During Leftlane’s exclusive interview with General Motors Vice Chairman Bob Lutz, we had the opportunity to ask him about the automaker’s plans for alternative fuels, gas-electric hybrids and, of course, the much vaunted Chevrolet Volt plug-in hybrid.
GM’s commercials during the Olympic Games have been talking about clean diesels, but we haven’t seen much about diesels in anything other than the pickups. You’ve talked about how E85, hybrids and fuel cells are the future. Will we see them in everyday production cars here?
Bob Lutz: Well, we’ll see diesels here simply because there is a certain market demand for them. It’s almost become the “Good Housekeeping Seal of Approval.”
Your ability to demonstrate the diesel passenger car in the United States, [ends up having the customer] say you are up on the latest technologies, thank you very much, we’ll buy the gasoline version. It’s almost become that sort of thing. The real truth is that diesels are already on decline in Europe, which is a little-stated fact, because one of the reasons they were so popular in Europe was there was a huge fuel price difference, where in most countries, diesel cost half the price of normal gasoline. That has gone away now as the oil refineries have trouble making the diesel mix. Now diesel fuel is about the same price as it is here. It isn’t higher than it is in the United States.
What is also frequently glossed over is the cost of meeting US BIN5 Tier2 emissions and European Euro6 emissions. Right now the Europeans are struggling with Euro5. I know we are in Europe. Euro5 is very tough to meet and requires NOx aftertreatment. Euro6 will definitely involve a ton of additional hardware as will US BIN5 Tier2, so you’ve got your price increase of about $1,500 to $2,000 for a diesel four-cylinder over a gasoline engine, and then add another $2,000 to $2,500 for BIN5 Tier2 emission control hardware and NOx reduction catalyst. This adds about $5,000 over the costs of the gasoline engine, which the manufacturer is going to have to recover. So here’s the equation for the American customer: He pays $5,000 more for the car. He gets a 20 percent fuel economy savings but buys a fuel that costs 20% more per gallon. You tell me where the benefit is.
We still have very active diesel programs in Europe; in fact, we are probably the second largest manufacturer of Diesel engines in Europe. But look at Chrysler Corporation. They produced a bunch of diesel Jeeps, and withdrew a bunch of diesel Jeeps. The overwhelming popularity of diesel engines is a fiction perpetuated by certain German manufacturers and the news media. And the suppliers of diesel injection technology, not to be forgotten! Two of which are large German corporations.
Are you satisfied with the Chevrolet Volt’s development progress or would you like to see an accelerated pace?
Lutz: Well, I would have liked to have the Volt yesterday, but the point is that if anything, it’s well ahead of schedule. The one vexing thing we have with every single program that’s in the pipeline is that our material costs are rising as the steel companies, the plastic, rubber, paint companies, no matter what kind of supplier company they are, are passing on their higher energy costs to us, so this problem is endemic throughout the whole auto industry, domestic or foreign as the quadrupling of oil prices works its way through the entire economic system. We are going to get cost-plus inflation so every one of our future vehicle programs is having cost issues as suppliers come in their final quotes. That worries me for the Volt, but then I tell myself, why worry particularly about the Volt, it’s a worry for every single program that we have, and the world public is going to have to brace for the shock of much higher automobile prices.
We have tested the Volt batteries under extreme cold and hot weather conditions. We’ve tested them in hot weather conditions with the battery cooling systems off. We’ve cycled them in the lab where the computer causes the simulation of a road load so that the battery doesn’t know it’s not in a vehicle. We have had some mechanical failures where solder connections between cells and elements have failed but hey, that’s just prototype build and inadequate soldering. It could have been any type of battery and the solder had failed. But with the Lithium-Ion technology, everything is smooth sailing. It’s doing what we thought it would do, and what the supplier said it would do, and it has been an almost eerie, almost scary absence of problems with the battery.
One of the major challenges with the car is writing all the software codes for all of the zillions of possible interactions between driver, electric drive, battery, regeneration, when does the internal combustion engine come in, under what circumstances? For instance, and this is a huge, huge advantage over battery-only vehicles, say you are in North Dakota in the dead of winter at –40 centigrade or Fahrenheit and you’ve left the vehicle out overnight, no battery in the world is going to develop any energy at those temperatures, so if you had a purely electric vehicle, you’d have to find a way to heat the battery to get it up to temperature. In our case the computer will know that it has been sitting in the extreme cold, and will light you off on the internal combustion engine, which will run for a few minutes to warm up the battery so that the battery can take over.
Another neat feature we will have because the vehicle is OnStar-equipped, is it will have logic in its brain that knows how far away from home it is because it’s used to being charged at a certain place. If you have taken a circuitous route home and are running low on battery, the computer knows “wait a minute, the guy is only 10 miles from home, no point giving him a full charge. I’ll just run the piston engine enough to give him a ten-mile charge because he’s going want to plug in at home. There are a million things like that that need to be written into the software code, and it all needs to work together seamlessly with no bugs.
