GM confirms leasing lithium ion batteries for Chevy Volt and Opel Flextreme is a possibility
Remember the Opel Flextreme? We haven't heard too much about this version of the E-Flex platform with the Segways in the back since it was unveiled at the Frankfurt Motor Show back in September. But General Motors has repeated an interesting announcement regarding the high-tech lithium ion batteries in the Flextreme - and in the Chevy Volt - during the current LA Auto Show: the General is seriously considering leasing, not selling, the new and expensive batteries to consumers. So says Just Auto (subs req'd), which got the confirmation from GM today and adds that leasing the batteries would solve "a number of issues that would otherwise significantly slow their launch."
GM has been talking about leasing the batteries for these cars since at least August. In September, Nick Reilly, the president of General Motors Asia Pacific, explained that leasing costs for the batteries could cost as much as gas does today. Looks like this story is not going anywhere, which certainly hints that we'll be seeing it again in the future.
[Source: Just Auto]
Reader Comments (Page 1 of 1)
pedmac 4:55PM (11/15/2007)
they should stick with Nimh batteries they work (provern) .. safe and are much cheaper..
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Tony Belding 5:12PM (11/15/2007)
A confirmed possibility! Woohoo!
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Domenick 5:49PM (11/15/2007)
Meanwhile, many people might prefer to drive a $24,000 city car and pay only for the energy they use and not lose sleep about getting fleeced every month by an extra payment.
Why would GM want to lease batteries anyway? So they could get them back after a while to recycle them into more batteries? There are other ways of accomplishing that. Is it to make the car initially more affordable? With leasing, GM will have to shoulder a much larger percentage of the initial cost of manufacturing for longer.
Ideas?
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OhmExcited 6:10PM (11/15/2007)
My understanding is that the battery price tag is around $7000. Lutz previously said the car would be priced "nicely under $30,000". Now he is talking about less than $35,000:
http://www.economist.com/business/displaystory.cfm?story_id=10131608
I don't like the idea of leased batteries, because it sounds like hidden or inflated costs. I would prefer either leasing the whole thing or buying the whole thing.
So, what happens if you make your car payments, but let the battery lease lapse? Do they come to your house and repossess the batteries?
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Dave 6:42PM (11/15/2007)
"My understanding is that the battery price tag is around $7000. Lutz previously said the car would be priced 'nicely under $30,000'. Now he is talking about less than $35,000:"
Wow. $35k. And its gonna be built on the same platform as the next Cobalt/Astra.
Thats a $20,000 markup over its platform mates. And weaker handling/braking/payload due to greater weight.
A Cadillac Cimarron for the new millenium.
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rob 7:56PM (11/15/2007)
Here's a random thought...
Battery capacity is expensive. GM has very strong incentive to reduce the power requirements of the Volt. Which really means reducing the weight, lowering rolling resistance and aerodynamic drag to minimums
How strong?
If the car + driver is 3600lbs, and the battery is $7000, then not quite $2 just in battery cost savings for every pound they can take out of the vehicle (yeah, so the relationship is non-linear, I'm lazy, you're getting what you paid for this).
Figure in the reduced cost for lower power handling requirements in the motor controller, battery charger, electric motor, IC engine, etc, and GM
has incentives like never before to pay attention to component weights, to use integrative whole-vehicle design, and to get the weight back down to something rational...
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rgseidl 8:27PM (11/15/2007)
Leasing gets GM around the requirement that batteries have to last 10 years or 150,000 miles, whichever is greater. That stems from CARB's position that batteries are an emissions technology, which is arguably nonsensical in the case of a PHEV but there it is.
CARB is currently considering an update to its ZEV mandate to take PHEVs and other recent innovations into account. The rules are currently heavily biased in favor of FCVs.
Still, I'd be wary of *leasing* any part of any BEV from GM at this point. Once bitten, twice shy.
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kert 7:13AM (11/16/2007)
"many people might prefer to drive a $24,000 city car"
Incidentally, thats exactly the targeted price for Mitsu MiEV city car. By the time they ship, i would expect lower price announcements from their direct competition, Subaru and Nissan.
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David Scorca 11:04AM (11/16/2007)
Wow... so much guessing and not enough facts. Why doesn't some people just wait for Chevy to put a price tag on the car and then decide if they will buy it.
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mike baz 8:47AM (11/16/2007)
How's about this, if they're not going to sell a complete car, why not go all the way? Make the ICE optional (think of all the weight you'd get rid of) and let consumers buy their own batteries from the vendor of their choice. Just a thought.
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greg woulf 8:47AM (11/16/2007)
Lutz never said under $35k, he said under $30k, the expert estimate is under 35, which means nothing.
Nimh can't even come close to the requirements, and the phosphate Lith batteries are safe.
The positives about leasing batteries are:
1. Price matches regular cars, so people can afford them and financing companies will loan to buy.
2. Control the battery material. People are lax about recycling, but a $7k investment will ensure that it gets done.
3. It's more like gasoline, you'll have a monthly bill that's comparable, pay as you go, and not all up front.
4. Upgrades to the batteries will get done and implemented as part of good will.
negatives:
1. GM's rep with leasing might hurt sales.
2. They look for a profit in everything they do, that'll include leasing batteries. The overhead from the leasing will be added to the cost, even if it is built into the future.
3. Less home mechanic innovation
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rar 9:13AM (11/16/2007)
I would realy like to buy this car. If GM is leasing the batteries, I'm out. I guess I will have to buy a cheap throw-a-way car that gets good mpg instead.
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motorman 11:00AM (11/16/2007)
these cars are not being built to save you money,they are being built to keep you from having to buy so much arab oil. your transportation costs will continue to go UP just like everything else you buy. get used to it. it is still much cheaper to buy a old used car and put gas in it than buy a new car that uses less gas,simple math
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