No, a financial guy. The 'Conspiracy' Behind the EV Market. Take your favorite fandoms with you and never miss a beat. The EV1 would be the first GM car in history to wear a "General Motors" nameplate, instead of one of GM's marques. What was on the table for cutting, at least from the financial staff’s perspective, was EV-1. Ok, then what was the conspiracy inside GM led by the financial staff? Windows 10 is a Tool to Spy on Everything You Do, https://web.archive.org/web/20140105043545/http://www.owningelectriccar.com/electric-car-history.html, "World's first electric car built by Victorian inventor in 1884", https://www.telegraph.co.uk/news/newstopics/howaboutthat/5212278/Worlds-first-electric-car-built-by-Victorian-inventor-in-1884.html, Neue Presse Coburg: Elektroauto in Coburg erfunden (German), http://www.britannica.com/EBchecked/topic/182400/electric-automobile, https://conspiracy.fandom.com/wiki/Electric_car?oldid=12529. Plus, EV-1 was GM’s only bright spot. By: Charles Murray. The EV1 conspiracy discussed in the 2006 documentary “Who Killed The Electric Car” is at the least a bit interesting. found out about it they put a law in place forcing car companies to make 5% of their cars electric. If Stempel demonstrated he was unable to stabilize GM, would the financial staff be justified asking the Board to replace Stempel with a traditional finance guy in order to “save” the company? I reached the more sinister conclusion based on: (i) early training to be an actuary, which includes trying to find patterns out of seemingly random events; (ii) studying the history of General Motors; (iii) having worked with most of the financial executives involved. Periodically I write a “sense check” to assess whether in the next few years, a revolution in the US is still possible or whether the entire exercise is based on a statistical aberration — i.e., a roughly 50-year cycle between major upheavals in the US. There are two sides to the EV1 story — product and non-product. In the early 1990’s, the US economy slid into a recession. No-one saw EVs as being a profitable venture back then, and other manufacturers certainly aren't willing to take such a large uncalculated risk on bringing these vehicles to market. ( Log Out /  Many GM executives intensely disliked the EV-1 program and considered it a waste of scarce funds. Change ), You are commenting using your Twitter account. As GDP and personal income declined, predictably so did car sales. Like many efforts on the program, we broke the mold for what was considered a standard car brochure. Strangely enough, General Motors and several other companies sued C.A.R.B. Rally pics from Feb. 26. The Electric car conspiracy concerns how electric cars had been phased out, for at least a half-a-century, by Oil giants who engaged in underhanded tactics against motive power inventors. An example of the public support was the number of people who contacted the program seeking information. Over the next 18 months, the remaining 200-odd 1999 EV1 were released, a few at a time, to selected lessees, mostly high-profile celebrities and politicians. Amy thought we should have a different kind of brochure. No, a guy from the operating side. When the the California Air Research Board (C.A.R.B.) As someone who cut his teeth on the GM financial staff, I can sort of understand that view, although I do find baffling the lack of enlightenment about the non-product value that EV-1 generated for GM. Mar 24, 2014 - Explore Jean-Marc's board "G.M. At the time of EV-1, many electronic features carried a price premium. Consumers and conspiracy theorists alike saw this as an unusual move, to say the least, but despite the very niche market, slim sales figures, and declining interest, GM claimed they didn't think the EV1 was a failure. GM profits also fell. When finished with the assignment they sent us a copy. Llyod president of the C.A.R.B., an enviromentalist, took away the law citing Hydrogen fuel as the way of the future. As noted in an earlier entry, I think the multi-organization conspiracy theory presented in the movie is simply not true. Reset Password Register Login. About 1100 EV1's were produced by General Motors (GM) and leased to selected drivers at a monthly cost of $250 to $500. [4] Electric cars were among the preferred methods for automobile propulsion in the late 19th century and early 20th century, providing a level of comfort and ease of operation that could not be achieved by the gasoline cars of the time.