Saturday, December 26, 2009

Hybrid are luxury items

Topic: Cars

I read an interesting article today in ENN about Honda's slow sales for their Insight car. The writer argues that for right now, hybrids are still luxury items and the 2 grand difference between the Insight and the Prius hasn't persuaded many buyers to switch. He makes a good point but didn't include the fact that almost all the reviews for the Insight were bad. That's saying quite a bit considering how badly the Prius drives.

Another good argument that hybrid or electric buyers aren't that price sensitive is the Tesla Roadster. When Tesla up the price from $100k to $110k, there were only a hand few who took their deposit back. The real test of price sensitivity will be next November when the Chevy Volt goes on sale. For all the Volt's technological and environmental advantages over the Prius; $40k is still $40k. Granted, the Fisker Karma is supposedly going on sale earlier then the Volt, but the Karma is $80k and truly a luxury car. While the Volt is targeted for the same potential buyers of the Prius.

Labels: ,

Thursday, October 02, 2008

Chevy Volt Mileage

Topic: Cars

I just read from Joseph Romm of the Guardian "Is the Chevy Volt just hype?" regarding the projected 40 mpg on pure electricity between charges. Mr. Romm argues that the Volt doesn't need this much range since on average, most people only drive 20 miles per day. This theory seems to be getting traction and I want to disspell it. The problem is that 40 mpg is the optimum in perfect conditions. That's assuming there is only 1 person in the car, the driver doesn't have a lead foot, the road is completely flat, the outside temperature isn't 120 or -20 degrees, the heater or air conditioner isn't at full blast, and other variables that effect mileage. If you add 2 or 3 of these scenarios, you'll probably only get 25 to 30 miles between re-charges. If you're skeptical, read the consumer affairs article regarding Prius owners. I don't believe GM is over-engineering the Volt but wants to make sure that it at least makes 20 miles between re-charge.

Labels: , , ,