GM CEO Wagoner declares that EVs must be affordable to the masses
Speaking to the Commonwealth Club of California this week, GM CEO Rick Wagoner told the gathering that in order for electric cars to make a difference in global warming it will require large numbers of them to be deployed at prices that mainstream buyers can afford. While a few hundred Tesla Roadsters or Fisker Karmas may make the owners feel better about themselves, in the U.S. vehicle fleet of 200 million vehicles they they won't make any real measurable difference in the grand scheme of things. To make a significant impact on fuel consumption and emissions, millions of cars and trucks every year need to be more efficient. However, that can only happen if those vehicles are affordable to average car buyers.When Wagoner was asked why it's taking as long as it is to bring the Volt to market he explained that it's a lot harder to create a viable $20,000 electric car than one that costs $100,000. Nonetheless it has taken Tesla almost as long to bring the Roadster to the street as GM will have spent on the Volt program. We still don't know how much cars like the Volt will cost consumers or GM when they launch, but one thing is certain: they won't be $20,000. Someday, the price may get closer to that price but that will take time and some serious battery cost reduction. In the meantime, parallel efforts to create large numbers of other kinds of more efficient vehicles will have to continue. That's why companies like Ford are pushing forward with smaller turbocharged engines that are lighter and relatively inexpensive. They can put hundreds of thousands or millions of these on the road annually at prices the masses can afford.
[Source: Automotive News - Sub. req'd]
Reader Comments (Page 1 of 1)
Mark 9:26PM (5/03/2008)
Finally someone in the business that actually understands. People want to be able to *afford* electric cars. So far the only available electric car is as expensive as a house, and all 'conversion' kits for the Prius are as much as the original car itself! Plus any start-up electric car company coming around seems to think the masses can afford a $98,000 dollar electric car.
Electric cars *need* to be under $25,000 before people can justify buying one.
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Dave 10:36PM (5/03/2008)
Affordability - priced for the masses, that's the key, however not a new concept. The most recent example of demand going through the roof as soon as prices came down to affordable level are flat screen televisions. About eight or nine years ago a 42 inch plasma flat screen was ten thousand dollars now they are about nine hundred dollars for an entry level model. I think that right now EV's are priced for early adopters that have the money to pay the high prices. My gut tells me it will be a few years before we can by a decent one for say 25K.
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stevefazek 1:39AM (5/04/2008)
Just dont listen to GM remember this is the company that 20 years ago said toyota and honda will never pose a threat to them
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kert 5:33AM (5/04/2008)
Well, why wouldnt GM rebuild the 2nd gen EV1s with the series hybrid powertrain today ? Certainly, the components themselves werent that expensive in the prototypes.
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andrichrose 10:56AM (5/04/2008)
Well Rick we are waiting ! may I suggest that you stop wasting
time at country club dinners , and get on with the job in hand!
And while your at it, maybe you would consider making the EV1
again .
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Bruce 11:22PM (5/04/2008)
Remember GM and the White House killed the EV in California. Auto makers in general are dragging their feet on the EV issue because it will mean an end to the profits made on Internal combustion engine vehicles. The EV revolution has started and the days of the ICE are numbered.
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Azrael4h 12:17PM (5/04/2008)
Not only do they need to be affordable to the masses, they need to be practical as well. The EV1 was not practical, and would not sell in quantity. An Electric version of the Astra, on the other hand, with around 100 mile range, would have me installing the 220v plug by the end of the day, just to get ready for it.
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evster 1:05PM (5/04/2008)
Azrael4h,
GM could produce both the EV1 and EV1 hybrid. They had a working hybrid prototype of which was made more than 10 years ago. Why not just bring that in to production? It's in demand. I look for a hybrid and you have two options, prius or civic hybrid. The rest of the hybrids don't make the difference to be viable. With gas prices hitting 4 dollars well EV1 would be great. And MOST people in the nation don't drive more than 120 miles in a day so yes it is possible. The Toyota prius took 6 years to become a huge profit. GM hadn't even produced them to be sold so there's no argument. Sell it then say that it has no demand, otherwise don't spend 1 billions dollars on R&D and prototypes to just do a PR stunt.
Tesla and other american automakers are slow at making the new models because they still use essentially a mass production model where there is too much burarcracy.
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Mike Z 1:32PM (5/04/2008)
The problem is not producing the EV1, the problem is that the EV1 Sucked!
It's range was okay for commuting, but not enough for a side trip along the way. Driving required a level of thought and planning beyond our gas-and-go mentality.
It was a 2-seat, had weak AC, and poor storage space. Range suffered during hot or cold weather. Quite simply it was a EV version of the Honda Insight, which was canceled as well. Why? Become 2-seat cars don't sell well, period.
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kert 3:24PM (5/04/2008)
Thats BS, the EV1 series hybrid had more than enough range and four seats.
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Mort 3:51PM (5/04/2008)
He says, as he gases up the corporate jet. We should eat the wealthy, it would save a lot of fuel.
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TBlueMax 9:07AM (5/05/2008)
For everyone calling for GM to kick the mothballs out of the EV1 and put it back into production, you may want to see how this 15+ year old design holds up in modern-day crash testing unless you value saving the planet over saving yourself. The EV1 was never designed with 6+ airbags and the full complement of GM's modern (current day) safety systems (electronic nannies designed to keep your wheels on the pavement while motoring).
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tio 10:42AM (5/05/2008)
Even 20k is to much for millions and millions of people. Cheap cars have pretty much hit their max price in the 10-12k range, They have been there for years. Volt type cars will have to become less expensive over time before the average joe will buy one new.
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RJ 10:53PM (5/05/2008)
On the other hand, even $20k may be too low for the manufacturers to design anything with a practical range, that doesn't end up costing them millions in losses.
We're asking something that's more technically advanced than a Prius, with what, 3 times the battery capacity? to be as cheap as a mainstream Camry that they've been building for 25 years.
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