Why the Volt Will Fail Miserably & Completely
Friday
Jul 30, 2010
A terrific article in today’s New York Times by Edward Niedermeyer prompted me to document my own belief, from the day I heard of GM’s announcement of their eco-friendly Volt hybrid that it would be a massive and historic commercial failure.
There may be no single automobile ever made that has garnered as much positive press and unfettered support from the press, the green lobby and the government. They desperately want the Volt not only to succeed but to be a game changer, a tipping point in the auto industry.
And I’m here to tell you it won’t be a game changer. It will tip no points, and it will end up losing massive sums of money.
It would be hard for any product to live up to the anticipation and hype that’s surrounded the Volt. The Volt’s been assigned messianic status in the auto industry, preordained to be the savior of GM, the transformer of all transportation and the harbinger of an entirely new way of thinking in the auto industry.
But the Volt has been destined to fail from day one. Rather than asking their designers to make an already developed idea more attractive to consumers, GM should have asked them to create ideas that better meet consumers’ needs and desires. The former role is tactical, and results in limited value creation; the latter is strategic, and leads to dramatic new forms of value.
Their objective from the start shouldn’t have been limited to the objective of building a new hybrid car, but to create new interactions, entertainments, immersive, emotional activities that are embodied in an entirely new way to travel.
But GM is not a strategic, design-centered company. They’re a tactical company that has never demonstrated a capacity for design brilliance or its commensurate risk taking.
Want proof? Take a look at the actual Volt that they’ll be attempting to sell this fall for $41,000. It’s nothing more than a Toyota Prius with a $15,000 Chevy bowtie on its grille.
Contrast this bland design with the original concept car. It was bold, it was edgy, it stood out and made a statement. So, of course, GM had to assign some internal committee to tone it down a little. After all, they want it to appeal to the largest audience possible.
Their design killing efforts proved Mark Twains adage that “I cannot give you a formula for success, but I can give you a formula for failure, which is: Try to please everybody.”
I believe that brands are the promise of an experience. Great brands can project our hopes and dreams and aspirations. They broadcast who we are and what we believe.
So what is it that GM wants to convey with this rolling testament to corporate mediocrity that hasn’t already been captured and owned by the Prius?
Beyond the branding and design failures, GM has to overcome enormous financial, technical and practical hurdles that all conspire to doom the volt.
It’s expensive at $41,000 – which doesn’t include the price of the $2000 charger you’ll need in your garage.
Its electric motor range of 40 miles is virtually guaranteed never to be met in real world conditions. Subtract mileage when it’s cold or when you’re operating the AC or the radio.
And, when its battery needs to be replaced, get ready for the $8000 sticker shock.
The Volt is a corporate response to political pressures. It validates the contention that great design and revolutionary concepts don’t emerge from corporate boardrooms and government bureaucracies. The Volt is exactly what we would expect from Government Motors, and that’s the tragedy.
Imagine what could have been produced if Apple were to design a car from scratch. Or if Google teamed with Ideo to create a new commuter vehicle. I don’t know what they would conceive, but I do know one thing for certain: it wouldn’t be the Volt. And it wouldn’t require hundreds of millions in subsidies to attract buyers, and it wouldn’t be conceived without considering alternative green technologies that could be integrated into its design.
If the Volt symbolizes the new GM and the new Michigan, as Michigan Governor Jennifer Granholm claims, pray for GM and Michigan.

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