Electric cars on sale at area dealerships this month
Starting this month, a lineup of plug-in electric-powered vehicles will go on sale in the U.S. with Vancouver at the forefront of the revolution.
Alan Webb's Nissan dealership at the auto mall off of state route 500 is selling the Leaf, an all-electric mass-produced vehicle with a battery range of up to 90-plus miles. The Chevy Volt, already being produced at General Motors’ Michigan plants, will be on Webb's new lot in December 2011. And sometime next year, he will begin selling Mitsubishi's i-MiEV, which by then will likely be called the "i."
Other car makers are joining the race, as Ford is expected to roll out a plug-in battery-powered commercial van next year. Chinese and South Korean manufacturers are gearing up with projects as well, expected to be on the market in the next two years. Toyota, which introduced its Prius gas-battery hybrid 10 years ago, is back with a plug-in RAV4.
Webb is energized by what he sees as a true "revolution" coming to the auto industry.
"This is a whole new business that's going to transform the car industry," he said. "It is exciting."
Webb’s dealership has already invested $25,000 in new plug-in charging stations at the car lot to accommodate the battery-powered all-electric Leaf.
A recent survey by Market Strategies suggests that at least 13 percent of American consumers see themselves driving an electric vehicle in the next 10 years. Some believe demand might push market penetration to 20 percent by 2020. Others are less optimistic, saying that until consumers are more confident about the battery range issue they will be reluctant to move away from the reliable gasoline engine.
Prices for electric vehicles or EV’s as they are called, range from about $30,000 to $35,000 for the Leaf and the Mitsubishi models, to $41,000 for the Volt. A federal government tax credit of $7,500 lowers those costs. However, buyers may want to invest in a 240-volt home charger, which currently costs more than $2,000.
In any event, consumers will need to do their homework on the new technology and learn the vocabulary. Webb sees Nissan as having a jump on the competition with the Leaf, a four-door sedan that will cost an estimated $1.50 in electricity to fully recharge.
Meanwhile, General Motors is beginning to sell the American-made Chevy Volt this month in certain markets including California. Though the Portland-Vancouver market is “greener than green” in terms of environmental consciousness, Webb doesn’t expect to see the car on his lot for a year.
“We rank as the 25th largest market based on population in the U.S., so it will be here next December. That’s when Mitsubishi will be out with its plug-in EV.
Allen Brooks, a Web based energy industry expert writing at energy-musings.com, cautions that EV sales are not projected to grab huge market share despite the hype from car makers and support from the federal government, which has pumped $2.4 billion in to grant programs to help manufacturers.
Toyota executives also are cautious, noting that the company is selling about 115,000 Prius hybrids a year, which is a small fraction of the light vehicle market. The Wall Street Journal calls electric cars a “multibillion dollar gamble.”
Meanwhile, the region’s power companies are gearing up to address the new electric car demand for electricity.
Mick Shutt, spokesman for Clark Public Utilities in Vancouver, said the electrical power industry will be monitoring electric car sales. He said recharging their batteries will add load [to the power grid] even during off-peak hours.
"Most likely, people will come home from work between 5 and 7 p.m. and plug in their cars. Off-peak doesn't start until 10 p.m.," he said. "They are going to be looking hard at California where the Volt is now being sold to see what happens."
Portland General Electric (PGE) is jumping in to the program in a big way and has already ordered two Leaf vehicles for its fleet. The private power company expects to partner with another company and install 2,000 charging stations around its service area and eventually will bring 1,000 Leafs here.
PGE spokeswoman Elaina Medina said her company isn’t worried about having enough electricity for all these cars. She estimates that 90 percent of battery re-charging will be done at home on chargers either using 120 or 240-volts. Studies, she said, show the existing electric grid in the Northwest could handle the load even if there was a 75 percent adoption rate for the plug-in vehicles throughout the region. However, in the long-term, upgrades to infrastructure may be required in particularly high plug-in vehicle adoption areas.
“Right now, a plug-in recharge is expected to have less impact than running an air conditioner," Medina said.
Market demand and consumer adaptation will soon begin to see if the industry gamble will pay off.
“It's an exciting time for car dealers who have something new to offer,” said Webb. “And it’s exciting for the power companies who want to accommodate the demand.”
Julia Anderson is an award-winning journalist who provides weekly business news commentary on Portland’s KXL-750 AM radio. She writes about women, money, investing and retirement at www.sixtyandsingle.com
