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provided by GM and the facts obtained through GMs history, financial data and
market analysis.
Throughout all the questions and critics, GM maintained that the main cause of
EV1s discontinuation was a lack of consumer interest. However, in 2006, a Gallop
poll revealed that 33 million Americans were interested in purchasing an electric
car. According to another 1994 poll, conducted by the American Automobile
Manufacturers Association, Californias ZEV mandate had a 60% support rate and
nearly 30% of the respondents were willing to spend $20,000 - $30,000 2 for an
electric car. Critics claimed that GM pulled the plug on the EV1 due to the federal
governments ties to the oil industry as well as the fact that oil and gas companies
contributed over $46 million to the Republicans campaigns during 2000 and 2002
campaigns. Opponents viewed GM as a traitor a company that at one point was a
leader that inspired others to act on behalf of the environment rather than for its
own pockets3 to a company that chose to concentrate on the product that
ultimately was less risky and promised greater financial profit.
QUESTIONS
1. What killed the electric car, GM EV1, and how would you solve the
problem while not bankrupting your company? You can use Tesla as
a model for your solution.
13 Ibid
4