Why Honda’s Unloading Electric Cars for Cheap Businessweek

22 мая 2014 | Author: | Комментарии к записи Why Honda’s Unloading Electric Cars for Cheap Businessweek отключены
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Why Honda’s Unloading Electric for Cheap

Photograph by Qilai

A Honda Fit electric vehicle at the auto show

When Motor (HMC ) introduced its Fit EV in July 2012, it set a modest of delivering 1,100 of the lease-only in two years. Yet through May, the had found just 176 takers for the Consumers didn’t leap to pay a month for a subcompact that can go about 82 miles before it recharging, especially when the version gets 30 miles a and costs half as much.

Motors (GM ). maker of the plug-in Volt hybrid, and Nissan (7201:JP ). which makes the Leaf, have also sales fall short of goals.

This is a problem for automakers increasing pressure to push vehicles on skeptical consumers. states, including New York, and New Jersey, have followed lead in requiring that plug-in hybrid, and hydrogen-powered make up 15 percent of new-car and leases by 2025. They’ve got a way to go: About one-third of 1 percent of the new vehicles sold in the first months of 2013 were says the National Automobile Association.

Under a complicated that varies by state, earn “zero emission credits for each electric they sell or lease, and expected to rack up a certain of credits each year. Not all cars are equal: All-electric such as the Fit EV are worth more than plug-in hybrid with gasoline engines the Volt. The number of credits the must earn rises year, and the companies face for falling short. (They can buy from other companies, as electric-only Tesla Motors ). that sell too few cars to be to regulation yet still earn which they are allowed to Tesla made $85 million California and federal credits in the quarter of 2013.)

The Fit EV, along with Ford (F ) all-electric Focus and Toyota (TM ) battery-powered RAV4, are known the industry as “compliance cars,” models manufactured to meet the sales requirements. The Fit EV is on the market in California and the other states electric car quotas. “They are forcing vehicles to be built and to dealers who are forced to sell says Bailey Wood, the association’s legislative director.

BMW 5er Electric Cars

This has left car companies to find ways to make electric offerings more One thing that’s working: the cars at fire sale With a two-year supply of Fit EVs on dealer lots, Honda cut its lease rate in June by one-third, to $259 a month, no down payment and unlimited GM and Nissan are also offering discounted leases on plug-ins.

Demand for the Fit has surged; within Honda went from a stockpile of cars to apologizing to put on a waiting list and promising more Fit EVs are on the way.

The car’s popularity will help meet its quotas, but the low prices may not be Rock-bottom leases likely little to no profit—Honda won’t say it’s losing money on the condition buyers to expect the car to cheap. Requiring minimum of plug-in vehicle sales is a risky strategy,” says Cohen, Honda’s vice for government and industry affairs. The “directs manufacturers to offer technology options along a time frame and with numbers, notwithstanding whether the and market are ready.”

In March the Alliance of Automobile whose members include GM and and the Association of Global Automakers, counts Honda among its filed a petition with the Environmental Protection Agency to California’s sales targets. sales data tell the of what consumers want,” Alliance spokeswoman Gloria “The early adopters purchased plug-in electric but mainstream consumers have not

Yet electric car advocates say the temporarily low will ultimately lead to sales as buyers give the a try, get over their and become converts. “Both a push and market pull are and they need to be in sync,” Roland Hwang of the Natural Defense Council. “We need a long-term, stable signal for to produce electric cars and a growing consumer market.”

BMW Electric Cars
BMW Electric Cars

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