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Monday, June 13, 2011

GM expands Chevrolet Volt orders to all 50 states, lowers price

General Motors opened up orders for the Chevrolet Volt to all 50 states today, lowering the base price for the 2012 model by about $1,000 and adding four option packages.

The 2012 Volt will start at $39,995, including delivery, and customers may be eligible for a $7,500 federal tax credit. GM was able to lower the base price because the car has more optional content now that it's available nationally, the automaker said today in a statement. The 2011 Volt had been available in eight states and Washington, D.C., and only had three option packages.

GM is expanding Volt ordering as it prepares to add two shifts worth 2,500 jobs to the Detroit-Hamtramck plant that builds the car. Volt engineers are seeking to cut the car's cost through powertrain and production improvements, which will mostly be used to make the car profitable, rather than slash the price for consumers.

GM plans this year to build 16,000 of the Volt and its European version, the Opel Ampera. That includes about 3,500 for overseas delivery and 2,500 as demos at dealerships. Next year, GM plans to build 60,000 Volts at its Detroit-Hamtramck plant, with 45,000 designated for the U.S.

Detroit-Hamtramck this spring discontinued its other two cars, the Cadillac DTS and Buick Lucerne, leaving it free to build just Volts until the 2013 Malibu starts production next year. The factory will also assemble the next-generation Chevrolet Impala, expected to start production by 2013.

The plant is in a four-week shutdown to update for Volt and Malibu production. After it restarts, the factory will start adding the second shift of workers, with the third to start at an undisclosed future date.

Phillips Chevrolet has Illinois’ Largest Chevy Inventory! We have an A+ rating with the Better Business Bureau, and are one of the Largest Chevy Dealers in the United States. Visit us at www.phillipschevy.com. View our specials! Follow Phillips Chevrolet on Facebook and Twitter to receive coupons, special offers and prizes!

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Wednesday, June 1, 2011

GM China Visits Phillips Chevrolet

(Left to Right: Ben Zhang- BOD Member; Jim Nagy- Ally Director of Sales; Mark Smith- Ally Senior Account Executive; Michael Kanarios- VP & CFO Ally International Dealer Finance; Rick Livingood- General Manager-GMAC-SAIC China; Michael Maheras- General Manager-Phillips Chevrolet; Liu Rong- Board Chairman-GMAC-SAIC China; Zhu Xian-BOD Member; Shen Genwei-BOD Member; John Behnfeldt-BOD Member & VP & CFO of Shanghai General Motors; Julia Yue- Board Supervisor)

GM China visited Phillips Chevrolet last Wednesday, May 25, 2011. Michael Maheras, Phillips Chevy's General Manager, gave GM China a sneak peak of Phillips Chevrolet's daily operations, and walked them through the dealership telling of the future expansion.

Phillips Chevrolet has Illinois’ Largest Chevy Inventory! We have an A+ rating with the Better Business Bureau, and are one of the Largest Chevy Dealers in the United States. Visit us at www.phillipschevy.com. View our specials! Follow Phillips Chevrolet on Facebook and Twitter to receive coupons, special offers and prizes!

Thursday, May 26, 2011

GM to make Chevy Impala at Detroit-Hamtramck, add 2,500 jobs

General Motors said today it will build the next-generation Chevrolet Impala at its Detroit-Hamtramck assembly plant, adding 2,500 jobs.

The current Impala is built at GM's plant in Oshawa, Ontario. The next version is expected to go into production in 2013 or 2014.

GM said it will add two shifts at Detroit-Hamtramck for the Impala and the previously announced plan to build the Chevy Malibu. The tooling and equipment for the Impala will require another $69 million in investments.

In April 2010, GM said it would invest $121 million in the plant to support Malibu production.

The Detroit-Hamtramck factory also makes the Chevrolet Volt. GM said last week that it plans to ramp up Volt production to 60,000 next year, from an earlier plan to produce 45,000.

"We're doing this because we're confident in consumer demand for the great vehicles we're going to be building here," GM North America President Mark Reuss told workers at the plant today.

