GM Regulatory Filing - Volt "Not Yet Proven To Be Commercially Viable" - Autocar.co.uk

[hatrack]

EDIT

General Motors has cast doubt over the long-term future of the Chevrolet Volt by claiming it may not be commercially viable and other rivals may overtake it with superior and more advanced technology. GM submitted a regulatory filing report to the US Treasury yesterday and CEO Fritz Henderson claimed its “disclosures are consistent with our commitment to remain transparent and to keep the public informed of our progress”.

The Volt is scheduled for a November 2010 launch, but the GM report claimed that the range-extender hybrid technology may not be fully developed in time to meet this target date. Pre-production Volt models began testing in June. GM has marketed the Volt as the model to turn the company around, but the report claimed it “has not yet proven to be commercially viable”. GM is likely to sell each Volt at a large loss, although it would hope to recoup the development costs in future-generation models as Toyota has done with its Prius.

GM, which is majority-owned by the US Treasury, has based its entire business plan around securing US Department for Energy loans to help it develop advanced fuel technology vehicles. So far, despite three applications for a $5.7 billion (£3.4bn) share of the $25bn (£15bn) fund, GM has not been accepted and is due to make a fourth application this month.

“There can be no assurance that we will qualify for any remaining loans or receive any such loans even if we qualify,” said the GM report. It added that the US Treasury “is able to exercise significant influence and control over our business if it elects to do so”, but so far this has not been the case. GM is also fearful that wealthier competitors will come up with similar technology to the Volt and it will be left behind. “Our competitors and others are pursuing similar technologies and other competing technologies, in some cases with more money available,” said GM.

EDIT

http://www.autocar.co.uk/News/NewsArticle.ASpx?AR=242395

[pepperbear]

1. wonder who got pissed off over their 230 mpg claim? n/t

[OKIsItJustMe]

6. That makes no sense at all

How long do you suppose it takes to prepare a filing like that? (I mean, do you think they do it overnight?)

[BlooInBloo]

2. Sounds pretty standard stuff for bizplan filing.

[hatrack]

3. You're probably right - normal due diligence and all that . .

nt

[OKIsItJustMe]

4. That certainly seems reasonable

I dunno:

• Will people pay $40K± for the "Volt?"
• Will there be a government "incentive?"

How can it be proven to be "commercially viable" before they try to sell it?

[kristopher]

5. WTF is your problem?

Why are you misrepresenting information in an attempt to attack this technology?

EVERY forward looking pronouncement by a company is couched in this type of precautionary language. Failure to use such language is a sucker's bet inviting lawsuits on any planned action that fails.

In other words, no matter how low the chances of failure are considered by the company, they will still use exactly the same conditional phrasing in official investor related literature.

In even other words, THERE IS NO LOWER LIMIT ON THE RISK EVALUATION that would cause a responsible company to NOT use such language.

[hatrack]

8. EEEEEEE! OOOOOOOOO OOOOOOOOOO OOOOOO!!!! EEEEEE!!!

[phantom power]

9. zomg

:rofl:

[NickB79]

10. Is hatrack the author of the Autocar news story?

Christ, he didn't even add any of his own comments to the post.

[wtmusic]

11. You are quite correct

The filing was an SEC filing, and the disclosures were made under the "Risk Factors" section, which is typically a CYA.

A minor point is that the filing specifies the battery technology “has not yet proven to be commercially viable”, not the car itself.

http://www.sec.gov/Archives/edgar/data/1467858/000119312509169233/d8k.htm#toc

[rollingrock]

7. Who killed the Volt?

...coming to a theater near you!

[Javaman]

12. Shhhh, stop bringing reality to the table, okay???

aside from the 230 mpg claim they are also promising an cappuccino maker and a pony!

The pony is for when the volt vanishes from the market and the capp maker is to have something to drink while riding your pony! :)