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CNN Live At Daybreak

What's New at the Auto Show?

Aired January 07, 2003 - 05:44   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: And you have probably heard the argument that a war in Iraq is really about fueling the West's addiction to gas guzzling cars and SUVs.
CNN's Jeff Flock is covering the North American International Auto Show from Detroit this week. And here he looks at how one automaker is trying to wean us away from all that oil.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CORRESPONDENT: We are looking at a Saturn Vue. This is one of the models that is very soon going to be available in a hybrid. Now hybrid, just so folks don't know, it's both gasoline and electric?

RICK WAGONER, PRESIDENT AND CEO, GENERAL MOTORS: Right, it's two different propulsion systems. And in most configurations an electric motor along with the traditional gasoline motor.

FLOCK: Rick Wagoner is the President and CEO of GM. You're going to make how many hybrids by what date?

WAGONER: Well our plans over the next three, four years are to introduce three different kinds of hybrid systems on three different vehicle platforms. And what we're doing, interestingly, we're going to hit the middle of the market, the heavy -- the heavy side of the market, full size pickups, utilities such as this and midsize cars.

FLOCK: But now instead of buying a car that's a hybrid, and that's the only one I can get, you've got it as an option on multiple different cars?

WAGONER: That's right. That's the way we think we can take advantage of a new technology but build off our cost efficiency and consumer demand for some of our base products.

FLOCK: Now spin me around here, I'm looking at the base vehicle price, $27,500 for this one. How much more will this cost when it's a hybrid?

WAGONER: Based on today's cost situation, the cost of this kind of hybrid system would be several thousand dollars more.

FLOCK: Do I get it back on fuel economy because I do save money on gas?

WAGONER: Depends on fuel price. I would say at today's price levels, it'd be pretty close calculation. And our data suggests most consumers aren't willing to do that lifetime fuel saving calculation.

FLOCK: Now in terms of what the answer is down the road, it's not hybrids is it, is it fuel cells? What do you think?

WAGONER: Well I think -- we think it's a continuum. Improve the internal combustion engine, we're working on that. Hybrids in the -- in the interim medium period and then we think long term the right answer is going to be fuel cells. And so what we do to improve the technology of the vehicle with the hybrids helps get us ready for fuel cells.

FLOCK: Fuel cells is a ways out. You going to be retired by the time we get to fuel cells?

WAGONER: I hope not. That's not my plan anyway.

FLOCK: OK.

(END VIDEOTAPE)

COSTELLO: Oh no, he wants to reap the benefits.

Jeff will join CNN's "AMERICAN MORNING WITH PAULA ZAHN" two hours from now to talk about some vehicles that'll really give you sticker shock. Oh, like the $300,000 Mercedes.

JOHN VAUSE (ph), CNN ANCHOR: How does that drive?

COSTELLO: I'm sure it's a really rank car.

VAUSE: I thought you had one, oh sorry.

COSTELLO: Oh yes.

VAUSE: OK.

COSTELLO: Three hundred thousand dollars.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com







Aired January 7, 2003 - 05:44   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And you have probably heard the argument that a war in Iraq is really about fueling the West's addiction to gas guzzling cars and SUVs.
CNN's Jeff Flock is covering the North American International Auto Show from Detroit this week. And here he looks at how one automaker is trying to wean us away from all that oil.

(BEGIN VIDEOTAPE)

JEFF FLOCK, CNN CORRESPONDENT: We are looking at a Saturn Vue. This is one of the models that is very soon going to be available in a hybrid. Now hybrid, just so folks don't know, it's both gasoline and electric?

RICK WAGONER, PRESIDENT AND CEO, GENERAL MOTORS: Right, it's two different propulsion systems. And in most configurations an electric motor along with the traditional gasoline motor.

FLOCK: Rick Wagoner is the President and CEO of GM. You're going to make how many hybrids by what date?

WAGONER: Well our plans over the next three, four years are to introduce three different kinds of hybrid systems on three different vehicle platforms. And what we're doing, interestingly, we're going to hit the middle of the market, the heavy -- the heavy side of the market, full size pickups, utilities such as this and midsize cars.

FLOCK: But now instead of buying a car that's a hybrid, and that's the only one I can get, you've got it as an option on multiple different cars?

WAGONER: That's right. That's the way we think we can take advantage of a new technology but build off our cost efficiency and consumer demand for some of our base products.

FLOCK: Now spin me around here, I'm looking at the base vehicle price, $27,500 for this one. How much more will this cost when it's a hybrid?

WAGONER: Based on today's cost situation, the cost of this kind of hybrid system would be several thousand dollars more.

FLOCK: Do I get it back on fuel economy because I do save money on gas?

WAGONER: Depends on fuel price. I would say at today's price levels, it'd be pretty close calculation. And our data suggests most consumers aren't willing to do that lifetime fuel saving calculation.

FLOCK: Now in terms of what the answer is down the road, it's not hybrids is it, is it fuel cells? What do you think?

WAGONER: Well I think -- we think it's a continuum. Improve the internal combustion engine, we're working on that. Hybrids in the -- in the interim medium period and then we think long term the right answer is going to be fuel cells. And so what we do to improve the technology of the vehicle with the hybrids helps get us ready for fuel cells.

FLOCK: Fuel cells is a ways out. You going to be retired by the time we get to fuel cells?

WAGONER: I hope not. That's not my plan anyway.

FLOCK: OK.

(END VIDEOTAPE)

COSTELLO: Oh no, he wants to reap the benefits.

Jeff will join CNN's "AMERICAN MORNING WITH PAULA ZAHN" two hours from now to talk about some vehicles that'll really give you sticker shock. Oh, like the $300,000 Mercedes.

JOHN VAUSE (ph), CNN ANCHOR: How does that drive?

COSTELLO: I'm sure it's a really rank car.

VAUSE: I thought you had one, oh sorry.

COSTELLO: Oh yes.

VAUSE: OK.

COSTELLO: Three hundred thousand dollars.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com