Today's announcement is part of a GM plan, spelled out two weeks ago, to invest $2 billion in 17 plants in eight states. Among the plants getting additional investment: Bowling Green, Ky., home of the Chevrolet Corvette; and powertrain plants in Toledo, Ohio, as well as Flint and Bay City, Mich. About 4,000 jobs are being created or retained at those plants, GM has said.

"Given the competitive nature of the auto industry in the United States, the bar for success is placed very high," Joe Ashton, UAW vice president of the GM department, said in a statement. "The members of UAW Local 22 soar over the bar every day by demonstrating their flexibility, hard work, and their intense focus on the customer."

Monday, May 9, 2011

GM will spend $131 million to prep plant for next Corvette

General Motors plans to spend $131 million to prepare its Bowling Green, Ky., plant to build the next-generation Chevrolet Corvette.

GM said assembly of the current-generation Corvette will continue at the plant for at least the next two model years, including the 2012 model that goes into production this summer. Work to prepare the plant for the next iteration will occur during that time, adding about 250 jobs.

The Corvette has been assembled at the plant since 1981. Nearly 400 production workers assemble the cars on a one-shift, Monday-through-Thursday schedule. The workers are represented by UAW Local 2164.

"This is a significant day for anyone who believes that America should build world-class, high-performance products," Mark Reuss, GM North America president, said in a statement. He made the announcement Wednesday, May 4, alongside Kentucky Gov. Steve Beshear at the plant.

The current version is the sixth generation in the Corvette's 58-year history. GM says about 50,000 visitors a year tour the plant.

GM sold 4,293 Corvettes from January through April, a 22 percent increase from the same period last year. In April, Corvette sales totaled 1,454 units, a 34 percent jump over April 2010.

Monday, May 2, 2011

A Chevy wagon might look like this Opel

Mark Reuss raised some eyebrows at the recent New York auto show when he said a wagon version would make a nice companion to the redesigned Chevrolet Malibu that debuts next year. Reuss, president of GM North America, told journalists a Malibu wagon could be pitched as a fuel-efficient alternative to a minivan.

Reuss, president of General Motors North America, stopped short of saying a wagon is in the pipeline. But he made us wonder what one might look like.

Here's a clue: The Malibu shares a platform with the Buick Regal, and we've already seen a Regal wagon (sort of). It's called the Opel Insignia, and it's on sale in Europe.

The Regal and Insignia essentially are the same vehicle, which suggests another option for GM: As a Buick, that wagon might be an attractive choice for older minivan owners ready to try something completely different.

Wednesday, April 27, 2011

Chevrolet Will Expand Military Discount in May

Spouses and retirees included in honor of U.S. Military Appreciation Month

Chevrolet will honor National Military Appreciation Month by expanding the industry-leading GM Military Discount to military spouses and retirees; offering an exclusive “Honor” badge to anyone who buys an eligible Chevrolet through the program, and by donating $100 to Cell Phones for Soldiers for each eligible vehicle sold with a military discount.

“We are committed to offering military professionals and their family members the best value in the industry,” said Dan Akerson, General Motors Chairman and CEO. “As a former Navy man, I hold the highest regard for the men and women of our Armed Forces – past and present – who help keep our country safe and preserve our precious liberties.”

During May, the GM Military Discount program – already recognized as the best program in the industry – will be extended to spouses of Active and Reserve members, as well as retirees, of the U.S. Air Force, Army, Navy, Marines, National Guard and Coast Guard. The discount is available on most Chevrolet, Buick and GMC models with discounts typically ranging between $500 and $4,000 off the suggested retail price of the vehicle purchased.

In addition, the GM Military Discount offers a $750 discount on selected Chevrolet, Buick and GMC vehicles to eligible members of USAA, a financial services provider for the military community.

In 2010 alone, the GM Military Discount program provided more than 70,000 discounts to military personnel and their families with a cumulative value of more than $60 million.

For every person who purchases, leases or orders a new Chevrolet using the GM Military Discount in May, Chevrolet will provide an exclusive set of “Honor” vehicle badges as well as contributing $100 to Cell Phones for Soldiers, a non-profit group that provides free communication tools to troops serving overseas.

