I wish Tesla published their Model S sales numbers… But, as my dad used to say, “Wish in one hand and poop in the other and see which one fills up first.” It wasn’t until I was an adult that I finally understood what he meant by that, and no, I didn’t try it.
The June results are in. Good news for the Volt! Volt sales jumped up 68% over the previous month’s number (2,698 vs. 1,607). June was the 4th best month for Volt sales ever. GM announced aggressive new pricing, which probably had a lot to do with it. It probably didn’t hurt that long-time nemesis, Fox News actually aired a piece praising the Volt and calling it an anti-terrorism car. (will wonders never cease?) On the down side, certain GM executives have started talking about the next generation Volt’s pricing and features. Having worked for Apple and seeing iPhone sales drop, when only rumors of the next iPhone’s features started being publicized, I can only imagine there have been some postponed (not lost) sales, by those hoping to get a little more for a little less.
The Leaf dropped to 2nd place of the models I’m tracking but still posted a modest 4% increase over the previous month (2,225 vs. 2,138). This was just 11 cars below their all-time high in March of this year, when Nissan announced new pricing. Am I sensing a pattern here? Does there have to be a fire sale to get the American public to purchase great performing, ecologically-friendly cars?
As I mentioned in an earlier post, I have started working for Green Mountain Energy, as a salesperson. Admittedly, I am new at this, but I have been a customer of Green Mountain for 12 years. I switched to them even though, at that time, their electricity was a little more expensive than electricity generated by fossil fuels or nuclear reactors. Now, the price is very competitive with traditional energy producers, but I have still heard the phrase, “That’s not enough of a savings for me to switch.” I am shocked when I hear that. If switching to wind-generated electricity for a year, is the equivalent of planting 2,800 trees or taking two gas-powered cars off the road, I would think, even at no difference in price, customers would be lining up for it! We are trained to lead our sales presentation with the fact that our electricity is 100% pollution free, but what seems to get a person to switch providers is price over all other considerations.
Really America? I am appalled! This would not seem to bode well for electric vehicles pitching environmentalism, although that will land some converts (like me). I honestly think the EV manufacturers have to hammer home the savings versus using gasoline. And I mean HAMMER! When I bought my Volt, I had no idea what the cost of electricity versus gas would be. Now that I’ve experienced it for myself, I cannot ever imagine driving a “fossil car.”
In other news, the Corvette was trounced by the Volt and Leaf, having sold only 853 units in May.
The Plug-in Prius saw a 14% decrease over the previous month (584 vs. 678). My opinion on this is that, once a consumer understands todays plug-in hybrids and EVs, they want more electric miles (and more economy and ecology) than what the usual plug-in hybrids have to offer. (yes, I’m talking about you too, Ford Fusion Energi…) Unfortunately, I cannot locate sales figures on the Ford. All the Fusion models are lumped together.
Finally, the i MiEV dropped 57% from the previous month (39 vs. 91). Stick a fork in her, she’s done…
Gasoline prices were down over the previous month by about 1 cent per gallon.
Compared to the original Prius, the Volt regained some lost ground. By the 31st month of availability, the original Prius had sold a total of 42,076 versus the Volt’s 41,313 sold, for a difference of 763 cars. Back in December of 2012, the Volt had closed to within 548 units of the original Prius, which is as close as the Volt has gotten to besting the original Prius’ historical sales rate. At this point, there’s only a 1.8% difference between what the Volt is doing, when compared to what the Prius has done.
I think GM would be fine with that sort of performance over the next decade…
Great report, Buzz! Thanks for all the info. (I guess I should call Perdenales Electric, and switch to all renewable energy, even if it will cost me a bit more, right?)
Of course you should, but these days, renewable should be price competitive.
Good news for GM. If Volt sales hadn’t responded to the additional $4,000 price incentive they would have really been in a quandary. Since, at its price point it is primarily an upper middle class car, I think GM made a mistake not starting it out as a Cadillac. I think there are a lot of BMW, Mercedes and Volvo buyers out there that would have looked at a Cadillac Volt but will never look at a Chevy.
I think it remains to be seen whether there is going to be a viable market for the Volt if/when it has to stand on its own. The complexity of the Volt means that it will never be able to compete on price with a little urban runabout like a Leaf or a Spark EV. I think its very possible that we could see prices for those pure EVs around $20,000 without incentives within a couple of years. On the other end of the spectrum, I don’t see it competing effectively with the Tesla S in the prestige/luxury market either.
So the question is, what is the long term market segment/demographic going to be for the typical Volt buyer? And can they meet that market’s expected price point?
I think the problem with adoption of EVs, in general, is the strangeness (to many people) of the concept. Those that have made the jump seem to love their EVs. I don’t think this is self-delusion. For two years, the Volt has been the top performer in the Consumer Reports annual vehicle owner’s survey.
As for it being an upper-middle class car, I agree that one has to have the ability to charge at home, which biases the Volt against most apartment dwellers. However, as I’ve shown several times in this blog, my monthly lease payment on my Volt, when combined with what I’m saving in fuel cost, is like driving a car that has a $170-$190 monthly payment. It’s hardly an upper-middle class payment when you consider the total cost of ownership.
As a lessee, I did not get the tax incentive, but I’m sure some of it helped the lease company lower my monthly payment. In fact, I would estimate that I was credited between $4,000 to $5,000, due to the tax incentive, which the leasing company claimed for themselves, making my Volt’s payment similar to the new pricing today without the tax incentive. We were so pleased with the Volt, that just two months, my wife leased one as well. She’s a sworn SUV driver and loves to ride up high, but the Volt won her over very quickly.
I understand the comment about some people never considering a Chevy. I never thought I would buy a Chevy again, after the disaster which was my very first new car, a 1976 Monte Carlo purchased when I was 18 years old. It broke down just three exits away from the dealership the day I bought it. It never ran right after that and I swore I’d never buy a Chevy again. The Volt test drive was that persuasive. If GM had started with a Cadillac, I think the EV would be seen as an upper income car and would have had the affect of delaying adoption. It’s a shame that Chevy has a reputation as a provider of cars for the lower income group. The Volt is truly a technological marvel in its implementation of a “range-extended plug-in hybrid.”
I agree that it is inevitable that prices will drop to a level closer to an ICE vehicle’s. Economies of scale and advances in battery/resistor technology will bring that change. As people like me blather on and on about how much they love their EV, more people will test drive them and many will take the plunge. The technology will one day have to stand on its own, without subsidy, and I’m sure it will.
Thank for your comments!