Did GM make the right choice when they selected the Volt as opposed to putting all of their efforts into a Hydrogen fuel cell vehicle? Why?
Looking at the GM’s growth in recent years, they didn’t do well as far as profit is concern and also in introducing any new car. In business language, as a company GM could not sustain on its mature stage and finally it has gone down to decline stage in recent years.
In my view, GM made right choice in introducing Chevy Volt as a hybrid car. Since 1999, already all major players in car industries have launched their car or announced their new product which is basically relating to hybrid or hydrogen fuel energy. As major market player, GM had to introduce something new soon so that they can sustain in auto market and in their market price also.
The Volt is a radical enough departure from today’s hybrids that it is taking GM approximately 2+ years to produce. Did they wait too long? Do the Japanese have too big a lead?
In my view, GM is taking much more time than it should. GM has already announced its new model and also was published at Detroit Auto show. If you flip the pages of history, all Japanese companies have introduced their new hybrid cars and launched it soon in the market.
If at all they have to do their market research then they can very well do it by ATAR model. From which they can estimate their profits for coming years. Another way is to do Market testing where feedback and market demands can measure through it.
Read the WSJ article in the Legal, Policy and Ethics folder in the course documents section of Bb. Will introducing the Volt Help GM?
According to article produced in WSJ, people are ready to pay premium price on more ethical production products. It will certainly help to GM as auto industry is also making lot of change in their production pattern. Customers will pay high price to hydrogen vehicle but its not sure...