GM Remains Committed to Electric Vehicles

January 26, 2000

You may have become aware of some recent articles and radio broadcasts that imply that "GM has pulled the plug on Electric Vehicles". I want to assure you that those stories are not true.

GM remains committed to electric vehicles and we have not made any changes in our policies or plans that would warrant any new news. In short, we have not given up on the program as these stories imply.

The basis of the stories were apparently from comments made by Vice Chairman Harry Pearce at the North American International Auto Show in Detroit when he said that the company had sufficient supply of EV1s on hand and while GM could build more, there was "no particular need." I had hoped that the articles would have included a context reminding readers that we currently have a sufficient supply of vehicles already produced as compared to current demand.

Unlike more conventional vehicles, our EV1 production has always been built in batches or blocks of about 500 cars. We built Block #1 in 1996 for the 1997 model year. We built Block #2 in 1998 and 1999. While sales and marketing of the Block #2 vehicles continues, GM made a decision to utilize the space in the EV1 assembly plant for other production uses.

We have maintained all of the equipment and tooling for the EV1 -- none of it has been destroyed. The EV1 assembly line requires a relatively small amount of floor space and is designed with a freedom from many of the traditional complexities of high volume lines. For example, none of the assembly operations require trenches to be provided in the floor for under-vehicle access. Thus, we can reconstruct the production line should there be sufficient demand for additional EV1s.

The EV1 remains a key part of General Motors leadership position in technology and innovation. Further evidence of GM's commitment to electric vehicles is apparent in the introduction of the Triax concept vehicle where Gen III electric drivetrain components, based on EV1 advancements would be used for a ZEV as well as a hybrid electric vehicle.

General Motors has taken some proactive steps to counteract recently published negative press on the EV1. An example of this effort appeared in the Detroit Free Press (http://www.freep.com/business/ev15_20000115.htm) and on the home page of the Calstart website (www.calstart.org). The Sacramento Bee has already indicated that they would be among the first to reprint this Detroit Free Press article. In addition, the Los Angeles Times published a correcting article on Friday, January 21.

We are pleased that accurate information is now being presented. In addition to initiating these retractions, General Motors Vice Chairman, Harry Pearce, and Advanced Technology Vehicles Executive Director, Bob Purcell, conducted a follow-up conference to correct any mis-impressions on Thursday, January 20, with the following organizations:

GM remains committed to the EV1 and to the development of EV technologies. We are continuing to work on all aspects of the marketing plan to grow the owner base and generate more customer enthusiasm.

Ken Stewart
Brand Manager
Advanced Technology Vehicles