Rick Wagoner, President and Chief Executive Officer
Tom Stephens, Group Vice President, GM Powertrain
North American International Auto Show Cobo Hall Detroit, Michigan
January 6, 2003
Good afternoon.
For the past several years, GM has taken the occasion of the
North American International Auto show to detail our most promising new
technologies to advance the automobile. We’re going to build on that tradition
today.
When we step back and take a look at the big picture
surrounding fuel economy, vehicle emissions, and the environment, we see that
there are dozens of interest groups that take a view on how we should address
these important topics. Frankly, not all these groups see things the same way.
Some groups are primarily concerned with U.S. energy policy, some with national
security, some with vehicle emissions, some with broad environmental impact, and
some even have broader social issues in mind.
But, as a representative of the industry that actually has to
do something about this, I can tell you that there is no single integrated
solution that fully satisfies all of these sometimes competing interests. So,
at GM, our approach to this dilemma has been to focus on three simple and direct
principles:
First, we have to offer products that customers really want
to buy, not have to buy. If no one buys your products, your technology has no
real impact.
Second, we need to meet some basic business objectives –
like selling at prices that customers are willing to pay, and for us to be
able to produce at costs in line with those prices. In today’s highly
competitive, low-profit-margin environment, our experience clearly tells us
that heavy manufacturer subsidies can’t last very long.
And third, we, as an industry, have a responsibility to
continue improving vehicle emissions and fuel economy.
In line with these principles, we at GM have adopted a
three-pronged approach to advanced technology.
First, today, we are producing, or shortly will be producing,
several exciting technologies that will continue to improve the efficiency of
the internal combustion engine. I’m talking about things like continuously
variable transmissions, Displacement-on-Demand cylinder deactivation,
electro-hydraulic power steering, more efficient alternators. Not only do these
technologies provide significant benefits, they are being applied to our most
affordable and popular powertrains and vehicles.
Along with the continued pursuit of clean-diesel technology,
these efforts will allow us to continue doing what we’ve done for a long time –
improve our model-by-model efficiency, year after year.
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Looking at the long-term picture, we believe the hydrogen fuel
cell is the big answer.
Last year at this show, we
introduced the GM AUTOnomy concept vehicle. By combining fuel cell and by-wire
technology, AUTOnomy offered a vision of the future, and the incredible
potential of fuel-cell propulsion.
At that time, we said that our next major benchmark in
fuel-cell development would be to build a drivable version of the AUTOnomy by
the end of 2002. And we delivered on that promise in September, at the Paris
Motor Show, when we unveiled the GM Hy-wire.
And this year, our commitment to fuel-cell technology
continues unabated, with our primary focus being on major cost reduction, to
hasten the day when fuel cell vehicles will be available to the public.
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Today, I’d like to fill in what, at GM, we call the mid-term
picture, with news of GM’s approach to bridging the gap between improved
internal combustion engines and fuel cells,
with a major commitment to hybrid vehicles.
Two years ago at this event, our vice chairman, Harry Pearce,
outlined our approach to hybrids, and last year, we announced our plans to
produce a parallel hybrid pickup truck.Today,
I’m pleased to announce our next step in hybrid vehicle development.
Starting with our hybrid full-size pickups, which will be
available in the fall of this year, GM will
offer consumers three different hybrid propulsion systems,
on three vehicle architectures, representing more than a dozen of
our most popular models. If consumers were to select the hybrid option on all
of the models included in our multi-year plan, we would be capable of providing
more than one million hybrid vehicles per year.
And, these hybrid systems will be
geared specifically toward typical American driving patterns and vehicle
preferences – that is, relatively more highway driving and relatively larger
vehicles.
In today’s
market, demand for hybrid vehicles is low. At GM, we’ll be well positioned to
meet future demand as it develops.
Now, because hybrids can cost up to several thousand dollars
more than conventional powertrains, we believe offering different hybrid
approaches, in a range of popular vehicles, is the best way to fully explore the
market potential for this technology.
