General Motors announced its plan to boost its diesel and lightweight continuously variable transmission technology to outplace the sales of Volkswagen and to fulfill the standards of the fuel economy on Monday after advancing 1.52 percent during the last session.
Speaking from the Center for Automotive Research's Management Briefing Seminars, GM's vice president of global propulsion systems, Dan Nicholson expressed his enthusiasm about the newest development planned by the company.
“I am very optimistic about the diesel market in the U.S. It has been abandoned by others and we are happy to step in and be the leader. Frankly that's what we'd like to do.”
Mr. Nicholson admitted that the upcoming standards will be a challenge for the company but General Motors could possibly meet the requirements.
"I think the U.S. is one of the few diesel growth markets on the planet. There are a lot of diesel intenders and diesel-loyal people who are looking for a brand and vehicles to go after. They tend to be more tech savvy than the average customer. And they won't stop wishing for a diesel. And we'll go after those customers.”
Volkswagen Clean Diesels
Prior to the announcement of GM, the company’s competitor Volkswagen had dismissed its plan to launch clean diesels again. Hinrich Woebcken, CEO of Volkswagen Group of America told the press that Volkswagen would step away from its clean diesel brand identity. Volkswagen used to have a significant rally of diesel car sales before the emissions-cheating scandal it got involved with.
Mr. Woebcken noted that Volkswagen would have a hard time meeting the emissions standards and to certify for U.S. sale, however, the company will use diesels probably in 2019 when the situation gets better.
General Motors on CVT
Apart from the diesel engines, General Motors also indicated an increase of interest with continuously variable transmission or CVT, after its Chevrolet Spark. In line with this, the American automotive company needs to look for potential supplier or source of CVT.
“We're relatively bullish on CVTs. We're optimistic about CVTs in the U.S. market for front-wheel-drive applications up to a certain weight level. You will see more of that from GM in the future," Mr. Nicholson said.
Nicholson failed to mention if the company would eventually make its own CVT and if it has any plans plan securing a partnership from other automotive companies, instead GM prepares for its dominance in this field.
“We are happy with the product we are buying today. It is enjoying good success in the marketplace. We usually look at make-versus-buy and volumes.”
Shares of General Motors Company changed 1.52 percent higher or 0.6 to $30.80 with a market capitalization of $48.84 billion. General Motors had a dividend yield of 4.94 percent and a price earnings ratio of 3.9 percent.
Meanwhile, Volkswagen AG Preference Shares added 1.21 percent to € 125.55 with a market capitalization of €65.20 billion and a dividend yield of 0.14 percent.