Survey says... nearly half of Americans want to buy something like the Volt, but do they want to pay?
2011 Chevrolet Volt - click above for high-res image gallery
The Chevrolet Volt is a data driven design in many ways. The shape is driven by aerodynamic data. Its conception was in part driven by public perception data. Its powertrain architecture was driven by empirical data about how drivers actually use their cars. For example, roughly three quarters of all drivers in the U.S. use their vehicles less than 40 miles per day and the Volt will be able to drive on the battery alone for that distance.
Thus, the results of a new survey from Pike Research should not be a surprise to anyone. Among 1,041 respondents, 48 percent indicated they were "extremely" or "very" interested in buying a plug-in hybrid with a 40-mile electric range. They also said they would like to have public charging stations at work, school and shopping locations.
There is just one small fly in the ointment. A willingness, or rather, an unwillingness, to pay the cost. All indications are that cars like the Volt or even a plug-in Toyota Prius are likely to cost somewhere around $40,000 before incentives. A similar conventional car rarely costs more than about $20-25,000. According to the survey, customers are only willing to pay about a 12% premium for such a car. Even starting from $25K, that only gets you to $28,000, leaving a hefty gap to overcome. This is likely to be a serious problem for carmakers over the next five-to-10 years as the government and environmental groups push for plug-in vehicles.
Gallery: 2011 Chevy Volt
[Source: Pike Research]
Reader Comments (Page 1 of 3)
jpm 3:04PM (9/09/2009)
GM can suck it. I'm buying a Nissan Leaf.
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ufgrat 5:59PM (9/09/2009)
Why? All the money you might save on gasoline, you'll just turn around and spend on the battery lease and car rentals for any time you need to drive more than 100 miles continuously.
Sure, you could buy a second car, but by the time you've bought the Leaf *and* a second car, the Volt's probably going to be significantly less expensive, and have better performance than either of your cars.
jpm 6:40PM (9/09/2009)
If I need to drive long distance, I will rent a car or use my motorcycle.
And be careful, your assumptions will fail if fast charge is implemented. See, for example, this
http://mit-evt.blogspot.com/2009/08/feasibility-of-rapidly-charging-evs.html
Gary 7:33PM (9/09/2009)
But what if the other person in your town with an electric caris using the charging station at the same time you were planning on using it?
jpm 7:40PM (9/09/2009)
You really think there will be one charging station per town? Really? Maybe if you live in ..
http://micah.typepad.com/dogears_wrinkles/2008/03/the-smallest-to.html
kcmurphy88 1:30PM (9/10/2009)
I've driven the Nissan Altima Hybrid -- mediocre first effort -- not inclined to by an electric from them anytime soon.
Victor Erimita 1:38PM (9/10/2009)
Amen. GM was stolen from its shareholders and creditors and given to the UAW and the federal government, an unconstituional move that would have been illegal in times when laws mattered. I will not buy a product from thieves and gangsters, simple. No GM, no Chrysler. Although I'm sure unions and political hacks will be able to figure out what GM never could during the last few decades: how to make cars people want.
Mattias in Durham, NC 3:13PM (9/09/2009)
We need to overcome two things: fear that the battery will die, and the cost of the battery. How about a setup where we lease the battery from GM instead of buying it? Who would want to own that big chunk of battery after 8 years anyway? It's going to be useful to someone, but not to me, so why not a system for dealing with 50% used batteries. That paired with government subsidy or deals with utility companies should make a big dent in sticker price. GM: Think outside of the box, please. And no more mumbo jumbo MPG numbers either, please.
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Ray 3:40PM (9/09/2009)
Batteries will last 7 years and well over 100,000 miles. Even 150,000 miles is not out of the question. 100,000 miles = 3,333 gallons of gas at 3/gallon =$9,999. Let alone less maintenance. When gas goes up to $4/gal and above EV's will look even better. It seems Joe Sixpack wants it for free. Imo Joe should be willing to pay at least $10k over a conventional vehicle even if it only goes 100 miles per charge. Can't wait for gas to get back over $4/gal, that will be good for EV's when it does. Come on China and India push the price of oil over 200 dollars per barell, OPEC will love you. Can Joe Sixpack say national security. Sure I knew you could.
