Ford’s Transit Connect could give GM and the Chevy Volt a knockout punch

While other major car manufacturers are pulling the plug on new and existing models, Ford is looking to the future to launch new, fully electric vehicles. The expansion is no surprise; Ford, similar to GM, realizes future profitability is in electric cars, but with GM facing severe circumstances, they may now have a competitive edge in the electric car industry.

Currently, GM and Chrysler are fighting to stay afloat. According to a recent Associated Press report, GM has requested an additional $16.6 billion from the Treasury Department—a staggering number considering it has already received $13.4 billion in bailout cash.

The future of GM-designed electric cars is dependant on this cash. Since the Chevy Volt was introduced at the Detroit Auto Show a few years ago, it has been a highly anticipated vehicle. In fact, in a little over a year, 10,000 people signed up for the Volt waiting list to buy the vehicle. The Volt also brought optimism for other electric cars in years to come, but now, the future of GM is in the balance.

GM announced on its Volt site that it needs the $16.6 billion to turn a profit by 2011 and to keep its plan of introducing other electric vehicles to the market. Without the money, it may not be able to develop this new breed of electric cars, which in turn would lose the competitive edge it has in this niche—even with the new Volt. Worse yet, some reports claim Chevy’s plan for the $16.6 billion will not create the returns it claims.

Ford, in response to GM, is looking to get its fully electric van out by the second half of 2010. It also plans to release an electric vehicle every year after 2010 for at least three years. By partnering with Magna, Ford anticipates an electric vehicle that will get 100 miles on a full charge—about 60 miles more than the Chevy Volt. Additionally, the Ford Transit Connect van provides a spacious alternative to the Volt.

The competition among the “Big Three” has been ongoing for a long time, but the tough economic times paralleled with the movement towards green could give Ford an insurmountable edge in the auto industry. It may all come down to the $16.6 billion dollar loan.