One does not need an MBA degree to understand that ‘Tough times call for tough measures’. To excel during tough times one also needs to indulge in cost-cutting. General Motors, which is currently going through ‘tough times’ intends to do that by developing their vehicular components in-house rather than sourcing them from others.
General Motors has officially announced that it will be manufacturing electric motors for hybrid vehicles in house from 2013. The American automotive marquee is currently sourcing the engines from various suppliers. The decision to self manufacture the electric engines has been taken to improve their quality, reliability and reduce the costs involved in making them. The manufacturer intends to invest to around $246 million for the purpose. As of now GM has not announced which manufacturing facility will be utilized for building their electric engines. The manufacturer intends to launch a hybrid vehicle in 2013 which will be powered its own electric engines.
During a conference call with reporters, Pete Savagian, Engineering Director for electric and hybrid vehicles, said that the company needs to not only buy the parts but also to really understand them. He also revealed that GM had started work on developing an electric engine in 2003 and will shortly become the first American manufacturer to build its own electric engines. The manufacturer has some prior experience in building these engines. It had developed one to power its electric car EV1 in the mid-90’s. In fact, the engineers which had earlier worked on that project have been roped in for developing their new electric engines.