[5]. Some of this erosion had been hidden by a number of accounting changes. My apologies. The EV-1 catalog, of course, was on recycled paper. All companies followed GM's lead. La GM rese disponibili, per il noleggio a lungo termine, oltre 800 modelli EV1 (delle circa 1 100 prodotte) con la previsione di ritirarle dopo tre anni di servizio. All companies followed GM's lead. Yet, the incremental cost to produce many electronic features was almost nothing. Even with all the other problems inside the company, GM’s public image continued to improve because of EV-1. While the EV1 gained a bit of a cult following, GM only sold 1,117 units over the course of 4 years, and determined that the EV1 did not present a sustainable business case. found out about it they put a law in place forcing car companies to make 5% of their cars electric. The firm kept a record of every contact. Unfortunately, the widespread interest in EV-1 fell on deaf ears inside GM. GM lost money on each EV1 it built, and not just pennies on the dollar. However, even that effort might not have overcome what seems to have emerged over time as the death knell of the EV-1 program. The series of entries — I actually do not know how many — will attempt to provide addition insight. Stempel had a stellar track record in operating roles at Pontiac and Chevrolet but no in-depth exposure to or understanding of finance. GM EV-1 was also tainted because Smith had it developed in secret by a company in California. Perhaps most interesting though is the GM Streetcar Conspiracy [3]. Despite the $34,000 sticker price, it's believed that each car actually cost GM between $80,000 and $100,000. I’ll do that in the next entry. Much of the development could be applied to and increase profits of other GM cars/trucks. Contact with the EV-1 group was not limited to the United States. GM EV-1 was also tainted because Smith had it developed in secret by a company in California. I’m not one of these people who believes GM killed the EV1 prematurely, or that there was some grand conspiracy. The EV1 … No surprise that Stempel was a big supporter of EV-1 since much of his career involved new product development. When GM hauled its EV1 fleet off to the crusher amid protesting consumers, the car became an automotive martyr and was used as evidence of a conspiracy against EVs. While Roger Smith’s follies festered frustration and anger toward EV-1, some of us on the program could have done a better job trying to convey the value of EV-1 to executives inside GM. The key issue left out was the cost of producing the EV1 electric car. Blomberg bloops on GM’s Volt. Part of the cause was frustration among many GM executives with 1980’s chairman Roger Smith diversion of cash from product development and marketing programs. With GM as its primary example, the film documents that car makers engaged in both positive and negative marketing of the electric car as its intentions toward the car and California legislation changed. The Day the Music Died. The advertising manager on EV-1 was Amy Rader, a history major from Princeton. However, the EV1's were unsuccessful due to limited range capabilities. But did that matter? The second reason for the “cost-center” claim is more sinister and one I’ve never heard discussed publicly. What did kill the EV1 was dynamics inside GM. Each entry assumes there has been a 5th revolution in the US — the Revenge Revolution. Who was chosen to be president? If you were a first-time caller, you also received a response letter written on executive stationery, which I hand signed with a fountain pen. Who was chosen to succeed Roger B. Smith as chairman? The shelving of GM's EV1 project has widely been thought of, and accepted by the GM top brass as one of the company's biggest mistakes. A movie, “Who Killed the Electric ar?” was centered on the EV1. The acceleration of electronics should have been fully supported by the financial staff…but it wasn’t. The primary contact was via an 800# and some contact by snail mail. And who doesn’t remember which brand cars/trucks were “cool” when they were 15 years old? With that understanding, these executives knew the next chairman of GM would have a very rough time trying to stabilize the company and trying to rebuild earnings. The advertising campaign was small and less than great. An example – during a meeting I mentioned EV-1 was generating a high level of interest among teenagers. But there's a difference between campaigning, and conspiracy. In the early 90s General Motors began developing the EV1, an electric car. Before that GM was blamed for the deaths of over 2,000 people in what became known as the saddlebag fuel tank cover-up. Product programs and marketing programs at the car divisions had already been raided to fund Roger Smith’s various projects. The GM EV1 is the one example of a car hitting a technological wall so hard that it actually caused public outcry. The new nickel-metal battery technology didn't improve the EV1 as expected, and the program was just a tad before it's time. In earlier days, GM ran Super Bowl commercials produced by Industrial Light & Magic (ILM) for the EV1. I’m not one of these people who believes GM killed the EV1 prematurely, or that there was some grand conspiracy. Ford released the Th!nk and other companies, including Toyota, released electric cars as well. The 800# was staffed by a firm which I had used at Buick. Reasons and conspiracy theories about GM pulling the plug on the EV1 project are abound, but the company did have some very real reasons for shelving the project. As described in previous entries, there was a dichotomy on the GM EV-1 program. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. An operating guy? The public, the media and most government organizations were interested and viewed very positively GM’s efforts to develop and introduce an electric vehicle. GM EV1 Owners. Maybe a bit Machiavellian? The EV1 became mildly popular, with celebrities such as Tom Hanks and Mel Gibson leasing them. It shows the usual nauseating network of silver-haired execs, lobbyists and politicos, but gives some emphasis to George W Bush (a quack salesman for hydrogen cars) and Alan Lloyd, chairman of the California Air Resources Board (CARB), 1999-2004. General Motors responded with the EV1, an electric car poised to be the first car in almost a century not powered by fossil fuels. GM has discontinued it's electric vehicle program, and is in the process of gathering up most of the 1160 EV1's that were produced. Despite some proclamations from GM, demand for the car did not kill it. Hard to imagine now but true, no internet. Work on the GM electric car program continued after the end of PrEView. One day we received a package from a group of high school students in Bulgaria. The truth is it was a cramped, two … Change ), #350: GM EV-1: Story behind the Story. In 1999 an improved GenII of the EV1 is released with an optional Nickel-Metal Hydride (NiMH) battery, which extends the range up to 140 miles. Actor/writer Peter Horton brought up many interesting issues in his article "Peter Buys an Electric Car" (June 8). Once released GM soon seems to loose interest in promoting the EV1. As noted in an earlier entry, during the 1980’s Smith purchased Hughes Electronics, Electronic Data Systems, stock held by Ross Perot associated with EDS purchase. With the opportunity to use electronics to increase profit margins on most every car and truck, why was the financial staff so emphatic that EV-1 was a cost center? Closing Saturn, even though it was bleeding cash, would have been a PR disaster. And why? It was not uncommon to return from a week-long business trip and have a stack of 300-400 letters delivered to the house waiting for me to sign. GM would then contact those on the list and tell them all of the limitations of the cars, something most retailers and car manufacturers would never do. The Day the Music Died. “You wrote me a letter.” Then often as not the person would reach into the desk and retrieve the letter. A financial guy? A petition, initiated because a section of utility bills were going to pay for Charging Stations, was being made by Oil Companies. Plus, the diversion of cash for Smith’s various projects, especially Saturn, meant GM had no cash reserve. Did this letter writing effort have an impact? Did the senior financial executives setup Stempel, knowing GM earnings would be rocky the first few years post Roger Smith? So much so that EV1 fans start to promote the vehicle themselves. All companies began viciously destroying all the electric cars they built and not letting any of their customers buy them. Very little has been written about how decisions made inside GM during the 1980’s influenced the fate of EV1. The “cost-center” view may have been a cover for at least two other actions. My sinister view is the EV-1 happened to be a convenient mechanism for implementing a conspiracy by the financial staff. Was there really a coup d’état at GM? Entry #346 started discussing another project that continues to generate considerable interest — the GM EV1, the first modern electric vehicle, which was introduced more than 25 years ago. For maybe 10 years after the program, I would be introduced to someone who would say, “Oh, I know you.” I would ask how they knew me since we were just introduced. The new president, Jack Smith (no relation to Roger Smith) was the quintessential finance guy with almost no experience in US operations that would help him understand how the operating divisions and the supporting dealer organization worked. The first was that GM kept claiming most, if not all development cost associated with EV-1 had no other application. There are two sides to the EV1 story — product and non-product. The cause of death was the view by the financial staff that EV-1 was nothing more than a cost center. Former GM EV1 owners, please post photo of you and your EV1 and say what you are driving now. Smith replied, “15 year-olds don’t buy cars!” True, but just from a pure economic standpoint that 15 year-old will likely purchase at least 10 cars/trucks in his or her lifetime, and probably more. In my view, the non-product side of the story is far from complete, and what’s been told so far is misleading. Who knows where we would be if GM didn't stop the EV1 program. (Part 5 of 5) | usrevolution5. GM didn’t sell the car, but they leased it, calling the experimental car’s first users “beta-testers” rather than customers. See more ideas about general motors, electric car, electric cars. So, was there really a conspiracy? Somehow they’d heard about the program (remember pre-internet) and completed a class assignment centered on the EV-1. Over roughly a two-year period, I signed about 25,000 letters. Also, Smith diverted a huge amount of cash to start Saturn. Higher-level finance executives knew that actions during Roger Smith’s reign