GM's Volt Wants Chinese Government Juice
When GM announced the arrival of the first “driveable Volt” in China, they promised that that their Chinese Volt pricing “will be competitive.” They didn’t say with whom and with what. And they probably had the lavish Chinese incentives in mind. The trouble is, nobody did read the fine print.
In June, China’s Ministry of Finance announced a two-year program for five cities: Shanghai, Hangzhou, Changchun, Shenzhen and Hefei. Under the program, buyers of electric vehicles will receive subsidies of up to CNY60,000 ($8,800) per vehicle, and buyers of selected domestically produced gasoline-electric hybrid automobiles will receive up to CNY50,000 ($7,360) per vehicle. The trouble is: They must be made in China. This wasn’t quite clear when the program was announced in June. But apparently, this is the case.
Months later GM China’s Vice President David Chen now says he hopes the Chinese government will extend electric-car subsidies to imported vehicles.
“China is the only country that has different subsidy policies (for electric vehicles based on origin),” Chen said. “The U.S. government provides $7,500 for every electric car no matter where it comes from.”
GM will start selling the Chevrolet Volt electric car in China in 2011, says the Wall Street Journal.
Currently, foreign companies don’t produce pure electric battery cars or plug-in hybrids in China. China’s BYD makes the plug-in F3DM, but nobody wants it. A generous incentive program in Shenzhen did very little to excite buyers. The new government program also did not result in raids of BYD showrooms. Actually, they are getting emptier. If GM would truly believe that the Volt will be a big success in China, they would make it there and qualify.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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This isn't going to sell without the gov't subsidy. My guess is that it won't be offered until the funding is changed or it won't be offered at all until it becomes cheaper to make.
Buying the car is very simple just wheel in the bills on a hand cart, but where do ve find the plug after the battery is flat? The conspicuous consumption ones really dont care if gas be 20 bucks a small litre they're used to paying that much for Chivas Regal/ Dom Perignon. The also rans that just able to get an EV can be a hard hit, as how do they able to make it viable, so if there is a long line up in the autobahn, will someone comes around in a small genset to feed them juice until they can move. Few days ago I was dieselling up at the pump. saw a Tow truck dropped off a Propane powered van then the driver had to pony a few bucks for the privilege of moving his van out of the harms way. Looky him to have found a tow truck, if stuck in some God forsaken place it could take hours to find Dr Hook. I told the driver of the van , I saw some taxi cab carry a propane tank with the right fitting go to rescue their colleagues. Recent times Cabs had all gone japanese now, the old Police cruiser converted Cabs were all gone. Those big Vee8 did ran on LPG. Now are nothing but Priuses, Corlollas. A fnd did bought an old ex taxi Pruis for real cheap, he fixed the trans and ran very well. mid 50 MPG, is not bad at all. Didn't quite beat my Merc 300sd, although I get 30 mpg, I run used vege oel or ATF as high as 70% mix, so my smileage can easily beat his too.