I get these emails from electric vehicle fanatics saying, “Hey, what’s your problem? What’s taking so long? Just throw a bunch of batteries, take out the internal combustion engine, put in an electric motor and away you go. What can be so difficult here?” Well you know, it’s extremely difficult, and we’re not just building one of them. And with this vehicle, we have to meet ALL safety requirements around the world because it’s going to be a global car.
Media reports say there might be an interest in sharing technology with Ford on the Volt. Has there been any internal discussion on this?
Lutz: No, I don’t think so, but I would say that especially in the area of advance technology, that many companies are in touch with many other companies because the burden of developing these advance technologies is getting pretty huge, especially in a time of drastically reduced revenues, so I think everyone puts out feelers saying, “Would you consider this, would you consider that,” but to my knowledge there has been no such approach from Ford. Based just on what incidentally read, my impression is that the whole worldwide industry is converging around this Volt concept as the intelligent way to go. Lithium and Lithium-Ion batteries are not ready for the pure electric vehicle to get away from what we call range anxiety (freaking out over remaining available miles on a charge). I have a Vectrix electric motor scooter, and it’s a great thing. It’s got a 40 to 45-mile range, which is more than adequate for suburban use. But I experience range anxiety on that thing all the time. Because, unlike a gasoline-powered vehicle, you cannot hitch a ride to the nearest electric substation and return with a five-gallon can of electricity. When they stop, they stop! I stopped in the middle of nowhere once with the Vectrix, and had to call a friend of mine to come with a pickup truck and ramps and everything. I used a whole Sunday afternoon.
Everybody is converging on using Lithium-Ion batteries and getting a certain amount of electric range, but please don’t confuse the Volt concept with what Toyota is doing with the Prius Plug-In concept. They are not going to use Lithium-Ion. They are going to use Nickel-Metal Hydride that they believe is better proven and certainly cheaper. They and Panasonic have made a massive investment in the production of Nickel-Metal Hydride, so they are probably a little reluctant to declare them obsolete. But Toyota has said their vehicle will do between eight to ten miles electrically, before it converts back to a conventional hybrid, whereas the Volt will do 40-miles and have a ten-year battery life, with engine never running. The engine is there purely as an emergency recharge. The engine is in no way connected mechanically to the car. All the engine ever does is act as a portable generator set.
We are going to do a conventional plug-in hybrid too. It’s called the Saturn Vue Plug-In. It will be like Toyota where you will do about eight to 10 miles before the conventional hybrid system starts functioning. But it seems that everyone is converging on the fact to save petroleum and meet European CO2 and CAFE regulations is with the extended-range electric vehicle which is the Volt concept. Even the Volt skeptics are starting say this looks like the right solution.
Tesla’s CEO Ze’ev Drori says he thinks every new car in 30 years will be pure electric. Do you agree?
Lutz: Thirty years is too far a time frame. The way battery technology is going, and with future cost reductions and fuel cells and hydrogen delivery, it’s a safer bet to say they will be electric as opposed to internal combustion.



08/26, 5:38 PM
posted by:
A4
diesel is still the best alternative for the immediate future
08/26, 5:47 PM
posted by:
ktulu
re-think that “no-diesels” stance
08/26, 5:52 PM
posted by:
bigtime
Screw you Lutz. No diesels. What an ass. Why no diesels? They last forever and can burn almost anything. Its hard to manipulate and control the fuel supply when people are making there own fuel.
As for the volt, he can shove that one up his tailpipe too. $45,000 for a $15,000 car? After the R&D is paid for and they get there kickbacks from the government and they spread the costs of the technology through the GM portfolio we will be paying more for the same car basically.
Why is it that going green has to cost MORE? This going green crap is about money. Getting you to pay more for less.
Wake up idiots.
08/26, 6:05 PM
posted by:
El Flaco
Life’s hard at the top, but you eat a whole lot better!
Two things:
1. GM is making a come back and a big one at that. Sure they sat on their behind for a long time so what. They paid for it and they are moving on, so should you.
2. There is simply no future in diesels it’s as simple as that. If someone would have stopped all the stricter regulations before they came into effect than it would be a different story. If diesel regulations stayed the same then we would all be driving diesels right now. But no someone had to tighten the rules so that the diesel producers would have an excuse of why not to make more, because it costs money to update the factory to make the newer cleaner diesel fuel. I am not one for conspiracy theories but you can bank on this. Big oil was probably behind the diesel changes so that we would be stuck on gas and cars that use it which are less efficient. If we all drove diesel cars with cheap diesel fuel Exxon wouldn’t be making as much profit. So it is in their best interest that we don’t.