had seriously eroded GM’s earning power. The product side has been reasonably well documented. The film castigates automakers, oil companies, ... as a groundswell of demand for the GM EV1… (Part 5 of 5) | usrevolution5. Former EV1 drivers continued to offer to purchase their cars for cash for years. The product side has been reasonably well documented. ( Log Out /  for making the law forcing them to make the cars they already were making. Motive power technology ("non-gasoline" or "green" technology) threatens oil companies, and threatens the Petrodollar. Automotive. Change ), You are commenting using your Google account. Nextgen User Login. GM had dismantled the EV1 supplier and manufacturing plant in 1998, it was reported by GM insiders; the only question was who would be allowed to lease the already-built EV1. More about the Revenge Revolution, a list of earlier revolutions and the author, Entry #1. Most recent sense check, Entry #332. And there is the disquieting coincidence that the month after GM bought the Hummer brand from AM General Corp., GM canceled the EV1 program. But "Killed" plays way too loose with the facts. And after a strainful wait, they got to lease the car; there was no option to buy it outright. There might be something to the General Motors Streetcar Conspiracy, and oil companies definitely campaigned against the GM EV1. GM. EV1", followed by 525 people on Pinterest. Who knows where we would be if GM didn't stop the EV1 program. Unusually, GM was used as the brand name for the EV1 built between 1996 and 2003, ... which led to all sorts of conspiracy theories about why the company would do such a thing. Inside GM, the view was just the opposite. Frus- trations with earlier decisions and politics inside GM … Project HAARP Is The US Controlling The Weather? Posted by Jordan Abel in Corporate Policy, General Motors, Personal Stories, Uncategorized. The EV1 getting canned was one of the driving forces behind Eberhard and Tarpenning founding Tesla though. However, cutting EV-1 made little economic sense. Read the latest Gm Ev1 news and browse our full collection of Gm Ev1 articles, photos, press releases and related videos. Guarnieri, M. (2012). Stay tuned. Conspiracy [edit | edit source] In the early 90s General Motors began developing the EV1, an electric car. Since the assumed breakthrough in battery technology did not come through in time, the impracticality of the car increased on account of low travelling ranges and lengthy recharge times. Perhaps most interesting though is the GM Streetcar Conspiracy … Only about 100 EV1 are left in operation for further research by GM. I agree and understand that sometimes immediate needs for cash overtake future considerations, even if the long-term consequence may be negative. Pingback: #350: GM EV-1: Story behind the Story. Robert Stempel, who was chosen as chairman to replace Roger Smith, was the quintessential engineer. For many inside GM, those 10 years could have been titled "The Decade of Sour Grapes." Like every circumspect car company, GM considered electric cars for decades before launching the EV1 in 1996. Before that GM was blamed for the deaths of over 2,000 people in what became known as the saddlebag fuel tank cover-up. Heartbroken EV1 leasees actually conducted funeral services for their cars and conspiracy ... GM considered electric cars for decades before launching the EV1 in 1996. In the late ’60s, GM collaborated with Boeing to build electric Lunar Rovers to support Apollo missions. Readers: this blog is set in the future (sometime after the year 2020). This would gradually be raised up to 25% over many years. All the EV1's were destroyed by General Motors except for several which were deactivated and sent to museums. In 1884, over 20 years before the Ford Model T, Thomas Parker built the first practical production electric car in London in 1884, using his own specially designed high-capacity rechargeable batteries. The dynamics are rarely, if ever, discussed. The EV1 getting canned was one of the driving forces behind Eberhard and Tarpenning founding Tesla though. By the end of the 1980s electric vehicles had taken baby steps towards becoming practical. I like to remind people that even though GM eventually cancelled EV-1, one the major benefits of the program was accelerating the use of electronics in vehicles. Instead, it rests on half-baked left-wing conspiracy theories. Stempel faced another problem, which was not unexpected. The EV1 conspiracy discussed in the 2006 documentary “Who Killed The Electric Car” is at the least a bit interesting. The Conspiracy Wiki is a FANDOM Lifestyle Community. SOPAN SHARMA ET Bureau Oct 23, 2008, 04.36 AM IST A 1996 GM EV1 Electric Car Is Shown At The GM Heritage Center In Sterling Heights. Change ), You are commenting using your Facebook account. Most people seemed to retain the EV-1 brochure, which was sent along with the letter. The series will be a good diversion from the madness in Washington and offer a good lesson or two, I hope. This would gradually be raised up to 25% over many years. 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