Is the Chevrolet Volt running out of juice? Even as the maker begins its long-promised production ramp-up, a new study suggests that potential buyers are rapidly losing interest in the plug-in hybrid vehicle.
Introduced last December, Volt is one of the first new vehicles to test the potential market for electric propulsion. It has been going head-to-head with Nissan’s pure battery-electric Leaf. Sales of the two vehicles have been marginal, at best, though the makers insist that has more to do with limited supply than buyer demand.
Through the end of July, Chevy has sold about 3,200 of the plug-in hybrids compared to 4,500 Nissan Leafs. But both makers have begun ramping up production, General Motors forecasting sales of around 16,000 for the year as a whole – including a small number of Volt clone Opel Amperas targeted at markets abroad.
But a new study by CNW marketing raises a red flag, finding that the potential buyers GM is most counting on are rapidly losing interest in the Volt. In March, 21% of so-called Early Adapters said they were “very likely” to consider buying a Volt, while 38.1% said they were “likely” to do the same. That slipped to 14.6% saying “very likely” in July, and 31.1% “likely.” Among EV Enthusiasts, reports the CNW study, the number of those likely or very likely to consider Volt fell from a combined 71% to 51% during the same four-month period.
“It’s way too early to tell, but the signs aren’t encouraging,” said CNW’s chief analyst Art Spinella.
When it comes to mainstream consumers Volt has all but slipped off the radar screen, only about 3% of new car buyers likely to consider the Chevrolet Volt, the analyst added..
The big problem is the plug-in’s price, CNW data indicate. When first introduced, the Volt carried a $41,000 sticker, though it qualified for a $7,500 federal tax credit. For 2012, the Chevy will drop to $39,995, a $1,005 cut, though it is still thousands more than the Leaf – and nearly double the price of a base Chevrolet Cruze compact, which shares the same underpinnings as Volt.
Chevy officials defend the price tag, pointing to the complexity of the dual gas-electric hybrid drivetrain. Volt is capable of clocking more than 35 miles on battery power alone. While that’s less than half of the range of the Nissan electric vehicle, the Chevy can shift to gas power and keep driving once its batteries run down.
GM officials remain convinced that Volt will meet their expectations, noting the vehicle doesn’t need to generate a wide appeal to still reach sales targets – which the maker projects will grow to 40,000 in 2012, including both Volt and Ampera.
GM’s commitment to electric propulsion is, if anything, being charged up. As TheDetroitBureau.com reported last week, the maker has inked a deal with battery supplier A123 that will be used for a range of new battery-electric vehicles that will begin to reach market in 2014. (Click Here for that story.)
The timing of this study seems a bit off. The vehicle has only been available in 6 out of 50 states so far. The awareness of the vehicle is probably still minimal. This type of study should be conducted after the car is actually available for sale for at least the majority of the US.
Over the upcoming months, it is hard to think that the price tag will have anything more than a nominal impact on car buyers. The target market for the Volt is not Cruze buyers, but Prius buyers (who are already paying in the upper 20s for a comparably equipped car) or potential buyers of $30K vehicles who would consider switching to the Volt because of it is fun to drive, inexpensive to drive (justifying its expense when compared to not a Cruze, but perhaps a BMW 3 Series) and has much more “buzz” than an average car in that price range.
Also, the hidden value of the Volt is its lease, which is extremely competitive (while not really promoted) starting at $350 per month. In my case, I will pay $150 more in lease costs, but save $145 in fuel making my upgrade from a 2008 Impala only a $5/month net increase.
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Hi, Guru,
Let me state that I take the latest survey with a grain of salt. CNE research is always intriguing, but to your point — and as I have stressed before — let’s see that market itself says after a few months at least with wide availability of the Volt.
Paul A. Eisenstein
Publisher, TheDetroitBureau.com
The car is a bust. The advertised range is a fantasy. In real life, if you need the heater or AC, the real range is less than twenty miles, and the climate control systems are miserably weak. It makes no sense economically. You will NEVER recoup your costs on fuel savings. You couldn’t drive the car long enough to make it pay.
Curious, RHO, have you actually driven the Volt? I’ve had some time with the vehicle but would like to compare notes with someone who has had even more driving experience.
Paul A. Eisenstein
Publisher, TheDetroitBureau.com