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Shock Me 3:57PM (9/09/2009)
Ray-
Don't forget to subtract $2600 for the price the electricity you would need for 100,000 miles worth of 40-mile or 100-mile all-electric trips. Plus, to reach 100,000 miles in 7 years you will have to plug in somewhere other than home, or never take a vacation, or pay for gasoline (for the Volt anyway) if trip length exceeds the AER of your vehicle.
nrb 5:02PM (9/09/2009)
In addition to what Shock Me says...
"Joe should be willing to pay at least $10k over a conventional vehicle "
I'm pretty sure the current premium is well over $10K.
Ray 8:19PM (9/09/2009)
Shock Me I agree with your estimate of electricity. I figure that would at least be the maintenance of a ICE vehicle for 100,000 miles. The EV will need tires and possibly brake pads, with regen braking, who knows?
Yes nrb the premium is way over 10k. Mine was over 26k premium over a regular Yaris at 15.5k. Subtract the 7.5k government tax incentives and it would still be 18.5k premium. I do not qualify for the tax incentive, the vehicle was purchased to early and is a conversion.
http://www.evalbum.com/1892
Dave 3:23PM (9/10/2009)
Even 30k over a conventional car is reasonable for the Volt. Who else has touch screen interiors and other awesome stuff? This car is like a very expensive car interior and the exterior looks beautiful for a economical and aerodynamic car. You guys are interesting b/c this car is worth every penny and more.
dasolar 3:46PM (9/09/2009)
People need to be educated about electric cars and hybrids. The more they know the more they'll adopt the concept. I think prices will rapidly come down as demand grows - early adopters always carry the financial burden anyway. Electric (hybrid) cars are the future and consumers know it... http://www.dasolar.com/solar-energy/solar-powered-cars
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Throwback 8:04PM (9/09/2009)
The more they know the more they will like the concept? We will see, the question as always is who pays for it?
GoodCheer 3:53PM (9/09/2009)
Just a point of clarification:
"roughly three quarters of all drivers in the U.S. use their vehicles less than 40 miles per day"
That 78% statistic refers specifically and only to the distance people drive to commute. Additional trips (to the mall, to school, to friend's houses etc.) are not included.
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GoodCheer 4:05PM (9/09/2009)
GM's statements are based on US Bureau of Transportation Statistics. This is 1-way data, so you double the mileage and sum the columns up to 20/40 miles and get 78%.
http://www.bts.gov/publications/omnistats/volume_03_issue_04/html/figure_02.html
Chris M 4:57PM (9/09/2009)
That "roughly three quarters of all drivers in the U.S. use their vehicles less than 40 miles per day" isn't exactly correct, it implys that 3/4 of all drivers never drive more than 40 miles a day. Instead, it shold have been "Roughly three quarters of all daily drives are less than 40 miles" That takes into account the occasional longer trips that a majority of drivers do.
rob 3:57PM (9/09/2009)
Consumer perception drives everything. I've had conversations with people who are very unhappy with the battery life on their cell phones and laptops and have extrapolated those problems to electric cars. If very few people buy an electric car because of fears, whether grounded in reality or not, the car companies will stop offering them...again.
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Chris M 5:21PM (9/09/2009)
The solution is to point out that EVs are not cell phones, their battery requirements are radically different. Cell phone batteries are optimized for light weight and long runtime, they go from maximum charge to almost fully drained which drastically shortens battery lifespan. But the cell phone makers figure the batteries aren't that expensive to replace, and often the cell phones are replaced in a few years, anyway.
Its different with EVs, they can use a battery larger and heavier than absolutely necessary, and use only part of the charge capacity to maximize battery lifespan. Since EV battery replacement is a major expense, the EV makers want those batteries to outlast the warranty on the car, they don't want to have to pay for replacements.