the capabilities of the utilities companies and the power grid. Regulatory agencies must be active in the development of guidelines to ensure wide-spread availability of safe, efficient vehicles.
The public must be educated to appreciate the benefits of plug-in technology.
And, to get to the theme of this conference … what is the role for Washington? We believe government has a significant role to play. One of the things that government can do … and, I’d argue, one of the things that government must do to really promote energy independence for our nation … is proactively support the development of battery technology.
Our nation must fund a major effort to strengthen domestic advanced battery capabilities. Advanced lithium-ion batteries are a key enabler to a number of advanced vehicle technologies, including extended range electric vehicles and plug-in electric vehicles. Government could help by increasing R&D funding for this vital area, while supporting domestic manufacturing of advanced batteries.
We also really like David Sandalow’s idea of a battery guarantee corporation to address some of the sizable, early risks of putting cutting edge battery technology into production vehicles. We hope this is something Congress will consider supporting.
Speaking of batteries, I also believe there is a role for our educational institutions. We need to ensure that our country develops top-notch engineers and scientists, skilled in battery and electronics development. This is a critical skill set that General Motors is seeking now … and will be for the foreseeable future.
In the same regard, we’ll also need trained technicians to service these new batteries and electric vehicle systems. It will not only help advance the development and acceptance of new technology, but also with new career opportunities for Americans.
We also can’t drop the ball on fuel cells, and government support is still needed to expand development and demonstration of hydrogen fuel cell vehicles. Tremendous progress has been – and continues to be – made on fulfilling the promise of hydrogen powered vehicles. The U.S. needs to stay the course on the President’s hydrogen program, and begin to prepare for the 2010 to 2015 transition to market phase.
Finally, there should be incentives for consumers to adopt these exciting new technologies in a big way. Well-crafted tax incentives can accelerate adoption of new technologies and strengthen domestic manufacturing.
We in the industry are ready to step up and do our part. We want to work with others – the government, universities, national labs – to make a difference. Together, we can transform automotive transportation as we know it, and get our nation, and the world, past oil dependence and on the road to significantly reduced greenhouse gas emissions … a future that is electric.
(Mr Clarke is President, General Motors North America, Washington, D.C. Remarks made at Brookings Institution/Google.org Plug-In Electric Vehicle Conference June 12, 2008)