As I stated at the outset, heavy manufacturer subsidies cannot
be sustained in the marketplace. So, it’s clear that government policy will
have to play a big role in the development of the hybrid market – whether that
is mandatory use of hybrid vehicles in government fleets, or extensive
consumer tax credits to encourage retail sales. In our view, both of these will
be required; and maybe more.
With that, I’d like to ask Tom
Stephens, Group Vice President of GM’s Global Powertrain activities, to explain
the hybrid technologies that we’ll be offering.
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[Tom Stephens Remarks]
Thanks, Rick.
GM's hybrid strategy has been developing over
the last several years.
It represents what I believe is the best
approach to reduce fuel consumption without trading-off customer requirements.
Two years ago, our Vice Chairman, Harry Pearce,
detailed what he called a "portfolio of options."
He described a highly flexible hybrid system
targeted for small- to mid-sized SUVs.
He also explained that when GM was ready to make
known its production plans, it would be at the right time with the right
products.
Today is the right time...
We're going to give specific shape to our hybrid
story.
We've focused our efforts on developing a range
of hybrid systems that addresses the American market in two key areas.
The first is the preference of Americans for
larger and more powerful vehicles and the second is that these vehicles travel
more on the open road than in tight urban environments.
With that, we have the opportunity to share with
you today our plan for providing an entire range of high-volume vehicles.
In fact, General Motors will be the only
manufacturer to cover the entire range of vehicles with hybrid technology, from
midsize FWD cars to pick-up trucks to SUVs to commercial vehicles & buses...
AND cover the full spectrum of hybrid system
design.
We've done this with a portfolio of resources
and options that only GM could provide.
And as I mentioned... these hybrid systems are
the first to be designed specifically for the North American market and driving
cycles, which are typically 60 % highway and 40 % city driving. That means
highway mileage also gets a boost. And, performance doesn't take a hit.
We believe these hybrid solutions don't require
any compromises.
Let me get into some specifics regarding our new
family of hybrid systems.
First, as we announced about a year ago, GM will
offer a hybrid system combined with a 5.3-liter V8 on our full-size Chevrolet
Silverado and GMC Sierra pick-ups.
This system will initially be offered as a
commercial fleet option later this year, and then for retail sale in early 2004.
Then, in calendar year 2007, the models will be
expanded to include our popular, high-volume Sport Utility Vehicles: the
Chevrolet Tahoe and GMC Yukon.
At the same time, the hybrid system will be
combined with our Displacement on Demand technology, resulting in even greater
fuel savings for these pick-ups and SUVs
Here's how the truck hybrid system works:
Instead of a conventional starter motor and
alternator, the hybrid system truck features a compact electric motor that is
integrated in a patented, space-efficient way between the engine and
transmission.
The electric motor provides fast, quiet starting
power and the ability to generate up to 14,000 watts of continuous electric
power.
The electricity generated by the system has
plenty of uses.
It may be stored in a 42-volt lead-acid battery
pack for future use.
It may also be used to support on-board electric
accessories.
Finally, it may be employed to operate power
tools or other appliances off a pair of 110-volt, 20-amp outlets in the cab and
bed.
As more 42-volt accessories become available,
the electrical architecture of the hybrid system can accommodate them.
The truck gets more miles out of each gallon of
gas mainly because the system starts and stops the engine at idle.
In addition, regenerative braking turns the
motor into a generator as the truck decelerates.
Extra fuel savings come from quickly shutting
off fuel any time the truck is coasting or braking.
In addition, we save fuel by early second gear
apply of the transmission torque converter clutch... while using the electric
motor to smooth out any resulting vibrations.
Trucks equipped with the VORTEC 5300 hybrid
system will be no compromises trucks.
They will make 285 horsepower and 325 ft.-lbs.
of torque and provide V-8 power for hauling heavy loads, towing, and hill
climbing.
At the same time, this hybrid system will create
a 10 to 12 % savings in fuel economy.
In 2007, Displacement on Demand will add an
additional 5 to 8 percent in fuel economy.
Today we are also announcing two completely new
systems, in addition to full-size SUVs and pickups.
GM will introduce a Saturn VUE with an Advance
Hybrid System in the latter half of the 2005 calendar year.
