Concept Cars

flickr photo credit: Larry Boswell, Chevy Volt Concept

And an unlikely bargain.

If I were to ask you how much technology plays a part in our day to day lives, what would you say? Probably a great deal. What don't you use everyday that hasn't been improved upon through technology?

Today, technology is a natural part of a products progression. It improves it and makes it better. And the market? Usually it improves as the innovators take the first step and the competition follows suit.

The Chevy Volt, as well as it's hybrid brethren, are products that has been advanced through technology. Markets, demand and price are all factors driving change. In this case, the automobile. Consumers are looking to save money at the pump, play a part in driving cleaner vehicles and wanting the latest technology.

Now is technology always affordable? Of course not. So why are consumers and the media so upset when GM's initial price point for the Volt is probably impossible? Yes, buyers screamed with their early DVD player or flat-panel TV purchase. That's expected with new technology. If you're one of the first adopter's, you gotta pay to play. Prices, over time, always come down.

Just a week ago, GM CEO Rick Wagoner talked about the Volt selling for $30,000. Now, unless the federal government subsidizes your Volt purchase, expect to pay $40,000 or more for it. So what's wrong with letting the market proceed at it's natural pace? Let the price of the car fall where it should with technology as it stands. Did anyone, government or otherwise, subsidize the purchase of your flat-screen TV? Of course not.

GM is playing the role of the innovator here. They've decided to accept the challenge of developing new technology. And the technology just isn't there yet. No matter what anyone says, electric or hybrid-electric cars are not ready for prime time. All electric isn't because economically, batteries just can't store enough energy yet. And hybrid-electric because it still relies on an engine burning fossil fuel. And, to most consumers, the additional cost of the hybrid drive needs to be justified. The money you save on fuel just doesn't pay for the hybrid power plant.

You can look to the Tesla Roadster as an example of progress, progress that Tesla Motors decided to tackle themselves. The problem with their roadster is it's too expensive for the average day-to-day commuter trying to get to work. But certainly an example of innovation, especially by a small private company.

An interesting side note is the advances being made in battery technology, seemingly parallel to the demand for more efficient cars. A coincidence? I doubt it. Demand is dictating a cheaper power cell that can store more energy. Simple innovation, but innovation requires time.

But how much time does General Motors have to capture the market? Not much. The Volt is touted as an all electric car. In some ways it's still a hybrid. It has a traditional gasoline engine on-board but only to charge the batteries when needed. In the future, GM hopes the engine will be powered by hydrogen. But the other auto makers are working just as furiously on emerging technologies, all of them hoping to discover the holy grail of automotive independence...being free of oil.

Innovators always accept a great deal of responsibility, sometimes to the detriment of their reputation. GM has decided to take on that responsibility, hoping to launch a product to meet a growing demand. Do you think GM will deliver? Is the Volt capable of shaking GM's truck-only reputation and bring a renewed sense that they are innovators? We'll know once they announce a showroom-ready car.