Since May 2010, Chevrolet and its dealers have collected more than 50,000 cell phones. Since the program began, proceeds from phone collections have provided more than 114 million minutes – or more than 200 years – of free calls home for U.S. troops.

At the customer’s request, dealers will install the badges on their new Chevrolet at no additional charge. The badge features a yellow ribbon and “Honor” script, a subtle recognition of their service.

The Military Appreciation Month program will conclude with 99 “Honor & Valor” Limited Edition 2012 Chevrolet Camaro SS vehicles, which will debut during the Indianapolis 500 military personnel parade on May 28. The limited-edition Camaro will be available to order through www.gmmilitarydiscount.com, beginning in May.

Tuesday, April 12, 2011

GM Puts Production of Malibu on Fast Track

General Motors Co. will begin building its next-generation Chevrolet Malibu about four months ahead of schedule, the latest in the company's efforts to accelerate the delivery of new cars and trucks to dealer showrooms.

GM spokesman Dave Darovitz said Monday the automaker has advanced its timetable for the midsize Malibu to early 2012 — several months earlier than planned. The 2013 model Malibu will go on sale shortly after, he added, but declined to pinpoint a date.

According to a Jan. 27 internal GM report, the new Malibu will start production in January 2012, as opposed to May. Some factory jobs may be added; GM is still assessing how many and where, Darovitz said.

The Detroit automaker will make the car at its Fairfax Assembly plant in Kansas, where it makes the current Malibu, and at the Detroit Hamtramck factory, where GM makes the Chevy Volt.

GM Chief Executive Officer Daniel Akerson advocated the Malibu's early arrival. The new version will be the company's first globally sold midsize car.

"Mr. Akerson requested we study the program to see if we could move quicker," Darovitz said.
The automaker was forced to delay spending on a number of new car and truck programs during its 2009 bankruptcy, to save on costs.

Akerson, who became CEO in September, has pressed company officials to pick up the pace.
"Since Mr. Akerson came aboard, he's challenging us to move faster and this is the latest example," Darovitz said.

GM took advantage of greater manufacturing flexibility at its factories and efficiencies built into its global platform to accelerate the car's production schedule, he added.

The Malibu is a real workhorse vehicle for GM, ranking among its top-selling vehicles for 2010.

The car has won many industry awards, helping GM gain a leg up in the highly competitive midsize segment. GM sold 198,770 Malibus last year, according to Autodata Corp.

"GM is really in a position where it had to pull up the production to compete," Sullivan said. "This gets the Malibu out in advance" of its Japanese competitors, he added.

GM will debut the 2013 Malibu Monday at the Shanghai auto show, and webcast the car's unveiling on Chevrolet's Facebook page.

Chevrolet also will show the car at the New York International Auto Show next week.
Detroit News. April 12, 2011.

Friday, March 18, 2011

Phillips Receives GM Accessories Award

(From left to right: Jeff D'Ambrosio- GM Accessories Digital Solution; Kelly Ryan- GM Accessories Account Executive; Bill Featherston- Phillips Chevrolet Service Director; Harry Mays- Phillips Chevrolet Aftermarket Manager; Mike Maheras- Phillips Chevrolet General Manager; Michael Pekarscik- GM Accessories Field Manager; Joel Holden- GM Accessories Digital Solution; Philip Fallis- GM Accessories Director)

Phillips Chevrolet received an award for Top in Store Process in the North Central Region in General Motors Accessories for 2010 on March 17, 2011!

Monday, March 14, 2011

Chevrolet Captiva Sport announced for U.S. fleet customers

Do you miss the Saturn Vue? If so, General Motors is ready to wipe your tears away. Meet the new Chevrolet Captiva Sport, a shockingly familiar crossover being offered for fleet sales here in the United States. GM is quick to point out that the Sport is a variant of the popular Captiva CUV sold in other markets, though its Saturn-badged kin can still be found all over the nation.

The 2012 Chevrolet Captiva Sport will be available in three trim levels – LS, LT and LTZ – with two different powertrain choices. The base engine is GM's Ecotec 2.4-liter direct-injected four-cylinder, while the uplevel powerplant is The General's 3.0-liter direct-injected V6. Having experienced both of these units in the Chevrolet Equinox and GMC Terrain crossovers, we found the four to be far smoother and more refined than the anemic V6. In any case, both engines are mated to a six-speed automatic transmission, and all-wheel drive is optional on LTZ models.

LT and LTZ models use the 3.0-liter V6 and come standard with OnStar and Bluetooth connectivity. LTZ standard equipment also includes leather-trimmed seats (heated for front passengers), a rear-view camera and premium audio system.

Fleet companies can take delivery of the Captiva Sport as early as the fourth quarter of 2011.

Phillips Chevrolet has Illinois’ Largest Chevy Inventory! We have an A+ rating with the Better Business Bureau, and are one of the Largest Chevy Dealers in the United States. Visit us at www.phillipschevy.com. View our specials! Follow Phillips Chevrolet on Facebook and Twitter to receive coupons, special offers and prizes!

OnStar offering Crisis Assist services to tsunami victims

OnStar customers who live in areas affected by the tsunami warnings are getting help from their cars. General Motors has announced that those who live in affected areas can push the OnStar button their vehicle and be connected with a Crisis Advisor, who will help them get through the situation as safely as possible.

The Crisis Advisors can contact emergency services; provide points of contact for assistance, including food, shelter and hotel accommodations; help subscribers without power to access the internet or charge phones so they can stay in contact and receive weather and incident updates.

According to GM, OnStar can also be used to funnel information from subscribers to federal emergency management agencies to get assistance to people in need.

Thursday, March 10, 2011

GM Plans to Add Second Shift at Volt Assembly Plant

General Motors Co. will add a second shift at its Detroit-Hamtramck Assembly plant early next year to bolster production of the Chevrolet Volt, according to a newspaper report.

The second shift would add about 900 to 1,000 jobs at the plant, Teri Quigley, plant manager for the Detroit-Hamtramck factory, told the Detroit Free Press today. Laid-off GM workers would get first opportunity to apply. Workers will begin training later this year with full production ramping up in early 2012.

“Detroit Hamtramck has started some of the pre-work related to adding an additional shift at the plant,” spokesman Chris Lee said.

Lee said the plant “wants to be in a position to bring on a shift as quickly as possible when we are asked to increase production to meet market demand.”

“At this point in time, it is too early to tell how many employees would be required or when an additional shift will start -- we are just doing some pre-planning to ensure we can respond quickly to market conditions,” he wrote.

GM has said it wants to build 25,000 Volts this year, up from the original 10,000-unit target. Bloomberg, citing sources familiar with GM's plans, reported in January that the automaker intends to produce 120,000 Volts a year starting in 2012.

The plant will back up GM’s Fairfax, Kan. plant on production of the redesigned Chevrolet Malibu when it debuts next year. The plant currently has 1,048 employees.

The Volt sells for $41,000 with delivery, although a federal tax credit of $7,500 for the first 200,000 units sold reduces the cost. Since its debut in December and through February, GM sold 928 Volts.

Wednesday, February 23, 2011

2011 Chevrolet Suburban Wins Best in Class

The Kiplinger Best in Class winners top our rankings for performance, value and safety in each of our 11 categories -- and get high marks for driving impressions during our own road tests. Plus, all 11 Best in Class winners have earned Best in Class or Best New Model plaudits in previous model years.

Suburban's low service and insurance costs and a reasonable start price for a hauler that seats nine earns it top honors. The 5.3-liter V8 puts out plenty of power and has the lowest annual fuel cost for a V8 in the segment. Cargo space is a whopping 90 cubic feet. Like several of the winners list here, it's also one of Kiplinger's 10 Best Cars of the Past Decade.

Data comes from Kelley Blue Book's kbb.com (new vehicle data from 12/28/10, resale values from January/February 2011 Kelley Blue Book® Residual Value Guide); Vincentric (service and insurance costs); and Insurance Institute for Highway Safety (Top Safety Picks). Fair Purchase Price, also supplied by Kelley Blue book, is based on actual new vehicle transactions across the country.

