GM Hybrid Production Slowed By Battery Woes

Battery production problems have slowed production of General Motors' popular Saturn Auru and Vue models. The problems, which affected the 2007 Saturns, and require the automaker to replace the faulty power cells, have slowed production of the 2008 models of the same vehicles, along with the Chevy Malibu. To date, GM has sold only three dozen Aura hybids and 340 Vue hybrids in the 2008 calendar year.

GM describes the problem as an internal leak in the power cells of the nickel-metal hydride batteries. The leaks caused the power-surge capabilities of the batteries to drop, affecting the vehicles' low-speed hybrid performance.

Currently, GM gets battery packs for its hybrid vehicles from Cobasys, a joint venture of ECD and Chevron. Cobasys isn't on GM's short list of potential suppliers for the Chevy Volt, which will run on lithium-ion battery power. The production issue hits buyers at the same time that hybrid vehicle demand is on the rise. Toyota, which has the lion's share of the hybrid market, is also affected by battery production problems, which has forced that manufacturer to cut production of its most popular hybrid, the Prius, down to about one-third of the production capability of the Japanese automaker. Toyota has committed to building two additional battery plants to meet demand for the vehicle worldwide.

Source: Edmunds Inside Line