08/26, 6:05 PM
posted by:
DeansterTJ
I don’t think he sounds that stupid at all. I expected a redneck monkey to come out talking sh!t, but he sounded calm and reasonable. Congratulations Lutz. I will NEVER buy another GM product as long as I live, unless that CTS coupe clocks in at a reasonable price.
08/26, 6:10 PM
posted by:
beatusmongous
Oh, hell no, Skinny. I’m not paying for GM’s sitting on their behind. Let someone else do that. I’ll move on without paying for it.
08/26, 6:10 PM
posted by:
El Flaco
The Volt will have to start at 30k, anything above that and it will flop. They need volume and price here to compete against the prius, fit, and honda prius. If this car costs more than that then it will fail!
08/26, 6:12 PM
posted by:
rds130
Diesels may not be the future, but GM won’t have one if the Volt fails, so does it really matter? Worse business decision ever. You NEVER put all your eggs in one basket, especially when you’re already in the crapper.
08/26, 6:26 PM
posted by:
beatusmongous
20¢ more when the regular is $3.63 DOES NOT equal 20% more. Neither does 55mpg equal 20% more fuel efficiency than 30mpg. Basically, he says that buying diesel costs more up front, and doesn’t save at the pump. I’ll argue that one like crazy.
The “cold start” feature is kind of cool… except how will the motor turn if the battery is frozen?
08/26, 6:29 PM
posted by:
F451
It is astounding after GM’s current performance that Lutz is still employed. Just goes to show you how out of whack the system is for the few. Kinda like the sports player who takes enhancers to set records—both are charlatans.
08/26, 6:30 PM
posted by:
acura_el2000
WTF THEY DELETED MY POST MAYBE LUTZ WOULD READ IT “OH NO AN HONEST OPPINION LETS DELETE IT” WTF LEFTLANENEWS?
08/26, 6:32 PM
posted by:
brassmonkey
I have said it before. Why doesn’t someone make a mainstream diesel-hybrid?
-
Lutz is a Putz.
08/26, 7:14 PM
posted by:
johnnycanuck
Didn’t Mark Elias do this interview? I’d like to hear his take on the integrity of Mr. Lutz. I’m certainly more impressed with what he had to say given this line of questioning than his take on other topics such as global warming. If nothing else, it’s obvious he should stick to talking about cars.
08/26, 7:32 PM
posted by:
Need4SSpeed
Diesel sucks… Exactly why the big three especially GM (North America) won’t adopt it beyond their trucks (where it should stay in). No matter how much diesel technology advances, or how many MPG’s more it can provide over regular fuel as long as it’s costing more than the price of premium or any grade gasoline for that matter it’s not going to sell. Elementary economics will tell you that. It might be a different story if it cost less than regular gasoline like it did for so many years before…
08/26, 7:54 PM
posted by:
inline6
Show me one diesel sold with BIN5 Tier2 and/or Euro6 controls on it that makes 55mpg and your point stands, beatus. The point is, these controls may reduce emissions, but they also affect fuel economy.
And the rest of you…IF YOU READ THE DAMNED REVIEW YOU’D SEE HE SAID THERE WOULD BE DIESELS IN THE US.
GM is NOT putting all its eggs in one basket. They’re doing mild hybrids, diesels, ethanol, plug-in hybrids, 2-mode hybrids, range extenders, and their hydrogen program is in full swing. Name me another company who has their eggs in more baskets.
You guys are blinded ignoramuses that won’t even read a damn article.
08/26, 7:54 PM
posted by:
howsmydriving
This part was left out of the interview:
Why did GM develop OnStar?
Lutz: So we could collect personal information on drivers and sell that information to third parties, or give it to the government.
08/26, 7:56 PM
posted by:
inline6
Bob Lutz was born in SWITZERLAND. How on EARTH is he a redneck Republican prick?
08/26, 10:11 PM
posted by:
maxcar
no diesel. that’s idiotic. it has the lowest embodied energy to produce for volatile liquids, and can be made much more easily from a bio base, not to mention consumption issues.
08/26, 10:12 PM
posted by:
Ed
F** *** hole
Your post was deleted because of your offensive screen name. Change it or risk continued deletions.
Ed
08/26, 10:15 PM
posted by:
Rene Curry
Wow, you guys sure are tough on Mr. Lutz!
I would say he made a good case about not developing diesels.
If diesel fuel is a dollar over gasoline, you gain nothing. The increased efficiency of the diesel at a higher diesel fuel cost equals the gasoline option. (not to speak the costly modifications to meet future emissions like urea injection) Another interesting item is that their is no advantage to E85 either. The lower efficiency of ethenol even with the lower ethenol fuel price equals good ole gasoline. However, it does help the supply side of the equation to keep prices down.
Betting the farm on the Volt is a real ‘bold’ move, but that is what company turn-arounds stories are all about. Remember Ford betting on the flathead engine & the new model? Chrysler on the K car & minivan? History is being made today!
