Jeff Immelt On GE's Electric Car Investments: 'We're Just Going To Hang On The Hoop Here'

* Immelt committed to long term development of EVs

* Cost, infrastructure remain challenges

* GE supplies about 10 pct of content on electric vehicles

By John D. Stoll

DETROIT, April 24 (Reuters) - General Electric Co Chief Executive Jeff Immelt said people "may be disappointed in the adoption of the electric vehicle" but his company will continue investing in battery technology in hopes of an eventual uptick.

Speaking during an automotive conference in Detroit on Tuesday, Immelt -- whose company is a key supplier to automakers producing electric cars -- said GE is "committed to long term development" of alternative-fuel vehicles. The executive shrugged off the perception that electric cars are just novelties and said the industry needs to find solutions to cost and infrastructure challenges.

GE, after all, has a lot riding on the success of alternative-fuel vehicles.

"For every dollar invested in electric vehicles GE has 10 cents of content," he said. "We're just going to hang on the hoop here."

Several car companies, including General Motors Co, Nissan Motor Co, Toyota Motor Corp, Ford Motor Co and Tesla Motors Inc, have in recent years introduced cars that run partially or entirely on electric power.

Electric vehicles carry an expensive battery and typically cost more than a conventional vehicle of similar size. Sales of such vehicles have thus far been modest, and below some initial expectations.

"You never can tell when this will reach a tipping point...a lot has to happen in order for this to take place," Immelt said.

Immelt said that GE executives share a Chevrolet Volt at the company's headquarters, and said driving the vehicle is an empowering experience.

However, "the near term challenge is going to be all about cost" and infrastructure.

Immelt is convinced the market for electric vehicles will not remain a small niche. Immelt said that GE does not invest in technologies simply because they are popular trends.

"Novelties don't work in business," he said.

Comments

[Eagleman]

01:06 PM on 04/26/2012

Hybrids cars OK

Electric Cars are scams and nothing more than NIMBY (Not In My Back Yard) solution

We will be disposing the old batteries to some 3rd country like Bangladesh - but who cares if a Bangladesh kid gets cancer. I

[nothingchanges]

10:00 AM on 04/25/2012

Simple question.

In 1984 I could buy a Honda Civic that got an EPA mileage estimate of 51 city, 67 highway.

Why is that automobile, or it's twin not offered today?

Has Detroit forgotten the technology?

Or have they simply learned that no matter how badly they manage their companies in the quest for exorbitant profits, the government will eventually "bail them out" because "we're too big to fail".

[brettze]

07:56 AM on 04/25/2012

Oh why!!!!, of course, I must admit that I bundle up at nights, but for yourself..you can always go back to your "smart" thermostat at nights. I am surprised that you never thought off that, eh!

[JudMiller]

03:06 PM on 04/24/2012

No article on the protesters that disrupted Immelt's speech today. Way to cover the news...

[tacevad]

02:03 PM on 04/24/2012

the technology for a high mileage hybrid with electric drive motors and a small diesel engine driving a generator exists, the high price of battery technology is IMO not the answer at this time

[BBackSoon]

11:55 AM on 04/24/2012

The best way to jump-start the electric vehicle market would be to equip the Post Office with them. They have routs of less than 100 miles and park in the same place every night.

If there were 100,000 orders for electric Postal vehicles this would make the entire process more viable.

But the Repubs have a two-fer in trying to cripple the Post Office, they also are slowing the acceptance of Electric cars.

[sp4rk]

04:54 PM on 04/24/2012

I agree with you from one perspective. As in it makes sense.

But, the Post Office is a dinosaur. It is hardly needed. Why propel something on the way out, with gleaming new technology. There will always be a need for garbage pick up and they (here) use NatGas.

And this is apolitical. It is national security so it must be bi-partisan.

[BBackSoon]

05:21 PM on 04/24/2012

The Post Office is actually a good thing.

Remind me how much it costs to send a letter via USPS as opposed to Fed Ex or UPS?

How about $0.45 compared to $9 to $12.

