FutureFolly
Well-known member
- Joined
- Feb 27, 2014
- Messages
- 141
The Volt and the Prius had almost the same buzz early in their life. "This is what we'll all be driving before you know it" followed by "the economics of all this technology will never make any sense". Of course, no one understood what they actually represented. The Volt was developed because electrification technology was seen as necessary for GM so they could isolate their products from the extreme volatility in oil prices experienced through out the 2000s. Oil prices haven't been a catastrophic problem they were once feared to be, and battery costs haven't fallen nearly as fast as some speculated they would. On top of the PHEV technology costs, it was also designed with a more premium interior closer to a Buick that raised the entry price out of reach of many would be buyers. To the narrow minded this makes the Volt a failure. Where it has succeeded is creating a viable vehicle with a cost of ownership detached from the price of oil.
Instead of aiming for the moon with the Spark EVs sales goals like GM did with the Volt and Ford with pretty much all their plug-in vehicles, they decided to use the Spark EV almost exclusively as a platform to develop their EV technology. Executives specifically are happy with the amount of time the Spark EV spends on dealer lots and excellent professional reviews. It's pretty clear that without California's mandate GM would still be developing the Spark EV. It probably wouldn't be available to anyone outside of GM, but the same research would still be going on. Instead of designing another halo car like the Volt, GM wanted the economics of Spark EV ownership to be paramount. I see their business model for the Spark EV as trying to make the best appliance car possible.
It clearly is both a compliance car and an appliance car, but how long before the nationwide launch of the Spark EV? Larger question, do you think GM wants the Spark EV to be a real success?
I think GM will launch the Spark EV nationwide at some point before 2020 when they can break even on each sale at about the current price point. I don't think GM has high hopes for the current Spark EV. The next Spark will no doubt have EV consideration built into it from day one that lowers the number of custom parts needed for the lower volume EV model, and if costs drop enough an executive will eventually push for a shift to a nationwide strategy. Also, if it's ever going to sell well it needs a generation or two of investment to feel like a little bit nicer of a car on the inside.
GM executives have done a much better job than Nissan execs of lowering corporate expectations and managing losses from EVs. Clearly with truck sales booming again and the pressure of bankruptcy has easing quite a bit, the financial performance of every business segment isn't such a central focus anymore. Positive media like winning the Car & Driver comparison test gives them a reason to support further investment by reinforcing how well the EV engineers have already done.
Instead of aiming for the moon with the Spark EVs sales goals like GM did with the Volt and Ford with pretty much all their plug-in vehicles, they decided to use the Spark EV almost exclusively as a platform to develop their EV technology. Executives specifically are happy with the amount of time the Spark EV spends on dealer lots and excellent professional reviews. It's pretty clear that without California's mandate GM would still be developing the Spark EV. It probably wouldn't be available to anyone outside of GM, but the same research would still be going on. Instead of designing another halo car like the Volt, GM wanted the economics of Spark EV ownership to be paramount. I see their business model for the Spark EV as trying to make the best appliance car possible.
It clearly is both a compliance car and an appliance car, but how long before the nationwide launch of the Spark EV? Larger question, do you think GM wants the Spark EV to be a real success?
I think GM will launch the Spark EV nationwide at some point before 2020 when they can break even on each sale at about the current price point. I don't think GM has high hopes for the current Spark EV. The next Spark will no doubt have EV consideration built into it from day one that lowers the number of custom parts needed for the lower volume EV model, and if costs drop enough an executive will eventually push for a shift to a nationwide strategy. Also, if it's ever going to sell well it needs a generation or two of investment to feel like a little bit nicer of a car on the inside.
GM executives have done a much better job than Nissan execs of lowering corporate expectations and managing losses from EVs. Clearly with truck sales booming again and the pressure of bankruptcy has easing quite a bit, the financial performance of every business segment isn't such a central focus anymore. Positive media like winning the Car & Driver comparison test gives them a reason to support further investment by reinforcing how well the EV engineers have already done.