Chevy would love that association — that by buying a Chevy Volt you’re acting patriotic, supporting a product and energy produced in America while reducing dependence on foreign oil. And if enough people believe it, Chevy could slingshot itself out of the automotive industry’s recession by riding on the burst of marketing hype surrounding the Volt.

The fact is, the Chevy Volt would be insanely popular right now, but the 2010 debut target opens a gap large enough that other technologies or companies could fill demand in the meantime. GM is already tied with Toyota and says that financially:

If current adverse economic conditions persist or deteriorate further, we would consider a wide range of possible actions to reduce our funding needs and to obtain additional liquidity, according to Bloomberg.

After three years of posting annual losses, GM needs to find other ways to fund its research. That’s making some Chevy Volt fans nervous that funding for research and development of the car is in danger, turning away from the Volt now would be a disaster for GM.

Especially when many Americans who previously wouldn’t consider buying a GM car are changing their minds because of the Volt.

Right now Chevy is enjoying excited chatter on the web as bloggers and anyone who drives talks about the possibility of buying an American car that’s gas-efficient.

Imagine that.

In the midst of it all, GM is also dealing with an unhappy workforce.

GM said last week that it may pay $200 million to help end an 11-week-old strike at American Axle & Manufacturing Holdings Inc. that has idled all or part of as many as 33 GM factories. The United Auto Workers walkout at American Axle, which began Feb. 26, cut the automaker’s output by 230,000 vehicles through April and cost $800 million in the first quarter, GM has said.

Related:

Entry was posted on Thursday, May 15th, 2008 at 7:14 pm under Green Technology, Opinion.

Read more entries by Matt Jansen.
Stumble It!