PrintNovember 3, 2010
Low Volts, Falling Leafs
As the launch dates for the Chevy Volt and the Nissan Leaf approach, we need to ask how big a role the electric vehicle will have in America's future. Certainly, a great deal of hype surrounds the launch of these new models, but how successful will the Volt and Leaf actually be? GM has already admitted that it may not turn a profit on EVs for years to come. This is understandable, considering the fact that the typical EV battery costs over $15,000. That fact alone explains much of the cost differential between an EV and a comparable gas-powered vehicle. Unless battery prices come down, EVs will always cost more than conventional models. If they cost more, fewer will be sold. And if fewer are sold, a lower probability exists that they will become profitable.How many Volts and Leafs will be sold in the foreseeable future? GM assures us that they will be selling "tens of thousands" of Volts in 2011. As for Nissan, the company confirms that a "refundable deposit" of...(Read Full Article)
