UPDATE 2-GM hiring to push electric effort beyond Volt

* Adding 1,000 engineers, researchers in 2011-2012

* GM plans Volt, Ampera exports from Michigan
(Adds quotes from CEO and product development chief)

By David Bailey and Bernie Woodall

DETROIT, Nov 30 (BestGrowthStock) – General Motors Co (GM.N: ) said
on Tuesday it would hire 1,000 engineers and researchers in
Michigan over the next two years to develop more electric cars
and hybrids as it launched its battery-powered Chevrolet Volt.

“Volt clearly demonstrates that we are well on our way and
it is especially true when it comes to the electrification of
the automobile,” GM Chief Executive Dan Akerson said at a
ceremony marking the imminent shipping of the plug-in hybrid.

The Volt, which tops the Toyota Prius for fuel economy, is
a first-of-its-kind vehicle that GM has touted as a symbol of
its commitment to pushing for gains in fuel efficiency and
developing new technology.

Akerson drove on stage in the first commercially made Volt
for the event at the assembly plant that builds the car, three
years after GM announced the closely watched project.

Akerson said GM wanted to be in the forefront of new
vehicle technology — starting with the development of powerful
battery packs and electric motors — that promises to reduce
oil consumption.

The Volt is designed to run for 35 miles (56 kilometers) on
a full charge of its 400-pound (181 kilo) lithium-ion battery
pack supplied by a unit of Korea’s LG Chem (051910.KS: ). After
that, a 1.4-liter engine extends the driving range to about 379
miles (610 kilometers).

Some critics questioned whether the Volt would survive GM’s
restructuring in bankruptcy in 2009 because of its high cost
and the low profit margin on the first shipments of the $41,000

“Given everything that GM has been through in the last
several years it would have been easy to let the Volt die, but
you didn’t let that happen,” Akerson told employees on Tuesday,
adding that it would have been easy to scale back plans.

GM North American chief Mark Reuss compared the Volt
development to a NASA “moon shot” that included over $700
million in investment in jobs and plants in Michigan.

GM will begin shipping the Volt in limited numbers in
December. It plans to expand Volt shipments to more U.S.
markets in 2011 and to export the vehicle, Akerson said.

Volt exports to Europe are planned to start in 2012. GM
plans to export the Opel Ampera — sister car to the Volt —
from the Michigan plant to Europe starting in late 2011.

As the first Volts head to dealer showrooms in December,
the automaker is working on the next two generations and ways
to reduce their costs.

The Volt, which has won honors as Motor Trend Car of the
Year and Green Car of the Year, is the first of several
electric or partly electric cars automakers will begin selling
over the next two years.

The growing segment includes the all-electric Nissan Motor
Co (7201.T: ) Leaf and upcoming rechargeable cars from Toyota
Motor Corp (7203.T: ) and Ford Motor Co (F.N: ).

GM plans to build 10,000 Volts next year, another 45,000 in
2012 and has already started to discuss internally ways that it
could increase the production should there be more demand.

“I think that I have enough time that if there is a big
enough pull, I will be able to put not just an increase, but
I’ll be able to deliver significant increases,” GM product
development chief Tom Stephens said of Volt production.

GM introduced a concept version of the Volt at the Detroit
auto show in 2007 and started production this month at a plant
that straddles Detroit and the city of Hamtramck, Michigan.

The automaker started development work on the vehicle that
would become the Volt in 2006 at the urging of then product
development chief Bob Lutz.

Lutz was a special guest at the event on Tuesday, the first
major event for GM since its record-setting $23 billion initial
public offering of shares earlier this month.

GM shares were priced at $33 in the IPO. The stock has
flirted with falling below the IPO price and was trading at
$33.86 Tuesday on the New York Stock Exchange.
(Reporting by David Bailey and Bernie Woodall; Editing by Tim
Dobbyn, Phil Berlowitz)

UPDATE 2-GM hiring to push electric effort beyond Volt