This system combines the power of our
all-aluminum, dual-overhead- cam four-cylinder engine with the excellent torque
and efficiency of twin electric motors.
With this advanced hybrid system and other
vehicle system improvements, drivers can expect fuel economy gains of up to 50
percent.
At the same time, we will improve 0-60 and 50-70
mph performance, thanks to GM's advanced components and control electronics.
In addition, emissions from the system will
carry a super low emissions vehicle certification.
The system, when linked with a 2.0-liter ECOTEC
engine, produces 125 horsepower from the gasoline engine and another 50
horsepower from the two 20Kw electric motors.
It is designed for transverse, front-wheel-drive
vehicle applications.
The Saturn VUE advance hybrid can run fully on
electricity, using the two electric motors to propel the vehicle at low speeds
and light loads, when the efficiency of the gasoline engine is lowest.
However, when driving at higher speeds, or when
carrying heavy loads, power comes from the proven internal combustion engine.
The versatility of GM's advanced hybrid
system... including the ability to package it in a variety of engine
displacements ... makes it ideal for a wide range of future front-wheel-drive
passenger cars and SUVs.
The next new hybrid combines a belt-alternator-
starter system, or BAS, with a VTi continuously variable transmission.
In calendar year 2006... this hybrid system will
debut first on the all-new Chevrolet Equinox, which is covered here, but will be
revealed tomorrow.
Then in '07, the system will be offered on the
Chevrolet Malibu.
After that, look for the hybrid system on other
models derived from the Epsilon or Theta-based high volume platform
architectures.
GM developed the belt alternator starter system
to provide improved fuel economy in stop-and-go driving by shutting the engine
off at idle... and by enabling early fuel cutoff to the engine during
decelerations.
Regenerative braking and efficient charging are
also part of this system.
Estimated EPA composite fuel economy savings for
this propulsion system range from 12 to 15 percent.
The BAS system also has the versatility to be
used on four and six-cylinder engines, with minimal impact on engine and
transmission components.
All vehicle accessories and passenger comfort
systems, such as air conditioning, remain functional during the periods when the
engine is automatically stopped.
We will mate our 2.4-liter ECOTEC engine and
continuously variable transmission with this hybrid system.
The engine will make more than 170 horsepower
and 170 ft.-lbs. of torque.
The battery is a 42-volt system, and the motor
generator develops 5,000 watts.
As you can see, our advanced hybrid systems take
a number of innovative technologies and apply them to our most popular vehicles.
As Rick said, it's an approach that offers us
the best chance of exploring the full market potential for hybrid vehicles...
and the benefits they provide.
GM is recognized as a leader in powertrain
technology, and we would welcome the opportunity to share our technology in
collaboration with other OEMs.
We think our hybrid system benefits are
substantial, and today's announcements are a clear reflection of that belief.
Not only will hybrids deliver direct and
measurable benefits by themselves, but they'll also help us achieve our
long-term goal of mass-market fuel cell vehicles.
On that note, let me turn it back to Rick
Wagoner for a quick wrap up.
Rick…
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[Rick Wagoner Closing Remarks]
Thanks, Tom.
Consistent with GM’s three guiding principles which I outlined
earlier – offering products that customers want to buy, solving the price/cost
equation, and addressing our industry responsibility to the environment – we see
our major commitment to hybrids as a matter of both competitive positioning and
technology leadership.
Given current fuel prices in the
U.S., it’s uncertain how rapidly the hybrid market will develop… but we’re going
to find out.
We, at GM, think the technology has real potential to become a
factor in the marketplace; and, as Tom said, hybrids are a bridge to fuel
cells. So, to summarize:
For the near-term, GM will continue to introduce new
technologies that will improve the internal combustion engine.
In the mid-term, we are putting big resources into hybrid
technologies – three different systems, in fact, as we’ve discussed in detail
today.
And for the long-term, we see fuel cells as the ultimate
answer, and we’re continuing to invest heavily in their development.
With that, Tom; Larry Burns, our Vice President of R&D and
Planning; and Beth Lowery, our Vice President of Environment and Energy, are
available to answer your questions. Thank you.