General Motors: The Electric Revolution

Abstract

The recent explosion in demand for electric vehicles, fueled by both increasing gas prices and rising awareness of consumers to environmental concerns, has challenged traditional car manufacturers to explore alternatives to gas-powered automobiles. Of the new models presenting alternatives to traditional gas-powered cars, the award-winning Tesla Model S and Nissan Leaf have commanded the majority of the attention and sales in the electric car market. General Motors’ Volt, on the other hand, has seen lukewarm sales after missing its high production and consumption expectations. As the inevitable pursuit of sustainable solutions for energy use continues, GM is placed in a precarious situation. On the one hand, their attempts at entering the electric car market have been unsuccessful thus far. On the other hand, retreating from the emerging industry may be detrimental if gas-powered cars become vestigial in the future. Should GM simply continue to manufacture standard automobiles? Or should they invest further in electric vehicles, acquiring the necessary technology to compete with market leaders?