GM and Chrysler struggle to make Fuel Efficient Cars

If Detroit’s makeover depends on shifting to a lineup of smaller, more fuel-efficient vehicles, then U.S. automakers are clearly failing. That’s the conclusion of the Obama administration’s automotive task force report on General Motors and Chrysler.

The continued reliance on trucks, SUVs, and bigger passenger shift in consumer preference to smaller vehicles. Additionally, while the Chevy Volt holds promise, it will likely be too expensive to be commercially successful in the short-term […]GM is at least one generation behind Toyota on advanced, “green” powertrain development. In an attempt to leapfrog Toyota, GM has devoted significant resources to the Chevy Volt. While the Volt holds promise, it is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable.
In a way, Chrysler is even worse, since it doesn’t have a Volt up its sleeve, the report noted:

On a standalone basis, Chrysler will struggle to comply with increasing fuel efficiency standards, and it may even have to restrict the sale of certain models to make sure it is in accordance with proposed standards.

All of that squares with noises coming out of Washington since the Detroit bailout dance began—a big part of Detroit’s transformation has to include greater emphasis on fuel-efficient cars. And since the government sets national fuel-economy standards, including the just-announced targets for 2011, that much makes sense.

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