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

By shin0bi272 on 5/22/2011 6:09:00 AM , Rating: 2
actually what he said was the government makes 25c/ga but they give the oil companies 2c/gal. So if you wanna hurt the government's wallet get an electric car because you wont be giving them the 25c/gal (plus there's a 30c/gal state gas tax in my state) by buying gas. If you want to hurt the oil companies buy an electric car AND push your congressman to vote to repeal their tax subsidy. Though they will just raise prices accordingly and end up right where they are now profit wise since businesses dont pay taxes... they pass the expense on to you the consumer... yaaay tax the rich huh? thats just a tax on the poor by proxy. Brilliant!

The flaw in his logic is 2 fold. 1) the government will NEVER do with less... so they will raise the gas tax and dump the subsidy for oil companies and probably invent a new miles driven tax so that they can get every cent out of you that they can and then a few cents more. Then 2) more people buying these electric cars will lower gas demand and that will lower prices on gas which lowers the demand for electric cars because unless they jack the gas tax up to $5/gal on top of the cost of the gas itself an electric car isnt cost effective at less than $4/gal.


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer














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