Tag Archives: Losing

EV’s losing their buzz?

If you know the general rule to headlines asking questions then you know the answer to the one I posted (hint: No). My headline question is from a Detroit News article of a similar title. Go read it and come back, I’ll wait (yeah ok its an often used blogging joke but it works).

Lets pick this one apart shall we: some points from the article:

Sales of new electric cars and hybrids, according to automotive research and shopping site Edmunds.com, are at their lowest level since 2011

According to Inside EVs total Plug-In sales for the first 3 months of 2015 are 23339 units, for the first 3 months of 2014 they are 22671, for 2013 they are 17963, for 2012 they are 6698 and finally for 2011 we get 1662 total units. I do see a trend here but it isn’t what the News article says it is…where did Edmunds get its numbers? (Now it is possible that plug-in sales in the first few weeks of April have taken a complete nose dive but that would have to be a huge nose-dive to see the results they are implying above.) I did search around the Edmunds website but found no news article that could have been the source for the News one. I did find this, however, interesting.

The above statement is qualified by talking about the Leaf and Volt. If we look at just the Leaf and Volt numbers we see a similar trend overall that we saw with the total yearly numbers: 5959 (2015), 8790 (2014), 7783 (2013), 5648 (2012). Note the lower number for 2015–perhaps this is the whole reason for the News article? Not stated at all in the news article is the fact that Chevrolet will be selling an all new version of the Volt later in 2015 and thus the current Volt’s sales are depressed due to people waiting for the new one (and hence there are a ton of sales going on for the old Volt to clear it off of dealer lots).

Lets continue on with deconstructing the article:

Furthermore, motorists who leased those first-generation cars, and have decided not to buy them, are turning them in. They’re on dealer lots with still relatively low mileage, and at prices considerably cheaper than the new ones.

Of course they have decided not to buy them..they leased the cars for a reason! Its well known in the EV industry that the residuals of the cars coming off lease are far more expensive than the used car market simply because EVs are becoming cheaper and cheaper. This is due to battery prices dropping (to which the article doesn’t mention). Less expensive batteries means the automakers can drop the car prices to more competitive levels which means people coming off leases are much more likely to lease another car at far less cost than it would be to purchase the lease. In addition they are getting newer technology.

Even with $7,500 federal tax credits and other incentives, automakers such as General Motors Co., Ford Motor Co. and Nissan have dropped prices in an attempt to move their new hybrids and electrics. Cadillac became the most recent to reduce the sticker on an electric car, when it whacked $9,000 off its ELR plug-in hybrid last week.

Note how this is framed: That the manufacturers have to cut prices to make sales. As I mentioned above, though, costs to producing EVs are dropping and thus the manufacturers are reducing vehicle prices accordingly.

It’s no mystery why these cars aren’t moving at a brisker pace. Stable gas prices, fuel-efficient internal combustion engines, continued uncertainty about electrics by some motorists and the availability of relatively cheap used electrics and hybrids make new ones a hard sell. Yet automakers offer them as part of their effort to meet fleet-wide fuel efficiency standards set by the U.S. government.

Really? Lower gas prices means less EV sales? Well given the sales charts above we already know: “No” but here is more information refuting that myth. The paragraph above (and pretty much the whole article) also simply lumps in EVs with plug-ins to provide a dim view of sales as a whole (the link I just provided separates them to point out that EV sales have been unaffected by low gas prices) but even looking at the sales charts on the first link of the article shows that EV sales have risen year over year.

The rest of the article is pretty much more of the same and then concludes with a discussion the used EV market and the fear of battery replacement costs (One funny aspect is discussing what to do with a 10 year old car and perhaps replacing the battery may not make sense because the car might not make it another 10 years! If any car is going to last 20 years–or longer–it will be an EV: Much less maintenance and less vibrations. The drive train alone will still be good 20 years on; the car body may not be there but the mechanicals will be good.).

Seems to be more of the same from a Detroit area newspaper and will likely just confirm to most of the gearheads in Detroit: “Why are we making EVs again??”

A few critical articles on the report from Edmunds:

Green Car Reports, Clean Technica