Followers | 129 |
Posts | 4574 |
Boards Moderated | 0 |
Alias Born | 07/09/2011 |
Monday, January 12, 2015 1:37:59 AM
By Ben Klayman
Related Stories
DETROIT (Reuters) - General Motors Co on Monday will unveil its next-generation Chevrolet Volt plug-in hybrid and is expected to restate a commitment to build an affordable long-range electric car, doubling down in a segment with scant sales and even skimpier profits.
Electric cars and plug-ins like the Volt account for less than 1 percent of the global vehicle market, and falling oil prices are widening the cost gap between electrified cars and petroleum-fueled internal combustion engine vehicles.
GM's current Volt has sold well below initial company projections and is a money loser, analysts say. The company doesn't disclose profits by model line. Last year, U.S. sales of the Volt fell almost 19 percent to fewer than 19,000 vehicles.
Fiat Chrysler Automobiles Chief Executive Officer Sergio Marchionne last May asked consumers to steer clear of his company’s Fiat 500e.
"I hope you don't buy it because every time I sell one it costs me $14,000," he said.
Still, GM and its major rivals persist in their efforts because without “zero-emission” vehicles and ultra-high mileage hybrids, they could fall short of meeting government demands to more than double fuel efficiency by 2025. In addition, California has set its own quotas for zero-emission vehicle sales, and China is pushing the industry for more battery-powered vehicles.
“We’re in for the long haul,” GM CEO Mary Barra told reporters last week at the company’s downtown Detroit headquarters. “I’m very excited about the new Volt.”
The new Volt, which will be unveiled ahead of the Detroit auto show this week, will offer customers an electric driving range of 50 miles, up from about 40 in the current model.
Steve Marjoros, director of Chevy car marketing, said GM will spend more to market the new car, which will launch in the second half of the year, and emphasize a fun-to-drive message more.
Barra’s predecessor, Dan Akerson, said in 2013 that he thought GM could cut Volt’s price - currently $34,345 - by up to $10,000 while making the car profitable. GM did not say how much the new Volt will cost.
Forecaster LMC Automotive expects U.S. sales of EVs and plug-in hybrids to almost triple to more than 339,000 in 2020 from last year. But that's still fewer sales - from dozens of competing battery-powered models - than Toyota Motor Corp realizes in a year from sales of its Camry or Ford Motor Co from its F-150 pickup truck.
Barclays only sees the global share of such vehicles hitting about 3 percent by the end of the decade. “The driver at this point would be more regulatory push than consumer pull,” Barclays analyst Brian Johnson said.
GM also plans to offer a new EV called the Chevy Bolt that would include a 200-mile electric driving range, something Akerson said in 2013 might “radically change the calculus” for EVs.
GM will get competition from Tesla Motors Inc, which is building a $5 billion electric battery plant in Nevada to meet what it expects will be heavy demand for its Model S sedan and for its forthcoming Model X SUV and Model 3 sedan that will be sold for about $35,000.German luxury car maker BMW, has spent almost $3 billion to develop its i-Series of electric cars.
The company has hinted at the scope of its plans by getting trademarks to number i9 for the series.
Nissan Motor Co, maker of the all-electric Leaf, is the leading seller of mass-market electric cars, and CEO Carlos Ghosn has stood by his bet on battery-electric vehicles,
even with gas prices falling. The Leaf, however, can travel only 84 miles between charges, according to government ratings. That distance is too short for many U.S. drivers.
Morgan Stanley analyst Adam Jonas doesn’t see EVs becoming anything more than a “rounding error” in the market, especially with low gasoline prices. He sees the vehicles as more goodwill PR than money maker.
“It’s just science lab stuff now,” Jonas said. “It’s not really for immediate commercial benefit.”
He believes that EVs will only succeed as fun-to-drive luxury vehicles, something that bodes well for BMW and Tesla’s higher-end models. More mainstream models like the Volt and Leaf, and even Tesla’s $35,000 car have less potential.
(Additional reporting by Edward Taylor in Munich; Editing by Jeffrey Benkoe)
Recent KNDI News
- Kandi Technologies Group, Inc. Completes Redomicile Merger • GlobeNewswire Inc. • 04/16/2024 01:00:00 PM
- Kandi Technologies Reports 2023 Financial Results • GlobeNewswire Inc. • 03/14/2024 08:05:19 PM
- Kandi Technologies to Report FY 2023 Financial Results on March 14, 2024 and Hold a Conference Call on March 15, 2024 • GlobeNewswire Inc. • 03/11/2024 12:00:00 PM
- Kandi to Showcase Innovations and Network at 2024 PGA Show • Business Wire • 01/18/2024 02:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/29/2023 09:05:23 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/27/2023 01:03:11 PM
- Kandi Technologies Announces Share Buyback of Up to $30 Million • GlobeNewswire Inc. • 11/27/2023 01:00:00 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 11/17/2023 09:05:06 PM
- Kandi’s First 500 Fully Electric Mini Golf Carts to Launch in US Market • GlobeNewswire Inc. • 11/15/2023 01:30:00 PM
- Kandi America Partners with Peavey Mart to Expand Kandi Products into Canada • GlobeNewswire Inc. • 11/13/2023 01:00:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/08/2023 12:30:58 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/08/2023 12:15:08 PM
- Kandi Technologies Reports Third Quarter 2023 Financial Results • GlobeNewswire Inc. • 11/08/2023 12:00:11 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 11/07/2023 09:10:16 PM
- Kandi America Partners with Rural King to Expand U.S. Footprint • Business Wire • 11/06/2023 02:15:00 PM
- Kandi Technologies to Report Third Quarter 2023 Financial Results and Hold a Conference Call on November 8, 2023 • GlobeNewswire Inc. • 11/02/2023 12:00:00 PM
- Kandi America Acquires New Distribution Center to Accommodate Planned Growth • Business Wire • 09/27/2023 01:15:00 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 09/11/2023 09:04:15 PM
- Kandi America Comments Appearance at Mid-States Rendezvous • Business Wire • 09/06/2023 01:00:00 PM
- Kandi Technologies’ Next-Gen All-Electric Crossover Vehicles Enter Mass Production • GlobeNewswire Inc. • 08/22/2023 12:25:00 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/08/2023 11:30:32 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/08/2023 11:15:26 AM
- Kandi Technologies Reports Second Quarter 2023 Financial Results • GlobeNewswire Inc. • 08/08/2023 11:00:46 AM
- Kandi Technologies to Report Second Quarter 2023 Financial Results and Hold a Conference Call on August 8, 2023 • GlobeNewswire Inc. • 08/03/2023 12:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 07/14/2023 01:19:19 AM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM