Let the Sparks Fly: Get Ready For The EV Wars
Prepare for a low intensity price war over electric vehicles. GM announced that its all-electric Chevrolet Spark, going on sale next month in California and Oregon, will sell for as low as $19,995 after the full federal tax credit of $7,500. According to the calculations of Reuters, that’s “as much as 38 percent less than what it takes to buy its larger sibling, the hybrid Volt.”
The larger Volt sells for about $32,500 after the tax credit. MSRP of the base Spark will be $27,495, undercutting the Mitsubishi i-MiEV ($29,975) and the Nissan Leaf ($29,650). It is expected that there will be a reaction.
The car can be leased for as low as $199 a month for 36 months with $999 due at signing. California EV owners may also qualify for other state and local tax credits and incentives of up to $2,500, reducing the price to $17,495. EV owners in California are also eligible for carpool lane access with only a solitary driver in the car.
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.
More by Bertel Schmitt
Comments
Join the conversation
I'll consider an EV when they don't either cost 80 grand, or look like something a circus clown should drive.
What about the smart car EV that was supposed to retail for ~$22k? Sure, it doesn't really count as a full car, but IIRC, after fed & state rebates, you could pick one up in CO for just over $10k, and if I was there, I'd buy one.
I doubt if I am close to unique here, but I own 3 vehicles. DD+SUV+Sports. For multiple car owners, range simply isn't an issue. Gotta drive more than a few miles, take one of the ICE vehicles. It seems like there is a convergence between the small EV's and the NEV's. http://en.wikipedia.org/wiki/Neighborhood_Electric_Vehicle. There have to be some economies of scale if EV's become more popular. The spark might look like a clown car compared to a cam/cord, but it's an ultra high performance NEV.
I will be watching this car and any prospective lease deals with anticipation. Currently, the $199/month Nissan Leaf lease means the car will just about break even in terms of ownership costs with my BMW if I was to add the Leaf to my auto fleet and drive it the maximum mileage per year. The spark leasing for $199/month with a smaller down payment means I could lease it, drive it to its maximum annual mileage, and then come out ahead financially than if I'd driven the BMW over that mileage.