[FreeBeing]

11:54 AM on 04/24/2012

Am a proponent of fully electric vehicles. However, the infrastructure to service these vehicles must be in place before we can truly liberate ourselves from internal combustion. The order to accomplish this, the vehicles must be built with plugin modular battery packs that can be removed and replaced quickly and conveniently at a typical service station. The vehicle owner leases the batteries and simply swaps them with fresh ones when needed. Some sort of "discharge rate" payment method would be employed... something akin to topping up your tank.

[sp4rk]

04:56 PM on 04/24/2012

Have you seen the company Better Place? They have one such "battery switching station" in Israel.

[apeweek]

09:21 PM on 04/24/2012

The Leaf and MiEV already have 30-minute fast charge capability, and 5-minute recharge has been demonstrated. Fast charge stations are much less expensive to build compared to battery swaps.

[Count of Anjou]

11:53 AM on 04/24/2012

With the CEO of GM hanging his company's future on electric vehicles, it will not be long until they need another taxpayer bailout, much of which they will never pay back (i.e. government grants). We should have let them go belly up and given them nothing, which is exactly what they deserve.

[sp4rk]

02:48 PM on 04/24/2012

Not to worry, you'll be eating your words. This from someone who is not their market.

[apeweek]

09:23 PM on 04/24/2012

The article above is about GE, not GM.

However, GM's Volt got them a foothold into the Chinese electric vehicle market. The Chinese have stated they plan on putting a million EVs on the road there in the next few years.

Just that one deal justifies any electric car investment GM made.

[Kenz300]

11:24 AM on 04/24/2012

The Prius did not sell in volume the first couple of years after it was introduced. Now it is one of the best selling vehicles in the world.

Electric vehicles will start out slow. As battery technology improves and more charging stations pop up there will be more people adopting the technology.

The price of oil keeps increasing. Electric is the future.

[blndgenie]

11:11 AM on 04/24/2012

So nice to hear that Gubmint Motors will be building Cadillacs in China! AWESOME that that union-pay-off includes OUTSOURCING JOBS overseas....LMAO!

[Adriana231]

01:50 PM on 04/24/2012

Really? Tell that to the workers in Michigan in the re-openned GM plant for the PHEV Volt. I'm sure they appreciate their jobs. Or the American workers in Illinois that are making the batteries for the Leaf and the Volt. Or, the American workers in every state whose jobs in the electric industry cannot be outsourced that power these cars.
If you want to keep jobs here, buy electric.

[apeweek]

09:25 PM on 04/24/2012

GM is building cars in China for Chinese people, just like foreign carmakers build cars for Americans here in the USA.

[GettingOutNow]

11:03 AM on 04/24/2012

The problem is not the car...or technology. The problem is the Utility and metering companies who are all racing to sew up the grid and start charging variable electricity rates depending on peak charging hours. Think cells phones from the 90's. The Grand Powers feared too many people would embrace sovereign energy production and run their homes and cars on power WITHOUT an electric company. They were correct. Now its all footdragging as the big poobahs try and figure out how to cram the genie back into the bottle.

[Brett Kuntze]

11:25 AM on 04/24/2012

Do you use electricity to heat your home? only a small fraction of you do.. Most of you use heating oil or natural gas, correct? So all you need is set up an array of arcylic mirrors the kind used at exercise gyms or ballet classrooms, you know? Those safe mirrors can reflect sunlight back against the ever shady northern sides of your home to heat your home. Your local utiltiy usually offer both heating fuel and electricty but not all. Some sell heating oil or propane separately by truck shipment. So you can be partly independent from your utilty with arcylic mirrors with automatic tracking devices that is still non existant but can be devised yourselves with little electronic knowledge.. Why we dont have aryclic mirrors to heat our homes really boggles my head!!! I have them and they rock!! very simple yet save me lotsa $$$$$$$

[enaud]

12:44 PM on 04/24/2012

Bundle up at night!

[sp4rk]

10:58 AM on 04/24/2012

It will remain a small niche for GM until they realize that the Volt is not the answer.

If people are going to go electric, GO electric.

35 miles and then go back a few decades to gas is NOT the answer.

Look at what Nissan and Tesla have on the market.

GM has the muscle to make an affordable Tesla. Do it and win! But don't expect it to be easy as you have bad history on your side. Remember the EV-1? You lost a lot of trust in this, the future of automobiles.

[Ropete Volt]

12:37 PM on 04/24/2012

@sp4rk,

This is Rob Peterson from Chevrolet Volt Communications.

Not sure the market agrees that pure electric vehicles like the Leaf, and for that matter the Ford Focus EV, are better answers. The Volt has outsold both of them - combined (Volt and Leaf launched in December 2010, to date, Volt has outsold Leaf 11,900 to 11,400 in the United States. Through the first three months of this year the Volt is outselling Leaf nearly 2 to 1, and Focus EV has sold 12 since launching in select markets). I suspect some would also argue a $130,000 two-seat EV - while a riot to drive - isn't necessarily the answer for mass EV adoption either.

Moving EV's from niche to mainstream will require electric technologies that meet a variety of customer needs - from plug-in hybrids and extended range electric vehicles to pure battery electric vehicles and fuel cells. Adoption will take time, but these technologies are being proven relevant by EV owners today.

As for GM's history, no one will argue that it hasn't always been on our side, but the Volt isn't about our past, it's about the future - one powered by domestically produced electricity (of the 54 million Volt owner driven miles over 32 million have been powered by electricity saving roughly 1.75 million gallons of gas).

Thanks
Rob

[exchef100]

12:50 PM on 04/24/2012

Haha...nothing like getting a response straight from the source. On a side note, can I have a free Volt?

[sp4rk]

01:14 PM on 04/24/2012

I doubt you are whom you say you are based on the "amusing" avatar. Hardly professional. If I worked for GM I would use their logo.

The Volt has outsold them for now because Leafs aren't easy to buy ... wait list is 3 months; Focus is not available here yet. Tesla is a 16 month wait if you order one now. (I have.)

The Volt is overpriced for the market being $10,000 more than the Leaf. Yet its finish is "cheap". And battery "non standard" to me as in not flat on the chassis like others. And now I hear even the Cadillac is going to be half-gas. So we still have a muffler and all the rubbish that goes into making a gas engine.

I am not saying the Tesla is mainstream, but the Model S is far closer than the Roadster. Yet if were not for them GM wouldn't be in the market (yet) .... according to Lutz.

I agree adoption will take time ... my guess is within 10-15 years, 50% of all vehicles sold will be electric, including trucks ... aka Smith Electric etal.

It simple makes sense from a national security aspect, not to mention pollution nor economics.

And as soon as the average range gets to 200 miles and people see charging points pop up everywhere.

And today neither Nissan nor Chevy dealers are even promoting their EV's.

Unlike Tesla. Who exude PASSION. And PRICE!

[Adriana231]

01:54 PM on 04/24/2012

The Volt doesn't just go 35 miles. The Volt goes 40 miles on just electric and then as far as you want on the 40mpg gas engine. Since most people don't exceed 40 miles in their commute, they will often not use any gas.

For those like me that do, their mpgs will 100+ (mine is currently 128mpg).

The Volt is a good car...it doesn't have range anxiety (b/c of the gas engine) and it doesn't 'brick' (like some unfortunate Tesla cars). Is it the final answer...no, hopefully better battery technology is coming soon. But it is a great option FOR NOW.

[sp4rk]

02:45 PM on 04/24/2012

I am aware of its capabilities. I mean it only does 35-40 miles on ELECTRIC. (Including air and heat).

I do not consider a gas engine recharging a battery the future. Nor is it EV.

It's a great start, especially for those who swear by GM, not at them :)

Often is the key word.

There is still all the unnecessary clobber in the car taking up valuable room.

The Volt probably IS a "good" car ... good, better, best ... and it;s priced at the better range ... for me it is overpriced for what it offers ... for me; I'll rent a Zip car when I need long distance. Until my Tesla arrives. :) Til then the Leaf will do.