GM Gunning for Tesla with New Cadillac EVs
September 23, 2013 12:00 PM
comment(s) - last by
GM wants to take on Tesla with both luxury and affordable EVs
is the underdog that went from being just another electric vehicle startup to racking up profit and car sales while paying off government loans years ahead of time. These feats have drawn the company a lot of attention recently --
especially from competitors
General Motors Co.
Chairman and CEO Dan Akerson said GM will target Tesla specifically with new EV offerings from Cadillac. GM is hoping to grab some of Tesla's audience with flashy new Cadillacs that also outperform Tesla's models.
“If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac,” said Akerson. “But I do think when the (Cadillac) ELR comes out late this year, early next — it’s certainly in the same postal code as Tesla, but now we’re going to move up. It’s not going to be a mass-produced car.”
Last week, GM's VP of global product development Doug Parks said the company is planning a $30,000, 200-mile range electric car. Akerson said this will likely take on Tesla.
Tesla said it's working on an
of its own. In May, Tesla CEO Elon Musk said that his company's Model S is a great EV, but it's a luxury car that is out of the price range of many consumers. Musk said the ideal affordable Tesla EV would be available in about three to four years, and would be sold for under $40,000. It would also have a range of about 200 miles per charge.
Akerson even managed to slide a little jab at Tesla's Model S when talking about the Chevrolet Volt.
“We’ll sell more (Chevrolet) Volts and lose less money on the Volts than they’ll lose on the (Tesla) Model S,” said Akerson.
While GM sees that there is clearly demand for Tesla's product and wants to create something similar (but better) to tap into that audience, Akerson believes problems like range anxiety still prevent EVs from really taking off in the American auto market.
“I’m not convinced that an all-electric car is the panacea that I think the American public wants," said Akerson. “What we see on the line of sight is a 200-mile battery car, but at the same time 200 miles is great, but it’s not going to satisfy the range anxiety that persists. It’s still a major issue with the purchasing public and I think you’ve got to have a generator on board so that you basically have unlimited range.”
However, GM is still interested in following Tesla's footsteps as Akerson recently created a GM team to specifically study Tesla.
Tesla has raked in many successes this year, such as a
in Q2 2013; ramped up Model S production 25 percent to almost 500 vehicles per week (it expects to sell 21,000 Model S' worldwide for the whole year); paid off its $465 million U.S. Department of Energy (DOE) loan
nine years early
; snagged the
highest safety rating
from NHTSA for the Model S, and unveiled several new technologies like the $60-$80, 90-second
battery swap feature
in the Model S.
Musk has proved to be an unstoppable CEO that will do anything to take his company to new levels. He's currently considering taking
a dealership fight
to the federal level because states like Texas refuse to allow Tesla to sell its cars via its own company-ran dealerships.
The Detroit News
This article is over a month old, voting and posting comments is disabled
9/24/2013 12:02:39 AM
Next time you're able to bend Dan's ear can you ask him why any American should ever believe a word he, or any other "New GM" exec utters..?
BTW, it's not right to refer to them as "GM" when that company and all of it's obligations were forcefully buried. The correct name is "New GM".
I had several thousand shares in GM that went up in flames when they declared bankruptcy..all while they were selling Buicks in China at record rates, and after they had just come off two decades of selling high profit SUV's/Trucks.
Suddenly, they had a slight dip in their sales and needed taxpayer injections just to stay afloat. What about all of the money they just made and were continuing to make in new markets at that time?
Really disgusting behavior if you ask me and their continued clueless decision making is going to lead them write back to the bread-line begging for more.
Just looked at their share price @ $37.00 do you have any idea how much money I'd have if they hadn't been allowed to screw over everybody that made them who they are?
Fuck New GM!
Done with this company forever and wouldn't even piss on one of their cars - American my ass!
RE: New GM
9/25/2013 3:33:22 PM
GM was losing money because of massive healthcare payments to retired GM employees, unions rules that had them paying people to stay home when they idled factories, etc. If they were allowed to restructure under normal bankruptcy procedures and get rid of the unions at the same time, instead of the government stepping in and rewarding the very unions that were the heart of the issue by giving them partial ownership while screwing the investors who are, by law, supposed to be paid first, it would have been a different story.
I can't blame GM for taking that option, as the government practically forced it on them. Put the blame where it belongs, with the US government for illegally seizing the shares from the rightful shareholders.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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