sses
embrace electric
cars despite high
prices?
Updated 43m ago
By Chris Woodyard, USA TODAY
Take a test drive in the Nissan Leaf.
The biggest automotive revolution since horseless
carriages first rumbled along rutted roads is about
to take place — and you'll have to strain to hear it.
That's because the first mainstream electric cars in
nearly a century will be hitting the streets over the
next couple of months, and their electric motors are
as eerily quiet as they are tailpipe-emission-free.
Automakers such as Nissan and Chevrolet are
touting the new vehicles in splashy ads, but already
there are signs that wary mainstream consumers
won't be quick to embrace the largely untested
electric models. Automakers likely will have no
trouble selling out their initial, limited production
to electric enthusiasts and early adopters who have
to have the latest thing, but mass acceptance that
would lead to profitable production in big numbers
remains a question.
PHOTO GALLERY: More views of the Nissan Leaf
TEST DRIVE: 2011 Nissan Leaf is a treat to drive
The government and the auto industry are
promoting electrictransportation as a way to cut U.S.
dependence on foreign oil, ease the need for more
U.S. oil drilling and cut carbon dioxide in the air.
But the technology remains a colossal gamble, with
billions invested by the industry and billions in
subsidies from the government for research,
factories and a direct-to-consumer rebate of $7,500
to partially offset the higher price of electrics.
Buyers still have to be convinced that being Earth-
friendly is worth several trade-offs — beyond the
cars' sticker prices, which can be double the cost of
a similarly sized conventional car. Most
prominently, most electric cars for now will have a
range of about 100 miles before they need to be
recharged. That process can take as few as 30
minutes with special chargers, but in most
situations will take up to eight hours.
Even if you haven't paid attention to electric cars,
you soon won't be able to escape hearing about
them. Nissan has started its ad campaign for the
fully electric Leaf. Chevrolet is about to crank up
promotion for the Volt, a plug-in electric that also
has an onboard generator powered by an auxiliary
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By Dan MacMedan, USA TODAY |
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Douglas Cates of Nissan wipes down one of the 14 Leafs available for test drives at Century City mall in Los Angeles. The Leaf gets about 100 miles per charge and is powered only by an electric motor. It's not a hybrid. |
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gas engine. Electric advocacy groups, such as Plug
In America, plan their own public education
campaigns.
PHOTO GALLERY: Check out photos of the Chevrolet
Volt
TEST DRIVE: Chevy's easy-driving Volt could be your
only car
President Obama has set a goal of a million plug-in
electric vehicles on U.S. roads by 2015, though that
rollout pales compared with the more than 11
million conventional vehicles that will be sold this
year alone. Even with all the subsidies, promotion
and consumer education efforts, only 0.6% of cars
sold in the U.S. in 2020 will be fully electric,
predicts auto researcher J.D. Power and Associates.
And only 9.6% will be hybrids — with or without a
plug-in recharging cord.
"Barring significant changes to public policy,
including tax incentives and higher fuel-economy
standards, we don't anticipate a mass migration to g
reen vehicles in the coming decade," says John
Humphrey, a senior vice president for J.D. Power.
Some reasons why:
•Lack of public charging stations. All-electric cars
need to be plugged in to recharge and can't always
be at home, but so far there aren't many public
charging stations. Supported by federal grants from
the Energy Department, two companies alone are
installing more than 20,000 private and public
charging stations in select metro areas in Oregon,
Washington, California, New Mexico, Texas,
Tennessee, Michigan, Florida and the District of
Columbia.
•Home chargers require garage upgrades. An
electric car such as the Leaf can be charged from a
standard 110- or 120-volt home wall socket, but it
will take at least 20 hours to get a full charge. So
most electric car buyers will want to install 220- or
240-volt chargers to cut that to an overnight six to
eight hours, which can cost $1,200 or more,
though a federal subsidy is available. Many urban
apartment dwellers or others without home garages
may be hard-pressed to find a place to install a
charging station that would make electric cars
practical for them.
•Stable gas prices. Average prices for regular
gasoline have been fairly stable and haven't
exceeded $3 a gallon in two years, undercutting
one of the key economic incentives for buying an
electric car.
•Sticker shock. The first electric cars are going to
go on sale at a time of economic malaise that has
cut consumers' willingness to splurge on pricey
new cars. Electric cars' high-tech, powerful
electronics and compact lithium-ion batteries are
expensive. At $41,000, the Chevrolet Volt is about
the same size — and shares components with — the
new Chevy Cruze gas-engine compact that starts at
$16,995. Less-established makers may have to
charge even more. Coda, a Santa Monica, Calif.,
start-up maker has priced its 120-mile-range,
compact all-electric car at $44,900.
The prices can be partly offset by federal tax
incentives for buying an electric car — for buyers
whose income qualifies — which essentially knocks
up to $7,500 off the cost. Some states, including
California, also offer tax breaks for some buyers.
But that might not be enough to persuade average
car buyers to pay more. Nearly two-thirds of U.S.
consumers in an online survey by Nielsen said they
don't want to pay more for an electric car than they
would for a similar gasoline-powered vehicle.
•Unknowns. While gas-electric hybrids have been
on the road for about a decade, all-electric cars and
plug-ins use complex new hardware and software
and much more powerful lithium-ion batteries. As
with any new technology — or any new car model of
any kind — long-term reliability, cost, performance
and resale value can be projected but remain
unknown. Consumers tend to be conservative —
regardless of automaker promises or warranties —
with such a long-term purchase, typically the
second-biggest they make.
