After a battery recall that cost General Motors at least 9,000 units of its mild hybrid vehicles, the auto giant is nearing a deal to purchase its battery supplier — Detroit’s Cobasys LLC. The move would safeguard GM’s battery supply until 2010 and would also help to prevent any future recalls.
Cobasys is currently owned by Chevron Corp. and Energy Conversion Devices Inc., but neither company can agree who is responsible for the battery supplier — a situation that is ultimately slowing the selling process.
GM has hired BBK Limited to conduct a final analysis on Cobasys and recommend acquisition strategies. According to Automotive News, GM could set up a partnership with Cobasys, but GM would be the 100 percent owner.
GM has a vested interest in Cobasys as its closure would force the automaker to find a new supplier of batteries for its mild hybrid vehicles — the Saturn Aura Green Line, Vue Green Line and Chevrolet Malibu Hybrid. One source even told Automotive News that GM can’t switch battery suppliers until its next-generation technology bows in 2010.
The recall in late 2007 forced GM to replace 9,000 faulty battery packs — preventing the production of any new vehicles — but Cobasys’ production line is once again up and running.
06/05, 5:47 PM
posted by:
NoNameDenton1
I hope this brings down the cost of the hybrids. I know it probably won’t, but a man can dream.
06/05, 5:52 PM
posted by:
Commodore
^ Its a sad day when men dream about hybrids
06/05, 5:59 PM
posted by:
NoNameDenton1
I do not dream about hybrids, but since so many people want them, might as well bring the cost down.
06/05, 6:11 PM
posted by:
johnnycanuck
Why would you be so keen to buy a company that just supplied you with 9,000 defective batteries?
06/05, 6:47 PM
posted by:
carstuff
Maybe to fix the company so you get good batteries.
06/05, 8:09 PM
posted by:
Need4SSpeed
“Cobasys is currently owned by Chevron Corp” Wait a minute isn’t Chevron Corp an oil company??? And you wonder how or why 9,000 batteries were recalled??? CONSPIRACY!!!
06/05, 9:26 PM
posted by:
autonut
Johnny, you applying reason to GM boardroom. What’s wrong with you?
06/05, 9:32 PM
posted by:
johnnycanuck
Been a rough week, autonut. Trust me, GM boardroom isn’t the only place where reason is in shorter supply than testosterone at a gay pride parade.
06/05, 10:05 PM
posted by:
jdasch1
Boycott Chevron Oil .
06/05, 11:28 PM
posted by:
NoNameDenton1
Good jdasch1, you boycott all the oil companies, more for us.
06/06, 12:26 AM
posted by:
Supermann1
If you can’t beat em (toyota), then join em (in hybrid tech), but make sure to bring ur A game, and not some ****ty mild hybrids.
06/06, 12:44 AM
posted by:
NoNameDenton1
Supermann, stop bowing down to Toyota, the mild hybrid system was a smart move because you pay less of a premium for a hybrid system.
06/06, 8:55 AM
posted by:
xyunya
So called mild hybrid system used without any fanfare on Mini and amazingly it works. Actually all European Minis will get one next year. GM management common sense or complete lack of it is part of the discussion here.
06/06, 7:53 PM
posted by:
jdasch1
Didn’t say all of them…only Chevron.