Though the economy is struggling and automobile sales have dropped significantly, General Motors Corp. and other auto companies continue to research and market for alternatively fueled cars.The decision to press forward with alternative fuel research programs comes despite GM, Chrysler and Ford’s pleas with Congress for a bailout package to avoid a possible bankruptcy.The cries for bailout from auto companies are far-reaching, and a rally was held last week in Shreveport to alert Louisiana senators of the complex turmoil that could stem from a collapse of the auto companies.”It’s like any other budget year,” said Britta Gross, GM manager of hydrogen and electrical infrastructure commercialization. “You have to decide what is most important and what has to be done. We have to decide what will be best for the future.”Gross said energy reduction cars, such as the Chevy Volt, must be a priority. From an energy and financial standpoint, it is the only way General Motors will become more secure, she said. Gross said the Chevy Volt, set to hit markets in 2010, is still on track, along with research and development for other energy reduction vehicles, such as ethanol, flexifuel, hydrogen and fuel cells.Jana Hartline, Toyota environmental communications manager, said despite the struggling economy, Toyota plans to open a new plant in Mississippi in 2010 and a battery research facility in Japan.”Our numbers are down comparatively from last year, as with any manufacturer right now,” Hartline said. “We’re still moving forward with research and looking to the future, even in these tough times.”James Richardson, public administration institute director, said the major hindrance to the auto industry is whether people feel comfortable buying vehicles from a struggling company. He said the purchasing of automobiles has decreased overall because people are now being more careful with money.GM plant employees in Shreveport, auto suppliers, state representatives, the Shreveport Chamber of Commerce and other prominent figures attended a rally Nov. 18 to persuade Congress to approve an auto bailout package.”The rally was to bend the ear of Senator David Vitter and Senator Mary Landrieu to let them know how important getting money is, not just to Shreveport, but to the whole system,” said Traci Murray, plant communications manager.Production was cut and the plant’s second shift, about 1,400 workers, was laid off in September, Murray said.She said upsizing back to two shifts may be possible if the economy picks up but depends on too many factors. The factory is only focusing on much needed government aid, she said.”The suppliers, as well as all people involved are affected, not just the big three,” Murray said. “It’s a lot more complicated.”Murray said the plant plans to shut down for two weeks in early January to match market demand. She said it’s unclear if the plant has plans for future closings.Bonnie McKneely, rapid response manager for LA Workforce, said plant employees from GM and four other supplier companies who were laid off are eligible for a variety of benefits, such as free education and training for other career paths.”I have no idea of the effect [of the economy] on the Shreveport plant if GM declares bankruptcy,” Murray said. “We’ll just have to wait and see.”Richardson said bankruptcy does not shut down a business — it only forces the business to reorganize. But bankruptcy puts a major strain on the business, he said.”People buy the most efficient cars when gas prices are up, but gas prices have come down,” Richardson said. “It’s a really complicated formula. Car companies have to decide what consumers will want both.”Richardson said low gas prices will help the economy, but consumers have to decide how long the prices will stay low and which car they want to be driving in the future.”Car companies have to decide what consumers will want, both now and five years from now,” Richardson said.Hartline said Toyota has not changed any marketing plans, despite the recent drop in gas prices.”We’re still working at improving for the future,” Gross said. “It’s important not to put all our eggs in one basket. We don’t know what it will look like down the road.”—-Contact Steven Powell at [email protected]
Research continues for alternative-fueled cars
November 23, 2008