So far, GM is right on schedule for the Volt's release.
Meanwhile, the pure electric vehicles are also making a comeback, with
privately-owned Tesla Motors, Fisker Automotive, and Phoenix Motorcars among the
most prominent domestic names. Tesla has garnered the largest share of the
headlines and is boldly planning an IPO by the end of the year.
As sexy
as it may be to become the first publicly traded EV pureplay in the world, I
can't help but predict near-term disaster for Tesla. Internal strife between
founder Elon Musk and former CEO Martin Eberhard has produced unwanted delays in
production,
and the estimated cost of producing each vehicle keeps going up
due to unforeseen challenges. This is beside the fact that it has yet to be
proven that cars can be commercially produced and driven with lithium-ion
batteries as its sole power source.
Thermal
runaway, a longtime challenge of lithium-ion technology that is still being
addressed, has occurred in cell phones and laptops that are powered by a single
battery cell. Now imagine the potential heat that can be produced in a machine
you are driving that is powered by over 6,800 of those same battery cells.
Without a combustion engine as a safety net, I predict these electric
vehicle manufacturers will endure a slew of growing pains before they are
commercially accepted. Indeed, while creating a zero-emission vehicle is
laudable, I think these pure EV manufacturers are trying to skip an important
step and may, in turn, temporarily steer the public away from the pure EV
concept.
At the same time, I am excited about the
prospects of the PHEV segment, the same step that the pure EV manufacturers are
trying to skip. For the record, GM and A123 Systems have partnered up to produce
the nanophosphate-based lithium-ion battery cells for this car. GM will produce
10,000 Chevy Volts in 2010, ramping up to 60,000 in the second year of
production. Toyota, Ford (
F), Volkswagen (
VOW.DE), and a whole slew of start-ups have also announced
their intentions of entering the PHEV market.
Let the games begin.