08/27, 1:34 AM
posted by:
jdasch1
Buts its all bull**** about the cost of diesels. Urea injection is very cheap to add, and the consumer pays for the urea to make it all work. The gas model has a $3000 dollar rebate just to purchase it, and the diesel would sell without a rebate for years…they’re popular!! Its just a bunch of crap at GM!
08/27, 2:13 AM
posted by:
global_lightning
Generic Summary of Lutz’s speeches:
Blah blah blah Camaro blah blah Volt blah blah blah stinkin’ guv’ment mandates blah blah Europe’s got it wrong blah blah blah We’re gonna beat Europe’s finest makers blah blah blah Camaro blah Camaro blah Camaro blah…
08/27, 3:10 AM
posted by:
Stinky007
Wow, this was actually interesting to read.
I see two categories of very stressed out people commenting here:
1. Yanks, who cannot read anything longer than a company motto or catch phrase and all they see is “blah blah blah”
2. Euro diesel freaks who think diesel small cars are a god sent. Urea is cheap to add!? Did you take into account research costs, refill costs, unproven reliability for the urea injection system?
Some of you are quick to quote physics manuals that state diesel is far more efficient, but you forget that today’s currency is not the “percent” but the “dollar”, so efficiency is translated in pure monetary value, not is physics manuals dry statistics! Sorry, but that’s just the way the real world works…
Diesel is not the way to go, it’s an alternative. Mr Lutz pointed out some of the flaws of the whole diesel thing. I know he did this because his company’s policy does not include diesels for the States on the long run, but he makes some valid points nonetheless.
And please, some of you should stop acting like fanatic followers of the Cruch of Diesel, our Lord and Saviour! Ignoring the other views in this is just ignorant!
08/27, 7:29 AM
posted by:
DeansterTJ
Wow, Mark Elias did this interview?
LLN has come a long way. I’m impressed.
08/27, 9:30 AM
posted by:
melias
^^DeansterTJ,
We are a work in progress. Thanks.
PS: Sent an email to your registered address. Did you see?
Mark
08/27, 9:58 AM
posted by:
Z06ified
“No matter how much diesel technology advances, or how many MPG’s more it can provide over regular fuel as long as it’s costing more than the price of premium or any grade gasoline for that matter it’s not going to sell. Elementary economics will tell you that. It might be a different story if it cost less than regular gasoline like it did for so many years before…
Comment by Need4SSpeed, posted ”
Well then, it’s obvious both you and Maximum Bob failed elementary economics and math.
Simple example:
2009 Volkswagen Jetta TDI vs. gas model highway mileage:
Gas engine Jetta: 29 MPG highway. Over 15,000 miles in a year, it will consume 517 gallons of gas at $3.90/gallon = $2,017 total fuel cost per year.
Diesel TDI Jetta: 41 MPG highway (rated – actual will probably be 45). Over 15,000 miles in a year, it will consume 365 gallons of diesel at $4.70/gallon = $1,715 total fuel cost per year.
Do the math over the life of the vehicle, which for a diesel is well over 200k miles, and the fuel cost savings get very significant.
The problem with diesels in America is the average consumer is an idiot, and will never sit down and do the elementary math to figure out that diesel is a smart, economical choice.
Ignorance is bliss I suppose.
08/27, 10:30 AM
posted by:
Typical_LLN_Poster
Do any of you idiots read?? Reading your comments is like observing a pack of hyenas yapping away. Nothing like seeing a bunch of children mouthing off and proclaiming a very successful business man is an idiot.
Brass Monkey – The answer was written out for you douche. Hybrids are expensive. Diesels are expensive. So a hybrid diesel will probably be REALLY EXPENSIVE!
Z06ified – You fail to account for the typical length of time a person owns a vehicle, making you the idiot with ignorant math. 4-5 years? $1500 is hardly worth the extra cost of a diesel. When people keep purchasing $400 iPhones, WTF cares anyway!?!?!?
All of the turds on here spewing out your “the solution is so simple” crap really need to slurp down a dose of reality. Maybe putting down the PS3 controller long enough for an 8 hour shift somewhere could work in a bit of sense.
08/27, 10:49 AM
posted by:
sj79
how funny is it that people with about 50% of Lutz’s intelligence are on here calling him names. Stupid people do not run car companies. The most lackluster exec at the Big 3 still knows more about business and economics than the idiots posting here. I would like to know why Nissan, Toyota and others arent criticized for not heavily committing to diesels in the US but GM is expected to become a major diesel purveyor. I haven’t heard Toyota say SQUAT about offering diesels in cars and no one cars. If Toyota thinks diesels are a no go in the US market I would think they are probably right. Toyota supposedly knows the customer better than anyone and they are NOT investing in diesels for the US outside of vague promises to ONE DAY have an engine for their pickups.
