If you’ve been following the blog for a while, you’ll know I’m not over-optimistic about electric cars in the short-to-medium term (for example, here, here, here, and here) and I’m especially underwhelmed with GM’s most recent offering, the Chevy Volt:
Let’s talk economics first. Electric and hybrid-electric vehicles are more expensive to make and bring in less profit than other cars. They cost more to finance, more to repair, and more to insure. Their sales depend heavily on tax incentives, which means that selling more of them will require more taxpayer dollars. The National Renewable Energy Laboratory (NREL) estimates that plug-in hybrid vehicles cost $3,000 to $7,000 more than regular hybrids, even though the performance differences between the two models are slight, and the really fuel-efficient hybrids cost $12,000 to $18,000 more than the conventional brand. Consider the GM Volt. When it was first announced, the price estimate from General Motors (GM) was $30,000. That soon jumped to $35,000. Today, they sell for nearly $40,000.
Hybrids are also more expensive to insure, which has been known for some time. Back in 2008, online insurance broker Insure.com showed that it cost $1,374 to insure a Honda Civic but $1,427 to insure a Honda Civic Hybrid. Similarly, it cost $1,304 to insure a Toyota Camry but $1,628 to insure a Toyota Camry Hybrid. According to State Farm, hybrids cost more to insure because their parts are more expensive and repairing them requires specialized labor, thus boosting the after-accident payout.
And that, of course, presumes they don’t burst into flames, which brings us to today’s not-so-“ideal” headlines. Several crash tests have suggested that the plug-in hybrid Volt, the flagship vehicle at Government Motors, has a bit of a problem: when hit or badly disturbed in accident tests, the Volt’s Lithium-Ion (Li-ion) battery packs have been seen to spark, or burst into flames afterward.
H/T to Monty.