Phillips Chevrolet has Illinois’ Largest Chevy Inventory! We have an A+ rating with the Better Business Bureau, and are one of the Largest Chevy Dealers in the United States. Visit us at www.phillipschevy.com. View our specials! Follow Phillips Chevrolet on Facebook and Twitter to receive coupons, special offers and prizes!

Tuesday, February 22, 2011

Report: Diesel Chevrolet Cruze confirmed for U.S.

According to the crew at GMInsideNews, General Motors is mulling the notion of introducing a diesel Chevrolet Cruze to the American market. Sources within the Lordstown, Ohio assembly plant responsible for piecing the compact sedan together have confirmed that a diesel Cruze will be built for 2013. If that's not enough to wipe the stink of skepticism off your person, GMI says that additional sources within The General's engineering team have confirmed that an oil-burning Cruze is on the company's schedule.

Production is rumored to kick off on the project at some point next year.

There's even rumor that GM is currently testing diesel Cruze models around the greater Detroit area right now. While no power or fuel economy numbers are available at the moment, GM is expected to make use of a 2.0-liter turbocharged four-cylinder engine for the new model.

Monday, January 24, 2011

Chevy aims to double Volt output to 120,000 next year, report says

General Motors Co. plans to double the 2012 production capacity for the Chevrolet Volt to 120,000 as the automaker works to boost the plug-in hybrid's sales, said two people familiar with the matter.

Volt output this year may increase to 25,000 from an original plan of 10,000, GM CEO Dan Akerson said earlier this month. GM now is working with suppliers to raise 2012 capacity from an earlier target of 60,000. It may not build that many if parts aren't available or demand isn't strong enough, said the people, who didn't want to be named because the plans are private.

Akerson, who became CEO in September, wants to sell more of the $41,000 Volt and is pushing to use its Voltec gasoline- electric drive system for models sold by other GM brands. Akerson has said he wants GM to have more fuel-efficient models ready for a possible increase in oil prices to $120 a barrel.

“We want to stay sharply focused on technology,” Akerson told analysts at Deutsche Bank's Auto Industry Conference in Detroit on Jan. 11. “We don't want to be caught flat-footed as we were in 2008.”

Crude oil that year climbed to more than $140 a barrel and average gasoline prices topped $4 a gallon. Sales of trucks and cars with large engines plummeted, contributing to GM's $30.9 billion loss that year.

Randy Fox, a GM spokesman, declined to comment on production plans. He said he didn't know how many people have ordered a Volt or how long they will have to wait.

Volt goals

Akerson told his executive team in early December that he wanted to boost Volt production and explore adding its drive system to several models with a goal of at least tripling sales of vehicles with that technology by mid-decade from the 2012 target, people familiar with the matter said at the time.

After exploring its options, the team settled on doubling capacity for the Volt next year, they said. GM is still evaluating the Volt's technology for other models.

Higher output will allow GM to reduce the cost of the Volt's drive and battery systems, helping it lower the car's cost in future years, said Jim Hall, principal of 2953 Analytics Inc., an automotive consulting firm in Birmingham, Mich. GM

GM should be able to sell all of its Volt production as long as the government's $7,500 tax incentive is in place, Hall said. The incentive expires after GM sells 200,000 units of the car.

“The only way they will get cost down is with more production,” Hall said. “They are in a race to get costs down concurrent with selling 200,000 Volts.”

GM may announce the production increase at the Washington auto show next week, one of the people said.

The Volt can travel about 35 miles on a fully charged battery before the gasoline engine kicks in, giving the vehicle an additional 340 miles of range on a full tank of gas, GM said on its website.

The U.S. Environmental Protection Agency estimated the Volt's energy use as the equivalent of 93 mpg in electric-only mode. In combined gasoline-electric driving, the EPA estimated the Volt would average 60 mpg, GM said. In gasoline-only mode, when the battery was drained, the car would get 37 mpg, GM said.

