No 1203: Biofuels and Clean Technology

I got the opportunity to interview, along with several other industry bloggers, Troy Clarke, President of GM North America. While the discussion touched on many topics, I was most intrigued with the focus on fuel economy and emissions reduction.

Hydrogen
Surprisingly enough, Troy kept a very upbeat attitude towards hydrogen. His perspective was that hydrogen was produced near every major metropolitan area and can be delivered through traditional means (i.e. trucks). While there is clearly a chicken and egg problem, GM has decided to produce the vehicles and work with varying regional governments to try and develop hydrogen infrastructures in key locations (California, DC, Raleigh-Durham).

Batteries
Batteries are clearly a sticking point for GM (and the rest of the world). While they clearly have a vested interest in this technology, they have no desire to own or otherwise produce internally the technology. The difficulty, then, is that to develop the needed battery technology, outside - 3rd party - development is needed. This is a difficult prospect and they have continued dialogues with the government regarding incentive programs for development.

Light weighting
This was the biggest disappointment for me on the fuel economy issue. They have clearly made some effective design changes using light metal (aluminum, magnesium, etc) that have allowed them to preserve safety. They have only done sparse tests on carbon fiber. His sentiment seem to drop a little bit when I asked the question (less upbeat than hydrogen of all things). That makes me think that one of two things is true: either they’re not doing anything big and have nothing to say; or they have done a lot and don’t want to say.

The only data point I have (so far) is where they are using advanced carbon fibers in their cars. The hood on the new Corvette ZR1 uses a carbon fiber hood - a very deceptively difficult part to make. Most notably, they are testing a unique coating to help prevent UV degradation. The interesting element to note is why they would try such a thing with a high-performance car like the Corvette. Owners are undoubtedly criticial of their vehicle quality so to take the risk of their product degrading (on its hood no less) over time seems risky. But therein could be the detail. This may be a great way for GM to do some testing on this type of technology without letting the world know they are really pushing for it. But that’s still speculation at this point.

“Getting it all to work”
While there are clear opportunities, the big takeaway for me is that GM has created a “Gas friendly to Gas-Free” program due to uncertainly regarding the energy outlook. They don’t really know if biofuels, gasoline, diesels, or hybrids will be the best option to double-down on. Commercializing various technologies seems the most reasonable strategy to this end. But it also seems like a big risk given their financial troubles. Toyota - who, given their green reputation surprisingly has a rather disappointing showing of green tech at this auto show - continues to take share even in bad times. If GM can’t get some of these new developments - 2-Mode Hybrids and all - to market in a big way, they have some more difficult roads ahead.

More so, technology isn’t what GM sells. They are continually re-evaluating their brand strategy with regard to this new “green” outlook. An endearing comment that Clarke made is that this new generation doesn’t know anything about a 67 Chevy (meaning the Camero is nostalgic to only so many people), but the Chevy Volt might be this generation’s 67 Chevy.

I’m waiting.