Will GM finally go green?

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Eco-mobility
11/08/2010 11:34

By Aki Pagratis

In an attempt to refill its coffers and rebrand itself as an environmentally friendly company, General Motors Co. (GM), unveiled a new pod-like electric vehicle in Exo Shanghai 2010.

GM's New EN-V

GM's EN-V, or Electric Networked-Vehicle, is a 1.5 meter two-seater concept car that is both economical and environmentally friendly. But that is not all it does. The EN-V also offers drivers an ‘autonomous driving’ option, which uses a GPS system, digital maps, vehicle sensors, and cameras to pick the best routes and avoid accidents.

Definitely an “interesting” start for the struggling company, says Elizabeth Hirst, public relations instructor at McGill University in Montreal. “It kind of revived any respect I might have had for GM, which until recently has been behaving like a reactive dinosaur,” she said.

Not bad for a company that in September 2006, was sued by the state of California for producing cars that emitted over 289 million metric tons of carbon each year in the United States. That is nearly 20 percent of all carbon emissions in the United States. And as for California, the suit argued that GM was responsible for 30 percent of all carbon emissions in the state. The lawsuit was ultimately dismissed, but the trial was a public relations nightmare.

But things are different today, according to Kevin Wale, GM’s China president. “EN-V reinvents the automobile by creating a new vehicle DNA through the convergence of electrification and connectivity,” he said, in a statement. “It provides an ideal solution for urban mobility that enables future driving to be free from petroleum and emissions, free from congestion and accidents, and more fun and fashionable than ever before."

The EN-V is a positive step for a company that has often been criticized for both, its lack of foresight and its dismal environmental record. GM's insistence on producing large gas-guzzlers, when consumers were moving towards smaller, more environmentally friendly and economical cars, has hit the company hard in recent years.

Since the 1990s, GM has relied heavily on its SUVs as the main profit center. As a result, when the economy started to dive, the company followed closely behind. GM lost $18.8 billion USD during the first 6 months of 2008 and its stock dropped 76 percent by late October.

GM executives failed to hedge their bets to protect themselves from an economic crash and they failed to understand that the vast majority of today’s consumers expect more from their brands.

According to a nine-country survey, conducted by international public relations firm, Edelman, 85 percent of consumers around the world are willing to change the brands they buy to make tomorrow’s world a better place. And, 88 percent said it is their “duty” to contribute to a better society and environment.

However, it must be genuine, insists Hirst. “The main message that people like me want to get across to clients is that if you want to appear green you better be green. You can’t paper everything over,” she said. But the creation of the EN-V, she adds, “ shows they are listening. And, when companies respond to consumers, shareholders, public opinion, government, whatever it is, then that is good. That is corporate social responsibility.”

A price for the EN-V has not yet been set, but GM says will cost less than a small car but more than a moped. GM expects to role out the EN-V within the next 15 years.