Potential Energy

GM Reveals Dismal Volt Sales in January

But is it a bad sign for electric vehicles?

Kevin Bullis 02/02/2012

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A Volt outside GM's headquarters in Detroit. Credit: Flickr / Landlessness.

Electric vehicle enthusiasts (and critics) are keeping a close eye on sales of GM’s Volt this year to get a sense of whether electric vehicles will really finally catch on. GM has said that it hopes to sell 30,000 Volts in 2012, which would mean selling, on average 2,500 a month. It’s far short of that pace for January having sold just 603.

The January figure markedly down from December, when GM delivered 1,520. But sales were actually up substantially from the same time last year, when GM sold 321 of the cars—however, at that time, the Volt was only available in a few states. 

GM didn’t meet its goal of selling 10,000 Volts during 2011, for a number of reasons. In fact, it’s still short of 10,000, with total deliveries of 8,600 vehicles since sales began at the end of 2010.

So, do slow sales in January mean GM won't reach its goal?

There are a number of factors that could explain the slow January sales. Customers hoping to get the Federal tax credit for the car for the 2011 tax year may have rushed to buy in December. Also, at the beginning of January, GM announced a retrofit that will make the car safer. The cars on the lots in January (about 4,400 were there at the beginning of the month) were not retrofitted yet, and the parts needed to do the retrofits weren't widely available. So anyone buying a car in January would have to take it back in a month or two to have the changes made. GM also announced in January that cars built later this year would have low enough emissions to qualify for driving in California’s HOV lanes, an attractive perk.

All in all, potential customers had a lot of reasons to wait until later this year to buy a Volt. It’s too early to call whether the company could sell 30,000 this year. It’s also too early to say how important sales of the Volt are, at least in terms of the overall prospects for electric vehicles. But I’d be interested to hear what readers think. How much is riding on the success of the Volt this year?

GM Sets a Price for the Volt

At $41,000, the Volt will be more expensive than a competing electric vehicle from Nissan.

Kevin Bullis 07/27/2010

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GM has announced that it will sell the much-anticipated Chevrolet Volt--an electric car with a gas generator for extending driving range--for $41,000, which is about what people had been expecting. The automaker notes that with a federal tax credit, the actual cost to consumers is $33,500.

GM starts taking orders for the car today. It will be available initially in California, New York, Michigan, Connecticut, Texas, New Jersey and the Washington D.C. area. To buy one, you need to go to a Volt dealer, which you can find at http://www.getmyvolt.com.

The car costs more than the Nissan Leaf, which is also coming out this year. That car will sell for $32,780, or $25,280 after the tax rebate. Both are far more expensive than GMs new, more fuel efficient sedan called the Cruze, which costs $16,995 and is similar in size to the Volt.

With the Cruze, you can get 40 miles per gallon (with the Eco version). The Volt offers 40 miles of electric range with a charge, and 300-miles more with a range-extending gas generator. The Leaf offers 100 miles of gas-free driving range between charges.

Mazda's Hybrid-Free Strategy

Mazda admits that it lacks the cash required to field its own hybrid technology.

Peter Fairley 03/30/2009

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Mazda's Tribute SUV uses Ford technology

Mazda R&D chief Seita Kanai confirmed last week that his company has no plans to commercialize its own hybrid technology, according to a report last week in Automobile Magazine. The Japanese automaker markets a hybrid version of its Tribute, a small SUV, which Automobile Magazine describes as a Ford-engineered system closely resembling the Ford Escape Hybrid. Kanai says that Mazda will instead achieve mandated fuel economy savings by improving engines and transmissions, and by redesigning vehicles to reduce their weight.

But Kanai also admitted that Mazda simply couldn't afford to field a hybrid. And he acknowledged that the resulting technology gap represented a worrisome problem for the company with many buyers enamored of hybrids. Here's how Kanai put it, according to Automotive News:

"We're in real trouble," Kanai said of the rapidly falling hybrid prices. "It's a threat. We don't have the resources to get involved in that kind of competition."

The company could be even further behind if one is to believe plans by automakers such as Nissan and Ford to aggressively push into fully battery-powered electric vehicles (EVs). Nissan is considering selling its first battery EV in the U.S starting next year--two years faster than it had previously planned, according to another report today from Automotive News.

Quoting Mark Perry, Nissan's U.S.-based product planning and strategy director, the report says that the rollout of Nissan's EV will track the rollout of charging infrastructure, city-by-city. Presumably a thumbs up from the Department of Energy on Nissan's request for loans to build an EV battery plant in Tennessee could also affect the automaker's appetite for taking a bet on EVs in the U.S.

Bio

Kevin Bullis is Technology Review’s energy editor.

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