Price cuts spur sales of electric and hybrid vehicles

Dear Reader,

Video: 2013 Chevy Volt production at Hamtramck plant. 
Read more here>>

It looks like GM’s price incentives on the Chevrolet Volt that we wrote about last month worked! Their June sales made a ferocious comeback, rising to nearly 2,700, more than a thousand cars over May’s sales and their best month of 2013 so far.

Now Ford has announced that they’re cutting the price of the 2014 Focus EV by 10 percent, according to a story earlier this month in the Automotive News. “The new starting MSRP of $35,200 keeps us competitive in the marketplace and is an important part of our commitment to provide customers with a range of electrified vehicles to choose from,” Ford said in a statement.

When you throw in the $7,500 federal tax credit, most buyers will be able to land a 2014 Focus EV for around $28,495. (In California, where most Focus EVs are sold, a $2,500 state tax credit brings the price down to $25,995.)

Ford and Chevy are not alone in bringing down prices for electric vehicles: sales of the Nissan Leaf have grown significantly this year following an 18 percent price cut announced earlier this year.

And these are for vehicle purchases: lease rates make electric vehicles even more attractive for many consumers. The market is responding, too, with U.S. sales of hybrid vehicles up by 12 percent this year,

While some may lament the price cuts as an indicator of failure in the marketplace, don’t forget that competition is generally a good thing and that in this emerging market there will be winners and losers. Companies will not only have to offer the most compelling vehicles, but also the best prices, if their products are going to succeed.

At the Built by Michigan coalition, our role is to help build the overall market so the industry and jobs can grow in our state. But it's up to the manufacturers to create the exciting and cost-competitive cars that consumers ultimately choose to drive.

So if you’ve been waiting for that right vehicle at the right price, now might be a good time to consider a plug-in electric vehicle.

 

 

As always, thanks for all you do,

 

cgCharles Griffith
Climate & Energy Program Director
The Ecology Center 

- See more at: http://www.builtbymichigan.org/newsletter/2013/05/still-time-stop-ev-tax-and-new-report-links-renewable-energy-ev-performance#sthash.8k1oVhnG.dpuf

Thanks for all you do,

cgCharles Griffith
Climate & Energy Program Director
The Ecology Center 

- See more at: http://www.builtbymichigan.org/newsletter/2013/05/still-time-stop-ev-tax-and-new-report-links-renewable-energy-ev-performance#sthash.8k1oVhnG.dpuf

Thanks for all you do,

cgCharles Griffith
Climate & Energy Program Director
The Ecology Center 

- See more at: http://www.builtbymichigan.org/newsletter/2013/05/still-time-stop-ev-tax-and-new-report-links-renewable-energy-ev-performance#sthash.8k1oVhnG.dpuf

 

cgCharles Griffith
Climate & Energy Program Director
The Ecology Center






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