GM may soon be feeling some of Chrysler's pain over bankrupt
suppliers. The CarConnection reports Cobasys, supplier of the NiMH
batteries used in the light-hybrid Vue, Aura and Malibu and holder of
"a key contract in the development of GM's much-anticipated plug-in
hybrid, the Volt," is out of money. The battery maker lost more than
$76m last year and expect to lose $82m this year. To make matters
worse, the company's joint owners, ChevronTexaco and ECD, can't agree
on the 2008 budget. So Cobays' operating budget is $92m short.
Cobasys is now on GM's "distressed supplier list;" the General refuses
to comment on the situation. In the meantime, GM has struck a deal to
buy batteries for its two-mode hybrid trucks from a Panasonic - Toyota
Note how it's ChevronTexaco who's putting the kibosh on Cobasys by
stalling their budgeting...another move by Big Oil to stop any move
toward electric propulsion dead in its tracks. A Democratic
administration will probably have the government take over funding of
NiMH development, thus ruining this attempt by Big Oil to "defund"
competition for their products into oblivion.
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