General Motors drives into its second century

General Motors Corp (GM) is preparing for its 100-year anniversary on September 16. As it prepares to enter its second century, the world's largest automaker surveyed issues that will likely shape global transportation in the 21st century.

GM sees a future dominated by two major trends. The first is the rapidly growing role and importance of emerging markets, led by China. The second is the need to develop robust alternatives to the automotive industry's traditional and almost complete reliance on oil to power vehicles.

Last year was the automotive industry's sixth consecutive year of record global sales. Nearly 71 million cars and trucks were sold, which represents an increase of about 24 percent in just six years - all attributable to China and other emerging markets. The growth and importance of emerging markets will only increase going forward, driven by demand among a greater number of consumers for personal transportation.

It is clear that oil alone cannot meet rising automotive energy requirements. As well, concerns about global climate change and worries about energy availability, cost and security are driving the need for an unparalleled transition in transportation fuel.

Energy diversity

To solve the problem of the automobile's 96 percent dependence on petroleum, GM has adopted a strategy focused on energy diversity.

A key element of this strategy is developing advanced technologies and vehicles that range from gasoline-friendly to entirely gas-free. GM today offers more fuel-efficient models, more hybrids and more E85 ethanol-capable vehicles than any other automaker.

GM believes that ethanol is the automotive fuel with the most potential to reduce oil consumption right now because it is renewable, reduces greenhouse gases, decreases dependence on imported oil and the technology is available today. The increased use of ethanol could slash oil demand considerably.

GM is equally convinced that as soon as the end of the next decade a large number of vehicles will be electrically driven, energized by electricity and ultimately clean-burning hydrogen. GM believes these two energy carriers are the right answer for several reasons: they can be used interchangeably, they can be produced from diverse energy pathways, they can be generated from renewable feedstock and they have the potential to displace a substantial amount of petroleum at an affordable price.

Just as importantly, electricity, hydrogen and electric drive are key enablers for the full electrification of the motor vehicle. They will revolutionize the DNA of the automobile, making it fundamentally better. As a sign that the future is near, GM has already begun demonstrating this new technology.

This is not technology that is confined to one market or one market segment, however. GM is tailoring these and other solutions to the countries in which it does business. In addition, GM is sharing its achievements and unmatched expertise with its friends and partners worldwide, including those in China.

In April, GM, Shanghai Automotive Industry Corp (SAIC) and Tsinghua University opened the China Automotive Energy Research Center in Beijing. The goal is to develop an automotive energy strategy tailored especially for China that will help move the nation away from its reliance on petroleum-based fuel.

GM is in the process of establishing the Center for Advanced Science and Research in Shanghai. This organization will carry out key research projects in alternative fuels, advanced alternative energy propulsion systems, and manufacturing and supplier energy efficiency.

New products in China

In conjunction with its flagship Shanghai General Motors joint venture, which launched its pioneering "Drive to Green" strategy in January, GM has announced ambitious plans to introduce in China a range of advanced vehicles and engines.

GM's first hybrid built in China, the Buick LaCrosse Eco-Hybrid, is due to come off the line in the coming weeks. GM is also committed to making China one of the first markets for the Chevrolet Volt plug-in electric vehicle, which is scheduled to go into production in the United States in 2010.

It is impossible to imagine what GM or the global automotive industry will look like in 100 years, any more than GM founder Billy Durant could have imagined the company's vehicles running on anything other than gasoline back in 1908.

One thing is certain. There will still be roads, but the vehicles on those roads will be greater works of art, power, fun and access than anything that exists today. General Motors is venturing into that frontier with an ambitious agenda. As it embarks on its second century, its plans are built on a clear understanding of the past and present, and a solid determination to maintain its role as an industry leader globally and in China.

(China Daily 07/04/2008 page23)