GM Goes Puke Green
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?
![[del.icio.us]](http://images.del.icio.us/static/img/delicious.small.gif){kind=small}
August 25th, 2009 at 9:03 am
Over the last two years, reports have repeatedly said that there were considerably fewer SUVs on the road and lots more Priuses — so it’s not the math but the logic that’s not holding up. Yes, I did spend more on my hybrid than on a non-hybrid. But when the engine essentially stops when I do, I know I’m not only saving gas but contributing much less in noxious emissions to the atmosphere. And nary a Yugo in sight.
August 25th, 2009 at 11:18 am
I hate those ads. Took me forever to figure out what they were even advertising, and even then it was because someone else blogged about it. The commercial didn’t even interest me enough for me to go look up the product. How is that effective?
There’s no way I’d spend $40,000 on that car, even if I had that much to spend. I think the main selling point of this car is aging-hippie smugness, the ability to feel more “earth-friendly” than your neighbors.
August 25th, 2009 at 1:37 pm
I think that’s been a big problem with the hybrids too. A few years ago I bought an Escape – I really wanted a hybrid, but at $7K+ more, there was no way I could justify it. The people who will pay it are the ones that are the “really earthy crunchy people”. People who would like to be more “green” aren’t going to.
At 40K, I have a hard time believing this will be much of a difference maker…
August 25th, 2009 at 4:05 pm
Well the Priuse is a new car and over the last two years we have had crazy fluctuations in gas pricing. Everything seems to be tied to the gas price. When the gas price is $5 a gallon people start to consider the other options, but when it’s not they quickly forget about it. Same thing happened in the 70′s. If the goal of the Volt is to only tap into the “Whole Foods” segement of people they will do well because 40K is not an issue and they can feel better about their “footprint”. But if the goal is to sell to the average Joe…..ain’t gonna happen. I sure as heck wouldn’t drop 40K on that car, not when I can buy a decent BMW or Benz for that price…I’ll keep my Mini
August 26th, 2009 at 9:29 am
The price factor is only one of three primary reasons for purchasing a “green” vehicle such as the Volt EREV. The other two, which are more “difference makers” IMHO, are as follows; 1) It is much better for the environment/planet and subsequently the health of all people and 2) It reduces the dependency on foreign oil and our need to financially support middle eastern countries.
Like any new technology the price will come down when it reaches the mass market. Early adopters will pay a steeper price for being at the forefront of this new technology (who bought a Blu-Ray DVD player 5 years ago? Anyone?)
August 26th, 2009 at 4:56 pm
RC, I’m personally not a believer in “climate change” so obviuosly I’m not on their hit list. But even still you gotta be pretty dedicated to items #2 and #3 on your list to fork out 40K. Most can’t afford it even though they may like the idea. And do you remember the last time GM put out an electric car?