Honda has announced one diesel car model as has Nissan. That is hardly an avalanche of diesel cars for the US market folks. The Europeans have just launched a few models that are 50 state compliant but you can bet their sales targets are modest.
08/27, 10:54 AM
posted by:
jumpoffit
i <3 my PS3
08/27, 11:02 AM
posted by:
rds130
inline6,
The “eggs in one basket” I was referring to would be the Volt. I read the article, you obviously didn’t read my comment. Or perhaps you read it, but didn’t understand it. It’s simple really:
You said: “They’re doing mild hybrids, diesels, ethanol”.
I say: GM sells less mild hybrid vehicles than anybody with a hybrid vehicle in their lineup, yet they have MORE mild hybrids between all of their lineups than any other manufacturer, excluding Lexus. Lexus differs because they’ve taken the Accord hybrid approach of performance over efficiency. They serve different purposes and despite being hybrids are apples-to-oranges for this particular comparison. GM has no other diesels than its trucks (and perhaps an SUV) under its entire umbrella of manufacturers here in the states. And we all know how SUV and truck sales are going so your point there, too, is moot. Ethanol is great. IF it becomes mainstream. Again, nothing is absolutely certain except the advancement of electric vehicles and the de-emphasis of large displacement engines in most mainstream cars. I said “most”. Not “all”. But cellulosic ethanol from bacteria and trash is still a-ways away from pretty much any type of production capacity, which leaves crop-based ethanol, which drives the cost of many foods up. In addition to driving the cost of food up, the cost of other non-food products are driven up because of “market adjustment”, which essentially means as a manufacturer, I see somebody else making money off of you because they raised their prices and you’re willing to pay them, so I want in on the easy money too. Back to crop-based ethanol, to fill one SUV tank full of ethanol equates to an entire year’s supply of corn for one single person. To further illustrate my point, in order to supply JUST America’s need for ethanol, it’s estimated that growing and harvesting would take one-third of the world’s cultivated land. Multiply that by the demand in established markets like Asia and Europe, plus rapidly-growing markets in Russia, China, India and elsewhere…well, it doesn’t appear there’s much room for crop-based ethanol production to feed the entire world’s thirst. And I’m pretty sure they’re not going to stand for anybody else encroaching on their land to supply fuel for the U.S. alone without any benefit to their own supply. Cellulosic bacterial ethanol production can’t come fast enough. There’s no free lunch, hence, no guarantee that GM’s investment in that could be nothing more than poor foresight among GM’s product planning department, wasting resources like time and money on ethanol, that could have been used for other advanced technologies and research.
You said: “plug-in hybrids, 2-mode hybrids, range extenders, and their hydrogen program is in full swing.”
I say: GMs plug-in and hydrogen future, much like the rest of the automotive industry, are dependent upon components like lithium-ion technology becoming affordable. It’ll be at least another 10 years before that happens AND its a truly safe alternative to current nickel-based battery systems. I have no doubt their physical size will decrease rapidly, but if my laptop and cellphone still get as hot as they do from being on but not even being used, while charging, how can anyone want to put something like that the size of an entire backseat behind or underneath them? Theoretically, heat increases exponentially with size, which exponentially increases the amount of cooling needed to contain or dissipate that heat. That increases costs of cooling, which raises the price of the car to offset that plus other associated costs, and you’re still left with a rather unsafe, unstable main source of powering a large moving object. The Tesla’s battery alone costs $20,000. The GM Volt-specific battery is estimated at $15,000 currently, but current GM press information points toward the idea that their battery still doesn’t exist in full production or even near-production, or hell, even EARLY production mode yet, reliably. The associative costs of replacing that battery are much like that of replacing the battery in the Prius or Civic Hybrid, which have gone down, but are still $4,000-5,000. And that battery technology has been used hybrids for almost 10 years now (the Prius was sold in 1997 or 1998 in Japan, IIRC, and the Insight was sold here in 1999). If history is anything to go by, it is going to take quite some time for lithium-ion battery technology to come down in costs for both manufacturers, but more importantly for consumers.
GM’s two-mode hybrid system is fantastic, but again, they chose to put it in SUVs and trucks, neither of which are commodities in the market now, nor in the foreseeable future. I’m not saying they’ll never be, but right now, they’re sitting on the lots, not making GM any money. If things continue to head the way they were a month and a half ago, which is inevitable, I’m sorry to say, I’d expect the trend of American families downsizing from large vehicles to smaller vehicles, to continue. Small cars are always guaranteed a spot in the market, even if they don’t sell at a specific time. Large, oversized vehicles…not so much.
So while I give you credit for reading the article, you’re wrong about GM having eggs in more than one basket. Perhaps they do, but right now, they’re broken and runny. The only basket they’re currently focused on is the one with the Volt in it and if that egg breaks, GM will continue to struggle with consumers overall and against other manufacturers like Toyota, that benefit from GMs product and marketing mistakes. The easiest example in the world would be the Prius. From complete obscurity to outselling the best-selling brands in the country in a matter of a year and a half. Imagine what it’ll do for Toyota’s image if Lutz and GM fail to deliver on all their promises to the public about how the Volt will “change the automotive industry”. I’m in no way “hating”. I’m just being realistic and I feel that there are other things that many companies, including GM, could be doing to advance our transportation affordably for us and profitably for them.
08/27, 12:03 PM
posted by:
sj79
rds,
Nice ramble but your original point is still garbage. You said that GM is puttin all it’s eggs in one basket when they are not. The fact that you feel their technologies are worthless or the vehicles that receive the technology are obsolete doesn’t mean that they should be discounted. The entire point of the two modes for the trucks is to make those vehicles viable in the era of $3.50/gal gas. I would bet that a Tahoe 2-mode sells faster than a gas only version. GM is still the ONLY manufacturer that has a hybrid solution (aside from Chrysler) for large vehicles. LArge trucks are not going away even if they are less popular than they used to be. It’s idiotic to claim that applying fuel saving tech to the thirstiest vehicles is a waste simply because sales volumes are down. GM aims to capture the majority of whatever market remains for large SUVs/pickups and that makes sense. That is like saying BMW shouldn’t try to dominate the high end performance car market because it’s a small volume market. You also fail to mention that the 2 mode system is being adapted to the Vue and likely other small CUVs in the future.
I would also like to know how you have determined that GM is betting its entire future on the Volt. This is more stupid talk from GM haters that has no basis. Please show us where GM said it is abandoning other fuel saving technologies and investments for the sake of the Volt. GM just announced it was spending $500M for the new Cruze including an investment in a new 1.4L engine that will likely get close to 40mpg on the highway. That is not an example of all their eggs in one basket. Gm is also aggressively phasing in 6 speed autos and direct injection engines. The lambda crossovers get better mileage than the Pilot in spite of being heavier. The Malibu gets 33mpg on the highway for 2009. A new Aveo is being launched in 2010. The facts totally contradict your stance that GM is doing nothing more than investing in the Volt.
“From complete obscurity to outselling the best-selling brands in the country in a matter of a year and a half. ”
The Prius is outselling Chevy and Ford and Honda already? did not know that. The Prius is outselling many other car models, but not mainstream brands get your facts straight. As with most GM haters you are short on facts but long on conjecture and lecturing.
08/27, 12:04 PM
posted by:
sj79
“This man continues to show the world how much of an idiot he is. Let’s hear some more!”
If you think he’s an idiot after reading that well thought out response that suggests you’re not that bright yourself.
08/27, 12:58 PM
posted by:
beatusmongous
Z06ified is very right. He didn’t need to account for the amount of time someone owns the car, because he was showing the YEARLY savings, not the savings over the life of the car. However, he did something VERY wrong that no one noticed:
At the 7-Eleven near me, #26637 in fact, the price of regular gas is $3.63 as of yesterday. The price of diesel at the same place is $4.00. That’s only a 37¢ difference. 37¢ of $4.00 is less than 10% difference in price. 37¢ of $3.63 is just over 10%. So, how is that 20% more? That’s basic math, too.
So Z06’s gas figures were nearly $1.00 apart, and diesel is not that different in price (at least not where I live – in an urban environment where no farms exist and not many people own diesels). Now, let’s run Z06’s problem but with my numbers:
Gas engine Jetta: 29 MPG highway. Over 15,000 miles in a year, it will consume 517 gallons of gas at $3.63/gallon = $1,876.71 total fuel cost PER YEAR.
Diesel TDI Jetta: 41 MPG highway (rated – actual will probably be 45). Over 15,000 miles in a year, it will consume 365 gallons of diesel at $4.70/gallon = $1,460 total fuel cost PER YEAR.
That is $400 per year ($416.71 to be exact). Multiply that by 4, and you have $1,666.64 for the four years of using the Jetta. By 5, and you have $2,083.55.
Now, keep in mind that if you sell your Jett that is 4 or 5 years old, you are going to get money back. So, an $22,900 Jetta didn’t actually cost you $22,900, because you sold it for $11,000 five years later. Your Jetta actually cost you $11,000. That’s not bad at all.
Those prices are difficult to compare, but here’s what I did: I took the base price of the Jetta SEL as my original purchase price, and then I went to kbb.com and found the trade-in value of a “good” quality 2003 Jetta GL TDI sedan with 75,000 miles (15,000 per year) and no additional options. It actually came out to $11,125. I’m sure the original purchase price of the TDI was probably higher, but that’s why I went with “good” instead of “excellent”. The 2003 Jetta GL with 75,000 miles and no options and in EXCELLENT condition came out as $7,125. That’s a $4,000 difference! Wait a minute…
So, you spend $3,000 more for a diesel, and then you save $2,083.55 in gas, and then you sell it and get $4,000 back… -3000 + 2083.55 = -916.45 + 4000 = 3083.55.
