General Motors Develops Plug-in Hybrid Vehicle to Compete with Toyota

Strategic Insights -

General Motors, struggling to keep up with sales of fuel-efficient Toyota hybrids, is secretly developing a plug-in hybrid vehicle that can travel over 60 miles per gallon. The new vehicle, which uses a battery that can recharge at any outlet, aims to outdo Toyota's best-selling Prius hybrid, which is rated at 55 miles per gallon. GM's move comes as U.S. lawmakers consider stricter fuel efficiency regulations and consumers increasingly demand lower emissions.

Key Takeaways:

  • GM is developing a plug-in hybrid vehicle that can travel more than 60 miles on a gallon of gasoline, exceeding the fuel economy of Toyota's best-selling Prius.
  • The new vehicle uses a battery that can recharge at any outlet, a key feature that sets it apart from regular hybrids.
  • GM's move is in response to growing regulatory demand and consumer pressure for improved fuel efficiency and lower emissions.
  • A 28% rise in U.S. gasoline prices this year has boosted sales of Toyota's gasoline-electric models by 37%.
  • GM does not currently make market-competitive vehicles in the hybrid segment.
  • GM's new plug-in design may be ready in time for the Detroit auto show in January, with production potentially underway within a year.
  • Toyota plans to spend a record $7.9 billion on research and development this year, while GM spent $6.7 billion last year.
  • The Toyota Prius uses a combination of friction from braking and power from the internal combustion engine to recharge its batteries, but does not use plug-in technology.
  • Industry analyst John Casesa notes that there is "a lot of pressure to show you're responsive" to regulatory and consumer demands for improved fuel efficiency and lower emissions.

Statistics:

  • The new GM plug-in hybrid can travel more than 60 miles on a gallon of gasoline (3.92 liters per 100 kilometers).
  • A 28% rise in U.S. gasoline prices this year has boosted sales of Toyota's gasoline-electric models by 37%.
  • Toyota's Prius is rated at 55 miles a gallon in combined city and highway driving.
  • GM's planned research and development budget for 2006 (not specified in the article).
  • Toyota plans to spend $7.9 billion on research and development this year.
  • GM spent $6.7 billion on research and development last year.

Sources:

  • Casesa Shapiro Group's John Casesa
  • University of Michigan Transportation Research Institute's Bruce Belzowski
  • General Motors (no specific employees or representatives quoted)
  • Toyota Motor Corporation (no specific employees or representatives quoted)
  • U.S. lawmakers and industry analysts cited in the article.