GM Targets Greener Markets
GM has begun preparing to rollout its new electric plug-in Chevrolet Volt for the Canadian market next year. They have decided to target some specific markets: Montreal, Quebec City, Toronto, Ottawa-Gatineau, Vancouver, Victoria and Oshawa. GM decided to target these markets because the new car is best adapted to city driving, due to a short battery range of 40-80 kilometres. They have decided to target these markets because they believe that customers in those areas are willing to pay the premium for the environmental positives of the car. It is currently set to be priced at an expensive $41,000, although “fuel” costs for the car are estimated by GM at roughly 1/6 that of a comparable gasoline powered car in Ontario.
This is a good example to illustrate the planning involved behind unveiling a new product, and the potential risks involved in a firm moving from the core products they are known for. GM is famous for their gas-guzzling cars and has been focusing on the Canadian market as a potential base for re-imaging the company. To this end they sponsored the Vancouver Olympics with 4600 “green” vehicles. The Prius has managed to find good reception in Canada, but is the market for “Green” vehicles already saturated?
Source: http://www.theglobeandmail.com/globe-investor/gm-targets-green-canadians-for-volt-rollout/article1822914/?cmpid=nl-bizt1