WOAH! So you actually GAIN $3,083.55 by buying a Jetta TDI, driving it for 5 years at 15,000 miles per year, and selling it in “good” condition!
THAT’S why GM shouldn’t leave diesel out.
And I’m not a diesel worshipper. In fact, I though he was a lousy wrestler. Actually, I want an EV more than anything. Hopefully, my next car will be an EV, and it will be a daily driver only.
Basically, the point is, you save money
08/27, 1:02 PM
posted by:
inline6
sj79,
Thank you! It’s also worth noting that Toyota doesn’t offer ANY diesels in the US, not even in their trucks! Neither does Honda or Nissan, Mazda, Mitsubishi, Subaru, or BMW. Nissan’s Ghosn has said that Hybrids are a dead end, and not to expect to see the system in vehicles other than the Altima.
And while the Jetta TDI may show fuel cost savings over the life of the vehicle, it doesn’t show them for the average new vehicle ownership interval of about 3 years. The ‘09 Jetta TDI is also not 50-state compatible. It can’t be sold in California or the New England states.
The Bluetec Benzes are 50-state compatible, but their systems require the added weight and cost of urea tanks and catalysts. And the urea tanks need to be refilled every few thousand miles. If they aren’t, Benz has designed the vehicles not to run once they run out of urea. It’s also worth noting that Benz doesn’t sell a $15,000 car. Hell, they aren’t even offering it on their $35k C-Class. No, they’re recovering the costs by putting this system on…wait for it…their SUVs! And the E-Class. All of which go for $50k-plus.
And GM is selling few mild hybrids now because of supplier issues. There is simply no other company that is as financially and developmentally committed to so many fuel saving solutions.
It’s also worth noting that GM put the expensive 2-mode system in vehicles that carried a higher cost and profit margin so that the market would bear the added expense. And it works extremely well.
08/27, 1:19 PM
posted by:
Need4SSpeed
“No matter how much diesel technology advances, or how many MPG’s more it can provide over regular fuel as long as it’s costing more than the price of premium or any grade gasoline for that matter it’s not going to sell. Elementary economics will tell you that. It might be a different story if it cost less than regular gasoline like it did for so many years before…
Comment by Need4SSpeed, posted ”
Well then, it’s obvious both you and Maximum Bob failed elementary economics and math.
No the average American consumer won’t see that. Or they won’t figure that out. When they see the premium price of diesel over gasoline it has this psychological effect where most consumers aren’t going to say oh well if I factor over 5 years of owning this car i’m going to save X amount of $’s.
And If I failed economics and math then I guess there would be 10x more diesels on the road in America.. But oh wait there aren’t…
08/27, 1:29 PM
posted by:
RaineMan
All this from the man who 6 months ago swore that there was no such thing as global warming.
And about those new diesels with urea injection… can they just make a little filler tube with a funnel that you can take a leak in and fill the tank back up? It would sure beat stopping every few hours on those road trips. Save time and the environment at the same time!
08/27, 2:02 PM
posted by:
rds130
@sj79,
I’m not going to bother restating my point, nor what was implied because it’s very obvious from your post you didn’t actually read what I said. However, as I mentioned before, I’m not hardly a so-called “GM hater”. Ironically, I’ve recently been working on a project for Chevy. A project I’ve been extremely passionate about. So yes, you’ve CERTAINLY got me pegged…
inline6, thank you for being respectful in your response. It is much appreciated.
08/27, 2:17 PM
posted by:
sj79
rds,
glad you are working for Chevy but your initial post left out a lot of facts. You may not be a GM hater like most others here but you are still wrong in saying GM is betting on Volt and nothing else. The definition of putting all ones eggs in one basket is that you are focused on ONE solution. What evidence is there that GM is committed to one solution? None.
08/27, 5:27 PM
posted by:
1c3d0g
Damn right, A4. These oil cartels are incredibly sinister though, as they’ve figured out a way to make Diesel more expensive yet it’s easier to produce (less steps to process at the refinery). They’ll do whatever it takes to keep their extreme profits ridiculously high, no matter what…
08/27, 8:51 PM
posted by:
Bimmer
I don’t know about US Diesel price, but in Toronto it’s two cents a liter cheaper then gas, (but in Ottawa 2 cents more) so I’d rather have diesel car with 25% better economy.
