Hybrid and electric vehicles are far from becoming mainstream, so why are automakers throwing billions into a market that is anticipated to remain less than 10 percent of the industry in 2020?
According to analysts and the automakers themselves, it’s about making sure all areas of technology are covered, so if, or more likely when, a technology “breakthrough” occurs, they will be ready to quickly adapt.
“Nissan and their partner company Renault have spent more than $4 billion on electric vehicle technology and it remains to be seen if electric vehicles are the way of the future,” said Mike Omotoso, senior manager of global powertrain research at J.D. Power and Associates. “So, other carmakers have been more cautious and have spread their spending across hybrids, plugins and electric vehicles.
“they are kind of taking the latency approach to see what is the most successful before investing more money into one specific technology.”
This year, General Motors co. announced details of the all-electric Chevrolet Spark, along with a ramp-up in Chevrolet Volt production; Ford Motor co. is set to release its Focus Electric by the end of the year; and Chrysler Group LLC continues to develop and test its plug-in hybrid electric Ram 1500 pickup.
Omotoso said while each automaker is working on a different strategy — primarily fueled by government fuel economy standards — there is likely to be no one right, environmentally friendly solution for the near to mid-term.
GM appears to be leading the way with its technology in the Volt, which can drive up to 50 miles on battery power alone and then uses a small gasoline engine connected to a generator extend the driving range to about 300 miles; Ford has the best diversification strategy; and Chrysler – while not as involved as its counterparts due to bankruptcy, size and ownership – is making strides in fuel efficiency and is expected to release a Fiat 500 electric model next year.
Over the next week, MLive.com will examine the strategies of Detroit’s Big Three for hybrid and electric vehicles through a series called “Plugging-in.”
Monday– Plugging in: why are automakers spending billions on hybrid, electric vehicles?
Tuesday- Ford Director of Global Electrification Nancy Gioia discusses the Dearborn-based automaker’s ambitions for the electrification of vehicles and what customers should expect from the Focus Electric.
Wednesday- a look at how GM feels regarding its role-out of the Chevrolet Volt, along with the Detroit-based automakers plans for the Chevrolet Spark and EN-V.
Thursday- Abdullah Bazzi, senior manager of the Chrysler Group’s advanced hybrid vehicle project, talks about the Auburn Hills-based automaker’s fleet of plug-in hybrid electric vehicle Ram 1500 pickup trucks.
Friday- Tanvir Arfi, global president of SPX Service Solutions, which has deals with GM and Chrysler for the installation of charging stations, discusses the company’s reasoning for getting into the industry.
Saturday- An overview of the series, including test-drive reviews of some of the electric vehicles available today.




