An interesting article and intelligent commentary on the upstart costs for bringing new technology to market against a slow moving corporate infrastructure.
Compare GM's struggle to what was experienced at Toyota bringing out the Prius and Mercedes bringing out the smart and I would expect many similarities exist.
When contemplating what Toyota and Mercedes did to overcome the brick walls of high start-up costs and the corporate push-back, all that comes to my current understanding is they both have a long and deep history in making small footprint while roomy inside, energy efficient, and safe vehicles.
As GM looked at the cost of the project, it also built in worst-case assumptions for warranty costs, Mr. Lutz said. GM will put a 10-year, 150,000 mile warranty on the Volt battery pack and powertrain. Mr. Lauckner said that's necessary to meet California Advanced Technology Partial Zero Emissions Vehicle standards. High warranty-cost projections have an upside: If warranty costs don't hit projected levels, "the car is OK almost from day one," Mr. Lutz said
For those that question smarts short waranty, if it were longer you would be paying for it. Nothing is free
For those that question smarts short waranty, if it were longer you would be paying for it. Nothing is free
Some of us understand the concept. What we don't know is whether there will be problems we don't know about in years 3 and 4, for instance. If the price of these repairs were rolled in up front, we'd know what we're in for.
smart didn't know what the parts from their suppliers would bring for problems. They would realy have to up the price to make up for the unknown for them as well.
Some of us understand the concept. What we don't know is whether there will be problems we don't know about in years 3 and 4, for instance. If the price of these repairs were rolled in up front, we'd know what we're in for.
I have my fingers crossed.
I have 35,000 miles so far, and they have not been babied. I have no failures.
But winning corporate approval for the Volt was a struggle. When Mr. Lutz proposed a plug-in, other GM executives flashed back to their painful -- and costly -- experience in the 1990s when they dashed far ahead of the industry by creating and marketing the EV1 electric vehicle.
"One senior executive, senior to me, said, 'Bob, we lost a billion dollars the last time we tried that. What do you want us to do, lose another billion?'" Mr. Lutz recalled.
Mr. Lutz persevered, getting permission to build the Volt concept for the 2007 Detroit auto show. The Volt was a hit, and GM decided to build it.
Just one problem ...
The big splash caused a problem, though. Mr. Lutz had told reporters he expected the Volt to sell in the upper $20,000s -- which he now concedes was a rough estimate.
"When I said I hope to sell it in the 20s, I just thought, well, if a conventional car of that size with a conventional four-cylinder engine, we can sell it for $15,000 or $16,000, then let's notionally add $8,000 for the battery and we're at $25,000," Lutz said. "That's the way my brain worked on that one.
For those that question smarts short waranty, if it were longer you would be paying for it. Nothing is free
Much as that concept has the feel of "truthiness" about it, it doesn't explain how GM and Chrysler expanded their warranty periods awhile back without raising their prices. No trying to start yet another long winded warranty discussion but in the case of those two companies the facts don't jive with the concept.
Much as that concept has the feel of "truthiness" about it, it doesn't explain how GM and Chrysler expanded their warranty periods awhile back without raising their prices. No trying to start yet another long winded warranty discussion but in the case of those two companies the facts don't jive with the concept.
They made that move AFTER Obama said the US Taxpayer would cover GM & Chryslers Waranties and before they went into Court. They were betting on the money would be comming from the new owners, us, to cover those extended waranties. So WE are still paying for it.
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1976 Rover Mini
2003 Chevrolet Corvette Z06
2007 Mercedes-Benz E320 Bluetec (SOLD)
2009 smart Passion (Gone)
2011 smart Passion
. They were betting on the money would be comming from the new owners, us, to cover those extended waranties. So WE are still paying for it.
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