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Where Will GM Go from Here?

Recently, it seems like everyone is speculating on the future of General Motors. Some are saying that the Volt will decide it all, others are saying that in the light of current gas prices, it's probably already over.

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Last month, sales of small cars rose dramatically and the "tiny" 4-cylinder finally overtook the 6-cylinder in U.S. sales. In less recent history, GM was unseated from its eight-decade long spot at the top by Japanese manufacturer Toyota.

Where does all this leave GM then? Well, the company isn't exactly belly-up yet, but you can surmise from its heavy advertising of the Volt, a car that's still two years away, that the company is trying to look to future technological developments to resurrect it from the SUV-sized grave it's dug for itself.

On that front, GM does have some grand promises. Aside from the much talked about Chevy Volt, GM plans to roll out new hybrids on a regular basis for the next several years (though at the same time they don't seem to be selling any). Diesel techs have developed a new 4.5 liter V8 diesel that seems promising. Finally, engineers are looking further down the road to HCCI technology, in hopes that it will make environmentally friendly driving more affordable and widespread.

From this, and conversations with people within GM, I think it's fair to say that GM is aggressively pursuing the greening of their business. At the same time, however, I think it would be prudent to look at the long-term goals of the company. I recently spent some time at a very insightful GM conference, where I learned a little bit about the company's plan for the future.



Falling Dollar Reshapes Markets for Green Cars

I'm sure you've all heard of the sub-prime loan crisis and the falling U.S. dollar, but I bet you didn't know that it was trickling down to affect efficient vehicle choices for U.S. and European consumers.

In years gone by, smart automakers like Honda and Toyota anticipated fluctuations in international currency and decided to begin opening up factories around the world to cut distribution costs and stabilize profits. This is paying off right now, as neither company is taking a huge profit gouge due to the dollar being at record lows against the yen.

Other companies, like Audi, aren't quite so lucky. Because hybrids are generally low-volume and low-profit margin compared to standard sedans and SUVs, they are what is getting cut from Audi's 2009 plans, according to AutoBlogGreen. This isn't exactly surprising (who's going to have money for luxury hybrids in this economy, anyway?), but it's a bit worrisome. I really can't say if this suggests there will be more opposition to some of the smaller cars that have been projected for release in the U.S. after success in Japan and Europe, but I sure hope they make it across the pond.

In other, slightly related news, Tesla has announced that they will be selling their performance EV in Europe, despite issues with production volume (thanks to EcoGeek for reporting). With the Euro getting stronger and stronger compared to the dollar, this only makes sense from a business point of view. Tesla is also quick to make the point that high fuel prices and shorter commutes in Europe make the Roadster a good fit for the continent.






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With gas prices soaring, more and more people are turning to "hypermiling," ... read more.
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Benjamin F.T. Jones

Benjamin F.T. Jones

Benjamin F.T. Jones is a New Hampshire-based writer, cyclist and hypermiler who co-founded Ecomodder.com. read full bio.
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Ecomodder.com is an automotive community where performance is judged by fuel economy rather than power and speed.
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