•Range anxiety. For all-electrics cars, the estimated
range before it needs a recharge is an average that
varies with weather extremes, traffic conditions and
driving style. And while the typical U.S. commute —
40 miles or fewer — should be no problem with
current battery technology, longer or unexpected
trips can raise "will I get there and back" worry. That
concern, and the unsuitability for longer travel,
limits the market for an electric-only car that
wouldn't meet all vehicle needs.
Buyers 'need convincing'
Given that backdrop, automotive executives and
analysts are thrilled that early adopters have shown
as much interest as they have in electric cars.
Nissan hit its target of 20,000 potential buyers who
have plunked down a $99 deposit for its fully
electric $32,780 Leaf, which starts deliveries next
month. They are expected to claim all of the
automaker's production during its first fiscal year.
On a smaller scale, BMW found enough affluent,
curious drivers to lease 450 Mini E electric cars in a
test on both coasts that started last year.
The challenge will come after early-adopter demand
is met. Even though General Motors and others
rolled out primitive electric cars in the 1990s —
remember The Jetsons-esque Saturn EV-1? — many
people profess not to know much about the new
generation. Only 58% of those surveyed by GfK
Custom Research North America said they know
about electric cars and potential benefits. Typical
motorists may focus on electric vehicles'
shortcomings instead.
"When I talk to people, neighbors and friends, they
need a little more convincing," says Rich Steinberg,
manager of electric vehicle operations for BMW
North America. It "comes back to range anxiety: 'Why
would I want a car that would go (only) 100 miles?' "
General Motors is pursuing those gun-shy
consumers. Its Chevrolet Volt, also due to begin
deliveries next month, differs from other electrics
with its onboard generating capacity. The car is a
plug-in that can run up to 50 miles on electric
power alone with a full charge in its batteries. But
unlike its pure electric rivals, Volt has an auxiliary
gas engine to generate power for the electric motor
so you can keep driving like a conventional car.
That's different than today's hybrids, which have
limited electric power-only capability and in which
the gas engine drives the wheels in combination
with the electric motor.
But automakers already are showing there is also a
market for pure electrics. Tesla, a start-up based in
California's Silicon Valley, has sold about 1,300 of
its $109,000 roadsters since they went on sale in
2008. A four-door sedan — cheaper but still
premium at about $50,000 — is planned in 2012.
Beyond Leaf and Volt, Ford Motor will have an
electric version of its compact Transit Connect van,
primarily for commercial use, on sale next month. It
will have a range of 80 miles. In 2011, Ford plans
an electric version of its Focus compact car.
Toyota has teamed with Tesla to develop and sell an
electric version of Toyota's RAV4 crossover in the U.
S. in 2012. Chrysler is planning an electric version
of the Fiat 500 minicar. Mitsubishi expects to sell its
small iMiEV electric sedan next year.
PHOTO GALLERY: The 2011 Mitsubishi i-MiEV,
inside and out
TEST DRIVE: Mitsubishi's i-MiEV is spunky, fun and
promising
And new companies and importers — including
Fisker, Wheego and Detroit Electric — also have
electric vehicles on the way.
The Obama administration has proposed to require
that the fuel efficiency of new vehicles rise to an
average of 47 to 62 miles per gallon by 2025. The
proposal comes only a year after it set federal gas
mileage rules that raise the 27.5 mpg average
required now to a 35.5 mpg average by 2016.While
progress to the 2016 standard can be achieved
mostly with smaller, lighter vehicles and smaller,
higher-tech engines, hitting the higher numbers
would force automakers to turn to electricity.
In the past, automakers had to be dragged "kicking
and screaming into building electric cars," says
Roland Hwang, transportation program director for
the Natural Resources Defense Council, an
environmental advocacy group. "Now it's a matter of
survival for them."
Baby steps
To get potential customers used to the idea of
electric cars, Nissan has launched a 23-city tour to
familiarize consumers with the Leaf and to offer test
drives.
In Los Angeles, teacher Valarie Payne and lawyer
Anton Labrentz were enthusiastic after a spin
around the shopping plaza in tony Century City.
They are the type of young, affluent urbanites
Nissan is targeting with the car. "I was very
impressed," says Payne, 28. "It's very cute."
But they say they don't know how they would install
a charging unit in the garage of their townhouse.
And Labrentz, 31, who drives a BMW, says, "I don't
have room for a second car."
Web entrepreneur Ben Goldfarb, by contrast, has a
Leaf on order and plans to use it for his 30-mile
round-trip commute. He will keep his Lexus for
long trips.
Worries? "Being an early adopter, you take some
risks," says Goldfarb, 51.
"But the pushback is after (the early adopters), the
next group of consumers," says Craig Giffi, U.S. auto
practice leader for consultant Deloitte. "You are
going to be in that gray zone for a number of years
where ... cost (of the vehicle) and relatively short
ranges are going to keep people at a distance."
Automakers aren't discouraged. Think, a Finnish
electric car company that plans to assemble vehicles
for the U.S. in Elkhart, Ind., says there is room for
many competitors.
All are feeling their way, though, says Michael Lock,
Think's marketing executive for the U.S., "This is the
embryonic stage of this industry."