GM Asks US Government for $2.6 Billion, Wants to Build Hybrids
General Motors proposed a business plan to Congress, requesting $2.6 billion from the Department of Energy to help lower production cost of the new Voltec powertrain. The Voltec powertrain, part of the GM Voltec platform, is scheduled for a 2010 release date. All Voltec engines are electronically driven, allowing you to plug in your car to recharge it, and utilizing many systems inside the car, such as brakes, to “recycle” energy. It will also be able to produce electricity on-board, whether it be by fuel cell or gasoline motor is yet to be known.
As of right now, GM believes that these cars will be far to expensive for the average consumer. According to their revised business plan, they optimistically believe that the money will help lower production costs to that of an average 4-cylinder sedan. Cincinnati Chevy dealer Mike Murdock believes that the money may help, however he is “skeptical on bring the costs down that much.” It is worth noting that Cincinnati Chevy dealerships’ sales have been down to almost record lows in recent years. Many are willing to try anything to give this economy a boost.
The White House has given GM sixty days to come up with a new plan to cut costs even further than they initially suggested. It is worth noting that GM has already requested 7.7 billion under the D.O.E bailout program. President Obama has warned GM that it may have to file bankruptcy and restructure, however GM does not believe such measures need to be taken.
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