GM $10k problem - GreenHybrid

bwilson4web · #1 (**permalink**) 07-11-2007, 03:43 PM

http://www.autoweek.com/apps/pbcs.dl...024/LATESTNEWS

Quote:

. . .
The automaker plans to have at least three hybrid transmissions and offer as many as a dozen hybrid models in the next few years. The Two Mode system, which has two electric motors that assist the engine, would be the premium system, Lutz said.

The cost of that system is more than $10,000, sources close to the program say.
. . .
1. Belt alternator starter: This low-end, bolt-on unit combines the alternator and starter. The major fuel economy gains come from the engine shutting off and quickly restarting after the vehicle comes to a stop. The belt alternator starter system provides a light boost on hard acceleration.

The system will be on four-cylinder versions of the Saturn Aura Green Line and Chevrolet Malibu sedans and the Saturn Vue crossover. Lutz said that system delivers an 11 to 12 percent improvement in fuel economy for an additional charge of about $2,000 to $3,000.

2. BAS plus: A step up from the belt alternator starter, this system likely will use lithium ion batteries instead of nickel-metal hydride batteries and provides a bigger boost of electric power when the vehicle accelerates. It might also have plug-in capability. It is about two years from production, Lutz said. It will boost fuel economy 14 percent to 15 percent and remains "relatively inexpensive," he said.

3. Two Mode transmission: A more complex system, the Two Mode's first generation is due out this fall in the Chevrolet Tahoe and GMC Yukon. GM officials in May said the Two Mode will deliver at least a 25 percent fuel economy gain. GM also is working on a Two Mode for front-drive vehicles.
. . .

This $10k cost is going to be a tough problem. The large number of parts don't come cheap and with more parts comes an attendant reliability risk. Still, GM has to start somewhere.

LATE THOUGHT:
How does that $10,000 break out? In the early days of automatic transmissions, it was common to find they added $1,000 to the price of a car and that was back when a dollar was worth a whole lot more. But I'm really wondering how that cost breakout works out?

GOOD LUCK!
Bob Wilson

martinjlm · #2 (**permalink**) 07-12-2007, 01:24 PM

Quote:

Originally Posted by bwilson4web

...The automaker plans to have at least three hybrid transmissions and offer as many as a dozen hybrid models in the next few years. The Two Mode system, which has two electric motors that assist the engine, would be the premium system, Lutz said.

The cost of that system is more than $10,000, sources close to the program say......

This $10k cost is going to be a tough problem. The large number of parts don't come cheap and with more parts comes an attendant reliability risk. Still, GM has to start somewhere.

LATE THOUGHT:
How does that $10,000 break out? In the early days of automatic transmissions, it was common to find they added $1,000 to the price of a car and that was back when a dollar was worth a whole lot more. But I'm really wondering how that cost breakout works out?

GOOD LUCK!
Bob Wilson

The cost of the system is very high. That's probably the most accurate thing that anyone can say at this early date. I'm surprised that Autoweek took the $10K number and ran with it. If they ask someone else "close to the program" tomorrow, the number could just as easily be $8K. Or $12K. Or whatever K. As with most complex systems, 2-Mode systems have a lot of different parts, each with their own " economic cost inflection" points. In other words, they reach the point at which the cost of the component drops significantly at different volumes. The "$10,000 cost" speaks to a specific vehicle volume with assumptions around what various components COULD cost at those volumes. Learning curve effects will obviously bring that down over time. By "Learning Curve" effects, I mean the effects of cumulative volume plus the ability to find better / smaller / less costly ways of accomplishing the same purpose. $10,000 is more "ballpark" than "accurate".

Peace,

Martin

AshenGrey · #3 (**permalink**) 07-12-2007, 03:20 PM

I still don't understand why BAS costs $3k (and yet does very little) while Honda's IMA costs hundreds of dollars less and does a whole lot more.