GM Drop in Sales May Deter IPO Investors
GM wasn’t the only car manufacturer battling in August. All manufacturers, with the exception of Chrysler, appear to have been hard hit. GM’s head of US sales operations, Don Johnson, noted that in the light of job uncertainty and unemployment, consumers continue to be cautious. He pointed out though, that as employment opportunities start to recover and credit becomes more freely available, it is anticipated that consumers who have been holding back will be more inclined to purchase a new vehicle.
Another indication of GM’s determination to move ahead, is its continued progress in green technology and the quest for the perfection of an electric car. The main issue electric car owners, or potential owners, have with this promising green technology, is the fear of running out of power. Some have likened driving an electric car to constantly running on red in a gasoline powered vehicle – you’re never quite sure if you have enough juice to get to your destination. This is especially problematic when traveling long distances on isolated roads. GM’s R&D team are well aware of this obstacle, and have even coined (and filed to patent) the term ‘range anxiety’. Specs for the Chevrolet Volt include the ability to drive up to a distance of 40 miles solely on electric power, and once this power runs out, a gasoline engine generates electricity to keep the wheels turning – thereby doing away with range anxiety. Certainly, with more and more consumers becoming aware of their personal carbon footprint and the need to be socially responsible, research and development on alternatively powered vehicles will have high priority for all major automakers.