The price of gasoline for August 28th will be:
Toronto/GTA/London 129.3* Cents/Litre
UP 2.2 Cents
Ottawa 126.3 Cents/Lit
UP 2.2 Cents
The price of diesel for August 28th will be:
Toronto/GTA/London 127.2 Cents/Litre
UP 2.0 Cents
Ottawa 128.4 Cents/Litre
UP 2.0 Cents
08/28, 10:26 AM
posted by:
Z06ified
“Z06ified – You fail to account for the typical length of time a person owns a vehicle, making you the idiot with ignorant math. 4-5 years? $1500 is hardly worth the extra cost of a diesel. When people keep purchasing $400 iPhones, WTF cares anyway!?!?!?
Comment by Typical_LLN_Poster, posted on August27 at 10:30 am ”
YOU failed to account for the MUCH higher resale value of diesel powered vehicles versus gas. Sell a diesel vehicle in 4-5 years, and you will recoup 70-90% of the extra cost of the diesel option when new. In some cases, 100% of it. Don’t believe me? Look up the used blue book values of a used gasoline powered Jetta, and compare it to the value of a used diesel Jetta with the same mileage and age. The diesel will always fetch far more than the gas model. I used the Jetta as an example – this applies to ANY car or truck with a diesel option.
Your point has just been proven to be completely irrelevant. Next?
08/28, 10:36 AM
posted by:
Z06ified
“No the average American consumer won’t see that. Or they won’t figure that out. When they see the premium price of diesel over gasoline it has this psychological effect where most consumers aren’t going to say oh well if I factor over 5 years of owning this car i’m going to save X amount of $’s.
And If I failed economics and math then I guess there would be 10x more diesels on the road in America.. But oh wait there aren’t…
Comment by Need4SSpeed, posted on August27 at 1:”
You’re right, they won’t see that. For the same reason people are selling their 2 year old SUV’s that they couldn’t afford in the first place for practically nothing now, and paying a PREMIUM over sticker for a Prius, Smart, or Fit. The reason: pure stupidity.
If they actually used their brains at all, they would realize this little switch from their SUV to hybrid or small car is costing them a fortune. Far more money than they will ever recover from gas savings even in 10 years!
08/28, 10:43 AM
posted by:
Z06ified
“I don’t know about US Diesel price, but in Toronto it’s two cents a liter cheaper then gas, (but in Ottawa 2 cents more)”
The prices I gave in my example are the actual prices in northeastern U.S. Regular gas about $3.80, diesel about $4.70.
I have heard that in much of Canada, and especially western Canada, the diesel prices are actually cheaper than gas, as they should be. I would love to know the reason for that, or more correctly, the reason I’m paying such a premium for diesel in the states. Historically, diesel is almost always cheaper than gas, except for the last 3 years. It is cheaper to produce, so there is definitely a lot of B.S. and screwing going on.
People can laugh at the diesel owners all they want, but they’re getting screwed too whether they know it or not – just about everything you buy is transported and processed with diesel power. Truckers and farmers pass those higher diesel fuel prices right to you, the consumer.
08/28, 11:58 AM
posted by:
Need4SSpeed
Agreed ZO6ified!
08/28, 12:28 PM
posted by:
Need4SSpeed
It’s funny that just a year ago, the price of diesel was cheaper by 10-30cents per gallon here in the U.S. too.
And while I’m not expert on fuels, isn’t diesel cheaper to manufacture than regular gasoline? It doesn’t require the same amount of refining that gasoline does from oil…
I know why diesel is more expensive now. It’s because the oil companies saw that the U.S started catching on to the fuel mileage gains of diesel over regular gasoline, and doesn’t want the U.S. to be like Europe, where they use more diesel and utilize smaller and more fuel efficient vehicles. So in order to discourage the American consumer they are charging this false premium over gasoline, and will probably continue to do so.
08/28, 3:57 PM
posted by:
beatusmongous
Need, if I remember correctly, diesel is actually a by-product of the refining of gasoline. Basically, when we make gasoline out of crude oil, we also get diesel whether we like it or not. I may be wrong, though, so please correct me if I am, but if I’m right, that fact makes it even more confusing as to why diesel is more expensive in some areas. Here where I live, it’s not too bad. But it used to be almost $1.00 cheaper than regular gas just a couple of years ago.
08/28, 7:55 PM
posted by:
Need4SSpeed
you’re right. It is a by-product and when you heat crude oil, in whatever those towers are called based on the number of hydro-carbons, it rises and separates, then gets re-collected, and gets condensed… lol something like that, my high school chemistry is starting to come back LMAO…
Point is Diesel is cheaper than gasoline, and we’re all wondering why is it now more expensive?
oil companies are trying to discourage the American consumer from demanding it.
08/29, 11:55 AM
posted by:
Rick_WagonWheel
>>oil companies are trying to discourage the American consumer from demanding it.
Comment by Need4SSpeed, posted on August28 at 7:55 pm <<
Need4,
That’s exactly the point. Diesel would turn the equation upside down, and would cut into big oil’s profits. As if they need more.
Rick_WagonWheel
From my Ren-Cen office overlooking the beautiful Detroit River