This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cadillac ELR vs. Chevrolet Volt 2.0

Stocks in this article: GM F TM

So what about this new battery in the Volt 2.0? There are several variables GM needs to consider:

1. Chemistry. This is as totally unknown as can be. It's a main driver of cost. There is a tremendous amount of research and development in this area. GM's current supplier is LG, the Korean company, but GM also uses A123 -- now a Chinese company -- for the battery in the Chevy Spark EV, which enters production this spring. There is no insight into what GM has picked -- or will pick -- for the Volt 2.0.

2. Cooling/heating. One big driver of cost is how much active (liquid) cooling and heating the battery needs. The cooling/heating of the Volt/ELR battery is very elaborate, most likely the best in the business. This means more cost and weight, but also a chance that the battery will perform strongly not just 8 or 10 years from now, but 20 or 30 years from now. A new battery chemistry could reduce the need for this expensive cooling/heating.

3. Enclosure and placement:

A) Will GM use the current T-shaped enclosure? It could use the same one as the current Volt (and ELR). This one is proven. But if there's a new reduced need for cooling/heating, the enclosure of the battery must also most likely change, because it's possible for lower cost.

In other words, GM could still use a fundamental T-shaped battery, but it could be a new one. I think this is, at a minimum, very likely.

B) Placement: What if GM decides not to keep the T-shaped battery at all? What if it decides to layer it in the floor, just like the Tesla Model S? Then all bets are out the window.

Much will also depend on what GM thinks about the Volt being a "one-product car" or if it is going to be a family of cars. The current Volt is much-beloved by its owners, but many current and potential owners want additional body styles. Most people tell me they want versions of the Volt that fit five, six, or seven people -- not just four. They want good old-fashioned minivans -- with the Volt powertrain.

Even in a minimalist scenario, where the Volt continues to be "one model," GM may want it to fit five people instead of four. If so, it will have to ditch the T-shaped (or straight) tunnel battery in favor of an alternative placement. This makes some sense, in any case, as it would increase the appeal of the "basic" Volt model.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs