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General Motors (GM) continues to face mixed prospects about its future, with ambitious goals that are coupled with financial instability.
The company generated considerable media attention this week with the announcement that it would open a new factory in Michigan to handle batteries for the Chevrolet Volt electric car and other upcoming models.
At the same time though, an Associated Press report noted that the company may need $4.6 billion in additional federal loans if its financial situation does not improve before long. The wire service also noted that GM officials expect the planned factory to have an economic ripple effect in Michigan by attracting other companies that create parts for electric and other advanced vehicles.
GM and the other members of the Big Three automakers, Chrysler and Ford (F) faced heavy criticism late last year for failing to develop next-generation vehicles as they appealed for federal funds to stay afloat. Even with the Volt on the horizon, the company will continue to face heavy competition from Toyota and other rivals.
The Volt is expected to be able to travel 40 miles on an electric charge, within the range of the average commute. However, Toyota (TM) generated its own buzz at this week's North American International Auto Show with the unveiling of an improved Prius hybrid that will get up to 50 miles per gallon.
GM faces mixed prospects
General Motors (GM) continues to face mixed prospects about its future, with ambitious goals that are coupled with financial instability. The company generated considerable media attention this week with the announcement that it would open a new factory in Michigan to handle batteries for the Chevrolet Volt electric car and other upcoming models.
At the same time though, an Associated Press report noted that the company may need $4.6 billion in additional federal loans if its financial situation does not improve before long. The wire service also noted that GM officials expect the planned factory to have an economic ripple effect in Michigan by attracting other companies that create parts for electric and other advanced vehicles.
GM and the other members of the Big Three automakers, Chrysler and Ford (F) faced heavy criticism late last year for failing to develop next-generation vehicles as they appealed for federal funds to stay afloat. Even with the Volt on the horizon, the company will continue to face heavy competition from Toyota and other rivals.
The Volt is expected to be able to travel 40 miles on an electric charge, within the range of the average commute. However, Toyota (TM) generated its own buzz at this week's North American International Auto Show with the unveiling of an improved Prius hybrid that will get up to 50 miles per gallon.
