http://www.time.com/time/specials/2007/article/0,28804,1669723_1669725_1670578,00.html Thursday, Oct. 11, 2007
Green Motors
By Bryan Walsh
No one would mistake Chris Paine for a General Motors shill. In his 2006 documentary Who Killed the Electric Car?, the filmmaker laid out a damning case against GM for unplugging the EV1, the electric vehicle it manufactured in the 1990s and then discontinued in 2003, preferring instead to produce high-margin but gas-guzzling trucks and SUVs. "They were a technological leader, and they fumbled that leadership away," Paine says. Ask him about the U.S. carmaker now, though, and Paine sounds almost admiring. "Their new hybrids are making a difference, and their plug-in technology is a real advance," he says. "GM is making some really good moves now."
It's been some time since anyone accused GM of making a good move. The company surrendered its title as the world's top-selling carmaker to Toyota this year, in part because GM underestimated drivers' appetite for leaner, greener cars — a desire filled spectacularly by Toyota's Prius. GM is still weighed down by health-care costs and other legacy issues, but the Detroit giant is finally getting serious about hybrids. After dismissing them for years as a niche unworthy of attention, GM will release an average of one new hybrid model every three months for the next two years, beginning with the industry's first full-size hybrid SUVs late this year. "GM has really stepped up to be the standard bearer for the industry," says Philip Gott, director of automotive consulting for the research group Global Insight. "Toyota stole the limelight the first time with nice technology and a brilliant marketing strategy, but I think GM will take the ball back."
In a way, GM never really lost the ball; it just forgot how to play. For all its recent struggles in the marketplace, GM has always been a leader in pure research and development, spending $6.6 billion in the field in 2006. "They've dwarfed the rest of the industry in what they can put into it," says Dan Sperling, director of the Institute of Transportation Studies at the University of California at Davis. In the late 1980s, GM produced concept cars like the Sunracer, a sleek solar vehicle that can still inspire wistful sighs in green geeks of a certain age. But too often the good stuff stalled between the lab and the showroom. "There is a myth out there that GM is a technological laggard, but that's not true," says John DeCicco, senior fellow for automotive strategies at the advocacy group Environmental Defense. "They just chose not to emphasize those kinds of products in their corporate strategy." Nevertheless, GM's cautious approach stranded its brands in the past while its competitors positioned themselves as smarter and greener.
Nowhere was that clearer than in GM's foot-dragging on hybrids, which use combination gas-electric engines to reduce fuel usage an average of 45%, according to the National Renewable Energy Laboratory. "Hybrids are an interesting curiosity," said Robert Lutz, GM's vice chairman of product development, in early 2004. "But do they make sense at $1.50 a gallon? No, they do not." Lutz was right then, and even with gas prices closer to $3, midsize hybrids are expensive and may not save most drivers much money. But to consumers, the equation was simple: hybrids = environmentalism.
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