backtop


Print 71 comment(s) - last by thorr2.. on Jun 1 at 11:40 AM


  (Source: Wikipedia)
Gas prices at $4 a gallon have pushed drivers over the edge

With gas hovering $4 a gallon, it's easy to understand why many drivers are becoming increasingly frustrated with their gas guzzling vehicles that drain their wallets on a normal basis. To make matters worse, fuel prices are expected to remain around the $3 to $4 mark for some time, and these high prices are pushing some consumers toward electric vehicles like the Chevrolet Volt.

According to a study from the University of Delaware, which surveyed over 3,000 people, consumers would be willing to pay for several different electric vehicle attributes. For instance, the UD study found that consumers put a price of $75 per mile up to 200 miles of additional range, and $35 per mile from 200 to 300 miles. 

"This information tells the car manufacturers what people are willing to pay for another unit of distance," said George Parsons, a professor at UD. "It gives them guidance as to what cost levels they need to attain to make the cars competitive in the market."

In addition, the study found that consumers believe the cost of batteries needs to decrease significantly without subsidy. But researchers noted that the current $7,500 government tax credit could "bridge the gap between electric car costs and consumers' willingness to pay if battery costs decline to $300 a kilowatt hour." 

"It appears that even modest electric vehicles with today's limited battery range, if marketed correctly to segments with appropriate driving behavior, comprise a large enough market for substantial vehicle sales," the study concluded.

With this in mind, automakers like General Motors are looking to increase production to meet consumer demand of electric vehicles. As a matter of fact, GM has announced that it will increase production of its electric Chevrolet Volt. 

GM announced the news yesterday, saying it would build 1,000 more electric Volts than previously planned for 2011, and will build an additional 15,000 Volts on top of its target for 2012. This would put the electric Chevrolet Volt's total production number at 16,000 in 2011, and 60,000 in 2012.

In June, GM will shut down its Detroit-Hamtramck plant for four weeks to prepare for added production. Cristi Landy, director of Chevrolet Volt Marketing, mentioned that this temporary shutdown will withhold Volt supplies at dealers through the summer, but will allow GM to ready itself for the added Volt production. 

Of the 16,000 Volts made in 2011, about 2,500 will be sent to dealer demonstration fleets, 3,500 will be exported to Canada, China and Europe, and the other 10,000 will be sold in the United States. As far as 2012's 60,000 Volts go, 45,000 will be sold in the U.S. 

A big question regarding the added production is whether it will create more jobs at the plant. Currently, the plant employs 958 hourly and 159 salaried workers, and runs on one shift. These employees will be laid off during the plant shutdown. 

"We're not talking about jobs yet," said Michelle Bunker, a Chevrolet spokeswoman.

GM did announce last week, however, that it would spend $2 billion at 17 U.S. locations for upgrades, and that this would create or keep 4,000 jobs in eight states.

GM hopes to eventually build more than 100,000 Volts a year. So far this year, it has sold 1,700 Volts, which are priced at $41,000 minus $7,500 in tax incentives.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: Wait until they get their electric bill
By Bobalouie on 5/19/2011 7:54:10 PM , Rating: 5
The $1-$1.50 in electricity it costs to charge the Volt for 40 miles is a savings compared to $6-$8 in gas. But that's not why I bought this luxury car. I bought it because OPEC hates it and it is very fun to drive. Also very quiet and very safe.


RE: Wait until they get their electric bill
By Azethoth on 5/20/2011 7:16:37 AM , Rating: 3
Here is why frothing at the mouth tax haters should buy a Volt:

It reduces your gas bill which cripples the Government's gas tax. In fact, efficiency levels have eroded this tax so much already that it no longer funds highway maintenance and development.


By shin0bi272 on 5/22/2011 5:31:43 AM , Rating: 3
And what do you tax and spend liberals think the government will do when the gas tax gets too low? OH yeah raise it or invent a new tax like the one where you get taxed based on how much you drive... cause the government needs to know my mileage each year... that's not infringing on my privacy or anything noooo. parasites


RE: Wait until they get their electric bill
By shin0bi272 on 5/22/2011 5:42:20 AM , Rating: 3
but what happens when energy prices "necessarily skyrocket" thanks to the left's cap and trade system? When you are paying $5/kwh are you going to be all gung-ho about your electric vehicle then?

Its also NOT a luxury car ... its a novelty item and you bought it because you bought into the hype of it and the environmentalist movement. Good job! Youre a sheep of a different color.

Oh and about the quietness... that's great for the blind people who cant hear or see the thing coming isnt it?


By Masospaghetti on 5/22/2011 1:41:28 PM , Rating: 2
quote:
but what happens when energy prices "necessarily skyrocket" thanks to the left's cap and trade system? When you are paying $5/kwh are you going to be all gung-ho about your electric vehicle then?


You really think that electricity is going to go from $0.10 to $5.00 per kilowatt hour because of cap and trade? A 50x increase? You are either being a troll or simply an idiot.

quote:
Its also NOT a luxury car ... its a novelty item and you bought it because you bought into the hype of it and the environmentalist movement. Good job! Youre a sheep of a different color.


Personally I think its better to spend $41,000 on a vehicle that represents technological leadership in this US, creates new jobs here related to electric drive and battery production, and also reduces fuel consumption. Much better than spending $41,000 on a Lexus or BMW that is brimming with silver-buffed wood, leather, and 3000-way adjustable power seats.

quote:
Oh and about the quietness... that's great for the blind people who cant hear or see the thing coming isnt it?


This is the dumbest argument I've heard over and over. Blind people aren't crossing the road relying on engine sounds of incoming cars. And if this were really a problem and blind people were getting run over in droves, its easy enough to add a sound producing device to the car.

So what's your plan? Keep driving your Toyota Sequoia, drill for more oil, work at McDonalds?


By Zingam on 5/23/2011 7:35:06 AM , Rating: 2
You know, man, lithium batteries tend to overheat and blow up...


"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki