G.M. Puts Electric Car’s City Mileage in Triple Digits

By BILL VLASIC and NICK BUNKLEY
Published: August 11, 2009

WARREN, Mich. — General Motors said Tuesday that its Chevrolet Volt extended-range electric vehicle, scheduled for release in 2011, would achieve a fuel rating of 230 miles a gallon in city driving.
The rating number, based on methodology drafted by the Environmental Protection Agency, is somewhat abstract, one auto specialist said, given that much of the city driving of electric vehicles will rely solely on the battery charge.
And as eye-popping as the number was, a rival automaker, Nissan, said last week that its all-electric vehicle, the Leaf, which is scheduled to come out in late 2010, would get 367 m.p.g., using the same E.P.A. standards.
Figures for highway driving and combined city and highway use have not been completed for the Volt, but G.M.’s chief executive, Fritz Henderson, told reporters and analysts at a briefing on Tuesday that the car was expected to get more than 100 miles a gallon in combined city and highway driving.
“Our Chevrolet Volt extended-range electric vehicle will achieve unprecedented fuel economy,” Mr. Henderson said. “I’m confident that we will be in triple digits.”
The Volt can travel up to 40 miles on a single battery charge, at which point a small gasoline engine kicks in and starts to recharge the battery. The battery can be also charged in eight hours using a regular electrical outlet, Mr. Henderson said.
Nearly eight in 10 Americans commute fewer than 40 miles a day, the company said in a statement, citing Department of Transportation data. The mileage calculation for the Volt assumes that most drivers will stay within that range and not need the gasoline engine.
“Depending upon how you use the Volt, it can get mileage approaching that or much less,” Jack Nerad, executive editorial director of Kelley Blue Book, said. “It almost becomes an abstract number. If you are the Volt target guy who is driving under 40 miles per day, then theoretically your miles per gallon is infinite.”
The high mileage figure, though not a meaningful number to many consumers, represents “a great technical achievement” for G.M., Mr. Nerad said.
“They would like to take back the banner of technology leader,” he said. “This is certainly a shot over the bow of Toyota and Honda and others that they are serious about that.”
The E.P.A., in a statement Tuesday, said it had not tested the Volt and could not vouch for the accuracy of G.M.’s estimate. But the E.P.A. “does applaud G.M.’s commitment to designing and building the car of the future — an American-made car that will save families money, significantly reduce our dependence on foreign oil and create good-paying American jobs,” the agency said.
Several rivals, including Chrysler and Ford, are planning plug-ins and electric cars; Toyota is developing a plug-in version of its gas-electric hybrid.
But whether the Volt can live up to its billing has been a matter of debate. Some industry analysts note that G.M. has a poor track record of introducing green technology to the market.
G.M. is trying to persuade consumers to return to its showrooms after filing for bankruptcy on June 1 and emerging as a reorganized company with fewer brands, models and dealers.
Mr. Henderson and other G.M. executives met with groups of consumers on Monday to hear their thoughts on the company’s product lineup.
“We need to communicate what we have,” Mr. Henderson said. “The only way we’re going to make G.M. great again is to win in the market.”
Determining the cost to operate battery-powered vehicles is more complex than for those with only gasoline engines. Electricity costs can vary widely, depending on location and even the time of day when a vehicle is charged.
G.M. said the typical Volt driver would pay $2.75 for electricity to drive 100 miles and that a single overnight charge, for a customer whose utility charges less at off-peak times, could cost as little as 40 cents. Nissan estimated the cost of recharging the Leaf, which has a range of up to 100 miles, at $1 to $3.
G.M. has previously suggested that the Volt would cost about $40,000, but Mr. Henderson said Tuesday that the price had not been set and that the car would price “as it comes to market.” He was also quick to highlight a $7,500 tax credit.
Nissan says the Leaf will be cheaper than the Volt, in the range of $25,000 to $33,000.
Another issue that G.M. and Nissan are struggling to figure out is how to accommodate people who live in an urban area or an apartment without a garage and cannot easily recharge an electric car, yet could benefit the most from one.
“If you’re going to park it on the street, I don’t know what to do actually,” Mr. Henderson said. “I don’t know how to address that situation.”
Larry Dominique, Nissan’s vice president for product planning in the United States, told reporters at an automotive conference last week, “A lot of those people aren’t going to be able to get an electric vehicle initially.”
Mr. Henderson said the Volt would be a critical part of G.M.’s strategy. “Having a car that gets triple-digit fuel economy will be a game changer for us.”
The Volt is expected to be both a so-called halo car to draw consumers to the Chevrolet brand and a technological foundation for future electric models.
The company has built about 30 Volts so far and is testing them in various conditions.
Interest has been building in the Volt since it was introduced at auto shows in recent years. But with G.M. now 60 percent government-owned, the car has become a symbol of the company’s rebirth after its 40-day trip through bankruptcy.
Mr. Henderson said most of G.M.’s new products would be either passenger cars or fuel-efficient crossover vehicles. While the company will still build trucks and large sport utilities, the bulk of its investments will go toward smaller vehicles.
“I think the fundamental premise of planning for higher fuel prices is the right premise,” he said.

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