Thursday, January 6, 2011

GM invests $5m in Powermat for Volt

Tired of cables cluttering your car? General Motors thinks its a big enough problem to invest $5 million in the wireless charging start-up Powermat and equip it on the Chevrolet Volt in 2012.

For those unfamiliar with inductive charging, users can place their smartphone, MP3 player or portable gaming device on a special panel and an electromagnetic field transfers energy to the battery to charge the device. Powermat was one of the first companies to commercialize the technology and GM has signed a one-year exclusivity agreement to supply its vehicles with the system. What vehicles the General plans to install the system remains to be seen, but the Volt will be the first out of the gate.

Phillips Chevrolet has Illinois’ Largest Chevy Inventory! We have an A+ rating with the Better Business Bureau, and are one of the Largest Chevy Dealers in the United States. Visit us at www.phillipschevy.com. View our specials! Follow Phillips Chevrolet on Facebook and Twitter to receive coupons, special offers and prizes!

Thursday, December 9, 2010

Chevrolet to be the Official Vehicle of the Army-Navy Game

Freedom Team of Wounded Veterans to Receive New 2011 Silverado HD

Chevrolet will kick off a three-year partnership as the Official Vehicle of the Army-Navy Game presented by USAA. This year will be the 111th meeting of the U.S. Military Academy and the U.S. Naval Academy.

During the game, Chevrolet also will present a 2011 Chevrolet Silverado to the Freedom Team of Wounded Veterans. The Freedom Team of Wounded Veterans is a part of Achilles International, which provides support to athletes and veterans with disabilities in gyms, parks, and tracks all over the world.

The Freedom Team of Wounded Veterans, formed at Walter Reed Medical Center, is dedicated to inspiring wounded veterans to complete a marathon, but stresses “achievable accomplishment” of any form. The Silverado HD will be used by the Freedom Team to transport athletes and equipment necessary to compete in marathons across the country.

“We appreciate Chevrolet’s continued support of our military and veterans and look forward to Chevrolet being part of America’s Game,” said Jon Starrett, senior associate athletic director, U.S. Naval Academy.

“Chevrolet and the Army have worked hand-in-hand since the Chevrolet Suburban was used for troop transport in World War II,” said Bob Beretta, senior executive associate athletic director, U.S. Military Academy. “And we look forward to Chevrolet’s continued support.”

The partnerships with the Army-Navy game and Achilles International continue Chevrolet’s long-standing support of servicemen and women, according the Chris Perry, vice president Chevrolet marketing:

“We at Chevrolet would like to give something back to those who give so much to our country,” said Perry. “For more than a century the Army-Navy Game which has represented the honor and pride of the Armed Forces that transcends the game of football. We are also proud to support the Freedom Team athletes, who serve as inspirations for all Americans.”

Other Chevrolet efforts to support military personnel include a recent donation of 11,000 hours of prepaid calling cards to troops serving in Afghanistan.

The donation was made possible by Chevrolet and the GM Military Discount program, which collected more than 20,000 cell phones at Chevrolet locations and events across the country. The phones were donated to Cell Phones for Soldiers, a non-profit organization that recycles cell phones and uses the proceeds to provide calling cards for troops serving overseas.

The GM Military Discount is offered to all active and Reserve members – and their spouses – of the U.S. Air Force, Army, Navy, Marines, National Guard and Coast Guard. Discounts range based on the suggested retail price of the vehicle purchased. The program also offers an additional $750 discount for members of USAA. Both the GM Military Discount and USAA member discount are available on all Chevrolet models, except the $111,000 Corvette ZR-1. More information can be found at www.gmmilitarydiscount.com.

Monday, November 29, 2010

How GM made Volt a Reality

Long before the Chevrolet Volt, General Motors designed a groundbreaking electric car, the EV1, and learned from that experience it doesn't always pay to be ahead of the pack. GM built EV1s for only three years, pulling the plug in 1999 after losing $1 billion.

