I wrote an article a while back about the American Auto Industry and how they are all “going green”, you can check it out here: http://www.brandidentityguru.com/wordpress/2009/06/the-american-auto-industry-still-doesnt-understand-branding/.
GM is coming out with their Volt EREV soon. You’ve all seen the horrible advertising over and over again:
I was reminded by this when my friend Mr. Baskin blogged about it here. He brings up some really great points. But here’s my beef with “going green”…
It’s unaffordable and makes no financial sense. Period.
The cost of this car is $40,000. The car is rumored to get 230 miles a gallon. So what’s the payback period for this car?
Let’s say my current car (a Mini Cooper) gets 30mpg. If I drive 20,000 miles a year at a rate of $2.60/gallon my cost would be $1733 a year in gas.
The same math for the Volt gets me spending only $226 per year for a yearly savings of $1507.
The Volt is $20,000 more than my really sporty, fun, hip Mini. The Volt contains none of those adjectives.
The payback period to ride in this bland car will be 13 years. Please someone correct my math, I really suck at math.
And there’s the rub with all “green” cars. They jack the price up so much that it’s just not worth it. Sure you’ll have your really earthy crunchy people who will buy it but these are the same people that bought the Yugo!
Americans have proven time and time again that small cars that get great gas mileage is a small niche. Ever wonder why there are so many SUV’s?
What say you kahunas? Are you racing out to drop $40K?