Motoring Weekly

New supplies will spark sales

January 5 -11, 2011
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This was the year General Motors Co. and Nissan made good on their promise to bring mass-produced electric cars to the market.

But don't count on seeing one in traffic soon. Sales so far have been microscopic and they're likely to stay that way for some time because of limited supplies.

GM sold between 250 and 350 Chevy Volts last month and Nissan's sales totalled less than 10 Leaf sedans in the past two weeks. Production for both is slowly ramping up.

It will be well into 2012 before both the Volt and Leaf are available widely in the US. And if you're interested in buying one, you'll need to get behind the 50,000 people already on waiting lists.

It's still unclear just how large the market for electric cars will be once those early adopters are supplied. The base sticker price is $40,280 for the Volt and $32,780 for the Leaf, much higher than most similar-sized, gas-powered cars.

If those prices rise, it could make them even more of a niche product than predicted. Buyers also are worried that advertised lease deals may not last, and a federal tax rebate of $7,500 could disappear if Congress decides battery-powered cars are no longer a priority.

The first electric car sales were marked with fanfare. The envy of green-car geeks across the country, new owners were treated like rock stars at dealerships. They were greeted by high-level GM and Nissan executives, followed by cameramen and interviewed by local reporters.

When they got home, they blogged about their experiences, sent links of newspaper stories to their friends, and stopped to talk to anyone who expressed interest in their new wheels.

Jeff Heeren of Nashville, Tennessee, became the sixth Nissan Leaf owner on December 22. Nissan's advertising agency, Chiat Day, followed Heeren and his family around as they picked up their silver-coloured Leaf, and have posted a video on the Leaf's Facebook page.

Not surprisingly, Heeren is a fan. "What's amazed me the most in driving it is that it's just a car, like any other car," he said.

The Leaf is the only all-electric car on the market. It can travel about 160 kilometers on battery power before needing to be recharged. Using a standard outlet, that takes 16 to 18 hours. Nissan Motor Co. recommends that Leaf owners install a 220/240-volt outlet in their homes so they can recharge in about seven hours.

Nissan won't give estimates on how many Leaf sedans it expects to sell in the US this year, but says it has capacity to make 50,000 annually at a plant in Oppama, Japan. Those will be sold in Japan, the US and Europe.

The Volt goes about 65kms on battery power alone before needing to be recharged. But it comes with a backup gas engine that GM says can extend its range to 603kms as it kicks in to recharge the batteries on the fly. GM believes the backup generator will make it a hit with customers who worry about being stranded with a dead battery.

The Volts are being assembled in Detroit. GM predicts it will sell 10,000 of them this year.







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