But five years later, GM executives were bristling at the acclaim being heaped on Toyota Motor Corp. and its Prius gas-electric hybrid. "I was getting sick of it," said Bob Lutz, then GM's chief product strategist. Emulating Toyota by making hybrids was out of the question. Lutz's idea to develop a new electric car was roundly rejected, too. But GM had to come up with something to counter the impression that the Detroit automaker was content to churn out Hummers and other guzzlers, oblivious to the debates about climate change and energy security.

Drawing on lessons learned from the EV1 and its experience with batteries, GM carved its own path to design the Chevrolet Volt. Describing it as an extended-range electric car, GM will mark the official start of the Volt's production Tuesday at the Hamtramck plant near downtown Detroit.

GM shuns the term "plug-in hybrid," saying that the Volt is neither a traditional hybrid nor an electric car, but combines some of their best characteristics in an elaborately engineered vehicle that's unlike any other. The result, executives say, is a car that's as convenient as it is fuel-efficient.

No 'range anxiety' with Volt

In the near future, forecasting firm J.D. Power and Associates expects plug-in hybrids to outsell electric cars in the United States. Plug-in hybrid sales are forecast to reach 145,000 in 2015, compared with 90,000 all-electric car sales, said Mike Omotoso, senior manager of powertrain research at J.D. Power in Troy. The Volt and Leaf are just now going on sale, but already fans and naysayers have formed camps on the blogosphere. Electric car skeptics say batteries are less reliable and versatile than internal combustion engines. Today's batteries may be much more powerful than those in the EV1 and other electric cars of the past, but they still offer a limited range. Batteries also take a long time to charge, and need chargers. "There's no such thing as a 5-gallon can of electricity," Lutz said.

For the first 35 miles, the Volt can run on electricity alone, but it has a 1.4-liter engine to top up the 400-pound battery. The EPA estimates its total range at 379 miles. That combination eliminates "range anxiety," the fear of being stranded with a dead battery, which is the biggest drawback of electric cars. GM engineers know that feeling, having experienced it with EV1s in the 1990s. "They'd start sweating when they'd get down to that last bar of electricity — 'I'm not going to make it home,'" said Bob Boniface, design director for the Volt.

In 2004, after Toyota launched a stylish second-generation Prius, Lutz suggested that GM develop an all-electric concept car powered by advanced lithium-ion batteries. They were lighter and more compact than nickel-metal hydride batteries, which are used in Toyota's and other hybrids. Lutz hadn't been at GM during the EV1 era, but other managers, including GM's chairman and CEO, were still smarting from the experience. "Rick Wagoner said, 'We lost $1 billion on the last e-car we did. Do you really want to do this again, Bob?'" Lutz backed down — until he read that Tesla, a startup, was building an electric car with lithium-ion batteries. "Then I really got mad," Lutz said. "How come a small California company can do an electric car with lithium-ion batteries, and the world's smartest automobile company, GM, says it's impossible?"

GM executives spoke with Tesla co-founder Martin Eberhardt, who described the difficulty they had making the roadster. Jon Lauckner, former head of product development who now heads GM's venture unit, came up with the concept for the Volt. Instead of installing a big expensive battery pack to power the car, Lauckner proposed having a smaller, more affordable battery delivering a 40-mile range with a small engine to recharge it.

GM's engineers had applied such a system at their Milford proving ground to keep the EV1 batteries charged. "They had a little trailer that had a gasoline engine and a generator on it that could extend the range of the EV1s," Boniface said. "That's where the idea came from."

When the concept was outlined to the engineers and designers working on the project, "there was a sigh of relief," Boniface said. "We'd spent a lot of money on a vehicle that wasn't ready for prime time."

Larry Burns, then head of research and a fervent advocate of fuel cell technology, took the project to GM's automotive strategy board for approval in 2006.

Getting back in the game

At the 2007 North American International Auto Show, GM rolled out a sleek Chevrolet Volt concept car that drew as much skepticism as it did praise. GM's archrivals, Toyota and Ford, are now developing their own plug-in hybrids. GM, meanwhile, is already working on the second-generation Volt. "Everybody said it was junk, and it won't work," said Lutz. "But now they're all doing it."

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